Freeport-McMoRan reported a 24% year-over-year increase in unit cash costs during the third quarter, driven primarily by lower copper production volumes at its North American operations. Management warned that fourth-quarter cash costs are likely to climb even further as temporary mine shutdowns and maintenance activities at key assets weigh on output. The company’s cost per pound metric, which averaged well above its long-term guidance range in Q3, is expected to face additional pressure from higher diesel and labor expenses, potentially eroding margins if metal prices do not rise in tandem.

Jefferies analysts raised their full-year earnings estimate for Freeport, highlighting better-than-expected realized copper and gold prices in the provisional fourth-quarter update. The bank pointed to continued production ramp-up at lower-cost mines in South America and the delayed ramp-up at Grasberg Block Cave as offsetting factors. While Grasberg’s postponement pushed some volumes into next year, improved grade profiles at Cerro Verde and Morenci are forecast to bolster per-share earnings by mid-single digits relative to prior guidance.

Investors remain vigilant after the company faced a class action lawsuit alleging disclosure failures related to a September incident at its Grasberg Block Cave operation, where a ground-fall event trapped seven workers. The litigation covers investors who acquired shares over a 42-month window ending last September. Despite this, Freeport’s shares have retraced losses and outperformed peers over the past quarter. Trading volumes have remained elevated—averaging over 25 million shares daily—while market capitalization holds steady above $75 billion, signaling sustained market confidence in Freeport’s long-term growth thesis.