Freeport-McMoRan beat Wall Street estimates for third-quarter profit on Tuesday, as higher copper prices offset lower output at its Grasberg complex in Indonesia, which is still recovering from a September 2025 mud rush incident.
Mine supply disruptions and resilient demand in top consumer China lifted average copper prices on the London Metal Exchange by 43% from a year earlier during the quarter, while Freeport’s average realized copper price rose about 40% to $6.54 per pound.
The world’s largest publicly traded copper producer reported a quarterly adjusted profit of 88 cents per share, beating analysts’ average estimate of 81 cents, according to data compiled by LSEG.
The beat came despite a 9% drop in copper production from a year earlier to 832-million recoverable pounds, largely due to lower operating rates at Grasberg, one of the world’s largest copper and gold mining complexes.
Majority-owned by the Indonesian government and operated by Freeport, the mine was hit by a massive mud flow in September last year that killed seven workers and halted operations for nearly a month.
The company has been working to repair the site, and expects operations to reach 80% of capacity by mid-2027 and approach full capacity by the end of 2027.
Gold sales were also affected by the timing of shipments and refining in Indonesia, falling 68.7% from a year earlier to 105 000 recoverable ounces.
Higher copper prices, however, helped Freeport report a net income of $1.2-billion for the period, a 74% jump from a year earlier.
Meanwhile, Freeport said it was pursuing growth from existing assets beyond Indonesia.
The company expects to make an investment decision in the fourth quarter on a proposed expansion of its Bagdad mine in Arizona, which could add 200-million to 250-million pounds of annual copper production at an estimated capital cost of $4.5-billion.
