Copper Price Record Sparks 7.4% Surge in Freeport-McMoran Stock

Freeport-McMoran Copper & Gold Inc stock surged 7.4% in morning trading due to a record copper price.

LME three-month copper futures hit an all-time high of $14,694 per ton, surpassing the previous record set just the day before.

The record copper price was driven by speculative buying, critically depleted LME warehouse inventories down roughly 40% since late May, and persistent market expectations that the U.S. will impose tariffs on refined copper imports.

Freeport-McMoran's business model amplifies every copper price move into an outsized stock reaction, with management's sensitivity analysis indicating a $390 million annual EBITDA gain for each 10-cent rise in copper prices.