Copper Uncertainty Sends Freeport Stock Prices Plummeting

Freeport-McMoRan's stock price dropped 6.6% on Thursday, closing at $71.21, as copper prices fell due to surging yields and uncertainty over a proposed tariff on copper imports.

The White House has yet to decide on the tariff, which was set to be phased in from 2027, raising concerns that it could be dropped due to higher manufacturing costs.

This news hit Freeport particularly hard because its US business is expected to benefit significantly from a tariff, with management citing Comex pricing and potential for increased copper production.

Freeport's CFO estimates that each 10-cent-a-pound change in copper prices results in around $390 million of EBITDA annually, using averages from 2027 and 2028. The company is highly leveraged to the copper price, making it vulnerable to fluctuations.