Freeport-McMoRan Tapped for Copper-Driven Earnings Growth
Freeport-McMoRan Inc. (NYSE:FCX) is navigating a critical period as rising copper prices and higher production intersect with tariff uncertainty, increasing costs, and execution risks.
The company's recent selloff has been seen as an overreaction by Goldman Sachs, which reiterated its Buy rating on September 10 and views the weakness as a buying opportunity.
Copper prices have reached $14,745 per ton, with Shanghai inventories falling to their lowest level since 2023 due to tight markets outside the U.S. and Chinese buying ahead of holidays and refinery maintenance plans.
Freeport-McMoRan Inc.'s substantial earnings leverage to copper means that every $0.10 per pound change in copper prices could affect annual EBITDA by roughly $390 million in 2027 and 2028.