Freeport-McMoRan's Earnings Rise Amid Rising Costs Threat
Freeport-McMoRan Inc.'s (FCX) earnings rose in the second quarter due to higher metal prices, but the company remains exposed to increasing costs. The unit net cash cost climbed 74% year-over-year to $1.97 per pound due to lower copper volumes.
The company expects a further increase in costs for the third quarter, with unit net cash costs of $2 per pound, and a full-year average of around $1.9 (compared to $1.65 in 2025). This reflects higher energy and consumable costs due to the Middle East conflict and reduced volumes.
FCX's copper sales volumes dropped by approximately 30% year-over-year in the second quarter, primarily due to lower operating rates at the Grasberg Block Cave mine in Indonesia. The company projects a sequential improvement but a 23% year-over-year decline for the third quarter.