Copper Prices Soar, Boosting Freeport-McMoRan’s Q4 Profits
A Strong Finish to the Year
Freeport-McMoRan, a leading copper miner, surprised investors with a better-than-expected fourth-quarter profit on Thursday. The Phoenix-based company’s strong performance was driven by higher copper prices, which offset a decline in production at its Indonesian operations.
Copper Prices on the Rise
Copper prices surged in the fourth quarter of last year, fueled by signs of increased stimulus in China, dwindling inventories, and accelerated U.S. job growth in September. As a result, Freeport’s quarterly average realized price for copper jumped to $4.15 per pound, a significant increase from $3.81 per pound a year ago.
Production Takes a Hit
Despite the boost from higher prices, Freeport’s quarterly copper production fell about 5% to 1.04 billion recoverable pounds on a year-over-year basis. This decline weighed on overall revenue, but the company remains optimistic about its future prospects.
Forecasting Growth
Freeport-McMoRan expects to sell 4 billion pounds of copper this year, marginally lower than in 2024. The company has also boosted its budget for the year by roughly 5% to $4.4 billion and forecasts an increase for next year as well.
Earnings Beat Expectations
On an adjusted basis, the company earned 31 cents per share in the quarter, surpassing analysts’ average estimate of 20 cents per share. Revenue for the quarter ended Dec. 31 came in at $5.72 billion, slightly missing analysts’ average estimate of $5.88 billion.
Market Reaction
Shares of Freeport-McMoRan were down about 6% in morning trading, likely due to lower copper prices and the production decline. However, the company’s strong earnings and optimistic forecast suggest a promising future ahead.
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