Freeport-McMoRan Updates First-Quarter 2025 Production Outlook
Freeport-McMoRan Inc. (FCX) has released an update regarding its performance for the first quarter of 2025, indicating that its global mining operations closely matched production expectations. However, a portion of the production was deferred to future periods due to the timing of shipments from PT Freeport Indonesia (“PTFI”).
On March 17, 2025, PTFI received regulatory approvals that allowed it to resume concentrate export shipments from Indonesia, which had been temporarily halted since December 2024. The company is also in the process of increasing production at its newly commissioned precious metals refinery (PMR).
Sales Expectations and Cost Outlook
FCX projects that its consolidated copper sales for the first quarter will meet the January 2025 forecast of 850 million pounds. Conversely, its gold sales are expected to be approximately 100,000 ounces less than the January estimate of 225,000 ounces. The company anticipates that the consolidated unit net cash costs for the first quarter will be roughly 5% higher than the January guidance of $2.05 per pound of copper. This increase stems largely from the timing of gold shipments, leading to reduced by-product credits. FCX is currently reviewing its annual consolidated sales guidance as part of its regular quarterly forecasts but does not foresee significant alterations to its 2025 annual outlook.
Copper Price Projections
FCX expects its consolidated average realized copper price for the first quarter to be around $4.40 per pound, surpassing the London Metal Exchange (LME) average quarterly settlement price of $4.24 per pound. This expectation is driven by the fact that approximately one-third of its consolidated sales are linked to U.S. Commodity Exchange Inc. (COMEX) prices.
Over the past year, shares of FCX have declined by 21.8%, compared to a 16.2% decrease in its industry.
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FCX’s Rank & Key Picks
Currently, FCX holds a Zacks Rank #3 (Hold). In contrast, higher-ranked stocks within the basic materials sector include Carpenter Technology Corporation (CRS), CSW Industrials Inc. (CSWI), and Axalta Coating Systems Ltd. (AXTA).
Carpenter Technology boasts a Zacks Rank #2 (Buy). The company has exceeded the Zacks Consensus Estimate in the last four quarters with an average earnings surprise of 15.7%. Moreover, Carpenter’s shares have surged by 169.6% in the previous year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CSW Industrials’ current fiscal-year earnings sits at $8.50. With a Zacks Rank #2, CSWI has outperformed the Zacks Consensus Estimate consistently over the last four quarters, showcasing an average earnings surprise of 10.1%. The company’s shares have increased by 28.4% in the past year.
Axalta Coating Systems, which holds a Zacks Rank #1, has also surpassed the consensus estimate in each of the last four quarters, achieving an average earnings surprise of about 16.3%. Its shares have risen by 1.2% year-over-year.
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Freeport-McMoRan Inc. (FCX): Free Stock Analysis Report
Carpenter Technology Corporation (CRS): Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA): Free Stock Analysis Report
CSW Industrials, Inc. (CSWI): Free Stock Analysis Report
This article first appeared on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
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