Freeport-McMoRan (NYSE: FCX) has seen a 12% increase in its stock price over the past month, outperforming the S&P 500, which is up 5%. This rise is attributed to an upsurge in copper prices, driven by global economic recovery and heightened demand in sectors like construction and renewable energy. The company reported a revenue of $5.73 billion for Q1 2025, down from $6.32 billion in the same quarter of the previous year.
Freeport’s net income dropped to $352 million, or $0.24 per share, from $473 million or $0.32 per share year-over-year. The total copper output also fell by 20% to 868 million pounds, primarily due to maintenance at the Grasberg mine in Indonesia. Despite this, the company has reaffirmed its guidance for 2025, projecting copper sales of approximately 4.0 billion pounds and improved net cash costs of $1.50 per pound.
Historically, Freeport’s stock is vulnerable to market downturns, experiencing declines of up to 87% during the 2008 financial crisis and 61% at the onset of the COVID-19 pandemic. Currently, Freeport trades at 33x earnings with an earnings yield of just 3%, raising concerns over its premium valuation amidst slower revenue growth compared to peers.
