Key Takeaways
- Shares declined approximately 8% during premarket hours Thursday, marking the steepest intraday decline since September 2025.
- First quarter adjusted earnings per share reached $0.57 while revenue hit $6.23B, surpassing Wall Street projections.
- Copper and gold shipments fell short of previous year levels as Grasberg operations remained constrained.
- Annual 2026 copper production target reduced to 3.1B pounds from 3.4B pounds; gold target lowered to 650K ounces from 800K ounces.
- Production revisions trace back to a September 2025 incident at Grasberg that resulted in seven fatalities and operational disruptions.
Freeport-McMoRan (FCX) delivered quarterly results that exceeded Wall Street expectations. Yet shareholders responded with heavy selling.
The mining company’s shares tumbled approximately 8% before regular trading hours Thursday following announcements of substantially reduced production targets for copper and gold through 2026. The decline positioned FCX for its sharpest single-session retreat since September 2025.
The company’s quarterly performance appeared strong on the surface. Adjusted earnings reached 57 cents per share, surpassing analyst consensus of 47 cents. Revenue climbed nearly 9% compared to the previous year, reaching $6.23 billion against expectations of $5.73 billion.
Yet these positive figures failed to offset concerns about underlying operational trends.
Copper shipments totaled 657 million pounds, down from 872 million pounds during the comparable quarter last year. Gold deliveries came in at 121,000 ounces—substantially lower than 2025 levels, though exceeding the company’s early-year guidance of 60,000 ounces. Molybdenum provided a rare positive note, with shipments of 24 million pounds exceeding both prior-year results and internal projections.
The decline in copper and gold volumes stems directly from challenges at Grasberg, the company’s flagship Indonesian mining operation.
Grasberg Challenges Persist
A September 2025 mud rush incident at the facility claimed seven lives and required temporary suspension of operations. Mining activities have continued at diminished capacity since that time, and Thursday’s announcement confirmed that the path to recovery remains longer than previously anticipated.
Freeport revised its full-year 2026 copper production forecast to 3.1 billion pounds, down from the previous target of 3.4 billion pounds. Gold expectations dropped to 650,000 ounces from 800,000. The company linked both reductions to a slower-than-expected ramp-up at Grasberg, noting required “modifications to ore loading infrastructure.”
These adjustments represent significant departures from guidance provided to investors in recent months.
Executive Commentary
CEO Kathleen Quirk addressed the situation in measured terms. She referred to Freeport as “America’s Copper Champion” while highlighting the company’s operational diversity and size. “Freeport’s global team is focused on restoring operations at Grasberg safely and sustainably,” she stated.
The company declined to provide specific timing for when Grasberg would return to full production capacity.
FCX traded down more than 10% during early Thursday sessions, exceeding the initial premarket decline.
