Overview
- Freeport-McMoRan shares sank about 10% Thursday after the miner cut its production targets for the year.
- The company lowered 2026 guidance to 3.1 billion pounds of copper and 650,000 ounces of gold, citing required changes to ore-loading infrastructure at Grasberg.
- Management said wetter ore is clogging material-handling systems at the underground operation, which requires new flow regulators and other fixes to move rock onto automated trains.
- The revised plan points to about 65% of Grasberg’s capacity in the second half of 2026 with full production expected by mid-2027, and the company raised its net unit cash cost outlook to about $1.95 per pound.
- Quarterly results topped forecasts at $0.57 adjusted EPS on $6.23 billion in revenue, and a $700 million insurance recovery tied to Grasberg is set to be collected in the second quarter.