Overview

• Freeport posted adjusted earnings of $0.54 per share versus a $0.44 estimate and generated $7.58 billion in revenue, topping consensus projections by nearly $500 million.
• The company surpassed its April guidance with production of 963 million pounds of copper and sales of 1.0 billion pounds, plus 317,000 ounces of gold produced and 522,000 ounces sold alongside 22 million pounds of molybdenum.
• Start-up operations began at the new Indonesian copper smelter in May, and the first copper cathode is expected to roll out this month as downstream capacity ramps up.
• Q2 capital expenditures totaled $1.3 billion—$600 million for major mining projects and $300 million for PT Freeport Indonesia’s downstream facilities—with full-year spending projected at $4.9 billion.
• Maintaining full-year sales guidance of 3.95 billion pounds of copper and a unit net cash cost of $1.55 per pound, Freeport warned that the 50% U.S. tariff could increase input costs by roughly 5% and bolster COMEX price premiums.