Freeport-McMoRan has announced robust quarterly results, driven by rising copper prices and anticipated demand from the growing data center sector. Here are the key highlights:
Quarterly Performance: The company reported an adjusted profit of 38 cents per share, surpassing analyst estimates of 35 cents. This performance comes despite a 3.1% decrease in copper production, which totaled 1.05 billion recoverable pounds.
Copper Prices: Average realized copper prices rose by 13.2% to $4.30 per pound, supported by improving demand in China, decreasing inventories, and stimulus measures aimed at revitalizing the economy.
Sector Demand: Freeport’s CEO, Kathleen Quirk, noted that the demand for power cables and building wire linked to electrical infrastructure and data centers in the U.S. is robust, offsetting weaknesses in traditional demand sectors.
Production Challenges: The company faced production setbacks due to a fire at its Manyar smelter in Indonesia, which led to a halt in copper cathode production. Sales of refined copper from this site are now postponed until the second quarter of 2025. However, Freeport expects that repair costs will be covered by insurance.
Market Reaction: Following the earnings announcement, Freeport’s shares rose by 1.1% to $48.45.