Freeport McMoRan shares fall after production miss, Grasberg setback weighs on outlook

The institution reported first-quarter adjusted net per stock of $0.57, supra expert expectations of $0.47, portion gross roseate to $6.23 cardinal compared with estimates of $5.96 billion.

However, investors focused connected a crisp diminution successful production. Copper output fell 24% year-over-year to 662 cardinal pounds successful the quarter, portion golden accumulation besides declined, reflecting disruptions linked to past year’s fatal mudslide astatine the Grasberg excavation successful Indonesia.

Freeport said consolidated copper income totaled 657 cardinal pounds, portion golden income came successful astatine 121,000 ounces. The institution besides reported molybdenum accumulation of 22 cardinal pounds.

Capital expenditures for fiscal 2026 are expected astatine $4.3 billion.

The accumulation miss and revised outlook overshadowed the net beat, with analysts pointing to ongoing operational challenges astatine Grasberg arsenic the cardinal operator of sentiment.

“While Freeport reported amended than expected 1Q results, the institution has encountered unexpected challenges successful the restart and ramp of the Grasberg Block Cave,” Jefferies wrote successful a note, referring to the mine’s underground enlargement project.

The concern slope said Freeport has lowered its full-year copper income guidance to 3.1 cardinal pounds from 3.4 cardinal pounds, portion expanding nett currency outgo guidance to $1.95 per lb from $1.75, citing slower output betterment and higher input costs.

At Grasberg, Freeport present expects accumulation from cardinal panels to run astatine astir 60% of capableness until infrastructure upgrades are completed.

Production rates antecedently expected to scope 85% of capableness successful the 2nd fractional of 2026 and afloat capableness by end-2027 are present forecast astatine 65% and 80%, respectively, earlier approaching afloat output aboriginal successful the decade.

Jefferies said the weaker guidance is apt to measurement connected the banal successful the adjacent term, contempt stronger-than-expected quarterly earnings, though it added that longer-term accumulation betterment could enactment the banal erstwhile operational issues are resolved.

Freeport shares were past down 8.3% successful aboriginal trading.