Freeport’s Mixed Q1 Performance: Copper Steady but Gold Falls Short

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Rhea-AI Sentiment Rhea-AI Summary Freeport (FCX) has released its first-quarter 2025 operational update, reporting that consolidated production from global mining operations met expectations.

However, PT Freeport Indonesia (PTFI) experienced timing delays in shipments, leading to partial production deferral. After receiving regulatory approvals on March 17, 2025, PTFI resumed concentrate exports from Indonesia, which were temporarily restricted after December 2024. The company expects Q1 2025 consolidated copper sales to align with January guidance of 850 million pounds, while gold sales are projected to be approximately 100,000 ounces below the initial guidance of 225,000 ounces.

Unit net cash costs are estimated about 5% higher than the January guidance of £2.05 per pound of copper, mainly due to lower by-product credits from delayed gold shipments. FCX's consolidated average realized copper price for Q1 2025 is expected to be £4.40 per pound, exceeding the LME average quarterly settlement price of £4.24. Freeport (FCX) ha pubblicato il suo aggiornamento operativo per il primo trimestre del 2025, riportando che la produzione consolidata dalle operazioni minerarie globali ha soddisfatto le aspettative.

Tuttavia, PT Freeport Indonesia (PTFI) ha subito ritardi nei tempi di spedizione, portando a una parziale differimento della produzione. Dopo aver ricevuto le approvazioni normative il 17 marzo 2025, PTFI ha ripreso le esportazioni di concentrato dall'Indonesia, che erano state temporaneamente limitate dopo dicembre 2024. L'azienda prevede che le vendite consolidate di rame per il primo trimestre del 2025 siano in linea con la guida di gennaio di 850 milioni di libbre, mentre le vendite di oro sono stimate essere circa 100.000 once in meno rispetto alla guida iniziale di 225.000 once.

I costi netti unitari in contante sono stimati essere circa 5% superiori rispetto alla guida di gennaio di £2.05 per libbra di rame, principalmente a causa di minori crediti da sottoprodotti a causa dei ritardi nelle spedizioni d'oro. Il prezzo medio realizzato consolidato del rame per il primo trimestre del 2025 ? previsto essere £4.40 per libbra, superando il prezzo medio di liquidazione trimestrale LME di £4.24. Freeport (FCX) ha publicado su actualizaci?n operativa del primer trimestre de 2025, informando que la producci?n consolidada de las operaciones mineras globales cumpli? con las expectativas.

Sin embargo, PT Freeport Indonesia (PTFI) experiment? retrasos en el tiempo de env?o, lo que llev? a un aplazamiento parcial de la producci?n. Despu?s de recibir las aprobaciones regulatorias el 17 de marzo de 2025, PTFI reanud? las exportaciones de concentrado desde Indonesia, que hab?an estado temporalmente restringidas despu?s de diciembre de 2024. La empresa espera que las ventas consolidadas de cobre para el primer trimestre de 2025 se alineen con la gu?a de enero de 850 millones de libras, mientras que se proyecta que las ventas de oro sean aproximadamente 100,000 onzas menos que la gu?a inicial de 225,000 onzas.

Se estima que los costos netos unitarios en efectivo sean aproximadamente 5% m?s altos que la gu?a de enero de £2.05 por libra de cobre, principalmente debido a menores cr?ditos por subproductos de los env?os de oro retrasados. Se espera que el precio promedio realizado consolidado del cobre para el primer trimestre de 2025 sea de £4.40 por libra, superando el precio promedio de liquidaci?n trimestral de LME de £4.24. ???? (FCX)?

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2025?

1?? ?? ?? ?? ?? ??? £4.40 per pound? ????, LME? ?? ?? ?? ??? £4.24? ??? ??? ????. Freeport (FCX) a publi? sa mise ? jour op?rationnelle pour le premier trimestre 2025, rapportant que la production consolid?e des op?rations mini?res mondiales a r?pondu aux attentes. Cependant, PT Freeport Indon?sie (PTFI) a connu des retards dans les exp?ditions, entra?nant un report partiel de la production.

Apr?s avoir re?u les approbations r?glementaires le 17 mars 2025, PTFI a repris les exportations de concentr? depuis l'Indon?sie, qui avaient ?t? temporairement restreintes apr?s d?cembre 2024. L'entreprise s'attend ? ce que les ventes consolid?es de cuivre pour le premier trimestre 2025 soient conformes aux pr?visions de janvier de 850 millions de livres, tandis que les ventes d'or devraient ?tre d'environ 100 000 onces en dessous des pr?visions initiales de 225 000 onces. Les co?ts unitaires nets en esp?ces sont estim?s ? environ 5 % plus ?lev?s que les pr?visions de janvier de 2,05 £ par livre de cuivre, principalement en raison de cr?dits de sous-produits plus faibles dus aux exp?ditions d'or retard?es.

Le prix moyen consolid? r?alis? du cuivre pour le premier trimestre 2025 devrait ?tre de £4,40 par livre, d?passant le prix moyen de r?glement trimestriel de la LME de £4,24. Freeport (FCX) hat sein operatives Update f?r das erste Quartal 2025 ver?ffentlicht und berichtet, dass die konsolidierte Produktion aus globalen Bergbauoperationen den Erwartungen entsprach. Allerdings erlebte PT Freeport Indonesien (PTFI) zeitliche Verz?gerungen bei den Lieferungen, was zu einer teilweisen Produktionsverschiebung f?hrte.

Nach Erhalt der beh?rdlichen Genehmigungen am 17. M?rz 2025 nahm PTFI die Exporte von Konzentraten aus Indonesien wieder auf, die nach Dezember 2024 vor?bergehend eingeschr?nkt waren. Das Unternehmen erwartet, dass die konsolidierten Kupferverk?ufe im ersten Quartal 2025 mit der Januar-Prognose von 850 Millionen Pfund ?bereinstimmen, w?hrend die Goldverk?ufe voraussichtlich etwa 100.000 Unzen unter der urspr?nglichen Prognose von 225.000 Unzen liegen werden.

Die Nettokosten pro Einheit werden voraussichtlich etwa 5% h?her sein als die Januar-Prognose von 2,05 £ pro Pfund Kupfer, haupts?chlich aufgrund niedrigerer Nebenproduktgutschriften durch verz?gerte Goldlieferungen. Der konsolidierte durchschnittliche realisierte Kupferpreis von FCX f?r das erste Quartal 2025 wird voraussichtlich £4,40 pro Pfund betragen und damit den durchschnittlichen viertelj?hrlichen Settlement-Preis der LME von £4,24 ?bersteigen. Positive

Copper sales volume remains in line with guidance at 850 million pounds
Realized copper price of £4.40/lb exceeds LME average of £4.24/lb
PTFI successfully resumed concentrate exports after receiving regulatory approvals

Negative

Gold sales projected 100,000 ounces below guidance
Unit net cash costs 5% higher than initial guidance
Temporary export restrictions in Indonesia affected Q1 shipments

Insights

Freeport's Q1 2025 operational update presents a mixed but largely neutral picture despite some shipment timing challenges. Copper production has met expectations while temporary export restrictions in Indonesia and the ongoing ramp-up of PTFI's new precious metals refinery have affected gold sales, which are tracking 100,000 ounces below the previously guided 225,000 ounces. The timing discrepancy for Indonesian shipments is significant but appears transitional rather than structural.

The resumption of concentrate exports on March 17 following regulatory approval suggests these issues are being resolved. Meanwhile, the 5% increase in unit net cash costs above guidance (£2.05 per pound) warrants attention, as it directly impacts margins, though this increase stems primarily from lower by-product credits due to gold shipment timing rather than operational inefficiency. On the positive side, Freeport's realized copper price of £4.40 per pound represents a substantial premium over the LME quarterly settlement price of £4.24, reflecting advantageous exposure to COMEX pricing for approximately one-third of its sales.

This pricing advantage provides a meaningful buffer against the temporary operational challenges. Most importantly, management maintains that there's no expectation of material changes to 2025 annual guidance, suggesting these Q1 issues represent timing variances rather than fundamental performance concerns. The copper production alignment with expectations and continued progress on infrastructure projects in Indonesia (smelter remediation and PMR ramp-up) indicate operational stability despite the quarter's challenges.

03/31/2025 - 05:01 PM

First-quarter 2025 copper and gold production approximated expectations
Timing of shipments in Indonesia impacted first-quarter 2025 gold sales
No material impact expected on annual consolidated sales guidance
Realized first quarter 2025 prices for copper reflect higher prices on U.S. sales

PHOENIX--(BUSINESS WIRE)-- Freeport (NYSE: FCX) today provided an update on its first-quarter operating results.

First-quarter 2025 consolidated production from FCX's global mining operations approximated expectations. The timing of shipments from PT Freeport Indonesia (PTFI) resulted in the deferral of a portion of its first quarter production to future periods. Following receipt of regulatory approvals on March 17, 2025, PTFI resumed concentrate export shipments from Indonesia which were temporarily restricted after December 2024.

Additionally, PTFI continues to ramp-up production at its newly commissioned precious metals refinery (PMR). FCX currently expects its consolidated copper sales for first-quarter 2025 to be in line with its January 2025 guidance of 850 million pounds and its gold sales for first quarter 2025 to be approximately 100 thousand ounces below its January 2025 guidance of 225 thousand ounces. Consolidated unit net cash costs for first-quarter 2025 are currently estimated to average approximately 5% higher than the January 2025 guidance of £2.05 per pound of copper for the first quarter, principally reflecting the timing of gold shipments resulting in lower by-product credits.

FCX is reviewing its annual consolidated sales guidance in connection with its routine quarterly forecast updates and does not currently expect a material change to its 2025 annual guidance. FCX's consolidated average realized price for copper for first-quarter 2025 is expected to approximate £4.40 per pound, compared with the London Metal Exchange (LME) average quarterly settlement price of £4.24 per pound. FCX expects its average copper selling price to be higher than the LME average because approximately one-third of its consolidated sales are based on U.S.

Commodity Exchange Inc. (COMEX) prices. FCX will release its first-quarter 2025 earnings results before the market opens on Thursday, April 24, 2025, and will hold a conference call to discuss the results at 10:00 a.m. Eastern Time that same day.

FREEPORT: Foremost in Copper FCX is a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum.

FCX is one of the world's largest publicly traded copper producers. FCX's portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits; and significant operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries.

Additional information about FCX is available on FCX's website at fcx.com. Cautionary Statement: This press release contains forward-looking statements in which FCX discusses its potential future performance, operations and projects. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections or expectations relating to production and sales volumes; unit net cash costs; PTFI's remediation, commissioning, and ramp up of its new smelter and full production at the precious metals refinery; export licenses, export duties and export volumes, including PTFI's ability to continue exports of copper concentrate until full ramp-up is achieved at its new smelter in Indonesia; timing of shipments of inventoried production and the impact of copper and gold price changes.

The words "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be," "potential" and any similar expressions are intended to identify those assertions as forward-looking statements. FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, supply of and demand for, and prices of the commodities FCX produces, primarily copper and gold; PTFI's ability to export and sell or inventory copper concentrates through remediation and full ramp-up of its new smelter in Indonesia; changes in export duties; completion of remediation activities and achieving full ramp-up of the new smelter in Indonesia; full production at the PMR; production rates; timing of shipments; and other factors described in more detail under the heading "Risk Factors" in FCX's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S.

Securities and Exchange Commission (SEC). Investors are cautioned that many of the assumptions upon which FCX's forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results.

FCX undertakes no obligation to update any forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes. The operational estimates in this press release are subject to further changes upon completion of FCX's normal quarterly closing process and procedures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250331594244/en/[1]

Financial Contact: David P. Joint

(504) 582-4203 Media Contact: Linda S.

Hayes

(602) 366-7824

Source: Freeport-McMoRan Inc.

FAQ

What is FCX's expected copper sales volume for Q1 2025?

FCX expects consolidated copper sales of 850 million pounds for Q1 2025, in line with January 2025 guidance.

How much did FCX's gold sales guidance decrease for Q1 2025?

Gold sales are expected to be 100,000 ounces below the initial guidance of 225,000 ounces for Q1 2025.

What is FCX's realized copper price for Q1 2025?

FCX expects an average realized copper price of £4.40 per pound, above the LME average of £4.24 per pound.

Why did PT Freeport Indonesia's shipments face delays in Q1 2025?

PTFI's exports were temporarily restricted after December 2024 until receiving regulatory approvals on March 17, 2025.

How much higher are FCX's Q1 2025 unit net cash costs compared to guidance?

Unit net cash costs are estimated 5% higher than the January guidance of £2.05 per pound due to lower by-product credits.

References

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