Freeport-McMoRan Issues First-Quarter Operational Update
Freeport-McMoRan Inc. FCX has provided an update on its first-quarter 2025 results, highlighting that its global mining operations approximated production expectations. However, due to the timing of shipments from PT Freeport Indonesia ("PTFI"), a portion of the first-quarter production was deferred to future periods.
Following the receipt of regulatory approvals on March 17, 2025, PTFI was able to resume concentrate export shipments from Indonesia, which had been temporarily restricted since December 2024. In addition, PTFI continues to ramp up production at its newly commissioned precious metals refinery (PMR).
FCX expects its consolidated copper sales for the first quarter to align with its January 2025 forecast of 850 million pounds, while its gold sales are anticipated to be about 100,000 ounces lower than the January forecast of 225,000 ounces.
The company estimates that consolidated unit net cash costs for the first quarter will be approximately 5% higher than the January guidance of £2.05 per pound of copper, mainly due to the timing of gold shipments, which has led to lower by-product credits. FCX is currently reviewing its annual consolidated sales guidance as part of its regular quarterly forecast updates but does not expect any significant changes to its 2025 annual outlook.
FCX expects its consolidated average realized copper price for the first quarter to be around £4.40 per pound, higher than the London Metal Exchange (LME) average quarterly settlement price of £4.24 per pound. The company anticipates its average copper selling price will exceed the LME average, as roughly one-third of its consolidated sales are tied to U.S.
Commodity Exchange Inc. (COMEX) prices.
Shares of FCX have lost 21.8% over the past year compared with a 16.2% decline of its industry.
FCX's Rank & Key Picks
FCX currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, CSW Industrials Inc. CSWI and Axalta Coating Systems Ltd. AXTA
Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 169.6% in the past year.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CSW Industrials' current fiscal-year earnings is pegged at £8.50. CSWI, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 10.1%. The company's shares have rallied 28.4% in the past year.
Axalta Coating Systems, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters.
In this time frame, it has delivered an earnings surprise of roughly 16.3%, on average.
AXTA's shares have gained 1.2% over the past year.
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research