Freeport-McMoRan Gets A Lift As Recovery Prospects Brighten
What's going on here?
Freeport-McMoRan shares jumped after UBS upgraded the mining heavyweight to buy, highlighting fresh confidence in a recovery at its crucial Grasberg mine in Indonesia.
What does this mean?
Earlier this year, Freeport-McMoRan's Grasberg mine in Indonesia was hit by serious damage, forcing the firm to declare force majeure and slash its 2026 copper volume outlook by 35%. The news sent shares tumbling nearly 40% versus its peers, as investors feared a prolonged supply shock. But UBS analysts, along with independent mining hydrologist Dr.
Kym Morton, now believe Grasberg is on track to bounce back, with full output possible by 2027. With that confidence, UBS hiked its 12-month price target to £48, up from £42.50, and moved its rating to buy from neutral. The upbeat outlook helped Freeport shares climb 2% on Friday, closing at £39.66.
Why should I care?
For markets: Confidence creeps back into copper.
Freeport-McMoRan's sharp sell-off reflected deep market concern over a pivotal copper supply disruption.
Now that credible recovery signs are emerging, investors could start reassessing the company's risk profile--especially as copper stays hot, fueled by clean energy and tech trends. Attention will be on upcoming updates from Freeport's management for more proof of progress.
The bigger picture: Copper's comeback has ripple effects.
Copper sits at the heart of modern industry, powering everything from electric cars to renewable energy gear. Supply shocks like Grasberg's don't just jolt miners--they can ripple through global manufacturing and pricing.
Freeport's quicker recovery helps stabilize supply chains and underpin market confidence, illustrating the balancing act miners face between operational risks and meeting global demand.
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