Freeport-McMoRan Inc.

Freeport did not state consolidated quarterly revenue or EPS in the prepared remarks, but management said second-quarter copper sales and unit cash costs were better than forecast, and that favorable metal prices helped generate significant margins, cash flows and earnings. For the first half of 2026, U.S. mining operations contributed 2.4x more operating income than in the prior-year first half, and consolidated net income increased 65% versus the prior-year first half. LME copper averaged $5.93 per pound year to date through June and closed at $6.30 per pound, about 12% higher since the start of the year. Full-year 2026 average unit net cash cost is expected to be about $1.90 per pound versus the prior $1.95 estimate. 2026 copper sales are expected to step up in the second half, with second-half copper sales over 20% higher than the first half and gold sales more than 65% higher; 2027 copper sales are expected to rise more than 20% versus 2026 and gold more than 50%. 2027 capex is estimated at $4.8 billion, about $300 million above April, and discretionary projects are expected to total about $1.9 billion in 2027. Management also modeled annual EBITDA of about $13 billion at $5 copper and $20 billion at $7 copper, with operating cash flow of about $9.5 billion and $15.5 billion, respectively.

Richard Adkerson framed the quarter as simple "progress" and emphasized Freeport’s long-term leverage to copper electrification demand, large-scale long-life assets, and disciplined capital allocation. He highlighted Grasberg’s ramp-up, improving U.S. execution, and the company’s position as a leading copper supplier in a world that is becoming more electrified. His tone was strongly optimistic about Indonesia, calling the extension and ongoing work in Papua important for long-term stakeholder value and future growth.

Maree Robertson focused on volume, cost, and cash generation. She said 2026 average unit net cash cost is now expected to be about $1.90 per pound, better than the April estimate of $1.95, and that 2027 capex is estimated at $4.8 billion, about $300 million above April due to upgraded equipment and revised costs. She also laid out sensitivity: each $0.10 per pound change in copper is worth about $390 million in annual EBITDA in 2027-2028, and each $100 per ounce change in gold is about $105 million. Balance sheet remains solid, with no significant debt maturities in 2026, and the company has distributed $6.3 billion to shareholders since adopting its financial policy in 2021.

Analysts pressed on Baghdad’s higher estimated capex and timing, and management said the increase is partly offset by an improved operating model, more automation, prefab/off-site work, and cost optimization; management still expects a board review and potential final approval in the second half of this year. Questions also focused on Grasberg’s ramp, where management explained that second-half 2026 will include some planned downtime for material-handling upgrades, while 2027 should benefit from completed work and restart of Block 1 South. On the Indonesia license extension, management said the MOU terms were already agreed with the government and that the formal application was submitted in June, with the aim of getting it done this year, though no prescribed timeline exists.