Freeport-McMoRan Inc (NYSE:FCX, XETRA:FPMB) shares fell on Thursday after the US copper miner reported quarterly results that beat profit expectations but flagged weaker production and a slower-than-expected recovery at its key Indonesian mine.
The company reported first-quarter adjusted earnings per share of $0.57, above analyst expectations of $0.47, while revenue rose to $6.23 billion compared with estimates of $5.96 billion.
However, investors focused on a sharp decline in production. Copper output fell 24% year-over-year to 662 million pounds in the quarter, while gold production also declined, reflecting disruptions linked to last year’s fatal mudslide at the Grasberg mine in Indonesia.
Freeport said consolidated copper sales totaled 657 million pounds, while gold sales came in at 121,000 ounces. The company also reported molybdenum production of 22 million pounds.
Capital expenditures for fiscal 2026 are expected at $4.3 billion.
The production miss and revised outlook overshadowed the earnings beat, with analysts pointing to ongoing operational challenges at Grasberg as the key driver of sentiment.
“While Freeport reported better than expected Q1 results, the company has encountered unexpected challenges in the restart and ramp of the Grasberg Block Cave,” Jefferies wrote in a note, referring to the mine’s underground expansion project.
The investment bank said Freeport has lowered its full-year copper sales guidance to 3.1 billion pounds from 3.4 billion pounds, while increasing net cash cost guidance to $1.95 per pound from $1.75, citing slower output recovery and higher input costs.
At Grasberg, Freeport now expects production from key panels to operate at around 60% of capacity until infrastructure upgrades are completed.
Production rates previously expected to reach 85% of capacity in the second half of 2026 and full capacity by end-2027 are now forecast at 65% and 80%, respectively, before approaching full output later in the decade.
Jefferies said the weaker guidance is likely to weigh on the stock in the near term, despite stronger-than-expected quarterly earnings, though it added that longer-term production recovery could support the stock once operational issues are resolved.
Freeport shares were last down 8.3% in early trading.