Freeport-McMoRan plunges after lowering forecast for Q3 copper, gold sales

[Many copper bobbins, warehouse copper pipes.]
SimoneN/iStock via Getty Images

Freeport-McMoRan (NYSE:FCX [https://seekingalpha.com/symbol/FCX]) -8.9% pre-market Wednesday after guiding for Q3 consolidated sales to come in lower [https://seekingalpha.com/pr/20242596-freeport-provides-update-on-pt-freeport-indonesia-operations] by 4% for copper and 6% for gold compared with its July forecast, while updating the status of the previously reported mud rush incident at the Grasberg Block Cave mine in Indonesia, where mining operations have been temporarily suspended since September 8.

The company previously forecast consolidated sales of 1 billion lbs of copper and 350,000 oz of gold for the quarter.

Earlier this month [https://seekingalpha.com/news/4493316-freeport-suspends-grasberg-mining-operations-as-seven-workers-trapped], Freeport-McMoRan (NYSE:FCX [https://seekingalpha.com/symbol/FCX]) stopped mining at Grasberg after a large flow of wet material blocked access to parts of its underground mine, restricting evacuation routes for seven workers; the company located two team members who were killed in the incident, and said it continues to search for five team members who remain missing.

The Grasberg Block Cave ore body represents 50% of Freeport Indonesia's (FCX [https://seekingalpha.com/symbol/FCX]) estimated proven and probable reserves as of year-end 2024 and 70% of previously forecast copper and gold production through 2029.

Freeport (FCX [https://seekingalpha.com/symbol/FCX]) said it does not yet have sufficient information to forecast future production estimates, but preliminary assessments indicate the impacts likely will result in the deferral of significant production in Q4 2025 and full-year 2026 as a phased restart and ramp-up of operations begins, with a return to pre-incident operating rates potentially achieved in 2027.

MORE ON FREEPORT-MCMORAN

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* Freeport-McMoRan: Buying The Dip In America's Copper Behemoth [https://seekingalpha.com/article/4818231-freeport-mcmoran-buying-dip-america-copper-behemoth]
* Freeport-McMoRan: A Large Producer With More Potential Downside [https://seekingalpha.com/article/4810923-freeport-mcmoran-large-producer-more-potential-downside]