Freeport-McMoRan (NYSE: FCX) produced roughly 830 million pounds of copper in the third quarter of 2026, in line with expectations as its Grasberg operation in Indonesia continues to recover from last year’s mud rush.
Gold production came in at 230,000 ounces, also close to plan. Gold sales were far lighter. A change in the timing of refined gold sales at PT Freeport Indonesia pushed about 60,000 ounces into the fourth quarter, leaving third quarter gold sales at 100,000 ounces, below the company’s July estimate.
Copper sales are expected to land near the July estimate of 750 million pounds, at an average realized price above US$6.50 per pound.
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The gold deferral flowed through to costs. Unit net cash costs are now expected to run about 5% above the July estimate of US$2.00 per pound of copper, largely because of lower by-product credits.
Performance across the portfolio was uneven. International operations slightly outperformed, offsetting softer U.S. output that the company attributed to localized flooding, power outages and strong winds. In Indonesia, unusually dry weather helped mining but created challenges in the milling process, which Freeport said have had limited impact so far.
At Grasberg, mill throughput averaged approximately 140,000 tonnes of ore per day during the quarter, about 67% of normalized rates before the September 2025 incident. Around 70,000 tonnes per day came from the Grasberg Block Cave.
Upgrades to the material handling system on the block cave’s haulage level are expected to be finished by early 2027, with production from Production Block 1S targeted to restart by mid-2027. The company still expects Grasberg to reach 80% of capacity in mid-2027 and approach full capacity by the end of that year.
PTFI’s smelter, idled after the incident, restarted in late August and is ramping up as planned. Combined with PT Smelting, PTFI can produce up to approximately 800,000 tonnes of copper cathode a year.
Freeport also expects to reach an investment decision by year-end on doubling capacity at its Bagdad operation in Arizona.
Third quarter financial results are scheduled for release on October 27.
Freeport last traded at $69.28 on the NYSE.
