Freeport-McMoRan (NYSE:FCX) exceeded Wall Street's second-quarter profit expectations, as surging copper prices and better-than-anticipated copper sales more than offset reduced output from its flagship Grasberg mine in Indonesia.

The world's largest publicly traded copper producer posted second-quarter net income of $984 million. Adjusted earnings reached $0.74 per share for the three months ended June 30, surpassing the analyst consensus estimate of $0.59 compiled by LSEG. The adjusted figure excluded charges tied to an idle facility and restoration costs at PT Freeport Indonesia. Shares initially rose 1.4% in premarket trading before falling nearly 3% by mid-afternoon to $63.36.

Freeport realized an average copper price of $6.17 per pound during the quarter, a sharp increase from $4.54 per pound in the same period a year earlier. Supply concerns, resilient demand from China, and geopolitical tensions in the Middle East all contributed to higher prices. The rally also reflects a broader structural tightening of the global copper market, where declining ore grades at aging mines, multi-decade development lead times for new projects, and accelerating consumption tied to electrification — electric vehicles, renewable energy installations, and grid expansion all require significantly more copper per unit of output than conventional infrastructure — have amplified concerns about long-term availability. Elevated gold prices additionally bolstered margins and cash flow.

Copper sales surpassed the company's April guidance, aided by favorable shipment timing and improved operating performance. However, copper production declined 18.2% year over year to 786 million pounds, and gold output fell 39.4% to 192,000 ounces. Total copper sales reached 710 million recoverable pounds, down from one billion recoverable pounds a year earlier, while gold sales dropped 76% to 123,000 ounces.

Grasberg Ramp-Up

Production continues to recover following a flood of approximately 800,000 tonnes of wet material at the Grasberg mine last September, which forced a suspension of operations. Earlier in 2026, PT Freeport Indonesia indicated that recovery at the world's second-largest copper mine and largest gold mine was progressing more slowly than anticipated. Operations are now expected to approach full capacity by the end of 2027.

The complex is currently running at roughly 50% of capacity and is projected to reach 65% later this year. Continued progress on the Grasberg Block Cave underground ramp-up is expected to support ongoing performance improvements. The extended recovery timeline has drawn attention to the concentration risk at Grasberg, which accounts for a significant portion of Freeport's global copper output and is one of the few assets worldwide capable of large-scale, low-cost production.

Freeport has delayed the full restart of Grasberg to early 2028.

2026 Outlook and Analyst Sentiment

Freeport reaffirmed its full-year 2026 outlook, projecting copper sales of 3.1 billion pounds and gold sales of 650,000 ounces. The company anticipates average unit net cash costs of $1.90 per pound of copper and plans capital expenditures of $4.3 billion for the year, including $3 billion allocated to major mining projects.

The results illustrate how elevated copper prices continue to shield miners from operational setbacks. With global supply expected to remain tight and demand underpinned by electrification trends, investors are closely watching Freeport's capacity to restore Grasberg to full production while advancing growth across its broader project portfolio.

Analysts remain broadly positive on the stock. Of 26 firms covering the shares, 21 rate them a buy or strong buy, with a median 12-month price target of $74 — approximately 14% above Wednesday's closing price.

Freeport Reports Second-Quarter and Six-Month 2026 Results