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Freeport-McMoRan: Boosting Copper Production and Riding the Electric Vehicle Wave
Freeport-McMoRan, America's leading copper company (FCX), is making significant strides in its operations. As the world's electrification gathers pace, the demand for copper—a key component in electric vehicles (EVs), data centers, and the Internet of Things—is on the rise.
Currently, Freeport-McMoRan produces over 70% of the U.S.'s refined copper, making it a major beneficiary of higher COMEX prices. The premium for copper on COMEX, as of July, was approximately 28% above the LME price, translating to an estimated $1.7 billion annual financial benefit on Freeport's U.S. sales.
The company is not resting on its laurels. Freeport-McMoRan's management has projected that the company would generate $13.1 billion in EBITDA in 2026/2027, based on no COMEX premium. To further boost production, the company is undertaking a leaching initiative to recover 300 million pounds of copper per annum from existing stockpiles by the end of this year, and 800 million pounds by the end of the decade. This project, with low capital investment and operating costs, could potentially boost profit margins.
In addition, Freeport-McMoRan's brownfield expansion projects could expand copper production by 2.5 billion pounds in the future. These projects, however, are not specified in terms of timeline or investment required. If successful, 47% of the increased production would come from the U.S., with 33% in Chile and 23% in Indonesia.
Management estimates that Freeport-McMoRan will sell 4.3 billion pounds of copper in 2027. This forecast is strengthened by booming investment in data centers and ongoing growth in EV and hybrid sales, which are driving an increasing element of underlying growth in copper demand.
However, Freeport-McMoRan's share price has been volatile. In late July, it fell sharply due to the Trump administration's tariff actions. The stock has since recovered. As of September 2025, Kathleen Quirk remains the CEO of Freeport-McMoRan; there is no information indicating she has resigned or been replaced.
It's worth noting that the article does not provide information on how these projects will impact Freeport-McMoRan's position in the global copper market, its environmental footprint or sustainability efforts, or how they will affect the company's share price in the long run.
Despite the challenges, Freeport-McMoRan continues to be a significant player in the copper industry, navigating the electrification of various sectors and the volatile market with resilience and ambition.
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