The stock of Freeport-McMoRan (FCX) is trending lower after the mining company reported a production decline as part of its second-quarter financial results.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Since announcing its Q2 print at the end of July, FCX stock has declined nearly 10%. Investors didn’t like that the Arizona-based miner announced that its second-quarter copper production dropped 7% from a year earlier to 963 million recoverable pounds.
Despite the production slowdown, the company, which primarily mines for gold and copper, reported financial results that beat Wall Street forecasts. Freeport-McMoRan announced an adjusted profit of $0.54 per share for the three months ended June 30, which topped the analyst consensus of $0.45, according to market data.
Tariff Impacts
Freeport-McMoRan issued its latest print against the backdrop of U.S. President Donald Trump’s threat to impose a 50% tariff on copper imports. The company, which supplies about 70% of U.S. refined copper, is expected to benefit from import duties placed on foreign competitors.
Management said it expects to sell 1.3 billion pounds of copper from its domestic mines in 2025. The miner is also benefiting this year as the price of gold hits successive all-time highs. During its earnings call, Freeport-McMoRan said U.S. tariffs have not had a material impact on its finances to date, but warned of a roughly 5% increase in the cost of U.S. purchases if suppliers pass along tariff expenses.
FCX stock is up 7% on the year.
Is FCX Stock a Buy?
The stock of Freeport-McMoRan has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on eight Buy and six Hold recommendations issued in the last three months. The average FCX price target of $52.04 implies 28.83% upside from current levels.
