Freeport-McMoRan's Copper Production in Indonesia Declines; Q4 Profit Better Than Expected

According to Webstock Inc., citing foreign media on January 23, copper miner Freeport-McMoRan announced on Thursday that its Q4 production declined and stated that this year's cost increases are expected to exceed projections.

Although the company's quarterly profit exceeded expectations, this was mainly due to higher copper prices in Q4 offsetting the impact of reduced production in Indonesia.

Freeport operates the world's second-largest copper mine, Grasberg, in Indonesia and is constructing a smelter in the country under an operational agreement with Jakarta officials.

The smelter was damaged in a fire last year, and the company has been conducting repairs while negotiating with Indonesia to extend export agreements to temporarily smelt ore elsewhere.

CEO Kathleen Quirk told investors during a conference call: "We have a solid recovery plan, and we are executing it, which will enable us to deliver this project in 2025."

Freeport raised its budget for this year by about 5% to $4.4 billion and predicts next year's budget will also increase, surprising investors. Quirk stated that the company is working to improve efficiency while funding development projects.

Quirk said the company remains optimistic about long-term copper demand and expects a market shortage in the coming years.

In Q4, Freeport's average realized copper price rose 9% to $4.15 per pound, but copper production declined approximately 5% YoY to 1.04 billion pounds. The company expects copper sales in 2025 to reach 4 billion pounds, slightly lower than in 2024.

Quirk noted that all copper produced by Freeport in the US is sold to US customers, so it is not expected to be affected by any potential metal tariffs but is concerned about ripple effects.

Quirk stated: "We want to ensure that any tariffs do not impact global economic growth overall or create inflationary pressure in the US."