Freeport-McMoRan's Q2 Unit Net Cash Costs Fall to $1.13, but Expect Higher Costs in Q3

Freeport-McMoRan's (FCX) unit net cash costs fell to $1.13 per pound in Q2, a significant improvement from $1.73 in the same period last year. The decline was driven by operational efficiencies, higher gold credits, and increased copper sales volumes. However, FCX expects unit net cash costs to rise to $1.59 per pound in Q3, weighed down by lower sales volumes and potential impacts of tariffs.

Freeport-McMoRan Inc. (FCX) reported a significant improvement in its unit net cash costs for the second quarter of 2025, falling to $1.13 per pound, a substantial reduction from the $1.73 recorded in the same period last year. This decline can be attributed to enhanced operational efficiencies, higher gold credits, and increased sales volumes of copper. However, the company expects unit net cash costs to rise to $1.59 per pound in the third quarter, influenced by lower sales volumes and potential impacts from tariffs [1].

The company's second-quarter 2025 results were well-received, with revenue reaching $7.58 billion, up 14.5% year-over-year, and earnings per share (EPS) of $0.54, a 17.4% increase over estimates [3]. The strong performance was driven by robust sales of copper and gold, higher commodity prices, and significant improvements in operational efficiency.

Despite the recent adjustments, BMO Capital maintains a positive outlook on Freeport-McMoRan, citing the company's strong operational performance and attractive valuation. The stock's current valuation at 6 times estimated 2026 EBITDA suggests that investors may find the stock undervalued relative to its fundamentals.

Institutional investors have also shown confidence in Freeport-McMoRan, with Tocqueville Asset Management L.P. increasing its holdings in the company by 0.7% in the first quarter, bringing its total stake to approximately $55.13 million [2]. This investment represents 0.9% of the firm's portfolio, making FCX its 22nd largest position.

References:
[1] https://www.ainvest.com/news/freeport-mcmoran-bmo-long-term-view-lowers-q2-target-slightly-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-tocqueville-asset-management-lp-has-5513-million-stake-in-freeport-mcmoran-inc-nysefcx-2025-08-16/
[3] https://www.aol.com/finance/freeport-mcmoran-revenue-jumps-15-165630868.html