Copper Prices Reach All-Time Highs: What Could Trigger a Sudden Drop?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Source: Barron's
- Price Fluctuation: The price of copper experienced a significant spike followed by a sudden drop on Thursday.
- Market Volatility: The day was marked by extreme volatility for the metal, indicating unpredictable market conditions.
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Analyst Views on FCX
Wall Street analysts forecast FCX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FCX is 52.40 USD with a low forecast of 44.00 USD and a high forecast of 68.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 63.630
Low
44.00
Averages
52.40
High
68.00
Current: 63.630
Low
44.00
Averages
52.40
High
68.00
About FCX
Freeport-McMoRan Inc. is an international metals company focused on copper. The Company operates geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. The Company's segments include the Morenci and Cerro Verde copper mines, the Indonesia operations (including the Grasberg minerals district and PT-FI’s downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining. Its operations include North America, South America and Indonesia. In North America, it manages seven copper operations: Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines: Henderson and Climax in Colorado. It also operates a copper smelter in Miami, Arizona. In South America, it manages two copper operations: Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Grasberg minerals district also produces gold and silver.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Freeport-McMoRan: Potential Outlook Following a 70% Recovery
Stock Performance: Freeport-McMoRan's stock experienced a significant drop of approximately 22% following a mudslide at its Grasberg mine in Indonesia, leading to a reassessment of its potential amidst a strong recovery in share prices since then.
Earnings Report: The company reported Q4 and full-year 2025 earnings, with revenues of $5.63 billion, a decline of 1.5% year-over-year, but exceeding estimates. Adjusted earnings per share (EPS) were significantly higher than forecasts, indicating strong operational performance despite production challenges.
Future Projections: Freeport expects to sell 3.4 billion pounds of copper in 2026, slightly less than in 2025, and anticipates a significant increase in sales by 2028, driven by the reopening of the Grasberg mine and stable copper and gold prices.
Market Outlook: Analysts have mixed projections for copper prices, with some indicating potential downward pressure in the near term, while long-term forecasts remain constructive, suggesting a significant gap in operating cash flow based on copper price changes.
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Freeport Signs MoU with Kumul Minerals for Yandera Project Advancement
- Strategic Cooperation Framework: Freeport has signed a Memorandum of Understanding with Kumul Minerals, Papua New Guinea's state-owned mining investment company, to collaboratively advance the 100%-owned Yandera Copper Project, establishing a foundation for information sharing and cooperation that enhances the project's strategic positioning.
- Record Copper Prices: With copper prices hitting new highs due to an unprecedented structural supply deficit driven by the global energy transition, Freeport believes that discussions with potential strategic partners are crucial at this time to advance the project's Definitive Feasibility Study and development.
- Investment Overview: Over $200 million has been invested in the Yandera project since 2005, with a 2017 Pre-Feasibility Study indicating a resource of 727 million tonnes of copper; Freeport asserts that the project's value is significantly undervalued, presenting substantial growth potential.
- Need for Government Support: Advancing the Yandera project requires full support from all levels of the Papua New Guinea government, and Freeport will continue to engage with community leaders and government representatives to ensure the project's successful development.
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