Freeport Beats Q3 Earnings Despite Higher Costs and Gold Sales Slump

Freeport-McMoRan exceeded analyst expectations in its third-quarter results, reporting revenue of $7.55 billion versus a forecast of $7.4 billion. This represented an 8.2% rise from $6.97 billion a year earlier. Net income came in at $1.17 billion or $0.81 per share, while adjusted earnings reached $1.28 billion or $0.88 per share, beating the $0.82 consensus.

The company encountered sharp cost pressures, with copper unit costs climbing to $2.07 per pound, up 48% from last year. Gold production declined to 234,000 ounces from 287,000, and sales plunged to 105,000 ounces. Elevated realized gold prices of $4,273 per ounce offered partial offset.

Looking ahead, Freeport expects stronger fourth-quarter sales and full-year costs averaging around $1.90 per pound. CEO Kathleen Quirk highlighted Grasberg progress, while analyst Chris Mancini flagged risks from energy and labor inflation amid geopolitical strains.