Freeport-McMoRan Delivers Mixed Q3 Results; Shares Drop

Shares of Freeport-McMoRan, Inc. (FCX) declined 1.3% on Thursday after the company delivered mixed results for the third quarter of 2021. Freeport-McMoRan is a mining company that focuses on exploring copper, gold and molybdenum.

The company reported adjusted earnings of $0.89 per share in the third quarter, surpassing the Street estimates of $0.81 per share. Also, the bottom line increased significantly from $0.29 per share in the year-ago quarter. (See Freeport-McMoRan stock chart on TipRanks)

Adjusted revenues jumped 58% to $6.08 billion, lagging analysts’ expectations of $6.18 billion. The company witnessed growth in the sales of gold, copper and molybdenum during the quarter.

The Chairman and CEO of Freeport-McMoRan, Richard C. Adkerson, said, “Our balance sheet is strong and we are prepared to make value enhancing investments in our business while providing shareholders with increasing cash returns consistent with our established financial policy. The outlook for the copper market is extraordinarily positive. As a leader in the global copper industry, Freeport is well positioned for success in generating value for all stakeholders.”

For 2021, the company expects sales volumes to be about 3.8 billion pounds of copper, 1.3 million ounces of gold and 85 million pounds of molybdenum, including 1.025 billion pounds of copper, 375 thousand ounces of gold and 22 million pounds of molybdenum in the fourth quarter of 2021. Capital expenditures are expected to be nearly $2.3 billion.

Following the release, UBS analyst Andreas Bokkenheuser maintained a Hold rating on Freeport-McMoRan and lowered the price target to $37 (downside potential of 3.7%) from $39.

Based on 3 Buys, 4 Holds and 1 Sell rating, the stock has a Hold consensus rating. The average Freeport-McMoRan price target of $40.36 implies 5.1% upside potential from current levels.

FCX scores a 9 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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