Freeport-McMoRan Stock Rises on Earnings. Fatal Mine Incident Dents Production.

Seven workers died in a Sept. 8 mud rush at one of the company’s mines in Indonesia’s Grasberg minerals district. (Courtesy of Freeport-McMoRan)

Key Points

• Freeport-McMoRan exceeds third-quarter earnings expectations by posting adjusted profit of 50 cents a share on revenue of $6.97 billion.
• A fatal mud rush in September at an Indonesian mine led to seven deaths and a suspension of operations.
• The company anticipates a 35% decline in 2026 production from its Indonesian subsidiary compared to pre-incident estimates.

Shares of Freeport-McMoRan rose Thursday after the copper and gold miner beat earnings expectations and provided further updates on the fatal mud rush at a mine in Indonesia last month.

The company posted adjusted earnings of 50 cents a share in the third quarter, ahead of the 42 cents Wall Street had expected. Revenue totaled $6.97 billion, up 2.7% from the year prior and above analysts’ estimates of $6.71 billion.

Freeport-McMoRan stock climbed 3.7% in premarket trading Thursday.

It was a trying quarter for the miner despite the strong print. Seven workers died in a Sept. 8 mud rush at one of the company’s mines in Indonesia’s Grasberg minerals district. Freeport-McMoRan suspended operations in the district and is currently completing an investigation into the incident, the company said.

The tragedy happened late enough in the third quarter that it didn’t knock Freeport-McMoRan’s results too far off course. Copper and gold sales came in 1% and 4% below the company’s July guidance, respectively. Growth in average realized copper, gold, and molybdenum prices also helped.

The real impact will come in the next few quarters. Freeport-McMoRan expects production at its Indonesia subsidiary—by far its largest segment—to decline by 35% in 2026 compared to pre-incident estimates. The company also expects “minimal contribution from Indonesia” in the fourth quarter, which will cause sales to decline across metals.

Write to Nate Wolf at nate.wolf@barrons.com