Freeport reported strong Q2 2026 results driven by a doubling of the Grasberg Block Cave production rate in June and improved U.S. mining rates. Management reaffirmed a positive long-term outlook with a focus on brownfield growth projects (Baghdad, Elabra, leach) and the formal submission of the Indonesian license extension. Copper market fundamentals remain very supportive with low outside-U.S. inventories. Grasberg Block Cave production doubled from April (34k tpd) to June (69k tpd); H2 2026 guided to 60-65k tpd average due to planned chute gallery maintenance.
Freeport reported strong Q2 2026 results driven by a doubling of the Grasberg Block Cave production rate in June and improved U.S. mining rates. Management reaffirmed a positive long-term outlook with a focus on brownfield growth projects (Baghdad, Elabra, leach) and the formal submission of the Indonesian license extension. Copper market fundamentals remain very supportive with low outside-U.S. inventories. Grasberg Block Cave production doubled from April (34k tpd) to June (69k tpd); H2 2026 guided to 60-65k tpd average due to planned chute gallery maintenance.
Visible copper inventories in China have drawn to multi-year lows and exchange inventories outside the U.S. are exceptionally tight, a backdrop that supports higher global copper prices.
2027 capital expenditures are estimated at $4.8 billion, approximately $300 million above the April estimate, reflecting investments in upgraded mining equipment and revised cost estimates. Discretionary projects include roughly 50% related to the Kitchingley Yard development…
Management conveyed a confident tone driven by strong operational execution across the portfolio, positive copper market fundamentals, and progress on key growth projects, with no notable shift in confidence from prior calls.
Reported gross margin was 31.1%, reinforcing the quarter's better-than-guided profitability.
Management noted that customers report robust copper demand and order books associated with AI data centers and related energy infrastructure, which is more than offsetting weakness in private construction.
Customers report robust demand from AI data centers. Management conveyed a confident tone driven by strong operational execution across the portfolio, positive copper market fundamentals, and progress on key growth projects, with no notable shift in confidence from prior calls.
2027 capital expenditures are estimated at $4.8 billion, approximately $300 million above the April estimate, reflecting investments in upgraded mining equipment and revised cost estimates. Discretionary projects include roughly 50% related to the Kitchingley Yard development and the LNG project at Grasberg, with the balance covering tailings and other infrastructure to support the Bagdad expansio
Management conveyed a confident tone driven by strong operational execution across the portfolio, positive copper market fundamentals, and progress on key growth projects, with no notable shift in confidence from prior calls.
“Visible inventories in China continue to draw to multi-year lows, and exchange inventories located outside of the U.S. are exceptionally tight.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2027 | $4.8B | $4.8B | RAISED |
Visible copper inventories in China have drawn to multi-year lows and exchange inventories outside the U.S. are exceptionally tight, a backdrop that supports higher global copper prices. — Persistent low inventory levels signal a structural supply deficit that benefits all copper producers, especially those with geographically diverse operations and long-life assets.
… demand and order books associated with AI data centers and related energy infrastructure and improved demand from the auto sector, which is more than offsetting weakness in private construction. Recent reports out of China, the world's major consumer of copper, reflect continued strength in copper demand associated with power grid and electrical infrastructure and significant exports of Chinese manufactured copper-containing goods. Visible inventories in China continue to draw to multi-year lows, and exchange inventories located outside of the U.S. are exceptionally tight. As we look forward, it is clear the market will require additional copper supplies to meet growing demand. and at Freeport we have a valuable, geographically diverse portfolio of copper assets and are strategically well situated for the long term with large scale production, long live reserves and resources and a portfolio of low risk brownfield expansion opportunities to serve a growing market. I'm going to move to the operating highlights by geographic region and that's on slide six. Starting with the U.S., we are making important and tangible progress in increasing mining and processing rates. Our …