Freeport-McMoRan (FCX) Stock Forecast & Price Target

Freeport-McMoRan operates a robust portfolio of copper mines, including significant holdings in key operations such as Grasberg, Cerro Verde, and Morenci, positioning the company as one of the world's largest copper producers with a capacity to sell approximately 1.2 million metric tons of copper annually. The company's strong balance sheet and favorable valuation, particularly projected for 2027, coupled with anticipated high leverage to copper and gold prices, enhance the outlook for its stock. Additionally, Freeport’s commitment to reducing greenhouse gas emissions and transitioning to renewable energy sources demonstrates a forward-thinking approach towards sustainability, further solidifying its appeal as a premier investment in the copper sector.

Freeport-McMoRan's copper sales for 2024 reached approximately 1.2 million metric tons, but the outlook for gold production is concerning, with expectations of a decline to around 650,000 ounces by 2029 due to diminishing output from the Grasberg site. Despite an updated 2026 capital expenditure guidance of $4.1 billion coming in lower than previous estimates, production levels are projected to be significantly reduced—35% below prior guidance—impacting the overall valuation negatively. Furthermore, a consensus EBITDA decline of about 20% suggests Freeport will trade at a multiple of 4.9x, indicating challenges compared to both its historical valuation metrics and industry peers.