Freeport-McMoRan (NYSE:FCX) stock traded higher Tuesday after the copper giant reported better-than-expected third-quarter earnings.

The company reported adjusted earnings of 88 cents per share, topping analysts’ consensus estimate of 79 cents. Revenue of $7.546 billion also exceeded expectations of $7.424 billion.

Freeport-McMoRan Chairman Richard Adkerson highlighted mounting pressure on global copper supplies as electrification accelerates. “The world requires a lot more copper and supplies are challenged,” Adkerson said during the earnings call, describing the outlook for multi-year demand growth as a unique opportunity for the company.

Production, Sales and Realized Prices

Freeport produced 832 million pounds of copper, 234,000 ounces of gold and 22 million pounds of molybdenum in the third quarter. Sales totaled 749 million pounds of copper, 105,000 ounces of gold and 22 million pounds of molybdenum.

Copper and gold production met expectations, while copper sales volumes were broadly in line with previous estimates. Copper sales increased in each of the first three quarters of 2026, with the fourth quarter expected to be the strongest. Operating income from U.S. mining operations more than doubled in the third quarter.

Average realized prices were $6.54 per pound for copper, $4,273 per ounce for gold and $32.46 per pound for molybdenum. Average net cash costs were $2.07 per pound of copper.

The ramp-up of mining operations at Grasberg progressed as planned, with significant production growth expected in 2027 and 2028. Operations at PT Freeport Indonesia’s smelter resumed in late August.

Copper and Gold Production Outlook

Freeport expects copper production and sales to increase from about 3 billion pounds in 2026 to 3.7 billion pounds in 2027 and more than 4 billion pounds in 2028, primarily driven by the recovery at Grasberg and improved U.S. production.

The company lowered its 2026 copper sales forecast by about 2% and its 2027 forecast by 2.5%, citing lower production in the U.S. and Chile and updated mine plans. Its 2028 copper outlook and gold and molybdenum forecasts remained unchanged.

For 2026, Freeport expects sales of 649,000 ounces of gold and 93 million pounds of molybdenum. Fourth-quarter sales are projected at 875 million pounds of copper, 300,000 ounces of gold and 22 million pounds of molybdenum.

Copper sales are expected to increase by more than 20% in 2027 and another 10% in 2028, according to company projections. The company sees a path to annual copper production of 4.5 billion to 5 billion pounds around 2030.

Fourth-quarter copper sales are expected to rise 17% from the third quarter, while gold sales are projected to nearly triple. Gold sales volumes are forecast to increase more than 50% in 2027 and another 20% in 2028.

Cash Flow, Capital Spending and Shareholder Returns

Freeport generated $2 billion in operating cash flow in the third quarter, after $400 million in working capital and other uses.

Assuming fourth-quarter prices of $6.50 per pound for copper, $4,000 per ounce for gold and $32 per pound for molybdenum, the company expects full-year operating cash flow of about $8.5 billion, net of $600 million in working capital and other uses.

Capital expenditures totaled $1.2 billion in the third quarter, including $700 million for major mining projects. Freeport reported consolidated debt of $9.4 billion and cash and cash equivalents of $4.3 billion.

During the quarter, the company repurchased 1.4 million shares for $102 million at an average price of $70.75 per share.

Cost Pressures and Spending Plans

Freeport maintained its 2026 net unit cash cost forecast of $1.90 per pound of copper, with byproduct credits helping offset higher expenses.

Rising energy costs, particularly diesel, have added about $500 million in expenses compared with 2025, while sulfuric acid prices have more than doubled. The company’s integrated smelting and leaching operations provide some protection against acid price volatility.

Capital spending is projected at $4.4 billion in 2026 and $5.2 billion in 2027. The 2027 estimate is $400 million higher than the July forecast, primarily because of investments in U.S. mining equipment and inflation.

Discretionary spending is expected to total $1.6 billion in 2026 and $2 billion in 2027, including investments in Kucing Liar, the Grasberg liquefied natural gas project, tailings infrastructure and mining equipment.

FCX Price Action: Freeport-McMoRan shares were up 1.68% at $66.25 at the time of publication on Tuesday, according to market data.