Freeport-McMoRan sees data centers boosting copper demand, beats Q3 results estimates
Freeport-McMoRan said on Tuesday that demand for copper is expected to increase with more data centers being built, and the miner reported a better-than-expected quarterly profit as higher prices of the red metal offset a drop in production.
Average copper prices rose in the third quarter on signs of better demand in top consumer China, falling inventories and as the country unleashed wide-ranging stimulus measures to boost its flagging economy.
Freeport's quarterly average realized price for copper was up 13.2% to $4.30/lb, while the metal's production fell 3.1% to 1.05-billion recoverable pounds in the quarter.
The company said it was seeing robust demand for power cables and building wire associated with electrical infrastructure and data centers in the United States.
"Both the growing sectors more than offset weakness in traditional demand sectors," CEO Kathleen Quirk said on a post-earnings call.
Last week, Freeport halted copper cathode production at its Manyar smelter in Indonesia after a fire at a sulphuric acid unit at the site in East Java province, which was later extinguished.
Reuters reported last week that Freeport will postpone sales of refined copper from Indonesia until the second quarter of 2025 as the fire caused a further production delay, according to two sources with knowledge of the matter.
The company said on Tuesday that it expects repair costs for the Manyar smelter to be covered by insurance.
On an adjusted basis, Freeport earned 38 cents per share in the third quarter, compared with the average analyst estimate of 35 cents per share, according to data compiled by LSEG.
The company's shares were up 1.1% at $48.45.
Comments
Research Reports
Latest Multimedia
Showroom
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
BOVA cemented their reputation in Africa by delivering high quality engineering through their range of safety footwear. 21 years after producing...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
