Freeport-McMoRanNYSE: FCX

Investing in basic materials stocks usually involves predicting an uncertain future. This has been true for the investors of Freeport-McMoRan Inc. NYSE: FCX.

Lately, users of Zacks.com have been focusing on Freeport-McMoRan (FCX). Therefore, it's important to take a look at what the future holds for this stock.

Freeport-McMoRan (NYSE: FCX), a major copper producer, has experienced an 8% drop in its stock over the past month, while the S&P 500 has risen by 1%. This decline is surprising, especially since gold prices have increased by 35% year-on-year to $2,568 per ounce in the third quarter of 2024, and copper prices have also risen by 13% to $4.30 per ounce.

The reasons for investing in the copper mining company rely on the expected demand in the long run and its capacity to increase production.

Leaching production improved efficiency but resulted in reduced copper output. In the US, milling inefficiencies were balanced by high-capacity operations in South America and cost-effective mining in Indonesia. Management's guidance reduced the company's sensitivity to changes in copper, gold, and energy prices, which affected its valuation, but prices between $44.15 and $48.82 are still considered a good trading range.

Freeport-McMoRan's stock price and trading activity were unaffected by the latest earnings report. Although there is some advancement in expansion projects and cost management, investors seem to overlook these developments. Since the production forecast hasn't changed, copper prices will be the main focus for FCX shareholders.

Freeport-McMoRan Inc. (NYSE:FCX) will hold its Q3 2024 Earnings Conference Call on October 22, 2024, at 10:00 AM ET. The call will feature company leaders, including David Joint, Richard Adkerson, Kathleen Quirk, Maree Robertson, and Josh Olmsted. Various analysts from firms like Jefferies, Deutsche Bank, and JP Morgan will also participate in the call.

In the third quarter, FCX's revenue increased due to higher prices for copper and gold, even though the amount of copper sold was lower.

FCX is likely to benefit from increased copper prices and better sales volumes in the third quarter.