Freeport-McMoRanNYSE: FCX

Freeport-McMoRan (NYSE: FCX), one of the largest producers of copper, has seen its stock underperform over the last month, falling by 8% compared to the S&P 500 which was up 1%. Does this come as a surprise at a time when gold realizations have gone up 35% year-to-year to $2,568 per ounce in Q3 of 2024, and copper realizations are also up 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.

Freeport-McMoRan is a company that mines copper, which puts it in a good spot to take advantage of the current move towards electrification.

Investors frequently rely on suggestions from Wall Street analysts when deciding whether to Buy, Sell, or Hold a stock. Although news about changes in ratings from these analysts can influence a stock's price, it's worth questioning their true significance.