Core Viewpoint - The Amplify Lithium & Battery Technology ETF (BATT) has outperformed other ETFs in the lithium and battery sector, driven by a diversified approach that captures broader industrial trends and demand for battery energy storage systems (BESS) [1] Performance Comparison - As of February 13, 2026, BATT has increased by 14.5% year-to-date, outperforming the Global X Lithium & Battery Tech ETF (LIT) which is up 10.94%, and other mining-focused ETFs like iShares Lithium Miners and Producers ETF (ILIT) at 9.7%, Sprott Lithium Miners ETF (LITP) at 4.65%, and Themes Lithium & Battery Metal Miners ETF (LIMI) at 3.77% [1] Reasons for BATT's Outperformance - BATT's total ecosystem approach includes exposure across the battery value chain, from diversified miners to cell manufacturers and grid storage leaders, unlike LIT which is heavily concentrated in lithium mining and refining [1] - Significant weights in copper and nickel have contributed to BATT's performance, with copper prices reaching new highs due to AI-driven grid modernization [1] - The launch of Project Vault, a $12 billion U.S. strategic mineral reserve, has provided a valuation floor for the sector, acting as a buyer of last resort for battery metals [1] - The demand for BESS has surged, driven by the growth of AI data centers, with companies in BATT's portfolio reporting record shipments for stationary storage [1] Key Holdings Contributing to BATT's Performance - BHP Group Ltd. (BHP) - 7.62% weight, benefiting from rising nickel prices and steady copper demand [1] - Contemporary Amperex Technology (CATL) - 5.71% weight, dominating the lithium iron phosphate market for utility-scale storage [1] - Freeport-McMoRan Inc. (FCX) - 5.24% weight, a primary copper producer benefiting from AI-driven grid upgrades [1] - Tesla, Inc. (TSLA) - 4.77% weight, with its Megapack business contributing significantly to margins [1] - BYD Co. Ltd. (BYD) - 4.17% weight, maintaining high margins through vertical integration [1] Key Themes to Watch - The stationary storage market is emerging as a major performance driver, with a shift towards grid-scale batteries providing a growth narrative alongside the competitive EV market [1] - Diversified mining is proving to be a safer investment compared to pure-play lithium, allowing BATT to achieve double-digit gains amid lithium price volatility [1] - The impact of U.S. industrial policy, particularly Project Vault and tax rebate adjustments in China, is front-loading global demand and intensifying the battery arms race [1]

Production and Operations - Freeport-McMoRan's copper production in 2025 was significantly impacted by the September mud rush incident at the Grasberg minerals district, with a phased restart of operations anticipated in Q2 2026[18]. - The company achieved an annual run rate of approximately 240 million pounds of copper by late 2025, with a target of 300 million pounds for 2026[17]. - In 2025, 70% of Freeport-McMoRan's consolidated copper production came from the Morenci mine in the U.S., the Cerro Verde mine in Peru, and the Grasberg minerals district in Indonesia[27]. - The Morenci mine produced 0.7 billion pounds of copper and 7 million pounds of molybdenum in 2025, compared to 0.8 billion pounds of copper and 3 million pounds of molybdenum in 2023[104]. - The Bagdad mine's production totaled 149 million pounds of copper and 11 million pounds of molybdenum in 2025, with a potential to increase copper production by 200 to 250 million pounds per year through expansion[112][113]. - Safford's copper production totaled 287 million pounds in 2025, up from 249 million pounds in 2024 and 245 million pounds in 2023[123]. - Sierrita's copper production reached 184 million pounds and molybdenum production was 17 million pounds in 2025, compared to 165 million pounds and 15 million pounds in 2024[131]. - Miami's copper production remained stable at 9 million pounds in both 2025 and 2024, down from 12 million pounds in 2023[139]. - Chino's copper production increased to 150 million pounds in 2025, up from 133 million pounds in 2024 and 141 million pounds in 2023[147]. - Tyrone's copper production decreased to 32 million pounds in 2025, down from 43 million pounds in 2024 and 51 million pounds in 2023[152]. - Cerro Verde's copper production totaled 0.9 billion pounds in 2025, consistent with 0.9 billion pounds in 2024 and down from 1.0 billion pounds in 2023[176]. - El Abra's copper production was 201 million pounds in 2025, a decrease from 219 million pounds in 2024 and 217 million pounds in 2023[186]. - PTFI's copper cathode production from its refinery reached 42,600 metric tons in 2025[205]. - Underground operations produce approximately 1.7 billion pounds of copper and 1.3 million ounces of gold per year[209]. - Production in 2025 totaled 1.0 billion pounds of copper and 0.9 million ounces of gold, down from 1.8 billion pounds of copper and 1.9 million ounces of gold in 2024[211]. - The decrease in production volumes in 2025 was attributed to the September 2025 mud rush incident[211]. Financial Performance - For 2025, Freeport-McMoRan's consolidated revenues were primarily derived from copper (75%), gold (15%), and molybdenum (8%) sales[37]. - The average LME copper settlement price for 2025 was $4.51 per pound, while the average COMEX price was $4.82 per pound, reflecting a 7% higher price for COMEX compared to LME[19][32]. - PTFI's copper revenues are recorded net of royalties, treatment charges, and export duties prior to the expiration of its export license on September 16, 2025[50]. - Gold produced by PTFI is primarily sold as a component of copper concentrate or in anode slimes, with revenues recorded net of treatment charges, royalties, and export duties[53]. - PTFI is the world's largest producer of molybdenum and molybdenum-based chemicals, with sales primarily priced based on the average published Platts Metals Daily prices[55]. Reserves and Resources - The geographic allocation of Freeport-McMoRan's estimated recoverable proven and probable copper reserves as of December 31, 2025, was 38% in the U.S., 40% in South America, and 22% in Indonesia[22]. - The company is well-positioned for future growth with significant copper reserves and a high-quality portfolio of growth projects to meet increasing market demand[16]. - PTFI's net PP&E and mine development costs totaled $22.2 billion as of December 31, 2025[208]. Environmental and Regulatory Compliance - As of December 31, 2025, PTFI had $2.0 billion recorded for environmental obligations and $3.8 billion for asset retirement obligations[59]. - Environmental capital expenditures totaled $0.5 billion in 2025, with an expected increase to approximately $0.7 billion in 2026[59]. - PTFI completed the Tailings Management Roadmap commitments for the 2018 through 2024 period, with the current phase extending from 2025 through 2030[73]. - PTFI received approval for an addendum to the AMDAL covering activities associated with the conversion of its power plant from coal-fired to liquefied natural gas (LNG)[74]. - PTFI's coal-fired power plant was not within the scope of Indonesia's carbon emissions trading system in 2025, and the company continues to monitor regulations[76]. - The company anticipates dedicating more resources and incurring more costs to comply with future climate change regulatory programs[78]. - The company is subject to extensive health and safety regulations, with potential compliance costs that could significantly impact operating expenses[90]. Expansion and Technological Advancements - The company is advancing potential expansion opportunities at its copper mines in the U.S. and South America, incorporating new technologies and data analytics into its processes[17]. - Estimated incremental project capital costs for the Bagdad expansion are approximately $3.5 billion, requiring an incentive copper price of about $4.00 per pound[113]. - The conversion of Bagdad's haul truck fleet to autonomous haulage was completed in 2025, making it the first major mine in the U.S. to operate a fully autonomous fleet[114]. - PTFI has successfully commissioned three large-scale underground mines in the Grasberg minerals district[209]. - Exploration is ongoing in the Grasberg minerals district to target significant mineralization below the DMLZ underground mine[210]. Production Capacity and Infrastructure - The Morenci operation has a milling design capacity of 132,000 metric tons of ore per day, with a total EW tank house capacity of approximately 900 million pounds of copper per year[103]. - Safford's SX/EW facility has a capacity of approximately 320 million pounds of copper cathode per year[122]. - Sierrita's concentrator has a milling design capacity of 100,000 metric tons of ore per day, producing copper and molybdenum concentrate[130]. - Chino's SX/EW plant has a design capacity of 150 million pounds of copper per year[146]. - Cerro Verde has an annual average permitted milling capacity of 409,500 metric tons of ore per day, with the ability to treat up to 450,450 metric tons of ore per day[174]. - PTFI's smelter has a capacity to process approximately 1.7 million metric tons of copper concentrate per year, with copper anode production totaling 54,100 metric tons in 2025[205]. Future Outlook - Following the September 2025 mud rush incident, PTFI expects to restore approximately 85% of its total production at normal operating rates in the second half of 2026[201]. - Cerro Verde entered into a new power purchase agreement expected to transition to fully renewable energy sources by 2026[178]. - PTFI is preparing an application for a long-term extension of its operating rights expected to be submitted during 2026[197].

Core Viewpoint - Freeport-McMoRan Copper & Gold (FCX.US) is set to experience several key operational milestones in 2026, including the planned resumption of the Grasberg Block Cave (GBC) mine, the release of production guidance for 2026, and adjustments to the Kucing Liar mining project [1]. Recent Events - The Grasberg Block Cave (GBC) mine is scheduled to resume production in April 2026 after being suspended due to a landslide in September 2025, which is expected to lead to a significant increase in copper and gold sales in the second half of 2026 [2]. Performance and Operations - The company indicated that copper and gold sales in 2026 will be more concentrated in the second half of the year, coinciding with the recovery of GBC production. Additionally, the company has set a production target of 2 billion pounds of copper for its U.S. mines by 2030 and a unit net cash cost target of $2.50 per pound for 2027 [3]. Project Progress - The company has raised the production targets for the Kucing Liar mining project, which is expected to commence production in 2030, with projected copper output increasing to 750 million pounds and gold output reaching 735,000 ounces [4].

Core Insights - Freeport-McMoRan Inc. (FCX) reported better-than-expected financial results in Q4, driven by significant increases in copper and gold prices, although lower sales volumes negatively impacted performance [1][4] Sales Performance - Copper sales volumes decreased approximately 29% year-over-year to 709 million pounds, down from 977 million pounds in the previous quarter [1] - Gold sales volumes fell around 77% year-over-year, with only 80,000 ounces sold in Q4 [1] Operational Challenges - The decline in sales volumes was primarily due to the temporary suspension of operations at the Grasberg Block Cave mine in Indonesia following a mud rush incident in September 2025 [2][8] - FCX's outlook for Q1 2026 anticipates minimal contributions from Indonesian operations, projecting copper sales volumes of 640 million pounds, reflecting a 10% sequential and 27% year-over-year decline [3][8] Industry Comparison - Southern Copper Corporation (SCCO) reported a 2.8% increase in copper sales volumes year-over-year, selling 235,591 tons in Q4 [5] - BHP Group Limited (BHP) experienced a 2% year-over-year increase in copper sales, totaling approximately 504.5kt in Q2 of fiscal 2026 [6] Financial Metrics - FCX shares have increased by 55.3% over the past six months, compared to an 81.2% rise in the Zacks Mining - Non Ferrous industry [7] - The company is currently trading at a forward 12-month earnings multiple of 27.13, which is a 6.7% premium to the industry average of 25.43 [10] - The Zacks Consensus Estimate for FCX's earnings in 2026 and 2027 suggests year-over-year increases of 35.6% and 16.3%, respectively, with EPS estimates trending higher over the past 60 days [11]

Investment Strategy - The focus is on creating a stable flow of retirement income through a unique strategy developed by the founder's father, which has proven effective over time [5][6] - The investment approach includes three income portfolios with risk levels ranging from 5% to 12%, and two growth portfolios aimed at capital gains [6][7] - The strategy emphasizes capital preservation, aiming to maintain a majority of funds in dependable stocks with yields of 5% to 7% as retirement approaches [7][11] Portfolio Management - The growth side of the portfolio is gradually reduced over time, with a small percentage retained for potential high returns, exemplified by Tesla's significant growth [8] - In the previous year, the strategy successfully harvested approximately $173,000 in profits from stocks like Nvidia, which were then redeployed into income-generating assets [10] - The approach includes taking profits from high-performing stocks and reallocating them to maintain a balanced income stream [10][19] Market Insights - The energy sector was identified as a major loser in the previous year, but has since rebounded, with stocks like ExxonMobil and Chevron showing significant gains [13][15] - The current market is characterized by high volatility, with the Fed's hawkish statements and upcoming economic data being critical factors to watch [32][34] - Concerns about employment weakening due to AI advancements are noted, with the upcoming employment report expected to be significant for market direction [34] Tax Considerations - Tax loss harvesting is a strategy employed to offset gains with losses, influencing stock movements at the beginning of the year [52][53] - The earnings season has shown a trend where stocks reporting good earnings are still experiencing sell-offs, indicating a cautious market environment [55] Long-term Perspective - Emphasis is placed on maintaining a long-term investment perspective amidst market noise and volatility, with a focus on high-conviction holdings [37][63] - Historical market recoveries are highlighted as a reassurance for investors during downturns, encouraging patience and strategic decision-making [60][62]

Core Viewpoint - Freeport-McMoRan (FCX) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum for the stock [1][2]. Estimate Revisions - Analysts show growing optimism regarding Freeport-McMoRan's earnings prospects, as reflected in the upward trend of estimate revisions, which correlates strongly with stock price movements [2]. - The Zacks Rank system indicates that Freeport-McMoRan has received strong agreement among analysts for upward revisions, resulting in significant improvements in consensus estimates for both the next quarter and the full year [3]. Current-Quarter Estimates - For the current quarter, Freeport-McMoRan is expected to earn $0.49 per share, representing a year-over-year increase of +104.2% [6]. - Over the past 30 days, the Zacks Consensus Estimate for the company has risen by 7.26%, with four estimates moving higher and no negative revisions [6]. Current-Year Estimates - The expected earnings for the full year are $2.40 per share, indicating a change of +35.6% from the previous year [7]. - The consensus estimate has increased by 6.18% due to five upward revisions compared to one negative revision over the past month [8]. Zacks Rank - Freeport-McMoRan currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that may lead to effective investment decisions [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [9]. Bottom Line - Strong estimate revisions have led to a 6.6% increase in Freeport-McMoRan's stock over the past four weeks, suggesting potential for further upside [10].

Company Performance - Freeport-McMoRan (FCX) has gained approximately 24.6% year-to-date, outperforming the Basic Materials sector average gain of about 20.4% [4] - The Zacks Consensus Estimate for FCX's full-year earnings has increased by 24.8% in the past quarter, indicating improved analyst sentiment [4] - FCX currently holds a Zacks Rank of 2 (Buy), suggesting a positive outlook for the stock [3] Industry Comparison - Freeport-McMoRan is part of the Mining - Non Ferrous industry, which has seen an average gain of about 32.6% this year, indicating that FCX is slightly underperforming its industry [6] - Loop Industries, Inc. (LOOP), another stock in the Basic Materials sector, has returned 25% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - The Chemical - Specialty industry, to which Loop Industries belongs, has gained 11.8% this year, ranking 181 among 43 industries [7]

Core Viewpoint - Freeport-McMoRan (FCX) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating potential for significant near-term gains [3][12]. Momentum Style Score Analysis - The Momentum Style Score incorporates price changes and earnings estimate revisions, which are critical for assessing stock performance [3][9]. - FCX's shares have increased by 0.73% over the past week, outperforming the flat performance of the Zacks Mining - Non Ferrous industry [6]. - Over the past month, FCX's price change of 8.35% is significantly better than the industry's 4.92% [6]. Long-Term Performance Metrics - FCX has shown impressive long-term performance, with a 63.1% increase over the past quarter and a 65.39% increase over the last year, compared to the S&P 500's gains of 3.73% and 16.78%, respectively [7]. Trading Volume Insights - The average 20-day trading volume for FCX is 24,103,756 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Estimate Revisions - In the last two months, 7 earnings estimates for FCX have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $1.95 to $2.36 [10]. - For the next fiscal year, 5 estimates have moved upwards with no downward revisions, indicating positive sentiment [10].

Core Viewpoint - The analysis compares Freeport-McMoRan (FCX) and Southern Copper (SCCO) to determine which stock offers better value for investors in the Mining - Non Ferrous sector [1] Group 1: Zacks Rank and Earnings Outlook - FCX has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while SCCO has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for FCX makes it a more attractive option for value investors [7] Group 2: Valuation Metrics - FCX has a forward P/E ratio of 26.91, compared to SCCO's forward P/E of 32.68 [5] - FCX's PEG ratio is 0.74, while SCCO's PEG ratio is 1.71, suggesting FCX may be undervalued relative to its expected earnings growth [5] - FCX's P/B ratio is 2.97, significantly lower than SCCO's P/B of 16.08, indicating a better valuation relative to book value [6] - These metrics contribute to FCX's Value grade of B and SCCO's Value grade of D [6]

Earnings Overview - More than half of the S&P 500 companies have reported Q4 earnings, with 79% of the 293 companies beating expectations [1] - S&P earnings growth is projected to increase by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [1] - Excluding the Magnificent Seven technology stocks, Q4 earnings are expected to rise by +4.6% [1] Economic Indicators - The Q4 employment cost index is expected to rise by 0.8% [2] - December retail sales are anticipated to increase by +0.4% month-over-month [2] - January nonfarm payrolls are expected to rise by +69,000, with the unemployment rate remaining at 4.4% [2] - January average hourly earnings are projected to increase by +0.3% month-over-month and +3.7% year-over-year [2] - Initial weekly unemployment claims are expected to decrease by -7,000 to 224,000 [2] - January CPI is expected to rise by +2.5% year-over-year [2] Market Movements - The S&P 500 Index is up +0.46%, the Dow Jones is up +0.09%, and the Nasdaq 100 is up +0.61% [6] - Overseas markets are also showing positive movements, with the Euro Stoxx 50 up +0.66% and Japan's Nikkei Stock 225 up +3.89% [7] Sector Performance - Chip makers and AI-infrastructure stocks have rebounded, with Nvidia up more than +3% and AMD, Broadcom, and Western Digital up more than +2% [12] - Mining stocks are performing well, with gold prices up more than +1% and silver prices up more than +6% [13] - AppLovin is up more than +13% after positive client performance news [13] - Oracle is up more than +9% following an upgrade to buy from neutral [14] Company-Specific News - Dynatrace reported Q3 revenue of $515.5 million, exceeding consensus estimates, and raised its full-year revenue forecast [15] - Kyndryl Holdings is down more than -54% after reporting lower-than-expected Q3 revenue and cutting its profit estimate [16] - Hims & Hers Health is down more than -23% after halting sales of a new product [17] - Monday.com is down more than -21% after forecasting lower Q4 revenue [17]