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It's Time to Invest in "America's Copper Champion"
FCXFreeport-McMoRan(FCX) The Motley Fool·2025-05-18 12:30

Group 1: Importance of Copper - Copper is essential for the modern economy, playing a critical role in the electrification trend, including electric vehicles, renewable energy, and data centers [2] - The U.S. administration aims to support domestic production of copper, which is beneficial for Freeport-McMoRan [3] Group 2: Freeport-McMoRan's Role - Freeport-McMoRan supplies 70% of domestically sourced copper for U.S. refining, positioning itself as a key player in domestic production [4] - The company is expected to benefit from a premium on U.S. copper prices compared to international prices, potentially leading to an annual financial benefit of approximately 800million[5]Group3:ProductionInitiatives−Freeportplanstosell4billionpoundsofcopperin2025,withaleachinginitiativeexpectedtocontribute200millionpoundsbytheendoftheyear,increasingto800millionpoundsby2030[6][7]−ThecompanyhasbrownfieldexpansionprojectsinArizonathatcouldincreasecopperproductionby2.5billionpoundsovertime,with47800 million [5] Group 3: Production Initiatives - Freeport plans to sell 4 billion pounds of copper in 2025, with a leaching initiative expected to contribute 200 million pounds by the end of the year, increasing to 800 million pounds by 2030 [6][7] - The company has brownfield expansion projects in Arizona that could increase copper production by 2.5 billion pounds over time, with 47% of that from the U.S. [9] Group 4: Financial Outlook - Management estimates 11 billion in EBITDA for 2026/2027 at a copper price of 4perpound,and4 per pound, and 15 billion at 5perpound[12]−CurrentcopperpricessuggestapotentialEBITDAof5 per pound [12] - Current copper prices suggest a potential EBITDA of 13.6 billion, compared to a market capitalization of $56.6 billion, indicating an attractive valuation for the company [13]