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Can Freeport-McMoRan's Project Pipeline Power the Next Growth Wave?

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Key Takeaways

  • FCX is advancing expansion projects in Chile, Arizona and Indonesia to boost copper capacity and output.
  • Freeport's organic growth pipeline positions itself well to benefit from future demand growth.
  • Estimates for 2025 and 2026 for FCX point to 4.7% and 48.1% growth, trending higher over the past 60 days.

Freeport-McMoRan Inc. (FCX - Free Report) remains focused on strong execution while progressing its organic growth initiatives. Its expansion projects are geared toward increasing production capacity, supported by a robust financial position.

FCX has completed the evaluation of a large-scale expansion at El Abra in Chile to define a large sulfide resource that could potentially support a major mill project similar to the large-scale concentrator at Cerro Verde, with an estimated resource of approximately 20 billion recoverable pounds of copper.  

FCX is also conducting pre-feasibility studies (expected to be completed in 2026) in the Safford/Lone Star operations in Arizona to define a significant sulfide expansion opportunity. It also has expansion opportunities at Bagdad in Arizona to more than double the concentrator capacity of the operation.  

Also, PT Freeport Indonesia (PT-FI) substantially completed the construction of the new greenfield smelter in Eastern Java during 2024, with the start-up of operations having commenced in the second quarter of 2025. The first production of copper anode was achieved in July 2025. PT-FI is also developing the Kucing Liar ore body within the Grasberg district with a targeted ramp-up to commence before 2030. Gold production also started at the new precious metals refinery in late 2024.  Plans are in place to transition PT-FI’s existing energy source from coal to natural gas, which is expected to significantly reduce greenhouse gas emissions at Grasberg.

FCX’s organic growth pipeline, designed to expand capacity and output, positions itself well to benefit from future demand growth. Effective execution of these projects will strengthen its ability to drive shareholder value.

Among FCX’s peers, Southern Copper Corporation (SCCO - Free Report) has a strong pipeline of world-class copper greenfield projects and various other promising opportunities. Southern Copper’s capital investment program for this decade is more than $15 billion, with the major portion earmarked for Peru. Southern Copper continues to build its presence in Peru as the country is the second-largest producer of copper. 

BHP Group Limited (BHP - Free Report) continues to strengthen its portfolio, focusing on commodities, including copper. BHP continues to reshape its portfolio toward commodities such as copper and potash, allocating nearly 70% of its medium-term capital expenditure to these areas. This strategy positions BHP to benefit from decarbonization, electrification, population growth and rising living standards in emerging markets. BHP’s project pipeline could add 2 Mtpa of attributable copper output by the 2030s.

The Zacks Rundown for FCX

Shares of Freeport-McMoRan have increased 29.9% in the past six months against the Zacks Mining - Non Ferrous industry’s growth of 63.9%.

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From a valuation standpoint, FCX is currently trading at a forward 12-month earnings multiple of 25.32, a modest 1.2% premium to the industry average of 25.02X. It carries a Value Score of B.

Zacks Investment Research Image Source: Zacks Investment Research

The Zacks Consensus Estimate for FCX’s 2025 and 2026 earnings implies a year-over-year rise of 4.7% and 48.1%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

Zacks Investment Research Image Source: Zacks Investment Research

FCX stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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