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Freeport's $4.5 Billion Bagdad Expansion to Boost U.S. Production
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Key Takeaways
Freeport's $4.5B Bagdad expansion aims to more than double mining and milling rates.
Annual copper output is expected to top 400M pounds, while molybdenum production to exceed 20M pounds.
Freeport expects 20% lower unit net cash costs through scale, technology and molybdenum by-product credits.
Freeport-McMoRan Inc. (FCX - Free Report) is strengthening its U.S. copper and molybdenum production capabilities with a $4.5 billion expansion and modernization program at its fully-owned Bagdad copper and molybdenum operation in northwest Arizona. The brownfield project aims to more than double the operation's mining and milling rates, supporting long-term growth and cost position.
The expansion is expected to increase annual copper production to more than 400 million pounds, adding approximately 225 million pounds, while molybdenum output is projected to exceed 20 million pounds, representing incremental production of 12 million pounds annually. Upon completion, Bagdad is expected to become the second-largest copper mine in the United States and a leading domestic molybdenum producer.
The project will add a new concentrator with approximately 115,000 metric tons per day of incremental nameplate processing capacity, alongside supporting infrastructure, including a primary crusher, overland conveyor and water and power line. Freeport will also leverage its extensive knowledge, Operational history and modern technologies, building on Bagdad's fully autonomous haulage fleet, completed in 2025.
The expansion is expected to reduce long-term unit net cash costs by approximately 20%, benefiting from economies of scale, technological improvements and molybdenum by-product credits. Construction is expected to take approximately 3.5 years, with initial production targeted for mid-2030.
Capital spending is expected to be spread across 2027-2030, with approximately 20% allocated in 2027 and 30-35% in 2028. The investment strengthens Freeport's long-term growth potential and positions it to capitalize on rising demand for copper and molybdenum.
FCX's shares have gained 45.5% in the past year compared with the industry’s 24.8% growth.
Image Source: Zacks Investment Research
FCX’s Zacks Rank & Other Key Picks
FCX currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 50.4% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.
View the Zacks #1 Rank List
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Freeport's $4.5 Billion Bagdad Expansion to Boost U.S. Production
Key Takeaways
Freeport-McMoRan Inc. (FCX - Free Report) is strengthening its U.S. copper and molybdenum production capabilities with a $4.5 billion expansion and modernization program at its fully-owned Bagdad copper and molybdenum operation in northwest Arizona. The brownfield project aims to more than double the operation's mining and milling rates, supporting long-term growth and cost position.
The expansion is expected to increase annual copper production to more than 400 million pounds, adding approximately 225 million pounds, while molybdenum output is projected to exceed 20 million pounds, representing incremental production of 12 million pounds annually. Upon completion, Bagdad is expected to become the second-largest copper mine in the United States and a leading domestic molybdenum producer.
The project will add a new concentrator with approximately 115,000 metric tons per day of incremental nameplate processing capacity, alongside supporting infrastructure, including a primary crusher, overland conveyor and water and power line. Freeport will also leverage its extensive knowledge, Operational history and modern technologies, building on Bagdad's fully autonomous haulage fleet, completed in 2025.
The expansion is expected to reduce long-term unit net cash costs by approximately 20%, benefiting from economies of scale, technological improvements and molybdenum by-product credits. Construction is expected to take approximately 3.5 years, with initial production targeted for mid-2030.
Capital spending is expected to be spread across 2027-2030, with approximately 20% allocated in 2027 and 30-35% in 2028. The investment strengthens Freeport's long-term growth potential and positions it to capitalize on rising demand for copper and molybdenum.
FCX's shares have gained 45.5% in the past year compared with the industry’s 24.8% growth.
Image Source: Zacks Investment Research
FCX’s Zacks Rank & Other Key Picks
FCX currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
RS and ESI currently sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 50.4% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.