01—Abstract
Summary
Summary of the 8-K filed October 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Freeport-McMoRan (FCX) issued a third-quarter 2026 operational update on October 2, 2026, furnished under Items 2.02 and 7.01.
Consolidated copper production was about 830 million pounds, in line with expectations, and gold production was about 230 thousand ounces, also in line. However, copper sales are expected to be about 750 million pounds, matching the July estimate, while gold sales are expected to be about 100 thousand ounces, below the July estimate, because roughly 60 thousand ounces of refined gold were deferred into fourth-quarter 2026 due to sales timing at PT Freeport Indonesia (PTFI). Unit net cash costs for the quarter are now expected to be about 5% above the July estimate of $2.00a per pound, mainly because deferred gold sales reduced by-product credits.
Realized copper prices are expected to exceed $6.50b per pound. U.S. operations ran below plan due to localized flooding, power outages and strong winds, while Indonesia faced milling challenges from dry weather that management says have had limited impact so far. The Grasberg Block Cave recovery is progressing: mill throughput averaged about 140,000 metric tons of ore per day, roughly 67% of pre-September 2025 normalized rates.
The PTFI smelter restarted in late August 2026, and management reiterated its targets of 80%c of capacity by mid-2027 and near full capacity by year-end 2027. Management also highlighted growth plans, including a Bagdad expansion decision targeted by year-end 2026 and ongoing regulatory work on the El Abra expansion. Third-quarter 2026 earnings are scheduled for October 27, 2026.
02—Key points
Key Highlights
- Q3 2026 consolidated copper production of ~830 million pounds was in line with expectations; gold production of ~230 thousand ounces approximated expectations.
- Copper sales are expected at ~750 million pounds, in line with the July estimate; gold sales are expected at ~100 thousand ounces, below the July estimate due to ~60 thousand ounces of deferred refined gold moving into Q4 2026.
- Unit net cash costs are expected to be ~5% above the July estimate of $2.00/lb, mainly from lower by-product credits; average realized copper price is expected to exceed $6.50/lb.
- Grasberg Block Cave mill throughput averaged ~140,000 metric tons per day (about 67% of pre-incident normalized rates), including ~70,000 tons per day from the Block Cave.
- PTFI's smelter re-commenced operations in late August 2026, with combined smelting capacity of up to ~800,000 metric tons of cathode per year and a refinery able to process all PTFI gold production.
- Reiterated Grasberg targets: 80% of capacity by mid-2027 and near full capacity by year-end 2027; Production Block 1S restart targeted by mid-2027.
- U.S. operations underperformed plan due to flooding, power outages and wind; Bagdad capacity-doubling investment decision targeted by year-end 2026, and Q3 2026 earnings are due October 27, 2026.
03—Questions
Frequently Asked Questions
Why are gold sales lower than expected even though gold production met expectations?
Timing of gold sales at PT Freeport Indonesia deferred about 60 thousand ounces of refined gold from Q3 2026 into Q4 2026. Production was on plan, but the sales were not completed within the quarter.
Why are unit net cash costs rising above the July estimate?
Costs are now expected to be about 5% above the July estimate of $2.00 per pound of copper, principally because deferred gold sales lowered by-product credits. Unit costs are net of by-product credits, so lower gold sales increase the net cost per pound of copper.
How far along is the Grasberg Block Cave recovery?
Mill throughput in Q3 2026 averaged about 140,000 metric tons per day, roughly 67% of normalized pre-September 2025 rates. Management still expects 80% of capacity in mid-2027 and near full capacity by year-end 2027, with material handling upgrades targeted for completion by early 2027.
Did the U.S. operations or the Indonesian milling process affect results?
Yes. U.S. operating rates were below plan due to localized flooding, power outages and strong winds. In Indonesia, abnormally dry weather has been generally favorable for mining but creates milling challenges, which management says are being actively managed with limited impact to date.
When will FCX report full third-quarter 2026 results and what growth projects are pending?
FCX plans to release Q3 2026 earnings before market open on October 27, 2026, with a conference call at 10:00 a.m. ET. Pending growth items include a decision by year-end 2026 on doubling capacity at the Bagdad operation in Arizona and continued regulatory progress on a potential transformative expansion of the El Abra mine in Chile. These operational figures are preliminary and subject to the normal quarterly closing process.
04—Continue