Freeport-McMoRan Inc.
Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. The company was incorporated in 1987 and is headquartered in Phoenix, Arizona.
What does it do?
Freeport-McMoRan is one of the world's largest copper mining companies. Think of them as the people who dig copper out of the ground and sell it to manufacturers who turn it into wires, pipes, and electronics. They operate massive mines across the US, Peru, Chile, and Indonesia — their Grasberg mine in Indonesia is one of the single largest copper and gold deposits on the planet. Every time you plug something into a wall, there's a decent chance the copper in that wire passed through a company like Freeport.
Copper is often called 'Dr. Copper' because its demand tracks the health of the global economy — when factories and construction boom, copper prices rise. Right now, copper is at the center of two massive trends: the global push to build out electric vehicles and renewable energy, both of which use far more copper than traditional technology. Freeport is one of the few companies large enough to actually move the needle on global supply, making it a go-to bet for investors who want exposure to these trends.
How does it make money?
Freeport makes money by mining copper, gold, and other metals, then selling them to industrial buyers at market prices. In their latest year, they generated $25.9 billion in revenue, up slightly from $25.5 billion the prior year. Copper is by far their biggest earner, typically making up around 75-80% of total sales — gold from Grasberg is their second-largest contributor and acts as a nice bonus when gold prices are high. Their profit depends heavily on the market price of copper: when copper is expensive, margins are fat; when it drops, so does their bottom line.
Why do investors care?
The core growth story is simple: the world needs a lot more copper than it currently produces. Electric vehicles use roughly three to four times more copper than a gas car, and building out wind and solar energy infrastructure is similarly copper-intensive. Analysts widely expect a structural copper supply deficit — meaning demand will outpace supply — over the next decade, which would push prices higher and directly benefit Freeport's earnings. For this thesis to pay off, copper prices need to stay elevated, their mines need to keep producing without major disruptions, and new supply from rivals can't flood the market too quickly.
Deep Dive
MemberA full investor briefing on Freeport-McMoRan Inc. — history, leadership, risks, and outlook.