Freeport-McMoRan Stock Plunges 16% on Weak Sales Guidance
Disappointing forecast follows a tragic operational halt at the company's key Grasberg mine in Indonesia, raising production concerns.
Shares of Freeport-McMoRan (FCX), a leading international mining company, plunged 16.4% to $37.94 in recent trading after the company issued disappointing sales guidance for the third quarter. The revised outlook has stoked investor concerns about future revenue and production capacity following a severe operational disruption.
The company's weakened forecast is a direct result of a tragic 'mud rush incident' at its Grasberg Block Cave mine in Indonesia, which forced a temporary suspension of all mining operations. The incident sadly resulted in two fatalities, with five other team members reported missing, prompting a halt to work since September 8. In response to the disruption, the company has from the mine.
Freeport-McMoRan announced it now projects consolidated sales to be approximately 4% lower for copper and 6% lower for gold compared to its previous July 2025 estimates. The Grasberg mine is a critical asset for the company, and the unexpected shutdown is set to have a prolonged impact. not only in the latter half of 2025 but also throughout 2026.
Looking ahead, the path to recovery appears challenging. Preliminary assessments from the company suggest that a return to pre-incident operating rates may not be achievable until 2027. , with some estimating the production shortfall could reduce the global copper supply by as much as 300,000 tonnes in 2026. The stock was among the as investors reacted to the severity of the production issues and the long-term uncertainty facing the mining giant.