FCX's Unit Cash Costs Spike in Q3: Is It Set to Climb Further in Q4?

Freeport-McMoRan Inc. FCX saw an increase in its average unit net cash cost per pound of copper in the third quarter of 2025 to $1.40 from $1.13 in the prior quarter, marking a roughly 24% increase. The increase was fueled by a decline in copper sales volumes. 
 
FCX’s copper sales volumes fell approximately 6% year over year in the third quarter to 977 million pounds. The downside primarily resulted from the temporary suspension of operations since the mud rush incident at the Grasberg Block Cave mine in Indonesia in September 2025. 

Freeport's outlook for the fourth quarter suggests significantly higher costs on a sequential basis. It expects unit net cash costs to rise to $2.47 per pound, while projecting a full-year average of roughly $1.68. Lower expected sales volumes are likely to impact costs in the quarter. Higher costs are likely to weigh on the company's margins.  

Among FCX’s peers, Southern Copper Corporation SCCO reported lower unit costs in the third quarter. Southern Copper’s operating cash cost per pound of copper, net of by-product revenue credits, was $0.42, marking a roughly 45% decline from $0.76 per pound reported in the prior-year quarter. Southern Copper’s operating cash cost per pound of copper also declined roughly 29% year over year in the first nine months of 2025.

BHP Group Limited BHP saw lower unit costs across its copper operations in fiscal 2025. BHP expects the unit cost for Escondida to be in the band of $1.20-$1.50 per pound for fiscal 2026. BHP also expects Copper South Australia’s unit cost to be between $1 and $1.50 per pound. Unit costs at Spence are expected to be between $2.10 and $2.40 per pound for fiscal 2026.

The Zacks Rundown for FCX

Shares of Freeport-McMoRan are up 23.9% in the past six months against the Zacks Mining - Non Ferrous industry’s rise of 39.1%.

From a valuation standpoint, FCX is currently trading at a forward 12-month earnings multiple of 28.09, a 19.6% premium to the industry average of 23.49X. It carries a Value Score of B.

The Zacks Consensus Estimate for FCX’s 2025 and 2026 earnings implies a year-over-year rise of 1.4% and 32.9%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 30 days.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research