Freeport-McMoRan beats its third-quarter profit expectations on the back of higher copper prices

The Freeport-McMoRan miner reported on Tuesday a profit for the third quarter that exceeded analysts' expectations as higher copper prices offset a decline in production.

Copper prices increased in the third quarter, mainly due to signs of improved demand from China's top consumer. There were also falling inventories in China and the country had introduced a wide range of stimulus measures in order to revive its faltering economy.

Freeport's average quarterly realized price of copper was $4.30 a pound. This compares to $3.80 a pound one year ago.

Copper production fell from 1,09 billion pounds to just 1.05 billion pounds.

Two sources familiar with the situation said that Freeport would delay the sale of refined copper to Indonesia until the second half of 2025 due to a fire in its new smelter.

Freeport Indonesia has halted production of copper cathodes at its Manyar Smelter in East Java Province after an fire broke out at a unit that produced sulphuric acids. The fire was extinguished.

Freeport has also reduced its forecast for capital expenditures in the full year to $4.6 billion, down from $4.7 billion.

According to LSEG, on a adjusted basis, the company made 38 cents per diluted share during the third quarter. This compares with an average analyst estimate per share of 35 cents.

Freeport's share price was up 1.3% to $48.55 at the bell.

(source: Reuters)