Freeport-McMoRan Lowers Q3 Sales Forecast Amid Indonesian Mine Disruption

Freeport-McMoRan has revised its third-quarter sales projections downward, expecting a 4% decrease in copper sales and a nearly 6% reduction in gold sales compared to previous estimates. This adjustment follows operational disruptions at the Grasberg mine in Indonesia, where a significant inflow of wet material earlier this month led to the deaths of two workers and the temporary halt of mining activities. The company had initially forecasted third-quarter sales of 1 billion pounds of copper and 350,000 ounces of gold. In response to the announcement, Freeport-McMoRan's shares declined by over 13%, closing at $39.31 on Wednesday. Despite this, copper futures rose by 3.8% to $4.82 per pound, driven by expectations of tighter supply. Analysts at Jefferies anticipate that prices could soon exceed $5 per pound.