Freeport-McMoRan (FCX) Stock Forecast & Price Target

Freeport-McMoRan possesses a robust balance sheet, which positions the company favorably for potential upward valuation adjustments as it benefits significantly from copper and gold price fluctuations. The company is one of the world's largest copper producers, with impressive production metrics, including the sale of approximately 1.2 million metric tons of copper and around 900,000 ounces of gold in 2024, along with a healthy reserve life of approximately 25 years for copper. Furthermore, Freeport demonstrates a commitment to sustainability by actively reducing greenhouse gas emissions and transitioning to renewable energy sources, which reinforces its long-term operational viability and attractiveness to environmentally conscious investors.

Freeport-McMoRan faces a challenging outlook due to anticipated production declines, particularly at the Grasberg operation, which is projected to reduce gold volumes from 900,000 ounces in 2024 to approximately 650,000 ounces by 2029. Additionally, while the updated capital expenditure guidance for 2026 was lower than expectations, this reflects deferrals and may not indicate improved operational efficiency or output, further contributing to concerns about future profitability. Furthermore, the company's valuation appears under pressure, with expected consensus EBITDA declining by about 20%, resulting in a lowered EV/EBITDA multiple that suggests a decreasing competitive position relative to North American copper peers.