Freeport-McMoRan (FCX) Bank of America Global Metals, Mining and Steel Conference 2026 summary

Copper market outlook and demand drivers

• Copper demand is increasingly driven by electrification, AI data centers, and grid investments, shifting from a China-centric to a more global, secular growth trend.

• Copper's superior conductivity makes it essential for modern infrastructure and technology.

• Supply growth is challenged by technical and non-technical risks, making reliable production profiles difficult to maintain.

• Industry disruptions have increased from 5% to 6-7% of mine supply, with improved labor and community relations but more complex technical challenges.

• Brownfield expansions and technology-driven efficiency are prioritized over greenfield exploration for medium-term growth.

Operational performance and risk management

• Recent disruptions at major mines like Grasberg highlight the importance of proactive risk management and transparent communication.

• Grasberg's ramp-up is underway, with milestones including enhanced material handling systems and a target to reach 60-65% capacity in H2 2024, 80% by mid-2027, and full capacity by end-2027.

• A new MoU with the Indonesian government extends operating rights beyond 2041, enabling longer-term investment planning.

• Most growth is focused on brownfield projects in established jurisdictions, reducing risk and leveraging operational experience.

• Regular quarterly updates will track progress and address challenges as they arise.

Innovation, technology, and cost management

• Novel leach technology aims to recover copper from existing stockpiles, with pilot projects showing promising results and potential to scale to 800 million lbs/year.

• Additives and heat application are being tested to enhance copper recovery rates, with pivotal results expected in late 2024.

• U.S. operations target cost reductions from above $3/lb to $2.50/lb through innovation, automation, and increased volumes from leach projects.

• Full automation at some mines and favorable tax/regulatory conditions in the U.S. enhance cash flow potential.

• Technology investments are seen as critical for unlocking additional reserves and improving efficiency industry-wide.