$FCX · FREEPORT-MCMORAN INC
Freeport-McMoRan filed an 8-K announcing its Board approved a $4.5 billion brownfield expansion and modernization of the wholly owned Bagdad copper/molybdenum operation in northwest Arizona. The project is expected to more than double mining and milling rates, lifting long-term copper production to over 400 million pounds per year (incremental ~225M lbs) and molybdenum to over 20 million pounds per year (incremental ~12M lbs). Bagdad would become the second-largest U.S. copper mine behind FCX's Morenci, with a ~20% reduction in long-term unit net cash costs and break-even economics at ~$4.00/lb copper.
- $4.5 billion expansion approved for Bagdad, Arizona copper/molybdenum operation.
- Incremental production of ~225M lbs copper and ~12M lbs molybdenum per year.
- Bagdad becomes second-largest U.S. copper mine, behind FCX's Morenci.
- ~20% reduction in long-term unit net cash costs expected.
- Construction ~3.5 years; initial production targeted mid-2030.
Extended-hours last trade $62.99, +0.62% vs regular close and +0.61% vs price-at-filing, a modestly positive reaction to the growth announcement.
A $4.5 billion organic growth commitment that would make Bagdad the second-largest U.S. copper mine and materially expand FCX's domestic copper and molybdenum output.
The expansion reinforces FCX's U.S. copper growth strategy amid rising demand for copper tied to electrification and grid buildout.
Capital cost estimates are based on current market conditions; ongoing inflationary pressures and cost escalation could affect the $4.5 billion estimate and timeline.