Freeport shares slide as Indonesia mine outage trims copper guidance
Indonesian accident at Grasberg mine leads to revised outlook; copper prices rise as markets react.
WASHINGTON — Shares of Freeport-McMoRan tumbled Wednesday, Sept. 24, 2025, after the Phoenix-based miner said it expects a significant decline in third-quarter copper revenue because of an accident at its Grasberg mine in Indonesia that will keep much of the operation shut into the first half of 2026.
The company said consolidated copper sales are expected to be about 4% lower than its July guidance, while gold sales are expected to be about 6% lower. Freeport shares were down more than 13% at midday, trading at $39.31 a share. Copper futures rose 3.8% to $4.82 per pound at midday, with Jefferies analysts saying they expect prices to climb above $5 per pound imminently.
On Sept. 8, about 800,000 metric tons of wet material entered the Grasberg Block Cave mine, moving rapidly to different levels and killing two workers, whose bodies were located on Saturday. Five other workers remain missing and search efforts are ongoing, the company said.
Freeport said the Big Gossan and Deep MLZ mines, which were unaffected by the flood, could restart operations by the middle of the fourth quarter of this year, with a phased restart of the Grasberg Block Cave mine beginning in the first half of 2026.
Analysts at Jefferies noted that while the disruption is a clear negative for the company and its equity value, a guidance cut had been expected and some of it is already reflected in Freeport’s share price. They added that the production stoppage in Indonesia should push copper prices higher, which would benefit Freeport’s operations in the Americas.
Copper prices had risen to record highs earlier this year, nudging toward $6 per pound in late July before the Trump administration unexpectedly exempted refined copper from a 50% tariff. Copper is central to global energy infrastructure, used in electrical wiring, transmission lines, batteries, and LED lighting. A shift to cleaner energy technology has boosted demand, and analysts say this trend should persist as artificial intelligence and data centers place additional strain on energy grids.