Freeport-McMoRan 8-K

Summary

Freeport approved a $4.5B expansion and modernization of its wholly owned Bagdad copper and molybdenum operation in Arizona, an investment equal to ≈1.1x its $4.08B cash balance at 6/30/2026 (Q2 2026 10-Q). The brownfield project is designed to more than double mining and milling rates; Freeport is relying on modern technology, automation and economies of scale to expand U.S. copper and molybdenum production and improve Bagdad’s long-term cost position.

Key Figures

• Project costs are estimated at ≈$4.5B based on current market conditions. Freeport expects to fund approximately 20% in 2027, 30–35% in 2028 and the balance in 2029–2030; capital spending will be incorporated into its updated outlook and classified as discretionary under its financial policy.
• A new concentrator is expected to add approximately 115,000 tons per day of nameplate processing capacity. The project is designed to process a reserve base of 2.6 billion metric tons of ore at a copper-equivalent grade of 0.43%.
• Construction is expected to take approximately 3.5 years, with initial production targeted in mid-2030. The project is expected to support more than 4,000 direct and indirect construction jobs.

Guidance

• Bagdad long-term production target: over 400M lb of copper per year, including approximately 225M lb of incremental production, and over 20M lb of molybdenum per year, including approximately 12M lb incremental production. Freeport also expects an approximately 20% reduction in long-term unit net cash costs.