Despite volatility, higher gold prices drive Freeport Q1 earnings

Kitco Media
By Neils Christensen
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Despite volatility, higher gold prices drive Freeport Q1 earnings teaser image

(Kitco News) - Despite significant volatility in the precious metals market during the first quarter of 2026, the mining sector is starting the earnings season on a positive note, as Freeport (NYSE: FCX) reported better-than-expected income in the first three months of the year.

The major copper and gold producer reported net income attributable to common stock of $881 million, or $0.61 per share, and adjusted net income attributable to common stock of $830 million, or $0.57 per share. According to consensus estimates, analysts were expecting earnings per share of $0.47.

The company said its revenue rose to $6.23 billion, compared with $5.73 billion a year earlier, while operating cash flow increased to $1.5 billion.

The earnings report shows that higher gold prices played a key role in boosting the company’s earnings. Freeport said it saw an average price of $4,889 per ounce during the quarter, up significantly from $3,072 a year earlier.

The company's average realized gold price comes after the market saw significant volatility in the first quarter. Prices rose to a record high of $5,600 an ounce in January, then quickly dropped to $4,400 in early February before recovering to a high of $5,400 an ounce in early March.

Gold sales totaled 121,000 ounces, exceeding internal forecasts, largely due to the timing of refined gold shipments in Indonesia.

Copper prices were also supportive, averaging $5.78 per pound, while molybdenum prices averaged $25.21 per pound.

“Our first quarter financial results reflect the strength of our diversified portfolio, with growth in revenues, cash flow, and earnings compared with last year’s first quarter, despite reduced capacity at our Indonesia operations,” said Kathleen Quirk, President and Chief Executive Officer of Freeport, in the report. “Freeport’s global team is focused on restoring operations at Grasberg safely and sustainably, driving new technologies and efficiency programs to increase the profitability of our Americas operations, and pursuing our highly attractive portfolio of organic growth options to generate value for shareholders. Freeport is strongly positioned as “America’s Copper Champion” and as a global leader in copper, with large-scale, geographically diverse operations and a pipeline of near-, medium-, and long-term growth options to support a growing market.”

Although higher commodity prices drove earnings, the company reported a drop in production. Freeport said its gold production in the first quarter fell to 97,000 ounces from 287,000 ounces a year ago, reflecting reduced output from the Grasberg mine in Indonesia following a mud rush incident in September 2025.

Copper production also declined to 662 million pounds, down from 868 million pounds in the first quarter of 2025.

Freeport said it began a phased ramp-up of the Grasberg Block Cave underground mine in March but noted that modifications to ore handling systems will delay a full return to capacity.

As a result, the company said it expects near-term production from key sections of the mine to operate at roughly 60% capacity until upgrades are completed, with full capacity now expected closer to the end of 2027.

Despite the operational challenges, Freeport said it is maintaining its positive outlook, forecasting full-year 2026 sales of about 650,000 ounces of gold and 3.1 billion pounds of copper.

Operating cash flow is expected to reach approximately $8.7 billion for the year, assuming copper prices average $6.00 per pound and gold prices average $4,500 per ounce.

Kitco Media

Neils Christensen

Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @KitcoNewsNOW

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