Freeport-McMoRan stock: Bagdad plan opens U.S. copper growth path

Freeport-McMoRan stock traded at 55.21 euros on Lang & Schwarz at 13:59 CET on Tuesday, November 10. The quote followed the company’s November 4 announcement that its board had approved a 4.5 billion dollar expansion and modernization program for the wholly owned Bagdad copper and molybdenum operation in northwest Arizona.

The Freeport-McMoRan news release said the brownfield project should more than double Bagdad’s mining and milling rates. Long-term annual copper production is expected to exceed 400 million pounds, including roughly 225 million pounds of incremental output. Molybdenum production is projected to exceed 20 million pounds a year, with incremental output of about 12 million pounds.

Large project, phased spending

Freeport said the expansion will add a concentrator with approximately 115,000 tons per day of incremental nameplate processing capacity. A new primary crusher, overland conveyor, water pipeline, power line, mining equipment and related infrastructure are also planned. Engineering, procurement planning and early works are under way.

Capital spending is classified as discretionary under Freeport’s financial policy. The company expects to fund approximately 20% of the project costs in 2027, 30% to 35% in 2028 and the balance in 2029 and 2030. The estimate is based on current market conditions, while inflation and cost escalation remain risks to the final investment bill.

Bagdad targets lower unit costs

Construction is expected to take about three and a half years, with initial production targeted for mid-2030. Freeport expects the larger operation to reduce long-term unit net cash costs by approximately 20%, supported by scale, automation and molybdenum by-product credits. The project’s break-even economics are supported at a copper price of approximately 4.00 dollars per pound and a molybdenum price of 20 dollars per pound, according to the company.

Bagdad has operated since 1945 and has a reserve life exceeding 80 years before additional mineral resources are considered. The mine completed its fleet conversion in 2025 and became the first major U.S. mine with a fully autonomous haulage fleet. Freeport expects Bagdad to become the second-largest copper mine in the United States, behind its Morenci operation, and a leading domestic molybdenum producer.

The broader European market environment remains relevant for investors assessing commodity producers and cyclically exposed equities.

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