Freeport McMoRan CEO Kathleen Quirk: We provide 70% of the copper mined in the U.S.

Key Concepts:

• Copper tariffs and their impact on U.S. copper prices
• Critical mineral designation of copper
• Freeport-McMoRan's role as a major U.S. copper producer
• Investment in U.S. copper production and technology
• AI applications in copper mining operations

1. Copper Price Divergence and Potential Tariffs:

• U.S. copper futures are trading at a significant premium (approximately 60 cents per pound) compared to international prices, specifically British counterparts.
• This divergence is attributed to potential tariffs on copper imports into the U.S., primarily from Canada.
• The current premium reflects market speculation about the tariff rate, estimated to be around 19%.
• Freeport-McMoRan benefits from this premium as a major U.S. copper seller and producer, with a significant portion of its U.S.-mined copper staying within the country.

2. Freeport-McMoRan's Perspective on Tariffs and Domestic Production:

• The company is closely monitoring the development of potential tariffs and their specific details.
• Freeport-McMoRan acknowledges copper as a critical mineral essential for electrification in the U.S.
• The company emphasizes its position as "America's copper champion," supplying approximately 70% of the copper mined in the U.S. last year.
• Future growth plans involve significant investments in U.S. copper projects, particularly in Arizona.

3. Investment in Technology and AI:

• Freeport-McMoRan is heavily investing in technology, including AI, to improve its operations.
• While copper demand is driven by AI data centers, the company is also using AI in its mining operations.
• Investments are planned not only in the U.S. but also in South America and Indonesia.

4. Conclusion:

• The potential implementation of copper tariffs is creating a price divergence between U.S. and international markets, benefiting domestic producers like Freeport-McMoRan.
• Freeport-McMoRan views copper as a critical mineral and plans to increase its investments in U.S. copper production, leveraging technology and AI to enhance its operations.