Remember when everyone was obsessed with gold? Well, copper just crashed the party and stole the spotlight. The red metal is absolutely ripping right now – we’re talking record highs of over $11,000 per ton. That’s not a typo.
Here’s what’s happening: The world is running out of copper at exactly the wrong time. Mine disruptions have been piling up for over a year (because apparently Mother Nature didn’t get the memo about our AI revolution), and now everyone’s panicking about supply. Meanwhile, demand is through the roof thanks to electric cars, renewable energy, and data centers that need more copper than a Victorian mansion needs plumbing.
Enter Freeport-McMoRan (FCX) – the copper king that’s sitting pretty while everyone else scrambles.
Why FCX Is the Copper Play
Freeport isn’t just a copper company – it’s the copper company. They pump out 3.5 billion pounds of the stuff annually, which is like being the Taylor Swift of mining (dominant, profitable, and everyone wants a piece).
Their crown jewel is the Grasberg mine in Indonesia, which sounds exotic because it is. This thing produces both copper and gold, making it the Swiss Army knife of mining operations. Sure, they had a mudslide in September that temporarily shut things down (nature: 1, mining: 0), but they’re already getting back online with a full restart planned for 2026.
Here’s the kicker: FCX’s production costs are around $1.50 per pound. With copper selling for over $5, that’s like buying something for $1.50 and selling it for $5. Even your local coffee shop would be jealous of those margins.
The Numbers Don’t Lie
While other miners are struggling with single-asset problems (putting all your eggs in one very expensive basket), FCX has operations across three continents. It’s like having a diversified portfolio, but for holes in the ground.
The company’s earnings are expected to grow at 23% annually over the next five years. That’s not just good – that’s “quit your day job and become a day trader” good (though please don’t actually do that).
At $43 per share, FCX is trading at what analysts call a discount to its potential. Translation: It’s on sale, and sales don’t last forever.
The Bottom Line
Copper is having its main character moment, and FCX is the best way to play it. With record prices, massive production capacity, and costs that would make a Costco executive weep with joy, this stock is positioned to ride the copper wave all the way to the bank.
The energy transition isn’t slowing down, AI isn’t going anywhere, and the world still needs to be electrified. Guess what all of that requires? Hint: It’s not Bitcoin.
Sometimes the best investment opportunities hide in plain sight, wearing hard hats and covered in dirt. This might be one of those times.