Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Consolidated net income | Increase of over 80% | Compared to year-ago quarter |
| U.S. mining operating income | More than doubled | Compared to year-ago quarter |
| Grasberg ramp-up | 67% | Capacity achieved during third quarter |
| LME copper price (year-to-date) | $6.09 per pound | Not stated |
Guidance and outlook
- 2026 copper sales guidance adjusted down by approximately 2%.
- 2027 copper sales guidance adjusted down by approximately 2.5%.
- 2026 capital expenditure estimated at approximately $4.4 billion.
- 2027 capital expenditure estimated at $5.2 billion.
- 2026 net unit cash costs maintained at $1.90 per pound.
How management sounded
Positive (+6 on our -10 to +10 scale). Management highlighted strong operational execution and significant volume growth plans for 2027 and 2028 while maintaining a disciplined approach to capital. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Grasberg production cadence
Asked: How should we think about the cadence of production for copper and gold in 2027?
Answer: The first half will ramp up, the second half will be higher than the first, and the first quarter will likely be the lowest of the year.
Idle costs
Asked: Will the idle facility costs at Grasberg go away?
Answer: These are fixed costs that will be included in unit costs starting in 2027 rather than being treated separately.
U.S. leach initiative
Asked: Are the new additives included in the 2027 forecast?
Answer: No, the 300 million pound target for 2027 does not include the potential upside from the new additives.
CapEx increase
Asked: Why is the 2027 capital expenditure guidance up $400 million?
Answer: The increase is primarily due to additional mining equipment to increase rates and some cost inflation.
What to watch before the next call
- Field results of the next-generation leach additive in 2027.
- Board decision on the Bagdad mine expansion in the fourth quarter of 2026.
- Progress on the Grasberg Block Cave ramp-up and material handling system upgrades.
