We came across a bullish thesis on Freeport-McMoRan Inc. on Paradox Intelligence’s Substack. In this article, we will summarize the bulls’ thesis on FCX. Freeport McMoRan Inc.’s share was trading at $65.55 as of February 23rd. FCX’s trailing and forward P/E were 29.45 and 16.61 respectively according to Yahoo Finance.
Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. FCX is uniquely positioned to capitalize on the next decade of copper-driven growth as the world faces a structural shortage of this critical metal. Copper’s unmatched electrical conductivity makes it indispensable across modern infrastructure, from power grids and renewable energy systems to electric vehicles and data centers.
Each wind turbine contains several tons of copper, electric vehicles require four times more than conventional cars, and data centers rely heavily on copper for power delivery and cooling, making adequate supply essential for the global energy transition.
Demand pressures are mounting from electrification, AI data centers, renewable energy installations, and grid modernization, while the supply side faces a severe bottleneck. Major discoveries have collapsed over 90% in two decades, exploration budgets remain constrained, and new mines require 15–20 years to reach production, leaving an empty pipeline.
Analysts project copper deficits starting in 2026 that could reach 10 million tons annually by 2040, roughly a quarter of total demand. As the world’s largest publicly traded pure-play copper producer, FCX offers maximum leverage to rising prices, with earnings highly sensitive to copper price movements compared to diversified miners like BHP or Rio Tinto.
The company’s new low-cost U.S. leaching operations are coming online just as the shortage intensifies, allowing $FCX to expand production while competitors face depleting ore grades and rising costs.
With copper prices already above $13,000 per ton and structural deficits locked in for at least a decade, Freeport-McMoRan sits at the convergence of surging demand and constrained supply, making it a premier investment to capture both near-term gains and long-term upside from the global copper bull market.
Previously, we covered a bullish thesis on Hudbay Minerals Inc. (HBM) by Unemployed Value Degen in December 2024, highlighting operational efficiency, disciplined capital allocation, and a strong copper and gold portfolio. HBM’s stock price has appreciated by approximately 192.48% since our coverage. Paradox Intelligence shares a similar view but emphasizes Freeport-McMoRan’s (FCX) pure-play copper leverage and structural supply-demand tailwinds.
