Freeport-McMoRan (FCX, Financial) announced that proposed tariffs could increase its U.S. procurement costs by approximately 5%. The broad tariffs imposed by the Trump administration on most U.S. imports have created uncertainty across the mining industry, prompting companies to seek alternative supply chains.
The company is actively monitoring the potential indirect effects of U.S. trade policies on economic growth and copper demand. Efforts are underway to evaluate alternative procurement strategies to mitigate potential impacts.
In the first quarter, Freeport-McMoRan produced 868 million pounds of recoverable copper, a decrease from 1.09 billion pounds in the same period last year. The unit cash cost of copper rose from $1.51 per pound to $2.07 per pound.
For the three months ending March 31, the Phoenix, Arizona-based company's net income attributable to common stockholders fell to $352 million, or 24 cents per share, from $473 million, or 32 cents per share, in the previous year.
