Good Times for Copper Producers

These are indeed good times for copper producers, particularly those involved in the production of ultra-pure copper used in high-speed computer chips, wiring, and related equipment in data centers.

Copper is trading at $6.32 per pound in New York and $13,895 per ton in London, a slight dip from its all-time highs in May. Nevertheless, the price has surged by more than 700% since the end of 1999, as noted by Macrotrends.

Freeport-McMoRan Second-Quarter Results Better Than Expected

Freeport-McMoRan (FCX), the largest U.S.-based copper miner, reported a 28% profit gain in the second quarter on July 23, despite a 7.3% decline in revenue, according to Barron’s.

The Phoenix, Ariz., company’s shares were down 2.6% to $63.60 at the time of writing on July 23, but are up 24% so far in 2026.

The company operates the giant Grasberg mine in Indonesia and has mines in Arizona and New Mexico, as well as Peru and Chile in South America. Freeport-McMoRan is the largest global producer of molybdenum, used to make high-strength steel, and notes that Grasberg is one of the largest single gold deposits in the world.

Copper: A Uniquely Ubiquitous Mineral

Copper is a uniquely ubiquitous mineral, believed to have been present on Earth since its early formation. And it has proven useful throughout the ages, starting as a decorative metal, becoming used in ancient weapons, and now being prized for its ability to transmit information and power.

The thing is that the world needs copper just about everywhere:

• To expand the electrification of the world.
• To provide the piping used in plumbing for new housing and commercial buildings.
• To power all the data centers springing up around the globe.

Google-parent Alphabet spent $44.9 billion in the second quarter and raised its full-year spending estimate to $195 billion to $205 billion, according to Business Insider. That’s more than double its 2025 spending.

Data centers are massive consumers of copper, at a rate of about 25 to 47 metric tons per megawatt of power. So, for a data center expected to need 100 megawatts of power, the required copper could approach 2,500 to 5,000 tons, as revealed by a Standard & Poor’s report.

Alphabet needs copper. So do Microsoft, Meta Platforms, Apple, Amazon, and Nvidia. The list goes on.

Good News for Top Copper-Producing Countries

It’s also good news for the top copper-producing countries, which include Chile, Australia, Peru, Russia, and the United States.

BofA sees lost year taking shape for gold, and Exxon Mobil’s future rests on massive play (it isn’t Venezuela). The Wall Street consensus estimate was that Freeport-McMoRan would report 62 cents per share in earnings, compared with 54 cents a year ago.

Revenue fell 7.3% to $7.03 billion from $7.6 billion a year ago, but the decline was smaller than expected. Freeport doesn’t offer revenue and earnings guidance. The company does offer estimates for operating cash flow and the prices it expects to see.

The company trimmed its year-end cash flow projection to $8.3 billion from the $8.7 billion estimated in March. The decline was mostly due to a lower overall expected gold price: $4,000 an ounce, down from the $4,500 projected in March. Also, production from its Indonesia mine will be lower than originally expected.

Some analysts believe Freeport’s shares are overbought and will come down a bit. That assumes copper prices and demand will fall, although S&P Global is skeptical of the idea, as previously reported.

Its estimate, released in January 2026, is that global demand will jump from 28 million metric tons to 42 million tons by 2040. That’s a 50% gain.

Related: Morgan Stanley breaks from the crowd on the U.S. economy.