Freeport-McMoRan Stock: Shares Up 3% Following Resumption of Operations in Indonesia
American mining giant Freeport-McMoRan saw a 3% increase on Friday, November 7, closing at $39.81. This rise comes amid favorable news for the stock, marked by positive developments in its Indonesian operations. After weeks of uncertainty following an incident in September at the Grasberg site, the company's operational schedule is becoming clearer.
Market Activity and Stock Performance
The stock experienced substantial trading volume on Friday, with 17.28 million shares traded, representing 1.2% of the capitalization. This capital turnover reflects active market participant interest in the stock. The S&P 500 index advanced 0.36% on the same day, a performance that was less than that of Freeport-McMoRan, positioning the stock at the forefront of American sector rotation. In terms of longer-term performance, there remains a stark contrast between the stock and its benchmark index. Over the past year, the stock has declined by 18.05% while the S&P 500 has appreciated by 18.33%, creating a gap of more than 36 percentage points. This prolonged underperformance reflects the geopolitical and operational challenges faced by the company. In the last five trading days, the stock lost 4.53%, before rebounding on Friday after notable volatility: the stock had plunged 4.27% on Thursday, November 4, and lost 3.88% on Wednesday, November 6, before attempting to stabilize on Tuesday.
Operations Resumption in Indonesia
Friday's stock movements are largely explained by the announcement of the restart of operations at the Big Gossan and Deep Mill Level Zone (DMLZ) mines in Indonesia, which occurred at the end of October. Freeport Indonesia stated that these two mines had resumed activities after several weeks of suspension following the September incident at the Grasberg complex. This incident had resulted in the death of seven workers, and an investigation involving external experts and Indonesian authorities was launched. The company announced on Friday that the investigation was completed and that Freeport Indonesia had received improvement recommendations from the Indonesian Ministry of Energy and Mineral Resources. The government, assessing the causes of the accident and the need for possible corrective measures, gave the green light for a gradual resumption. The two restarted mines are not involved in the affected area. The Grasberg Block (GBC), which represents about 70% of the estimated copper and gold production until 2029, could see a gradual restart planned for 2026, which opens new visibility for production.
Technical Perspective on the Stock
Technically, the stock is currently lagging behind its main moving averages. The price of $39.81 is about 1.4% below its 20-day moving average ($41.18) and approximately 5.5% below its 100-day moving average ($42.63). The RSI14, a momentum indicator, displays a value of 39.43, positioning the stock in a neutral zone leaning towards weakness, without a pronounced buy or sell signal. This configuration suggests that Friday's rebound occurs in a context of fragile balance, with the stock remaining subject to the uncertainties of macroeconomic data and operational guidance revisions.
