Japan nonferrous metals: Overseas copper mine earnings (44): Freeport-McMoRan and Teck Resources‘ results: Impact on Sumitomo Metal Mining

Research evidence excerpt

Japan nonferrous metals: Overseas copper mine earnings (44): Freeport-McMoRan and Teck Resources‘ results: Impact on Sumitomo Metal Mining

Japan nonferrous metals: Overseas copper mine Global Markets Research

earnings (44) 24 July 2026

EQUITY: JAPAN STEEL, NONFERROUS METALS, WIRE & CABLE

Freeport-McMoRan and Teck Resources' results: Research Analysts

Impact on Sumitomo Metal Mining Japan steel, nonferrous metals, wire & cable

Sales volumes at Morenci and Cerro Verde slightly lower than we forecast, but output and Kaori Iwasaki - NSC

profits broadly as expected; stable output at Quebrada Blanca kaori.iwasaki@nomura.com

+81 3 6703 1198

Summary: Continued stable output at Quebrada Blanca with tailings dam measures Yuji Matsumoto - NSC

proceeding according to plan yuji.matsumoto@nomura.com

US-based Freeport-McMoRan (FCX) and Canadian company Teck Resources (Teck) +81 3 6703 1220

released Apr–Jun 2026 results on 23 July JST. FCX held its earnings call at 11:00pm JST

and Teck held its call at midnight JST. Apr–Jun results have now been released for the

three copper mines in which Sumitomo Metal Mining [5713] (Neutral) holds stakes

(Morenci in the US, Cerro Verde in Peru, and Quebrada Blanca (QB) in Chile). Sales

volumes at the Morenci mine were down q-q, but we see no need to be overly concerned,

as this was due to timing issues for shipments. At Quebrada Blanca, measures to deal

with tailings dam drainage issues have been going according to plan. On 23 July, FCX's

share price fell 2% d-d and Teck's rose 5%.

FCX (1): Sales volumes at US-based Morenci mine slightly weak, but net cash costs

expected to remain flat

Apr–Jun operating profits were broadly flat q-q at $368mn (up 2x y-y, up 1% q-q), with

higher by-product revenues offsetting a q-q decline in volumes (Figure1).