10 Best Commodity Stocks to Invest in According to Hedge Funds

2. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Investors: 74

Freeport-McMoRan Inc. (NYSE:FCX) is a U.S.-based mining giant and one of the largest producers of copper, gold, and molybdenum. The company operates major mining projects in North and South America and Indonesia.

Freeport-McMoRan Inc. (NYSE:FCX) is committed to continuous improvement and innovation across its operations. The company has set a target to reach a run rate of 300 million pounds of incremental copper production by the end of 2025, with the potential to produce between 300 and 400 million pounds in 2026. This ambitious goal is driven by the company’s innovative leach initiative, which has already achieved a 50% increase in copper production at a very low cost. The initiative involves deploying new operating practices to recover copper from previously considered waste materials, by adding heat to leach processes and optimizing solution chemistry. This not only enhances the company’s cost position but also extends the life of existing operations, making it a highly value-enhancing growth opportunity.

Freeport-McMoRan Inc. (NYSE:FCX) is actively pursuing brownfield expansion opportunities to position itself for long-term growth. In the United States, the company is advancing projects at its Baghdad and Safford Lone Star operations. The Baghdad expansion, which aims to double current production levels, is being supported by investments in site infrastructure and tailings expansion. The company is also exploring ways to reduce the capital intensity of the project, with a decision on the path forward expected by year-end 2025. At Safford Lone Star, a major brownfield expansion is being studied, with the potential to significantly increase production and solidify the company’s presence in Arizona over the next decade.