7 Best Natural Resources Stocks to Invest in According to Hedge Funds

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

Number of Hedge Fund Holders: 88

Freeport-McMoRan Inc. (NYSE:FCX) is a prominent global mining corporation. It deals in the discovery and extraction of essential metals like copper, gold, and molybdenum, along with other vital minerals. Operating some of the most important mining assets in the world, such as Grasberg, Morenci, Cerro Verde, and El Abra, Freeport has a diverse portfolio that spans North America, South America, and Indonesia. The company’s vast resource base makes it an important supplier of metals for clean energy, infrastructure development, and various industrial uses.

Freeport-McMoRan’s EBITDA increased by a significant 14% in 2024, reaching $10 billion. This was driven by strong copper prices, which averaged $4.21 per pound, along with steady gold and molybdenum production. The business’s operating cash flows increased by 35% to over $7 billion, providing sufficient capital for strategic expansion projects. One notable accomplishment was the leach initiative, which greatly improved the company’s financial performance by delivering a 50% increase in incremental copper production over 2023. Nevertheless, Freeport-McMoRan Inc. (NYSE:FCX) encountered some short-term difficulties that affected operations despite these impressive outcomes, such as delays in Indonesian export permits and a 7.5% export tax. In addition, a fire at the Grasberg smelter required repairs totaling $100 million, though insurance covered these expenses.

In order to increase productivity and cut expenses, Freeport-McMoRan Inc. (NYSE:FCX) is concentrating on developing technological initiatives in the future. The Bagdad autonomous haulage system, scheduled for deployment in 2025, is one such project aimed at improving productivity and streamlining operations. Building on its impressive 2024 gains, the company is also expanding its leach opportunities, targeting an annual copper production rate of 300 million pounds by the end of 2025. These developments are anticipated to further boost Freeport’s long-term productivity and profitability, especially when paired with brownfield expansions in South America and the United States.

With capital expenditures reaching $4.4 billion annually, Freeport-McMoRan Inc. (NYSE:FCX) remains dedicated to balancing financial restraint and growth investments. As one of the top resource stocks for long-term investment, Freeport-McMoRan is well-positioned to continue growing due to its solid market foundation and continuous operational enhancements.