Freeport shares drop after production miss and slower recovery at Grasberg mine.

Freeport-McMoRan reported first-quarter earnings per share of $0.57, beating expectations, and revenue of $6.23 billion. However, copper production fell 24% year-over-year to 662 million pounds due to disruptions at the Grasberg mine in Indonesia following a fatal mudslide. The company lowered its full-year copper sales guidance to 3.1 billion pounds from 3.4 billion and raised net cash cost estimates due to slower recovery and higher costs. Production at Grasberg is expected to operate at reduced capacity until infrastructure upgrades are completed, delaying full recovery until later in the decade. The production issues overshadowed the earnings beat, causing shares to fall 8.3%.