First Quantum Posts $136m Profit as Copper Output Rises and Kansanshi Beats Capacity
TSX-listed First Quantum Minerals reported net earnings attributable to shareholders of $136 million, or $0.16 a share, for the second quarter, as stronger copper sales and higher realised prices supported its recovery from the financial pressure caused by the prolonged shutdown of its Cobre Panamá mine.
The company recorded an adjusted loss of $106 million, or $0.13 a share, while gross profit rose to $297 million and EBITDA reached $400 million.
Compared with the same period last year, gross profit increased by $19 million and EBITDA by $74 million.
First Quantum said its EBITDA included $164 million in realised losses under its copper sales hedge programme and a $51 million negative contribution from Cobre Panamá related to preservation and safe-management costs.
At Cobre Panamá, the company has been processing stockpiled ore since April after receiving government approval to mitigate environmental and operational risks associated with prolonged storage.
One of the mine’s three milling circuits has been restarted, with early concentrate production achieved.
The company estimates that the stockpile contains about 38 million tonnes of mineralised ore, with approximately 70,000 tonnes of recoverable copper, enough to support around 12 months of processing at current rates.
Meanwhile, First Quantum’s S3 expansion at the Kansanshi mine in Zambia continues to perform above design capacity. The circuit achieved a record monthly processing rate in May since its commissioning in August last year.
The company also completed the sale of its Çayeli mine and Cobre Las Cruces project during the quarter.
Second-quarter copper concentrate production increased 4% year on year to 100,487 tonnes, supported by higher output at Zambia’s Sentinel mine and 3,216 tonnes from Cobre Panamá stockpile processing.
First Quantum remains on track to meet its full-year guidance of 405,000 to 475,000 tonnes of copper, 150,000 to 175,000 ounces of gold and 30,000 to 40,000 tonnes of nickel.
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