First Quantum’s Q2 Copper, Nickel Production Up Slightly

First Quantum Minerals Ltd. (TSX:FM,LSE:FQM) announced its results for the second quarter of 2014, commenting that its comparative net earnings came to $133.6 million, or $0.23 per share. That includes “$19.5 million or $0.04 per share of unfavorable, recurring acquisition-related adjustments.”

Other Q2 highlights include:

• Higher production in main metals:
  • Copper up 4% to 107,808 tonnes
  • Nickel up 12% to 12,223 tonnes
• Significantly increased copper sales:
  • Revenues up 11% to $685.1 million despite lower market price
  • Overall sales volume up 20% to 114,449 tonnes
  • Kansanshi sales volume up 26% over Q2 2013 and Q1 2014
• 14% higher nickel revenues to $147.7 million despite 11% lower sales volume
• Low cash cost of production maintained:
  • Copper up 8% to $1.45 per pound
  • Nickel down 24% to $4.16 per pound
• Growth projects supported by strong cash flow from operations and enhanced financing:
  • $388.6 million of cash flow generated by operations³
  • $769.4 million cash balance including restricted cash at June 30, 2014
  • Further enhanced financial flexibility with issuance of $850.0 million of senior notes
• $618.6 million invested in the expansion of the production base
  • Sentinel advanced to 94% overall completion
  • Phase 1 copper smelter advanced to 78% overall completion; initial commissioning started in July
  • Enterprise nickel advanced
  • Proposed acquisition of Lumina Copper Corporation expected to close on or before August 30, 2014

Philip Pascall, CEO and chairman of First Quantum, commented:

Continued solid operations and the benefits of our cost control drive underlie the results for the quarter. The operational flexibility that has been built into Kansanshi was particularly evident as good headway was made on reducing concentrate inventory by utilizing as much of its recently-expanded oxide circuit as economically feasible. Both our nickel operations had good quarters with Kevitsa turning in one of its best performances since startup.

Click here to read the full First Quantum Minerals Ltd. (TSX:FM,LSE:FQM) press release.