First Quantum Reports Q4 2015 Net Earnings of $114 Million

First Quantum Minerals Ltd. (TSX:FM,LSE:FQM) released its results for Q4 2015, commenting that it achieved net earnings attributable to shareholders of $114 million, down from $453 million in the year-ago quarter. For 2015 as a whole it incurred a net loss of $496 million, well off from 2014’s net earnings of $835 million.
Other Q4 highlights are as follows:

• Higher copper production of 120,193 tonnes reflects the ramp-up of the Sentinel project and better year-over-year performances at Las Cruces, Guelb Moghrein and Kevitsa.
• C1² cash cost for both copper and nickel continued to improve and were lower than both Q4 2014 and Q3 2015:
  • Copper C1 cash cost Q4 2015 = $1.07 per pound;
  • Nickel C1 cash cost Q4 2015 = $4.31 per pound
• Realized average price for copper of $2.28 per pound was higher than market on account of the Company’s copper sales hedge program.
• As previously disclosed, the power situation in Zambia has stabilized. The Company’s Zambian operations are being consistently provided a total of approximately 285MW which allows for normal operations at the Kansanshi mine and smelter complex and for Sentinel to operate at above nameplate capacity throughput for periods. In a recent statement, Zambia’s Deputy Energy Minister confirmed that power supply to the local mines is expected to increase from the current level to almost full requirements over the second and third quarters of 2016.
• Advanced several initiatives aimed at reducing the net debt position and improving the Company’s capital structure to better suit the development and start-up timetable of the Cobre Panama project.
• Further reduced the capital cost estimate for the Cobre Panama project to $5.48 billion from the previous estimate of $5.95 billion, leading to a total reduction of 15% from the original estimate of $6.42 billion. The savings result from efficiencies achieved to date in the critical earthworks, concrete and construction aspects of the project, better pricing on materials and equipment procurement, together with a number of smaller cumulative savings opportunities.

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

While the headwinds of low commodity prices and the delay in energizing the required second power line at our Sentinel project continued in the quarter, we advanced our action plan to further strengthen the Company’s balance sheet, reduce costs to improve profitability and cash flow from operations and manage capital expenditure.
The quarter’s financial results positively reflect these efforts with the benefits of the copper sales hedge program at a sale price well above market, sound operations at all our mines and the continued excellent performance of the new copper smelter at Kansanshi.

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