• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Copper Market
    Copper News
    Copper Stocks
    • Copper Market
    • Copper News
    • Copper Stocks
    1. Home>
    2. ResourceBase Metals Investing Copper Investing>
    Loading...
    0

    First Quantum Reports Q1 Loss in Wake of Cobre Panama Closure

    Giann Liguid
    Apr. 25, 2024 09:30AM PST

    First Quantum reported a first quarter net loss of US$159 million, largely due to the forced closure of its Cobre Panama mine.

    "First Quantum Mineral"s displayed on a smartphone in front of a stock screener.
    Piotr Swat / Shutterstock

    First Quantum Minerals (TSX:FM,OTC Pink:FQVLF) reported its Q1 results on Tuesday (April 23), revealing a net loss of US$159 million (US$0.21 per share) and an adjusted loss of US$154 million (US$0.20 per share).

    The company's gross profit came in at US$156 million, with EBITDA at US$180 million, both lower than last year.

    These downturns have been attributed to disruptions at First Quantum's Cobre Panama mine, which led to it being taken offline and placed in a preservation and safe management phase in November 2023.


    With those circumstances in mind, First Quantum emphasized its commitment to managing its finances. The firm completed a "comprehensive refinancing package" during Q1, along with other initiatives to strengthen its balance sheet, and said this has given it the ability to deliver the S3 expansion at its Zambian Kansanshi copper-gold mine.

    “The company’s outlook reflects First Quantum’s enduring commitment to the success of our Zambian operations,” said CEO Tristan Pascall. “We recognize the challenges Zambia faces from the drought this year, particularly in regard to food security, even as we are pleased to be finalizing agreements to ensure adequate power supply to Trident and Kansanshi."

    As its stands, the Kansanshi S3 expansion project is progressing as planned, with construction activities underway and the majority of capital spending expected in 2024. First production is anticipated in 2025.

    Regarding production, First Quantum's total copper output for the first quarter was 100,605 metric tons (MT), with copper sales volumes slightly exceeding production. Kansanshi reported copper production of 31,473 MT, while Sentinel reported 62,225 MT. Enterprise produced 4,031 MT of nickel, with a focus on ramping up mining operations.

    Looking ahead, First Quantum anticipates being able to secure power independently from alternative sources in response to power supply reductions in Zambia. Additionally, the company remains actively engaged in managing preservation and safe management costs at Cobre Panama and adjusting its operations accordingly.

    Rippling effects from Cobre Panama closure

    First Quantum's sales revenues declined from US$1.22 billion in the previous quarter to US$1.04 billion in Q1, reflecting the impact of the production halt at Cobre Panama and operational adjustments in response to external factors.

    This decrease was partially offset by improved gross profit, which rose from US$87 million in Q4 2023 to US$156 million in Q1, indicating enhanced operational efficiency and cost-management measures undertaken by the company.

    In terms of operational performance, First Quantum reported a general decrease in copper production to 100,605 MT in Q1 2024, compared to 160,200 MT in the fourth quarter of last year.

    Gold production and sales, along with nickel production and sales, also exhibited fluctuations across operations.

    In anticipation of the upcoming national elections in Panama, the company remains optimistic about the prospect of resolving the dispute surrounding Cobre Panama. Among other points, First Quantum has expressed confidence in its ability to remove already mined copper concentrate from the site post-election.

    “Obviously, in the context of election politics and a strong debate around that, the balance of probability probably spills over after the election,” said Pascall during a conference call.

    Cobre Panama, which accounted for about 1 percent of global copper output and contributed significantly to First Quantum's revenue, has been a focal point of negotiations between the company and Panama's government.

    Don't forget to follow us @INN_Resource for real-time updates!

    Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

    From Your Site Articles
    • ASX Copper Stocks: 5 Biggest Companies ›
    • Top 5 ASX Copper Stocks of 2024 ›
    • Top 5 Junior Copper Stocks on the TSXV in 2023 ›
    • Top 5 Copper Stocks on the TSX in 2023 ›
    • Top 10 Copper-producing Companies (Updated 2024) ›
    FM:CC
    https://x.com/giannliguid
    https://www.linkedin.com/in/giannliguid/
    The Conversation (0)

    Go Deeper

    AI Powered
    First Quantum Minerals Reports First Quarter 2023 Results

    First Quantum Minerals Reports First Quarter 2023 Results

    First Quantum Provides Update on Cobre Panamá

    Giann Liguid

    Giann Liguid

    Writer

    Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.

    When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.

    Latest News

    Copper Quest Announces Multi-National Investor Awareness Campaign

    Bold Ventures Announces Prospecting and Sampling Results and Mobilizes Crew to Burchell Gold and Copper Project

    Heritage Mining Plans Aggressive Program at Zone 3 Extension Mega-Quartz Vein System at its Flagship Drayton-Black Lake Project

    Quetzal Copper Announces Refiling of June 30, 2025 Financial Statements

    Olympic Domain Project Update with BHP

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Copper Investing Stocks

    Empire Metals

    EPMLF

    Corazon Mining

    CZN:AU

    Blackstone Minerals

    BSX:AU

    Osisko Metals: Pure Potential

    OM:CA

    Los Andes Copper

    LA:CA

    Questcorp Mining

    QQQ:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×
    Giann Liguid
    Giann Liguid

    Writer

    Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.

    When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.

    Full Bio

    Follow

    Learn about our editorial policies.