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.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
View original content: https://www.newswire.ca/en/releases/archive/December2022/12/c2483.html 
