By: Creamer media

On an adjusted basis, the company reported a loss of $147-million, or $0.18 apiece.

Sales in the first quarter were impacted by lower volumes, a stronger Zambian kwacha and hedge losses. The group’s earnings before interest, taxes, depreciation and amortisation of $326-million in the reporting quarter includes losses of $144-million realised under the company’s sales hedge programme.

Excluding this impact, earnings would have been $470-million.

First Quantum owns and operates Africa’s largest copper and gold mine, Kansanshi, as well as the Sentinel copper mine, both in Zambia. Additionally, First Quantum will soon start processing existing stockpiled ore at the Cobre Panamá mine, in Panama, after navigating a complex legal situation.

First Quantum operates Cobre Panamá under a preservation and safe management framework.

Moreover, the company’s Guelb Moghrein mine is based in Mauritania while its La Granja undeveloped project is in Peru.

First Quantum also owns the Ravensthorpe nickel/cobalt operation, in Australia.

CEO Tristan Pascall says the year started against a background of heightened global uncertainty driven by the conflict in the Middle East and its impact on key supply chains. In response, the company has been actively diversifying its fuel sourcing and procuring additional fuel supplies.

“Our long‑standing investments in innovation and electrification, including trolley-assist, continue to structurally reduce fuel intensity and our sites are advancing additional initiatives to further improve efficiency.

”We expect the increases in fuel prices to impact our cost base in the second quarter. The current environment also underscores the strategic value of our smelter, which means we are not reliant on external sulphuric acid supply at a time when global sulphur availability is tight” Pascall explains.  

First Quantum believes the situation in the Middle East further reinforces the accelerating global shift towards electrification, a structural trend that is expected to support copper demand and pricing over time.

Operationally, the company remains on track in Zambia, with production in line with mine plans and stronger performance expected in the second half of the year as it accesses higher grades.

In Panama, the company received formal approval to proceed with the removal and processing of stockpiled ore – an important step in the responsible environmental management of Cobre Panamá.

Pascall says the group is also progressing steadily towards restarting processing activities, including the hiring of about 1 000 new positions, which attracted more than 60 000 applicants.

“We expect copper to be produced late in the second quarter. We remain committed to constructive engagement with the Government of Panama for a mutually beneficial resolution for the mine,” he concludes.

First Quantum has increased its copper production guidance for the year to between 405 000 and 475 000 t – up from 190 000 and 220 000 t previously.