First Quantum Minerals Reports First Quarter 2025 Results

Financial Performance - First Quantum Minerals reported a net loss attributable to shareholders of $23 million ($0.03 loss per share) for Q1 2025, with adjusted earnings of $2 million ($0.00 adjusted earnings per share) [1][3][19] - Gross profit for Q1 2025 was $331 million, down $74 million from Q4 2024, while EBITDA was $377 million, a decrease of $78 million from the previous quarter [3][19] - Cash flows from operating activities were $143 million ($0.17 per share), which is $440 million lower than Q4 2024, primarily due to lower EBITDA and increased working capital [19] Production and Costs - Total copper production for Q1 2025 was 99,703 tonnes, an 11% decrease from Q4 2024, attributed mainly to lower production at the Sentinel mine [3][6][24] - Copper C1 cash cost increased to $1.95 per lb, a 16% rise from the previous quarter, reflecting lower production volumes and higher costs [3][19] - Gold production was strong at 29,868 ounces in Q1 2025, contributing positively to the company's financial performance [6][24] Operational Updates - The Kansanshi S3 Expansion project is on track for mid-2025 completion, with 83% of construction completed and 20% of systems handed over to commissioning [7][31][33] - Cobre Panamá remains halted since November 2023, with ongoing costs of approximately $13 million per month for maintenance and preservation [14][27] - The company has maintained supplementary power arrangements in Zambia and anticipates sourcing up to 60% of its electricity from imports as the Kansanshi S3 Expansion ramps up [36][37] Hedging and Financial Flexibility - The company has entered into derivative contracts to hedge against copper price fluctuations, protecting approximately half of planned production and sales in 2025 [12][13] - A recent notes offering enhanced the company's liquidity position by $750 million, and an additional $500 million prepayment agreement was made with Jiangxi Copper Company [2][15][16] Guidance and Future Outlook - The production guidance for 2025 remains unchanged, with expectations of 160,000 to 190,000 tonnes of copper and 100,000 to 110,000 ounces of gold [8][43][45] - The company plans a six-week maintenance shutdown of the Kansanshi smelter in Q2 2025, which may impact short-term production [8][19]