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First Quantum Announces $1.0 Billion Gold Stream
QuantumQuantum(US:QMCO) GlobeNewswire News Roomยท2025-08-05 05:00

Core Viewpoint - First Quantum Minerals Ltd. has entered into a gold streaming agreement with RGLD Gold AG, securing a $1.0 billion upfront cash payment in exchange for gold deliveries linked to copper production from the Kansanshi Mine in Zambia [1][2]. Transaction Highlights - The transaction preserves the company's exposure to copper production while maintaining a majority of its gold production [2]. - The upfront cash payment of $1.0 billion will be received on August 6, 2025 [6]. - The agreement allows for ongoing production payments equivalent to 20% of the prevailing spot gold price, increasing to 35% upon achieving certain leverage thresholds [6]. Agreement Terms Summary - First Quantum will deliver gold based on copper production with stepdown terms: 75 ounces of gold per million pounds of copper until 425,000 ounces are delivered, 55 ounces until an additional 225,000 ounces are delivered, and 45 ounces thereafter [6]. - The transaction is expected to significantly strengthen the company's balance sheet by providing long-term, unsecured, non-debt capital [6]. - The company retains full exposure to 84% of its total gold production linked to spot gold prices based on production guidance for 2026 and 2027 [6]. Financial Impact - The transaction is anticipated to reduce the company's net debt to EBITDA ratio markedly upon closing [6]. - Proceeds from the transaction will be allocated towards capital expenditure, working capital, and bank loan repayment [6]. Strategic Partnership - The partnership with Royal Gold is viewed as a strong endorsement of the operations at Kansanshi and Zambia's mining jurisdiction [2].