First Quantum Minerals: A Copper Play Poised for a Rebound

Core Insights - First Quantum Minerals, a major copper producer, has experienced a significant decline in share price, dropping over 30% since July 28, 2023, primarily due to the shutdown of its Cobre Panama mine, which previously accounted for 40% of its revenue [2][8] - Despite this setback, the company may present a buying opportunity for investors, as copper supply remains tight and discussions regarding the Cobre Panama mine's future are ongoing [3][8] Company Overview - First Quantum Minerals generates revenue primarily through copper mining, with copper constituting over 80% of its total revenue. The company also mines nickel and gold, but copper is critical to its operations [5][7] - Prior to the Cobre Panama shutdown in 2022, First Quantum produced nearly 776,000 tonnes of copper, resulting in C$7.3 billion in revenue [6] - The company operates multiple mines across Zambia, Australia, and Spain, with mines like Kansanshi and Sentinel in Zambia continuing to produce copper, which helps mitigate the impact of the Cobre Panama closure [7][8] Market Context - The closure of the Cobre Panama mine has removed 1.5% of global copper supply, significantly impacting First Quantum's market capitalization [9] - The demand for copper is expected to rise due to its essential role in electric vehicles, renewable energy, and AI-driven infrastructure, suggesting potential upside for First Quantum's stock as it trades at a discount compared to peers [8]