First Quantum Minerals Ltd. is a Canadian based mining and metals company whose principal activities include mineral exploration, development and mining. Its main product is copper, which accounts for 80% of revenues as of 2016. First Quantum’s common shares are listed for trading on the Toronto Stock Exchange in Canada (symbol “FM”). Until 2016, First Quantum also maintained a secondary listing on the London Stock Exchange (symbol “FQM”) in the United Kingdom. First Quantum was founded in 1983 under the name Xenium Resources. It changed its name to Zeal Capital in 1989, First Quantum Ventures in 1993, and First Quantum Minerals in 1996. Its first significant operation was the Bwana Mkubwa mine in Zambia, acquired in 1996. In 2000, First Quantum acquired a partial interest in Mopani copper mines, a Zambian copper company. In 2001, it opened the Lonshi Copper Mine in the Democratic Republic of the Congo. Also in 2001, the company acquired the Kansanshi mine in Zambia.
In TORONTO, Ontario (July 29, 2019) – First Quantum Minerals Ltd. reported comparative earnings of $87 million or $0.13 per share, net earnings attributable to shareholders of the Company of $78 million or $0.11 per share and cash flows from operating activities of $179 million or $0.26 per share, for the three months ended June 30, 2019 (“Q2”). Production in the quarter was 168,399 tonnes of copper including 30,896 tonnes of pre-commercial production (Second quarter results, 2019). Operationally, the Kansanshi production was impacted by the lower grades in the oxide ore circuit and lower recoveries in the oxide and mixed ore circuits slightly offset by higher throughput in all circuits and Copper production totalled to 58,634 tonnes for Q2. Moreover, Q2 unit cost of copper production: All-in sustaining cost (“AISC”) = $1.77 per pound; Cash cost = $1.32 per pound; Total cost = $2.17 per pound. Sentinel C1 and AISC declined by over 10%, to $1.55 per pound and $2.06 per pound respectively, related to efficiencies in labour and contractor costs, maintenance costs and foreign exchange (Second quarter results, 2019).
Financially, $179 million of cash flows from operating activities or $0.26 per share were recorded during the quarter, a 13% increase from the Q1 2019. The Sales revenues of $939 million for Q2 2019 reflecting lower sales volumes, excluding sales from Cobre Panama and a lower realized copper price from the comparable period of 2018 (Second quarter results, 2019). A Gross profit of $196 million was recorded and comparative EBITDA of $376 million were generated in the second quarter. They generated net earnings attributable to shareholders of the Company of $78 million or $0.11 per share and comparative earnings of $87 million or $0.13 per share (Second quarter results, 2019). Moreover, the company Ended the quarter with $802 million in net unrestricted cash and cash equivalents, $290 million of committed undrawn facilities and was in full compliance with all financial covenants. It is important to note that the boards of directors have declared an interim dividend of CDN$0.005 per share, in respect of the financial year ending December 31, 2019 (Second quarter results, 2019). Further, On July 24, 2019, Kalumbila Minerals Ltd (a subsidiary of the Company), reached a settlement with the Zambia Revenue Authority (“ZRA”) with respect to the assessment claim on duties. The settlement amount agreed was in line with the Company’s previously disclosed expectations and no further provision is required.