JOHANNESBURG (miningweekly.com) – Despite delivering record output of 427 655 t of copper and reining in costs in the year to December, TSX- and LSE-listed First Quantum Minerals on Friday posted a decline in comparative earnings for the past year.

The Canadian base metals miner posted comparative earnings of $474.5-million, or $0.80 a share, for the full 2014, a decline on the $539-million and $0.96 a share reported in 2013.

The group’s sales revenue remained stable at $3.5-billion in 2014, said First Quantum CEO and chairperson Philip Pascall.

While copper sales volumes were up 7% to 411 203 t, the realised copper price was down 6% to $3.03 for the year to December.

Nickel sales volumes decreased 3% to 47 749 t, with the realised nickel price up 11% to $7.58. Gold sales declined from 228 962 oz in 2013 to 214 104 oz in 2014.

In the year under review, First Quantum posted a decline in gross profit to $997-million, from $1.1-billion in the prior year, while the group’s earnings before interest, taxes, depreciation and amortisation climbed from $1.3-billion in 2013 to $1.4-billion in 2014.

Net earnings attributable to shareholders increased from $458-million in 2013 to $834-million in 2014.

Cash flow from operations, before working capital changes and tax paid, amounted to $1.3-billion.

Meanwhile, the company maintained its low cash cost of production with copper costs up 8% to $1.41/lb and nickel costs down 12% to $4.40/lb.

This would be maintained in 2015, with copper’s cost of production expected to be between $1.30/lb and $1.55/lb and nickel between $4.80/lb and $5.30/lb.

First Quantum would also continue its cost reduction and cash conservation efforts to maintain “a solid financial position and flexibility”.

“Concerns about the global economy and demand for natural resources have put pressure on many aspects of the company and on others in the natural resource sector. Our previously announced reduction in planned capital expenditures for 2015 is a substantial step in addressing some of those pressures,” Pascall commented.

“While we believe the strong long-term fundamentals for copper remain intact, we consider it prudent to take additional action to ensure that the company can withstand a prolonged period of lower metal prices, while building production capacity for the future,” he added.

First Quantum ended the year with an unrestricted cash balance of $357.4-million and available committed undrawn facilities of $1-billion as of December 31, 2014.

The Vancouver-based group, which declared a final dividend of C$0.0487 a share for the year, announced its intention to establish a Dividend Reinvestment Plan, which would allow eligible shareholders “a convenient means” to acquire additional common shares through the reinvestment of cash dividends paid by the company.