Canadian base metals producer First Quantum Minerals (FQM) set a new quarterly record for copper production and sales of 131 349 t and 132 030 t respectively in the three months to June 30, surpassing previous records set in the first quarter of this year.

The company’s Sentinel copper mine, in Zambia, recorded a 53% production increase quarter- on-quarter, which FQM attributed to “steady operational and power supply improvements”.

FQM also recorded its highest quarterly production since the third quarter of 2014 at its 80%-owned Kansanshi Mining’s eponymous copper mine, owing to increased smelter availability and sulphuric acid supply from the mine’s smelter operation.

Meanwhile, the company’s higher sales volume quarter-on-quarter was mostly due to increased production at Sentinel.

The company announced comparative earnings of $38-million and cash flows from continuing operating activities of $304-million for the three months.

Further, FQM has completed two main initiatives in its strategy to survive volatile market conditions and sustained lower commodity prices. Firstly, the company put in place a new $1.82-billion debt facility equally comprising a term loan and a revolving credit facility. This new facility, which has improved the company’s financial covenants and amortisation schedule, matures in December 2019 and replaces the previous $3-billion facility.

Secondly, FQM completed the sale of the Kevitsa nickel mine, in Finland, to Swedish mining company Boliden for $712-million in cash, plus restricted cash and working capital adjustments, of which $663-million was received in June this year. Thebalance is due in the current quarter.

FQM chairperson and CEO Philip Pascall notes that the company will maintain its “strong performance” as its focus on these priorities has paid off.

He adds that all the company’s operations have shown cost and efficiency improvements, though he acknowledges that the Kansanshi smelter’s operation has had the greatest impact on the company’s performance.

This is because the Kansanshi smelter provides additional acid at very little cost. “The extra acid helps recovery of mixed and high-acid-consuming oxide ores. The combination of higher recoveries, negligible acid cost and the lower smelting treatment costs make a significant difference,” Pascall explains.

He also notes that the successful sale of Kevitsa and senior debt facility refinancing further strengthen the company’s financial position, “hence, its ability to continue developing the Cobre Panama copper project, in Panama, amid volatile market conditions and sustained lower commodity prices”.