TORONTO (miningweekly.com) – Base metals miner First Quantum Minerals has swung to a net loss for the first three months of the year of $82-million, or $0.14 a diluted share, as lower copper and nickel sales and prices impacted the bottom line.

Excluding special items, the firm’s comparative loss was $12-million, or $0.10 a share, $0.06 more than what analysts had expected.

For the period ended March 31, revenues declined 27% year-over-year to $650-million, mainly owing to a 7% decline in copper sales at 95 185 t, reflecting lower sales volumes at Kansanshi, in Zambia, and Kevitsa in Finland, which were partly offset by higher copper sales volumes at Guelb Moghrein, in Mauritania. Revenue also suffered from a 60% drop in nickel sales at 5 706 t, impacted by reduced operating capacity at Ravensthorpe, in Australia, as well as the timing of shipments at Kevitsa.

The company, which reported first-quarter results after market close on Thursday, ended the quarter with $302-million cash in the bank, with $744-million available in committed undrawn facilities.

On April 20, the Zambian government announced proposals to revise the 2015 taxation regime in the mining sector. The proposed changes would decrease mineral royalties to 9% for openpit and underground mines and reinstate corporate tax to 30%, with variable profits tax of up to 15%. Implementation was expected from July 1 and, therefore, had no impact on the quarter's results.

First Quantum highlighted that the impact of the proposed 9% royalty rate would have been to reduce first-quarter royalty charges by $38-million. At the proposed rates, the company estimated a full-year 2015 effective group corporate tax rate of 20% to 25%.

Once enacted the reintroduction of corporation tax would require a revaluation to the company’s deferred tax balances, which would result in a reversal of the income tax credit that arose in the fourth quarter last year as a consequence of the reduction in corporate tax to 0%.

First Quantum expected to this year produce between 410 000 t and 440 000 t of copper from its global operations and between 32 000 t and 40 000 t of nickel. This excluded first physical production at Sentinel, in Zambia, that took place during the first quarter, which was scheduled to reach commercial production by the third quarter.