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First Quantum lifts copper guidance, lowers gold forecast

30th October 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Canada’s First Quantum Mines has upped its 2018 copper production guidance by 5% to 590 000 t, to reflect higher production from its two largest operations – Kansanshi and Sentinel, in Zambia.

The Kansanshi mine increased its third-quarter output to 63 687 t, from 58 706 t in the prior-year quarter, while Sentinel’s production increased to 56 426 t, from 53 533 t in the same period, First Quantum reported on Monday.

The company’s four other copper-producing mines – Guelb Moghrein, in Mauritania, Las Cruces, in Spain, Çayeli, in Turkey and Pyhäsalmi, in Finland – produced a combined 31 128 t in the September quarter, for total group output of 151 241 t. This compares with 145 376 t in the third quarter of 2017.

Copper’s all-in sustaining costs increased from $1.75/lb to $1.83/lb and are forecast to be in the range of $1.65/lb to $1.85/lb in the full year.

Third-quarter copper production benefited from higher throughput and recoveries at Kansanshi, Sentinel and Guelb Moghrein.

Gold production, however, fell by 5% in the third quarter to 44 979 oz, following lower grades at Kansanshi and Guelb Moghrein. The lower output resulted in a reduction of the gold guidance for the year from 200 000 oz to 180 000 oz.

First Quantum is forecasting copper and gold production of 745 000 t and 200 000 t, respectively, for 2019, as its new Cobre Panama mine enters into production. The project is now 81% complete and has achieved key milestones, including mechanical completion of the first in-pit primary crusher and the completion of the power station construction, with commissioning and ramp up currently under way.

In 2020, First Quantum will be producing about 270 000 t to 300 000 t from Cobre Panama, taking its production up to about 910 000 t.

Meanwhile, the third-quarter financial results reflected its positive operational quarter, with increased sales volumes and a higher realised copper price helping its bottom line.

Sales revenue increased from $877-million in the third quarter of 2017, to $978-million in the quarter under review. First Quantum posted net earnings of $61-million, which compares with a net loss of $52-million a year earlier, reflecting a $31-million gain realised under the corporate copper sales hedge programme.

First Quantum chairperson and CEO Philip Pascall said that the group’s operations continued to deliver to plan.

Edited by Creamer Media Reporter

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