The Cobre Panama mine was shut for 15 days during the first quarter.
Canada-based First Quantum Minerals has kept its 2023 production guidance unchanged, despite reporting a one-third drop in first-quarter copper production after a “difficult” three-month period at its three biggest operations.
The miner reported production of 138 753 t in the March quarter, a 33% decrease from the fourth quarter’s output.
The sharp decrease was attributed to a 15-day temporary suspension of production at Cobre Panama and the rainy season in Zambia, with Sentinel receiving its highest rainfall in 25 years.
“At Cobre Panamá, production was interrupted by a temporary suspension of exports but returned to full production rates once the suspension was lifted. Our Zambian operations experienced a seasonal impact; however, the rainy season is nearing an end. We are focused on improving operational performance and expect production to recover over the course of the year and, as such, we remain committed to our guidance for 2023,” commented CEO Tristan Pascall.
First Quantum is targeting copper production of 770 000 t to 840 000 t this year, at a copper C1 cash cost of $1.65/lb to $1.85/lb.
First-quarter copper C1 cash costs of $2.24/lb exceeded the yearly guidance range and were $0.38/lb higher than in the fourth quarter 2022.
“While market rates for fuel and freight were, on average, lower in the first quarter of 2023, these benefits were more than offset by lower production level,” the company reported.
First Quantum reported gross profit of $280-million and earnings before interest, taxes, depreciation and amortisation of $518-million for the first quarter, which were 22% and 20% lower, respectively, than the fourth quarter of last year owing to lower metal sales volumes.