First Quantum chairperson and CEO Philip Pascal
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.