Canadian mining company First Quantum on Thursday reported its highest-ever yearly copper production and said that it could increase its output by up to 25% this year.

The miner, which in October declared commercial production at its new Cobre Panama mine, produced 702 000 t of copper in 2019, an increase of 96 000 t from 2018 production.

Copper production in the fourth quarter was 204 000 t, with Cobre Panama contributing 60 000 t and Kansanshi and Sentinel, in Zambia, 61 000 t and 51 000 t, respectively. Other operations contributed 32 000 t.

First Quantum reported that Cobre Panama’s final mill came on line in mid-December, providing additional capacity on the third milling train. Mill throughput could now ramp up to a production rate of 85-million tonnes a year.

The mining company has provided a copper guidance of 830 000 t to 880 000 t for 2020. It also expects to produce 280 000 oz to 300 000 oz of gold and 15 t to 20 t of nickel.

Cobre Panama is expected to yield 285 000 t to 310 000 t of copper and 120 000 oz to 130 000 oz of gold this year. Kansanshi’s guidance is for copper production of 220 000 t to 235 000 t of copper and 120 000 oz to 130 000 oz of gold. Sentinel is forecast to produce 230 000 t to 240 000 t of copper.

In 2021 and 2022, First Quantum’s copper production is forecast to be between 800 000 t and 850 000 t.

According to newswire Reuters, First Quantum is considering a $1-billion investment to lift output at Kansanshi, increasing production to 300 000 t/y over time, from the 232 000 t that the mine produced last year.

NOTE OFFERING
Meanwhile, First Quantum announced it would launch an offering of an additional $300-million principal amount of its senior notes due 2023.

The company currently has $1.1-billion of senior notes due 2023 outstanding and the additional 2023 notes will be offered under the same indenture as the existing 2023 notes.

The miner would use the proceeds from the sale of the additional 2023 notes to fund the redemption of the remaining $300-million aggregate principal amount of senior notes due 2021.