TSX-listed base metals miner First Quantum’s Cobre Panamá copper mine, in Panama, contributed, for the first time, milled ore of 25 t to the company’s total production of 136 969 t of copper for the quarter ended March 31.
The project remains on schedule to deliver between 140 000 t and 175 000 t of copper this year, with around 80% of this production expected in the second half of the year.
The mine should run at a rate of 72-million tonnes a year by year-end.
Meanwhile, the bulk of the company’s production for the quarter was delivered from the Sentinel copper mine, in Zambia, which produced 57 716 t of copper, which was a 15% year-on-year increase and a quarterly record for the mine.
The Kansanshi mine, in Zambia, delivered lower production, owing to the planned processing of lower-grade oxide ore and lower throughput.
“Our first-quarter financial results reflect a solid operational performance despite the rainy season in Zambia and lower production from Las Cruces resulting from a land slippage earlier this year. We expect operational results to improve through 2019 as the ramp-up at Cobre Panama accelerates.
“In the coming years, we will be able to deliver on our commitment to deleveraging our balance sheet. The refinancing announced earlier in the year was a step towards improving liquidity and pushing out maturities.
“We will continue this effort throughout the year, with further progress expected in 2020 as Cobre Panama starts to meaningfully contribute to cash flow. We will also consolidate work done on our project pipeline to enable future growth," CEO and chairperson Philip Pascall said on Monday.
First Quantum secured a new $2.7-billion term loan and revolving credit facility that matures on December 21, 2022, which replaced an existing $1.5-billion revolving credit facility. The new financing included revised financial covenants, extended debt maturities and improved financial flexibility through added liquidity.