FQM Announces $1 Billion Gold Streaming Agreement with Royal Gold
First Quantum Minerals Enters $1B Gold Streaming Agreement with Royal Gold to Boost Liquidity and Maintain Copper Exposure at Kansanshi Mine
First Quantum Minerals Ltd. has announced that it has entered into a gold streaming agreement (the “Agreement”) with RGLD Gold AG, a wholly owned subsidiary of Royal Gold, Inc. (“Royal Gold”), through a wholly owned Canadian subsidiary.
Under the terms of the Agreement, First Quantum will receive a $1.0 billion upfront cash payment in exchange for future gold deliveries linked to copper production at the Kansanshi Mine in Zambia (the “Transaction”).
“Following a comprehensive evaluation of our deleveraging options, this strategic transaction strengthens our financial position while preserving full exposure to Kansanshi’s copper output and most of our gold production,” said Tristan Pascall, CEO of First Quantum.
“We are proud to form a new partnership with Royal Gold, which affirms the long-term potential of Kansanshi and Zambia’s reputation as a leading African mining jurisdiction.”
Enhanced Liquidity and Financial Flexibility:
The $1.0 billion upfront payment provides long-term, unsecured, non-debt capital. These funds will be used for capital expenditures, general working capital, and repayment of existing loans. Upon closing, the Company’s net debt-to-EBITDA ratio is expected to decrease significantly.
First Quantum retains full exposure to all copper production at Kansanshi. Based on 2026–2027 guidance, approximately 84% of the Company’s total gold production remains exposed to spot gold prices.
The Company also retains full ownership of recently identified near-surface gold zones at Kansanshi.
The Agreement includes provisions that allow for increased gold exposure over time, higher production payments, and acceleration options tied to improved financial metrics.
Summary of Key Agreement Terms
Upfront Payment:
First Quantum will receive $1.0 billion in cash on August 6, 2025.
Gold Delivery Terms (linked to copper output at Kansanshi):
75 ounces of gold per million pounds of recovered copper until 425,000 ounces are delivered
55 ounces per million pounds for the next 225,000 ounces
45 ounces per million pounds thereafter
Production Payments:
20% of the prevailing spot gold price for each ounce delivered
Increases to 35% upon achieving either:
A BB senior unsecured debt rating from Fitch or S&P Global
A net leverage ratio of ≤ 2.25x for three consecutive quarters (starting Q1 2026)
Acceleration Options:
First Quantum has two options to reduce streaming obligations by up to 30%:
Up to 20% Reduction:
Triggered by a BB credit rating or net leverage ≤ 2.25x for three consecutive quarters
Valued up to $200 million
Additional 10% Reduction:
Triggered by operational milestones and either:
A BBB- credit rating
Net leverage ≤ 1.25x for four consecutive quarters
Valued at $100 million
The streaming agreement is unsecured but is guaranteed by First Quantum and certain subsidiaries within the Kansanshi ownership chain.
