First Quantum Reports Wider Q1 Loss Despite Higher Copper Output Forecast

First Quantum Q1 2026 Loss Widens on Rising Costs and Lower Output, but Copper Production Outlook Raised

First Quantum Minerals reported a significantly wider loss for the first quarter of 2026, as increased operating costs and weaker copper production weighed on financial performance, despite an improved full-year output forecast.

The company posted a net loss attributable to shareholders of $196 million, compared with a $23 million loss in the same period last year. Adjusted loss for the quarter came in at $147 million, or $0.18 per share.

Operational challenges were most evident at its Zambian mines. At the Sentinel Mine, copper production declined to 45,252 tonnes down nearly 3,000 tonnes from the previous quarter due to lower ore grades and reduced recovery rates, although higher throughput provided some offset. Similarly, output at the Kansanshi Mine fell to 45,345 tonnes, reflecting comparable operational constraints.

Chief Executive Officer Tristan Pascall attributed the challenging start to the year to global uncertainty and rising cost pressures, particularly those linked to geopolitical tensions affecting supply chains.

He noted that the company’s ongoing investments in innovation and electrification are helping to structurally reduce fuel consumption and improve efficiency, with stronger operational performance expected in the second half of the year as higher-grade ore becomes accessible.

The miner continues to face elevated input costs, especially for fuel, which are expected to weigh on margins in the near term.

In response, First Quantum is diversifying its fuel sourcing strategies and strengthening procurement to manage volatility.

The company also highlighted the advantage of its in-house smelting capacity, which reduces dependence on external sulphuric acid markets during a period of constrained global supply.

Higher Production Outlook
Despite the weaker quarterly results, First Quantum raised its 2026 copper production guidance to between 405,000 and 475,000 tonnes, up from its previous forecast of 375,000 to 435,000 tonnes.

The revised outlook is supported by expected output from stockpiled ore at the Cobre Panamá Mine, following government approval to process and export the material.

The company anticipates initial production from the site toward the end of the second quarter as it advances preparations for a potential restart, including the recruitment of approximately 1,000 workers.

Cobre Panamá remains under a preservation and safe management framework, but progress at the site represents a critical step toward resolving a prolonged dispute and could significantly enhance First Quantum’s production profile if operations resume as planned.

Balancing Costs and Growth
While near-term pressures from rising costs persist, the company’s longer-term outlook remains supported by strong global demand for copper, particularly driven by electrification trends.

First Quantum’s asset base including its operations in Zambia and Panama positions it to benefit from these structural demand drivers once operational and cost challenges are addressed.