FQM Reports Q1 Loss Amid Cobre Panamá Shutdown and Weaker Copper Sales
TSX-listed First Quantum Minerals has posted a net loss of $23 million, or $0.03 per share, for the quarter ending March 31, despite achieving an adjusted profit of $2 million.
The results reflect ongoing challenges from lower sales volumes, continued costs at the idled Cobre Panamá mine, increased financing and tax expenses, and foreign exchange impacts.
The company recorded a gross profit of $331 million and EBITDA of $377 million in Q1. However, the monthly expenditure of approximately $13 million at the suspended Cobre Panamá mine continues to weigh on the bottom line.
CEO Tristan Pascall highlighted the resilience of the Kansanshi and Sentinel operations in Zambia and confirmed that the S3 Expansion project at Kansanshi remains on schedule, with construction now 83% complete and 20% of systems handed over for commissioning. Production from the expansion is expected to commence in the second half of 2025.
“In Panama, following the suspension of arbitration, we reaffirm our commitment to constructive engagement with the government and people of Panama to resolve the future of Cobre Panamá,” said Pascall.
To bolster liquidity, First Quantum raised $750 million through a recent notes offering and secured an additional $500 million copper prepayment agreement with Jiangxi Copper Company after the quarter ended.
These initiatives are part of the company’s broader effort to strengthen its financial flexibility.
First-quarter performance was weaker than the previous quarter, with copper production down 11% to 99,703 tonnes, and C1 cash costs up 16% to $1.95/lb. Copper sales totaled 101,960 tonnes.
At Kansanshi, copper output dipped slightly to 46,544 tonnes, while gold production remained strong at 29,868 ounces.
Copper C1 cash costs rose to $1.34/lb, driven by lower production and increased smelting costs.
Sentinel produced 46,361 tonnes of copper, a drop of 10,199 tonnes from Q4 2024, due to lower throughput and ore grades.
C1 cash costs rose by $0.44 to $2.55/lb, as maintenance efforts continue to address mill fatigue and boost flotation recovery.
The Enterprise nickel project delivered 4,649 tonnes, up 25%, thanks to improved throughput. However, costs rose to $4.78/lb, impacted by higher freight expenses.
The company reaffirmed its 2025 production guidance, noting upcoming smelter shutdowns: a six-week halt at Kansanshi in Q2 and four days at Sentinel, alongside thickener upgrades and continued focus on grade improvement.
Operations at Cobre Panamá, suspended since November 2023, continue to incur preservation costs averaging $13 million per month.
The company said it awaits official guidance on the next steps for the site’s power plant and copper concentrate handling.
Financially, First Quantum saw a $74 million drop in gross profit and $78 million decline in EBITDA compared to the previous quarter.
Operating cash flows fell by $440 million to $143 million, mainly due to lower earnings and tax increases.
Net debt rose to $5.79 billion, driven largely by continued investment in the Kansanshi S3 project.
As part of board changes, Peter Buzzi and Ambassador Brian Nichols have been nominated to join the board at the May 8, 2025 AGM, while Andrew Adams, Joanne Warner, and Robert Harding will retire. Kevin McArthur will assume the role of Chair.
First Quantum continues to hedge its copper exposure, securing price protection for around 50% of 2025 output and 40% for H1 2026, while gold production remains a natural offset during market volatility.
