First Quantum Minerals cuts debt by over $1bn in first quarter

Reuters | April 23, 2024 | 7:05 pm Top Companies Canada Copper

Cobre Panamá mine. (Image by First Quantum Minerals).

Canadian miner First Quantum Minerals said on Tuesday that it has cut its debt by $1.14 billion in the first quarter.


The company in February had announced a series of capital restructuring measures that would strengthen its balance sheet and cut debt, a move that will help the Canadian miner deliver on its “operational objectives.”

The company’s total debt as of March 31 stands at $5.99 billion, down from its previous debt of $7.38 billion.

The copper miner reported a net loss attributable to shareholders of the company at $159 million for the quarter ended March. 31, as the company continues to be impacted by Cobre Panama mine closure. It had posted a profit of $75 million in the year-ago quarter.

The Cobre Panama project, one of the world’s largest open-pit copper mines, was forced to shut down after Panama’s top court ruled that its contract was unconstitutional.

(By Tanay Dhumal; Editing by Shailesh Kuber)


First Quantum could remove copper from Panama mine after election, CEO says

Reuters | April 24, 2024 

Cobre Panama copper mine. (Image courtesy of Franco-Nevada assets handbook.)

Canadian miner First Quantum Minerals (TSX: FM) believes it will be able to take the already mined 121,000 tonnes of copper concentrate out of its disputed mine in Panama after the national elections there in May, the company’s chief executive said on Wednesday.


Panama’s current government ordered the closure of the Cobre Panama copper mine last year after public protests over environmental damage from mining in the country. Cobre Panama accounted for about 1% of the global copper output, and contributed about 40% to First Quantum’s revenue last year.

First Quantum has been negotiating with Panama’s government to allow it to sell the copper that it mined before the dispute began. Copper was trading at $9772 a metric tonne at the London Metals Exchange on Wednesday. Any proceedings from the sale could help cover the costs of maintaining the mine.

“Obviously, in the context of election politics and a strong debate around that, the balance of probability probably spills over after the election,” said Tristan Pascall, CEO of First Quantum Minerals, when asked during an analyst call when the company expects to take out the copper concentrate from the mine site.

Cobre Panama is under dispute after the Panama Supreme Court nullified its mining contract and the country’s president closed the mine following the public protests.

A new government in Panama could overturn that, however polls show that people of Panama are still against mining.

The closure pushed First Quantum to undertake a series of debt restructuring measures, including issuing equity worth $1 billion and corporate debt worth $1.6 billion. It is also considering bringing in an equity partner for its Zambian mines.

Reuters in March reported that First Quantum officials met with Chinese government officials to discuss the prospect of copper miner Jiagnxi Copper buying the disputed copper from Panama after the elections.

Shares of First Quantum were up 2% on the Toronto Stock Exchange around midday.

On the proposed minority sale of the Zambian mines, the company said that it will enter into an partnership only if it brings value to shareholders and the South African government.

“The recent financing transaction that we put forward through Q1 means we don’t have to enter into a transaction here,” Ryan MacWilliam, CFO of First Quantum said, referring to the Zambia mines.

(Reporting by Divya Rajagopal and Seher Dareen; Editing by Krishna Chandra Eluri, Michael Erman, Elaine Hardcastle)

Related: Panama election unlikely to shift outlook for First Quantum’s copper mine