|By Marketwired .||
|July 31, 2013 06:20 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/31/13 --
(In United States dollars, except where noted otherwise)
First Quantum Minerals Ltd. ("First Quantum" or the "Company") (TSX:FM)(LSE:FQM) today announced comparative net earnings(1) of $106.1 million or $0.18 per share for the three months ended June 30, 2013 inclusive of $19.5 million or $0.04 per share of unfavorable, recurring acquisition-related adjustments.
(1) Comparative earnings and comparative earnings per share are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS. Earnings attributable to shareholders of the Company have been adjusted to remove the effect of unusual items to arrive at comparative earnings. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors.
SECOND QUARTER HIGHLIGHTS
-- First quarter with full consolidation of the assets acquired in the purchase of Inmet Mining Corporation: -- copper production up 44% to 103,694 tonnes -- nickel production up 33% to 10,875 tonnes -- gold production up 44% to 63,567 ounces -- Copper production cash costs lowered by 12% to $1.34 per pound -- Unfavorable impact to gross profit of $46 million due to lower metal prices -- Strong financial position maintained: -- $281.6 million of cashflow generated by operations -- $778 million of cash -- $3,582.5 million of undrawn facilities -- Development projects remain on track -- Full year production guidance reconfirmed
"Our results reflect continued strong performance at all our operations, and the successful integration of the mines acquired with Inmet. In particular, Kansanshi and Guelb Moghrein both turned in higher year-on-year and quarter-on-quarter copper production and Ravensthorpe's output came in just shy of the quarterly record set in Q1, despite the two week bi-annual acid plant shutdown" noted Philip Pascall, First Quantum's CEO and Chairman.
"Good cost control combined with the addition of the acquired operations to our asset base effectively reduced our production cost of both copper and nickel. This low cost profile enables First Quantum to be profitable, and to generate healthy cash flows, even in low metal price environments.
"Our balance sheet and operational cash flow continue to be strong. During the quarter, we repaid the $2.5 billion of short-term financing and are well advanced with establishing more suitable longer-term debt instruments to help us maintain our financial flexibility and meet our funding requirements. We expect to report further on this in the next few months.
"Solid progress was made with construction of our projects. The Kansanshi expansion, Sentinel and smelter projects are now within 18 months of commissioning and startup. When these projects are in operation, they are expected to employ an additional 2,400 people, add 445,000 tonnes of new copper production capacity and further lower our unit operating cost. At Cobre Panama, we have maintained our corporate responsibility program, and have now applied our steadier practical approach to project development. As a result, the cash outflow has slowed considerably and our team is confident that we can achieve the outcomes we had envisioned. We expect to provide a full update on the project in the fourth quarter of this year."
FINANCIAL HIGHLIGHTS Three months ended Six months ended June 30 June 30 ------------------------------------------------ (U.S. dollars millions, except where noted otherwise) 2013 2012 2013(1) 2012 ---------------------------------------------------------------------------- Sales revenues 869.3 722.3 1,770.5 1,451.0 Gross profit, before Inmet acquisition accounting adjustments(2) 264.3 274.7 586.5 545.0 Gross profit 201.1 274.7 511.3 545.0 EBITDA(2) 284.2 276.5 594.6 1,775.3 Net earnings attributable to shareholders of the Company 71.9 142.0 184.3 1,478.9 Earnings per share $ 0.12 $ 0.30 $ 0.35 $ 3.12 Diluted earnings per share $ 0.12 $ 0.30 $ 0.34 $ 3.10 ---------------------------------------------------------------------------- Comparative earnings(3) 106.1(4) 142.0 259.9 261.0 Comparative earnings per share(3) $ 0.18 $ 0.30 $ 0.49 $ 0.55 Cash flow from operations, before changes in working capital 281.6 345.8 606.3 563.6 ---------------------------------------------------------------------------- (1) Financial results for the six months ended June 30, 2013 include those of the Cayeli mine (100%), the Las Cruces mine (100%), and the Pyhasalmi mine (100%) from March 22, 2013, the date of acquisition. (2) Gross profit, before Inmet acquisition accounting adjustments and Earnings before interest, tax, depreciation and amortization ("EBITDA") are not recognized under IFRS. Refer to the "Regulatory Disclosures" section in the Management's Discussion and Analysis ("MD&A") for the second quarter ended June 30, 2013, for further information. (3) Earnings attributable to shareholders of the Company have been adjusted to remove the effect of unusual items to arrive at comparative earnings. Comparative earnings and comparative earnings per share are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors. Refer to the "Regulatory Disclosures" section in the MD&A for the second quarter ended June 30, 2013, for a reconciliation of comparative earnings. (4) Inclusive of $19.5 million or $0.04 per share of unfavorable, recurring acquisition-related adjustments. OPERATING HIGHLIGHTS ------------------------------------------------ Three months ended Six months ended June 30 June 30 ------------------------------------------------ (U.S. dollars where applicable) 2013 2012 2013(1) 2012 ---------------------------------------------------------------------------- Copper production (tonnes) 103,694 72,184 183,002 138,053 Copper sales (tonnes) 95,491 72,711 184,600 140,500 Cash cost of copper production (C1)(2) (per lb) $ 1.34 $ 1.53 $ 1.43 $ 1.56 Realized copper price (per lb) $ 3.10 $ 3.48 $ 3.29 $ 3.57 Nickel production (contained tonnes) 10,875 8,174 21,947 16,747 Nickel sales (contained tonnes) 11,927 9,846 22,975 15,178 Cash cost of nickel production (C1)(2) (per lb) $ 5.45 $ 5.70 $ 5.38 $ 5.70 Realized nickel price (per payable lb) $ 6.82 $ 7.84 $ 7.29 $ 8.21 Gold production (ounces) 63,567 43,280 119,511 86,775 Gold sales (ounces) 59,381 46,445 118,172 92,064 ---------------------------------------------------------------------------- (1) Operating results for the six months ended June 30, 2013 include those of the Cayeli mine (100%), the Las Cruces mine (100%), and the Pyhasalmi mine (100%) from March 22, 2013, the date of acquisition. (2) Cash costs (C1) is not recognized under IFRS. Refer to the "Regulatory Disclosures" section in the MD&A for further information.
On July 31, 2013, First Quantum announced that it will pay an interim dividend of Cdn $0.0583 per share in respect of the financial year ended December 31, 2013.
The dividend will be paid on September 19, 2013 to shareholders of record on August 28, 2013. The ex-dividend date is August 26, 2013.
CONFERENCE CALL & WEBCAST
The Company will host a conference call and webcast to discuss the results on Thursday, August 1, 2013.
Conference call and webcast details are as follows:
Date: August 1, 2013 Time: 6:00 am (PDT); 9:00 am (EDT); 2:00 pm (BST) Webcast: http://www.first-quantum.com/ Dial in: Canada and international: 416-340-8410 Toll free North America: 866-225-2055 Toll free United Kingdom: 00-800-6578-9898 Replay: Canada and international: 905-694-9451 Toll free North America: 800-408-3053 Replay Passcode: 9921361
The conference call replay will be available until 11:59 pm (PDT) on August 8, 2013.
COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS
The complete unaudited condensed interim consolidated financial statements and MD&A for the second quarter ended June 30, 2013 are available at www.first-quantum.com and should be read in conjunction with this news release.
BASIS OF PRESENTATION
This news release and the Company's Financial Statements have been prepared in accordance with International Financial Reporting Standards and are presented in United States dollars, except where noted. Changes in accounting policies have been applied consistently to comparative periods unless otherwise noted.
On Behalf of the Board of Directors of First Quantum Minerals Ltd.
G. Clive Newall, President
Listed in Standard and Poor's
For further information visit our website at www.first-quantum.com
Cautionary statement on forward-looking information
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. These forward-looking statements are principally included in the Development activities section and are also disclosed in other sections of the document. The forward looking statements include estimates, forecasts and statements as to the Company's expectations of production and sales volumes, expected timing of completion of project development at Kansanshi, Sentinel, Enterprise and Cobre Panama, the impact of ore grades on future production, the potential of production disruptions, capital expenditure and mine production costs, the outcome of mine permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, cobalt, nickel, zinc, pyrite, PGE, and sulphuric acid, estimated mineral reserves and mineral resources, First Quantum's exploration and development program, estimated future expenses, exploration and development capital requirements, the Company's hedging policy, and goals and strategies. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about the price of copper, gold, nickel, zinc, pyrite, PGE, cobalt and sulphuric acid, anticipated costs and expenditures and the ability to achieve the Company's goals. Although management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to, future production volumes and costs, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania, Finland, Spain, Turkey, Panama and Australia, adverse weather conditions in Zambia, Finland, Spain, Turkey and Mauritania, labour disruptions, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, the production of off-spec material.
See the Company's Annual Information Form for the year ended December 31, 2012 (available at www.sedar.com) for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of these factors are beyond First Quantum's control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertake no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made herein are qualified by this cautionary statement.
First Quantum Minerals Ltd.
North American contact: Sharon Loung
Director, Investor Relations
(647) 346-3934 or Toll Free: 1 (888) 688-6577
(604) 688-3818 (FAX)
First Quantum Minerals Ltd.
United Kingdom contact: Clive Newall
+44 140 327 3484
+44 140 327 3494 (FAX)
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Sep. 26, 2016 04:30 AM EDT Reads: 1,411
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
Sep. 26, 2016 04:30 AM EDT Reads: 992
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Sep. 26, 2016 03:15 AM EDT Reads: 1,081
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Sep. 26, 2016 03:00 AM EDT Reads: 940
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Sep. 26, 2016 03:00 AM EDT Reads: 1,758
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Sep. 26, 2016 02:45 AM EDT Reads: 1,550
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Sep. 26, 2016 01:45 AM EDT Reads: 1,671
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Sep. 26, 2016 01:00 AM EDT Reads: 1,958
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 26, 2016 01:00 AM EDT Reads: 1,622
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Sep. 26, 2016 12:30 AM EDT Reads: 1,249
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 26, 2016 12:30 AM EDT Reads: 1,543
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 26, 2016 12:15 AM EDT Reads: 1,823
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 25, 2016 10:45 PM EDT Reads: 1,586
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Sep. 25, 2016 10:45 PM EDT Reads: 4,417
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 25, 2016 10:00 PM EDT Reads: 1,703