Welcome!

News Feed Item

First Quantum Minerals Reports Second Quarter 2013 Results

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 

CEO'S COMMENTS

"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.                  

DIVIDEND DECLARATION

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

12g3-2b-82-4461

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to o...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.