Click here to close now.


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.


--  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
--  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.


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)              
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.


The complete unaudited condensed interim consolidated financial statements and MD&A for the second quarter ended June 30, 2013 are available at and should be read in conjunction with this news release.


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

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 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
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ability. Many are unable to effectively engage and inspire, creating forward momentum in the direction of desired change. Renowned for its approach to leadership and emphasis on their people, organizations increasingly look to our military for insight into these challenges.
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. Migration to cloud shifts computing resources from your data center, which can yield significant advantages provided that the cloud vendor an offer enterprise-grade quality for your application.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driv...
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
Electric power utilities face relentless pressure on their financial performance, and reducing distribution grid losses is one of the last untapped opportunities to meet their business goals. Combining IoT-enabled sensors and cloud-based data analytics, utilities now are able to find, quantify and reduce losses faster – and with a smaller IT footprint. Solutions exist using Internet-enabled sensors deployed temporarily at strategic locations within the distribution grid to measure actual line lo...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, will explore the current state of IoT connectivity and review key trends an...
Chris Van Tuin, Chief Technologist for the Western US at Red Hat, has over 20 years of experience in IT and Software. Since joining Red Hat in 2005, he has been architecting solutions for strategic customers and partners with a focus on emerging technologies including IaaS, PaaS, and DevOps. He started his career at Intel in IT and Managed Hosting followed by leadership roles in services and sales engineering at Loudcloud and Linux startups.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
SYS-CON Events announced today that Key Information Systems, Inc. (KeyInfo), a leading cloud and infrastructure provider offering integrated solutions to enterprises, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Key Information Systems is a leading regional systems integrator with world-class compute, storage and networking solutions and professional services for the most advanced softwa...