Click here to close now.


News Feed Item

First Quantum Minerals Reports Results for the Three Months Ended March 31, 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/01/14 --

(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) for the three months ended March 31, 2014 of $126.8 million or $0.22 per share inclusive of $26.7 million or $0.05 per share of unfavorable, recurring acquisition-related adjustments.

FIRST QUARTER 2014 HIGHLIGHTS(2)                                            
- Increased production across all product lines:                            
  - Copper up 43% to 113,118 tonnes                                         
  - Nickel up 7% to 11,838 tonnes                                           
  - Gold up 8% to 60,164 ounces                                             
  - Platinum and palladium up 22% to 15,342 ounces                          
- Lowered cash cost of production:                                          
  - Copper down 9% to $1.38 per pound                                       
  - Nickel down 18% to $4.37 per pound                                      
- Significantly higher sales volumes                                        
  - Copper up 15% to 102,786 tonnes despite a decrease at Kansanshi as local
    smelter constraints persisted                                           
  - Nickel up 28% to 14,097 tonnes                                          
- Gross profit unfavorably impacted by $152 million from lower commodity    
  prices and the build-up in concentrate inventory at Kansanshi             
- Enhanced financing and capital structure augmented by strong cash flow    
  from operations                                                           
  - $370.1 million of cash flow generated by operations(3)                  
  - $833.3 million cash balance including restricted cash at March 31, 2014 
  - Completed major elements of the reorganization of the financing and     
    capital structure including the replacement of short-term debt with     
    longer-term financing                                                   
- Invested $588.2 million in the expansion of the Company's production base 
  - Advanced Sentinel to 86% overall completion; on track for staged        
    commissioning to start in Q3 2014                                       
  - Accelerated construction activities at the Phase 1 copper smelter       
    including the addition of a night shift                                 
  - Progressed detailed design for the Cobre Panama project                 
- Full year 2014 production and cost guidance maintained                    
(1) 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 International Financial Reporting Standards ("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.       
(2) Results are compared to the first quarter 2013, unless noted otherwise, 
and include the results of the Cayeli mine (100%), the Las Cruces mine      
(100%), and the Pyhasalmi mine (100%) from March 22, 2013, the date of      
(3) Cash flow from operations before changes in working capital and tax     


"This is a strong start to the year and builds on the momentum of 2013. All of our operations performed well from continued sound management of the factors under our control and benefits from the investments in process improvements. What has been achieved at Ravensthorpe and Kansanshi should not be underestimated. With a focus on keeping a good maintenance schedule and vigilance on sustainable cost and process improvements, Ravensthorpe has consistently delivered good performance from the start of operations in 2012. The mine's margin improvement year-over-year is the result of these efforts. With the nickel price improving, we expect Ravensthorpe to become an even more substantial contributor to First Quantum's profitability. At Kansanshi, the mine recorded one of its highest quarterly production numbers even though the seasonal rains were the most severe in its operating history. It is disappointing that the extent of what has been accomplished is somewhat obscured by the ongoing lack of in-country smelting capacity. However, we will continue to favor copper cathode production in order to draw down the copper concentrate inventory and release that working capital over the course of the year," noted Philip Pascall, First Quantum's CEO and Chairman.

"Good progress was made at each of our projects under development. The addition of a night construction shift at the Phase 1 copper smelter has made a difference and much of the schedule slippage incurred last year will likely be reversed. All areas in the development of Sentinel are tracking according to plan for the start of commissioning in Q3 2014 and within the original $1.9 billion capital estimate. This bodes very well for the Cobre Panama project which is being designed with the same concepts as Sentinel albeit on a larger scale.

"The completion of the major elements in the reorganization of our financing and capital structure within 12 months of the acquisition of Inmet is a significant accomplishment. While the new structure is more appropriate, cost efficient and provides the Company with the financial resources to complete its major development programs, we believe it is prudent to continue to look at opportunities to provide additional flexibility," Mr. Pascall concluded.

FINANCIAL HIGHLIGHTS                                                        
                                                              Three months  
                                                                March 31    
(U.S. dollars millions, except where noted otherwise)          2014  2013(1)
Sales revenues                                                890.5    901.2
Gross profit before Inmet acquisition accounting                            
 adjustments(2)                                               308.3    322.6
Gross profit                                                  281.6    310.2
EBITDA(2)                                                     363.6    310.4
Net earnings attributable to shareholders of the Company(3)   126.8    112.4
Earnings per share                                            $0.22    $0.23
Diluted earnings per share                                    $0.21    $0.23
Comparative earnings(3)                                       126.8    153.8
Comparative earnings per share(3)                             $0.22    $0.32
Cash flow from operations, before changes in working                        
 capital and tax paid                                         370.1    324.7
(1) Financial results for the three months ended March 31, 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 three months     
 ended March 31, 2014,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.                                                  
OPERATING HIGHLIGHTS                                                        
                                                              Three months  
                                                                March 31    
(U.S. dollars where applicable)                                2014  2013(1)
Copper production (tonnes)                                  113,118   79,308
Copper sales (tonnes)                                       102,786   89,109
Cash cost of copper production (C1)(2) (per lb)               $1.38    $1.52
Realized copper price (per lb)                                $3.10    $3.48
Nickel production (contained tonnes)                         11,838   11,072
Nickel sales (contained tonnes)                              14,097   11,048
Cash cost of nickel production (C1)(2) (per lb)               $4.37    $5.34
Realized nickel price (per payable lb)                        $6.57    $7.80
Gold production (ounces)                                     60,164   55,944
Gold sales (ounces)                                          53,126   58,791
(1) Operating results for the three months ended March 31, 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 the three months ended March 31, 2014,
 for further information.                                                   
FULL YEAR 2014 GUIDANCE                                                     
- Total production                                                          
  - copper between 418,000 and 444,000 tonnes                               
  - nickel between 42,000 and 47,000 tonnes                                 
  - gold between 221,000 and 246,000 ounces                                 
  - zinc between 59,000 and 65,000 tonnes                                   
  - palladium and platinum between 22,000 and 24,000 ounces each            
- Cash cost of production                                                   
  - copper between $1.32 and $1.48 per pound                                
  - nickel between $4.40 and $4.90 per pound                                
- Capital expenditures of between $2.1 billion and $2.2 billion, excluding  
  capitalization of any pre-commercial production costs and capitalized     


The Company will host a conference call and webcast to discuss the results on Friday, May 2, 2014.

Conference call and webcast details are as follows:

Date:      May 2, 2014                                                      
Time:      9:00 am (EDT); 2:00 pm (BST); 6:00 am (PDT)                      
Dial in:   North America: 800 741 5804 (toll free)                          
           International and North America: 1 647 722 6851                  
           United Kingdom: 0800 496 0830 (toll free) or 44 207 855 8972     
Replay:    Canada and international: 1 416 626 4100                         
           Toll free North America: 800 558 5253                            
Passcode:  21715107                                                         

The conference call replay will be available from 11:00 am (EDT) until 11:59 pm (EDT) on May 9, 2014.


The complete unaudited condensed interim consolidated financial statements, and MD&A for the three months ended March 31, 2014 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 IFRS 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 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
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment proces...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
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...
Countless business models have spawned from the IaaS industry – resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his general session at 17th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, an IBM Company, broke down what we have to work with, discussed the benefits and pitfalls and how we can best use them ...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
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, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
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.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...