Welcome!

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      
acquisition.                                                                
                                                                            
(3) Cash flow from operations before changes in working capital and tax     
paid.                                                                       

CEO'S COMMENTS

"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  
                                                                 ended      
                                                                            
                                                                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  
                                                                 ended      
                                                                            
                                                                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     
  interest                                                                  

CONFERENCE CALL & WEBCAST

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)                      
Webcast:   www.first-quantum.com                                            
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                         
           OR                                                               
           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.

COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS

The complete unaudited condensed interim consolidated financial statements, and MD&A for the three months ended March 31, 2014 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 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

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 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
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
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 ...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
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 Infranics 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. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media 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, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze 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, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
SYS-CON Events announced today that HTBase 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. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, provided the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” used open source attack tools that are free and available for download by anybody. Attendees learned where to find and how to operate these tools for the purpose of testing their own IT infrastructure. The...
SYS-CON Events announced today that IoT Now has been named “Media 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, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.