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
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...
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...
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 ...
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...
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, 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. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
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 CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
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 ...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...