Welcome!

News Feed Item

First Quantum Minerals Reports Second Quarter 2014 Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/30/14 -- (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) of $133.6 million or $0.23 per share for the three months ended June 30, 2014 inclusive of $19.5 million or $0.04 per share of unfavorable, recurring acquisition-related adjustments.

SECOND QUARTER 2014 HIGHLIGHTS(2)


--  Higher production in main metals:
    --  Copper up 4% to 107,808 tonnes
    --  Nickel up 12% to 12,223 tonnes
--  Significantly increased copper sales:
    --  Revenues up 11% to $685.1 million despite lower market price
    --  Overall sales volume up 20% to 114,449 tonnes
    --  Kansanshi sales volume up 26% over Q2 2013 and Q1 2014
--  14% higher nickel revenues to $147.7 million despite 11% lower sales
    volume
--  Low cash cost of production maintained:
    --  Copper up 8% to $1.45 per pound
    --  Nickel down 24% to $4.16 per pound
--  Growth projects supported by strong cash flow from operations and
    enhanced financing:
    --  $388.6 million of cash flow generated by operations(3)
    --  $769.4 million cash balance including restricted cash at June 30,
        2014
    --  Further enhanced financial flexibility with issuance of $850.0
        million of senior notes
--  $618.6 million invested in the expansion of the production base
    --  Sentinel advanced to 94% overall completion
    --  Phase 1 copper smelter advanced to 78% overall completion; initial
        commissioning started in July
    --  Enterprise nickel advanced
    --  Proposed acquisition of Lumina Copper Corporation expected to close
        on or before August 30, 2014

(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 second quarter 2013, unless noted otherwise.

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

CEO'S COMMENTS

"Continued solid operations and the benefits of our cost control drive underlie the results for the quarter. The operational flexibility that has been built into Kansanshi was particularly evident as good headway was made on reducing concentrate inventory by utilizing as much of its recently-expanded oxide circuit as economically feasible. Both our nickel operations had good quarters with Kevitsa turning in one of its best performances since startup," noted Philip Pascall, First Quantum's CEO and Chairman.

"The second half of 2014 is an important one for First Quantum. Both the Phase 1 copper smelter and Trident project are tracking well for staged commissioning during this period towards commercial operations in 2015. These are significant components in the Company's growth and when in operation, they are expected to employ an additional 2,400 people, add up to 300,000 tonnes of new copper production capacity and enhance the overall unit operating cost.

"Our balance sheet remains strong. With the addition of extra financing flexibility during the quarter, funding for our growth projects is well provided for and we were able to take the opportunity to supplement our growth pipeline with our proposed acquisition of Lumina Copper Corporation. This underscores our belief in the fundamentals of copper and is another step in our long-stated objective of geographical diversification through the acquisition of world class, early-stage copper assets. The Taca Taca project is at the stage where we can apply our resources and development expertise to realize its full potential and further add to our copper production profile," Mr. Pascall concluded.

FINANCIAL HIGHLIGHTS


                            ------------------------------------------------
                             Three months ended June       Six months
                                       30                 ended June 30
                            ------------------------------------------------
(U.S. dollars millions,
 except where noted
 otherwise)                         2014        2013        2014     2013(1)
----------------------------------------------------------------------------
Sales revenues                     945.1       869.3     1,835.6     1,770.5
Gross profit                       292.6       201.1       574.2       511.3
EBITDA(2)                          381.5       284.2       745.1       594.6
Net earnings attributable to
 shareholders of the
 Company(3)                        133.6        71.9       260.4       184.3
Earnings per share                 $0.23       $0.12       $0.44       $0.35
Diluted earnings per share         $0.23       $0.12       $0.44       $0.34
----------------------------------------------------------------------------
Comparative earnings(3)            133.6       103.6       260.4       257.4
Comparative earnings per
 share(3)                          $0.23       $0.18       $0.44       $0.48
Cash flow from operations,
 before changes in working
 capital and tax paid              388.6       281.6       758.7       606.3
----------------------------------------------------------------------------

(1) Financial results for the six months ended June 30, 2013 include the results of the Las Cruces mine (100%), the Cayeli mine (100%), and the Pyhasalmi mine (100%) (together "the acquired operations") from March 22, 2013, the date of acquisition.

(2) 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 and six months ended June 30, 2014, for further information.

(3) Net 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 June       Six months
                                       30                 ended June 30
                            ------------------------------------------------
(U.S. dollars where
 applicable)                        2014        2013        2014     2013(1)
----------------------------------------------------------------------------
Copper production (tonnes)       107,808     103,694     220,926     183,002
Copper sales (tonnes)            114,449      95,491     217,235     184,600
Cash cost of copper
 production (C1)(2) (per lb)       $1.45       $1.34       $1.41       $1.43
Realized copper price (per
 lb)                               $2.97       $3.10       $3.03       $3.29
Nickel production (contained
 tonnes)                          12,223      10,875      24,061      21,947
Nickel sales (contained
 tonnes)                          10,651      11,927      24,748      22,975
Cash cost of nickel
 production (C1)(2) (per lb)       $4.16       $5.45       $4.30       $5.38
Realized nickel price (per
 payable lb)                       $8.45       $6.82       $7.38       $7.29
Gold production (ounces)          60,723      63,567     120,887     119,511
Gold sales (ounces)               60,135      59,381     113,261     118,172
----------------------------------------------------------------------------

(1) Operating results for the six months ended June 30, 2013 include those of the Las Cruces mine (100%), the Cayeli 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 and six months ended June 30, 2014, for further information.

UPDATED FULL YEAR 2014 GUIDANCE


--  Total production
    --  copper between 418,000 and 444,000 tonnes
    --  nickel between 45,000 and 48,000 tonnes
    --  gold between 221,000 and 242,000 ounces
    --  zinc between 55,000 and 60,000 tonnes
    --  palladium between 22,000 and 24,000 ounces
    --  platinum between 26,000 and 29,000 ounces
--  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 $2.2 billion and $2.4 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 Thursday, July 31, 2014.

Conference call and webcast details are as follows:


Date:     July 31, 2014
Time:     9:00 am (EDT); 2:00 pm (BST); 6:00 am (PDT)
Webcast:  http://www.first-quantum.com/
Dial in:  North America: 800 709 0218 (toll free)
          International and North America: 1 647 722 6851
          United Kingdom: 0800 496 0830 (toll free) or 44 207 855 8971

Replay:   Canada and international: 1 416 626 4100
          OR
          Toll free North America: 800 558 5253
Passcode: 21724489

The conference call replay will be available from 11:00 am (EDT) July 31, 2014 until 11:59 pm (EDT) on August 7, 2014.

COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS

The complete unaudited condensed interim consolidated financial statements, and MD&A for the three and six months ended June 30, 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

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
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).