First Quantum Minerals (FM) Q1 2025 earnings summary

Executive summary

• Q1 2025 copper production was 99,703 tonnes, down 11% from Q4 2024, mainly due to lower output at Sentinel.

• Net loss attributable to shareholders was $23 million ($0.03 per share), with adjusted EPS at $0.00, reflecting reduced sales volumes.

• Strategic actions focused on liquidity, cost discipline, and operational performance, with key priorities including resolving Panama issues and delivering the Kansanshi S3 Expansion.

• Cobre Panamá remains halted since November 2023; constructive engagement with Panamanian authorities continues, with arbitration suspended.

• Enhanced liquidity through a $1 billion senior notes offering and $500 million copper prepayment agreement.

Financial highlights

• Q1 2025 revenue was $1,190 million, down 5% quarter-over-quarter, mainly due to lower copper and gold sales despite higher realized prices.

• EBITDA fell 17% to $377 million; gross profit was $331 million; cash flows from operating activities were $143 million.

• Net debt increased by $257 million to $5,787 million, mainly due to capex, interest, and working capital outflows.

• Liquidity at quarter end was $1.6 billion, including $743 million in cash and $880 million undrawn revolver.

• Copper C1 cash cost rose 16% to $1.95/lb, driven by lower production and higher costs at Sentinel and Zambian operations.

Outlook and guidance

• 2025 production guidance unchanged: copper 380,000–440,000 tonnes, gold 135,000–155,000 ounces, nickel 15,000–25,000 tonnes.

• Copper C1 cash cost guidance for 2025: $1.85–$2.10/lb; AISC: $3.05–$3.35/lb.

• Kansanshi S3 Expansion is 83% complete, with first production expected in H2 2025.

• Power supply in Zambia remains constrained; up to 60% of Kansanshi’s electricity to be sourced from imports as S3 ramps up.

• Hedging program covers about half of 2025 planned copper production and 40% for H1 2026, with an average hedged price range of $4.14–4.75/lb.