First Quantum Minerals (FM) Q3 2024 earnings summary

Executive summary

• Q3 2024 copper production reached 116,088 tonnes, up 13% from Q2, driven by strong Zambian operations despite power challenges.

• Net earnings attributable to shareholders were $108 million, with adjusted EPS of $0.14, reflecting higher copper and gold sales and stronger realized gold prices.

• Cobre Panamá remains under Preservation and Safe Management, pending government approval for restart; engagement with the new Panamanian government is expected in early 2025.

• Board strengthened with two new directors bringing expertise in social affairs and copper markets.

• Energy crisis in Zambia continued but production impact was mitigated by supplementary energy sourcing and operational adjustments.

Financial highlights

• Q3 revenue rose 4% quarter-over-quarter to $1.3 billion, with EBITDA up 55% to $520 million.

• Net earnings attributable to shareholders improved to $108 million, first positive since Cobre Panamá entered PNSM.

• C1 cash costs declined 9% quarter-over-quarter to $1.57/lb.

• Net debt increased by $154 million during the quarter to $5,591 million, mainly due to S3 capex and working capital build.

• Liquidity at September 30, 2024, was $1.5 billion, including $693 million in cash and $830 million undrawn revolver.

Outlook and guidance

• 2024 copper production guidance narrowed to 400,000–420,000 tonnes, with Kansanshi and other sites' guidance increased.

• Gold production guidance raised to 120,000–135,000 ounces for 2024.

• Kansanshi copper guidance increased to 155,000–165,000 tonnes; gold guidance to 90,000–100,000 ounces.

• Sentinel expected at bottom end of 220,000–230,000 tonnes copper guidance.

• Enterprise nickel guidance unchanged at 17,000–20,000 tonnes.

• C1 cash cost guidance narrowed to $1.80–$1.95/lb.

• S3 Expansion at Kansanshi on track for first production in H2 2025.