First Quantum Minerals (FM) Q4 2024 earnings summary

Executive summary

• 2024 began with challenges from the Cobre Panamá suspension, but swift refinancing stabilized the business and enabled continued investment in key projects.

• Kansanshi S3 Expansion made strong progress, with commercial production achieved at Enterprise and first production expected in H2 2025.

• Copper and gold production exceeded 2024 guidance, setting a strong foundation for 2025, though Q4 copper output was down 4% from Q3 due to lower Zambian production.

• Revenue declined to $4,802M in 2024 from $6,456M in 2023, mainly due to Cobre Panamá's suspension and lower copper prices.

• Priorities for 2025 include delivering Kansanshi S3, strengthening the balance sheet, and resolving the Panama situation.

Financial highlights

• Q4 net earnings attributable to shareholders were $99 million, with adjusted EPS of $0.14; full year 2024 adjusted EPS was $(0.02), reflecting halted production at Cobre Panamá.

• Q4 2024 revenue was $1.3 billion, down 2% quarter-over-quarter, and full-year sales revenues were $4,802M, down 26% year-over-year.

• Q4 2024 EBITDA was $455 million, down 13% quarter-over-quarter; operating profit for 2024 was $810M, up from $78M in 2023.

• Net debt decreased by $61 million to $5.5 billion in Q4; liquidity at year-end was $812 million unrestricted cash and $750 million undrawn RCF.

• Net loss narrowed to $108M in 2024 from $1,243M in 2023, reflecting lower impairment charges and cost controls.

Outlook and guidance

• Kansanshi S3 expansion remains on schedule for mid-2025 completion, with a conservative ramp-up profile and initial feed from low-grade stockpiles.

• 2025 CapEx guidance is $1.3–$1.45 billion, including $100 million carried over from 2024; ongoing capital commitments of $102M, mainly for Kansanshi S3.

• 2025 copper production guidance: Kansanshi 160-190kt, Sentinel 200-230kt, Enterprise nickel 15-25kt.

• Cash cost guidance for 2025–2026 reflects higher imported power, labor, and maintenance costs; 2025 copper C1 cash cost guidance (excluding Cobre Panamá): $1.85–$2.10/lb.

• Management expects sufficient liquidity with $750M undrawn senior debt and $812M net unrestricted cash at year-end.