First Quantum Minerals Reports Third Quarter 2021 Results
First Quantum Minerals Ltd. (“FQM” or the “Company”) (TSX: FM)
today reported results for the three and nine months ended
September 30, 2021. The Company reported, for the three months
ended September 30, 2021 (“Q3”), comparative earnings1 of $197
million ($0.29 per share1), net earnings attributable to
shareholders of the Company1 of $303 million ($0.44 per share1) and
cash flows from operating activities of $703 million ($1.02 per
share1).
“In the third quarter, we delivered continued
strong operational performance at all three of our large assets.
This performance, combined with the closing of the Ravensthorpe
stake sale in the quarter and our declining hedge book, means we
are well on our way towards achieving our debt reduction target of
at least $2 billion on an accelerated timetable in early 2022.
Following the recent elections and subsequent smooth transfer of
power in Zambia, we are pleased to be engaging constructively with
the new Government as we look to establish the parameters for
long-term investments into our growth projects in the country. Law
9 discussions with the Government of Panama continue to be
transparent and constructive towards a mutually beneficial
agreement. We were pleased to conclude the environmental and labour
aspects of the discussions in the quarter,” commented Philip
Pascall, Chairman and CEO. “The global pandemic from COVID-19
continues to present its challenges and I am grateful to our entire
workforce for the commitment and tenacity that they demonstrated
through these uncertain times. We remain committed to operating in
a responsible and sustainable manner for the health and safety of
our employees and providing support for our local communities
during these challenging times.”
THIRD QUARTER SUMMARY
First Quantum’s financial performance continues
at strong levels, driven by higher metal prices and strong
operational performance resulting in a significant year-over-year
increase in comparative EBITDA4,5 and net earnings, as well as
notable further reduction in net debt3.
On a quarter-over-quarter basis, reported
comparative EBITDA of $886 million in Q3 came in slightly below the
$902 million reported in Q2 2021. Total copper production for the
third quarter was 209,859 tonnes, up from 199,689 tonnes in Q2
2021. However, copper sales for the period were 194,278 tonnes,
reflecting a challenging shipping environment. Partially offsetting
the timing of sales was a higher realized copper price of $3.68 per
lb in Q3 compared to $3.55 in Q2 2021, as the Company’s copper
hedges continue to roll off.
Net debt decreased by $449 million during the
quarter, with a total reduction of $1,107 million during the nine
months year-to-date, bringing the balance down to $6,302 million as
of September 30, 2021. With the current strength in the copper
price and ongoing strong operational performance, a significant
further reduction is expected in the last quarter of this year.
- Operational Highlights
-
Third quarter total copper production of 209,859 tonnes was up 5%
from Q2 2021. Production improved quarter-over-quarter as a result
of record production at Cobre Panama and continued strong
performance at Sentinel while Kansanshi production remained steady
during the quarter. Total copper production guidance for the year
has been narrowed by 15,000 tonnes to a range of 800,000 and
835,000 tonnes.
-
Total copper C1 cost was $1.26 per lb during the period while AISC
of $1.87 per lb continues to be impacted by higher Zambia royalties
due to higher copper prices. Some marginal impact from logistics,
shipping, fuel and consumable costs, and labour has been felt on
operating costs. C1 cost guidance for the year has been narrowed by
$0.05 to $1.25 and $1.35 per lb. However, copper AISC guidance of
$1.80 to $1.95 per lb remains unchanged.
-
During the third quarter, anode shipments in Zambia were impacted a
global shortage of container shipping capacity as well as port
congestion at the Durban, Walvis Bay and Dar Es Salaam ports.
Consequently, a number of planned shipments were rolled into the
fourth quarter. These logistical challenges for Zambian sales and
on increased finished goods inventories are expected to continue
into the fourth quarter.
-
Cobre Panama delivered a record 87,242 tonnes of copper production
in Q3, an increase of 7% over Q2 2021 levels as the operation
achieved further quarterly milestones in tonnes milled. Gold
production also hit record levels of 36,649 ounces during the
quarter. Throughput is expected to improve in the fourth quarter
while grades are expected to be lower than the first nine months of
2021. Third quarter C1 cash costs at Cobre Panama increased
slightly from Q2 2021 to $1.27 per lb, reflecting higher freight
and fuel costs. A collar structure for the operation’s coal
requirements has been in place since May 2020 that will prevent
exposure to further increases in the coal price until December
2023.
-
Sentinel delivered its best quarter of the year, producing 59,931
tonnes of copper, a 10% increase from the preceding quarter. Copper
C1 and AISC costs improved from the previous quarter to $1.37 and
$2.16 per lb, respectively, on higher production volumes. A record
milling rate was achieved in August and improved ore grades were
processed in September. Grade is expected to continue to improve in
the fourth quarter and throughout 2022 as higher grade ore is
exposed in both the Stage 1 and Stage 2 pits. The fourth in-pit
crusher at Sentinel is scheduled for commissioning in December
2021, which will enable the plant to increase throughput to 62 Mtpa
in 2022.
-
Ravensthorpe achieved third quarter contained nickel production of
4,248 tonnes, C1 cash cost of $9.58 per pound and AISC of $11.66
per pound. The operation continued to be impacted by challenges in
labour availability due to COVID-19 related travel restrictions in
Western Australia. However, commissioning of Shoemaker Levy was
largely completed towards the end of the third quarter which
enabled the introduction of first saprolite ore into the plant in
September. Completion of construction and commissioning works at
the Shoemaker Levy Project and the delivery of limonite ore is the
main priority for the fourth quarter of 2021. 2021 nickel
production has been revised lower and costs, which are also being
impacted by higher sulfur prices, have been revised higher from
prior guidance.
-
Total gold production for the quarter was 78,124 ounces, a 4%
decrease from Q2 2021. While gold production remained steady at
Cobre Panama and Kansanshi, Guelb Mogrein experienced lower
production levels. Total gold production guidance for 2021 has
increased by 10,000 ounces to a range of 290,000 and 310,000 ounces
on stronger performance at Cobre Panama.
|
Three months ended |
Nine months ended |
September 30 |
September 30 |
(U.S. dollars where applicable) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
COPPER |
|
|
|
|
|
|
- Production (tonnes) 2 |
|
209,859 |
|
211,396 |
|
614,612 |
|
575,740 |
- Sales (tonnes) |
|
194,278 |
|
197,533 |
|
608,802 |
|
547,430 |
|
|
|
|
|
- Cost of
production3 |
|
|
o AISC (per lb) |
$1.87 |
$1.48 |
$1.83 |
$1.58 |
o C1 (per lb) |
$1.26 |
$1.07 |
$1.26 |
$1.19 |
- Realized
price (per lb)6 |
$3.68 |
$2.77 |
$3.48 |
$2.65 |
|
|
|
|
|
GOLD |
|
|
|
|
- Production
(ounces) |
|
78,124 |
|
72,926 |
|
237,547 |
|
196,365 |
- Sales
(ounces)4 |
|
79,773 |
|
78,013 |
|
242,455 |
|
206,386 |
|
|
|
|
|
NICKEL |
|
|
|
|
- Production
(tonnes) |
|
4,248 |
|
5,113 |
|
13,433 |
|
7,092 |
- Sales
(tonnes) |
|
4,055 |
|
4,986 |
|
13,322 |
|
6,777 |
- Development Projects Update
-
At Cobre Panama, an expansion of the process plant facilities and
related infrastructure is currently in development, which will
support a 100 Mtpa throughput operation. Completion of construction
works and commencement of commissioning is targeted for the first
quarter of 2023 to allow for a ramp up of production over the
course of the year to achieve a throughput rate of 100 Mtpa by the
end of 2023. The plant expansion includes a new primary crushed ore
screening facility, process water upgrades and the addition of an
extra ball mill (Ball Mill 6). The plans also include expanding the
fleet by adding a fifth rope shovel and eight additional
ultra-class haul trucks, developing the Colina pit and its
associated overland conveyor and in-pit crushing facility. Plans
for supply of incremental electrical supply for the 100 Mtpa
expansion are in progress.
-
At Kansanshi, the NI 43-101 Technical Report filed on September 14,
2020 includes the S3 Expansion, a plan for a 25 Mtpa expansion of
the sulphide ore processing facility to 52 Mtpa. The timing of
capital expenditure for the S3 Expansion is proposed for 2023-2024
and requires board approval. The timing of the S3 Expansion could
be advanced or delayed depending on capital availability, commodity
prices and the Zambian fiscal regime. In addition to the processing
plant expansion and upgrades, the Kansanshi smelter is expected to
be increased to 1.65 Mtpa capacity from current capacity of 1.38
Mtpa. Concentrate processing capacity is expected to be further
expanded through modifications to the existing HPL circuit.
-
The Enterprise pit development project design has been revised and
optimized to support an accelerated mine plan targeting preparatory
works and early pre-stripping. A decision to proceed with the full
development of Enterprise has not yet been made but is expected by
year end 2021. Pending board approval, preparatory activities this
year will be focused on water management facilities and some early
pre-strip works. The Enterprise process plant is already built and
located adjacent to the Sentinel process plant and, at this stage,
initial nickel production is expected by early 2023.
-
The technical study and work on the polymetallic refinery project
and underground mine at Las Cruces (CLC UG) continues.
Environmental permits were received at the end of 2020 and the mine
exploitation permit was granted in June 2021. Progress on the water
concession permit is expected in an orderly manner. After
completion of the infill drilling campaign, an update of the NI
43-101 Technical Report is currently underway and is expected to be
released by early 2022.
-
At Taca Taca, the Company is continuing with the project
pre-development and feasibility activities. The primary
Environmental and Social Impact Assessment (“ESIA”) for the
project, which covers the principal proposed project sites, was
submitted to the Secretariat of Mining of Salta Province in 2019
and assessment by the authorities continues. Separate ESIA’s for
project support infrastructure were also submitted to the relevant
authorities during Q2 2021.
-
At the Haquira project, located in the Apurímac region of Peru, the
focus remains on the community resettlement process and
environmental aspects.
- Financial Highlights
-
Gross profit for the third quarter of 2021 was $613 million, down
slightly from $625 million in Q2 2021 as sales volumes in Zambia
were impacted by port congestion and a global shortage in container
shipping capacity that is expected to continue into the fourth
quarter. The realized copper price of $3.68 per lb achieved during
the quarter reflected the reduced hedge profile in place.
-
Cash flows from operating activities of $703 million ($1.02 per
share) for the third quarter of 2021 were $251 million higher than
the same period in 2020.
-
Net debt decreased by $449 million during the quarter with a total
reduction of $1,107 million during the nine months year-to-date,
bringing the balance down to $6,302 million as at September 30,
2021. With the current strength in the copper price, a significant
further reduction is expected in the last quarter of this
year.
-
On October 14, 2021, the Company signed a new $2.925 billion Term
Loan and Revolving Credit Facility maturing in 2025 that will
replace the existing $2.7 billion Term Loan and Revolving Credit
Facility due to mature December 2022. The refinancing extends the
debt maturity profile of the business and removes all material debt
maturities through to April 2023. In addition, the refinancing
provides additional liquidity headroom and continues management's
practice of proactively addressing debt maturities, and further
demonstrates the Company's access to a diverse range of funding
sources. The refinancing includes improved financial terms and
reduced financial covenants, an extended amortization schedule for
the Term Loan Facility beginning in December 2022 and improves the
financial flexibility of the Company through the added
liquidity.
-
In September 2021, for cash consideration of $240 million, the
Company completed the sale of a 30% equity interest in Ravensthorpe
to POSCO, one of the world’s leading integrated producer of
materials for the electric vehicle sector. The Company retains a
70% interest in Ravensthorpe and continues to be the operator. The
proceeds of the transaction were used to pay down the Company’s
Revolving Credit Facility.
-
Cash outflow on interest paid for the three and nine months ended
September 30, 2021 was $189 million and $450 million, respectively,
and is expected to be approximately $525 million for the full year
2021. This figure excludes interest paid on related party loans to
Cobre Panama.
-
At September 30, 2021, the Company had 12,500 tonnes of unmargined
copper forward sales contracts at an average price of $3.01 per lb
outstanding with periods of maturity to December 2021. In addition,
the Company had 125,750 tonnes of unmargined zero cost copper
collar sales contracts with maturities to June 2022 at weighted
average prices of $3.45 per lb to $4.35 per lb outstanding with
maturities to June 2022. Copper sales in the quarter were 46%
hedged. Approximately one sixth of expected copper sales for the
next 12 months are hedged to unmargined forward and zero cost
collar sales contracts, at an average floor price and average
ceiling price of $3.41 per lb and $4.23 per lb, respectively.
-
The Company also had unmargined nickel forward sales contracts for
406 tonnes at an average price of $7.96 per lb outstanding, with
maturities to December 2021. In addition, the Company has zero cost
nickel collar unmargined sales contracts for 800 tonnes at weighted
average prices of $7.71 per lb to $8.58 per lb outstanding with
maturities to May 2022.
|
Three months endedSeptember
30 |
Nine months endedSeptember
30 |
(U.S. dollars millions, except where noted otherwise) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
Sales revenues |
|
1,802 |
|
1,402 |
|
5,327 |
|
3,598 |
|
Gross profit |
|
613 |
|
346 |
|
1,778 |
|
634 |
|
|
|
|
|
|
Net earnings (loss) attributable to shareholders of
the Company |
|
303 |
|
29 |
|
585 |
|
(189) |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share |
$0.44 |
$0.04 |
$0.85 |
($0.27) |
|
Comparative EBITDA1,5 |
|
886 |
|
641 |
|
2,599 |
|
1,427 |
|
|
|
|
|
|
|
|
|
|
|
Comparative earnings (loss)1 |
|
197 |
|
64 |
|
520 |
|
(99) |
|
|
|
|
|
|
|
|
|
|
|
Comparative earnings (loss) per share1 |
$0.29 |
$0.09 |
$0.76 |
($0.14) |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities |
|
703 |
|
452 |
|
2,125 |
|
1,080 |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities per share1 |
$1.02 |
$0.66 |
$3.09 |
$1.57 |
|
|
|
|
|
|
1 Comparative earnings (loss) have been adjusted
to exclude items from the corresponding IFRS measure, net earnings
(loss) attributable to shareholders of the Company, which are not
considered by management to be not reflective of underlying
performance. Comparative earnings (loss), comparative earnings
(loss) per share, comparative EBITDA and cash flows 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. Refer
to the “Regulatory Disclosures” section in the MD&A for the
quarter ended September 30, 2021 for further information. The use
of comparative earnings (loss) and comparative EBITDA represents
the Company’s adjusted earnings (loss) metrics.2 Production is
presented on a contained basis and is presented prior to processing
through the Kansanshi smelter.3 AISC and C1 costs per pound are not
recognized under IFRS. Refer to the “Regulatory Disclosures”
section in the MD&A for the quarter ended September 30, 2021
for further information. 4 Excludes refinery-backed gold credits
purchased and delivered under the precious metal streaming
arrangement. Refer to MD&A for the quarter ended September 30,
2021.5 Adjustments to comparative EBITDA in the third quarter of
2021 relate principally to foreign exchange revaluations in the
third quarter of 2020.6 Realized metal prices are not recognized
under IFRS and defined within the “Regulatory Disclosures” section
of MD&A.
2021 GUIDANCE UPDATE
Guidance provided below is based on a number of
assumptions and estimates as of September 30, 2021, including among
other things, assumptions about metal prices and anticipated costs
and expenditures. Guidance involves estimates of known and unknown
risks, uncertainties and other factors which may cause the actual
results to be materially different. The unprecedented challenges
presented by COVID-19 pose some additional risk to the accuracy of
forward looking information. Production guidance and cost guidance
includes current assumptions on the impact of COVID-19 on
operations.
Total copper production guidance has been
narrowed to between 800,000 and 835,000 tonnes, with Cobre Panama
guidance lower end of the range increasing 10,000 tonnes to 320,000
tonnes, while Kansanshi top end of the guidance range has been
reduced 10,000 tonnes to 205,000 tonnes and Sentinel guidance range
has been narrowed 5,000 tonnes to between 235,000 and 245,000
tonnes. Other sites guidance remains unchanged.
Total gold production guidance has been
increased to between 290,000 and 310,000 ounces, with Cobre Panama
guidance range increasing 10,000 ounces to between 135,000 and
145,000 ounces.
Copper C1 cash cost guidance range has been
narrowed $0.05 per lb to between $1.25 per lb and $1.35 per lb.
Despite AISC year to date being in the lower end of guidance range,
no amendment has been made to the range due to the impact of the
royalty expense with movements in metal prices.
Due to the performance year-to-date,
Ravensthorpe nickel production has been reduced to between 17,000
and 20,000 contained tonnes. The lower production profile for
Ravensthorpe has had a commensurate impact on nickel cash costs for
the year, alongside inflation in key input prices and exchange
rates.
Guidance for total capital expenditure is
unchanged at $950 million. Sustaining capital and other projects
capital expenditure guidance increases $10 million, while
capitalized stripping guidance decreases $10 million, reflecting
the inflationary pressures on capital expenditure projects with the
increase in key input prices, in particular steel, and freight,
logistics and labour rates in some markets. Capital expenditure for
the quarter ended September 30, 2021 was $274 million and for the
first nine months of the year was $718 million.
Production guidance
000’s |
|
2021 Previous Guidance |
2021 Updated Guidance |
|
|
|
|
Cobre Panama |
|
310 – 335 |
320 – 335 |
Kansanshi |
|
200 – 215 |
200 – 205 |
Sentinel |
|
230 – 250 |
235 – 245 |
Other sites |
|
45 – 50 |
45 – 50 |
Copper production guidance (000’s
tonnes) |
|
785 – 850 |
800 – 835 |
|
|
|
|
Cobre Panama |
|
125 – 135 |
135 – 145 |
Kansanshi |
|
115 – 125 |
115 – 125 |
Other sites |
|
40 |
40 |
Gold production guidance (000’s
ounces) |
|
280 – 300 |
290 – 310 |
|
|
|
|
Ravensthorpe |
|
20 – 24 |
17 – 20 |
Nickel production guidance (000’s
tonnes) |
|
20 – 24 |
17 – 20 |
|
|
|
|
Cash cost and all-in sustaining
cost
|
|
2021 Previous Guidance |
2021 Updated Guidance |
|
|
|
|
Copper |
|
|
|
C1 (per lb) |
|
$1.20 – $1.40 |
$1.25 – $1.35 |
AISC (per lb) |
|
$1.80 – $1.95 |
$1.80 – $1.95 |
|
|
|
|
Nickel |
|
|
|
C1 (per lb) |
|
$6.50 – $7.00 |
$7.75 – $8.50 |
AISC (per lb) |
|
$7.50 – $8.50 |
$9.25 – $10.25 |
|
|
|
|
Capital expenditure
|
|
2021 Previous Guidance |
2021 Updated Guidance |
|
|
|
|
Capitalized stripping |
|
210 |
200 |
Sustaining capital and other
projects |
|
740 |
750 |
|
|
|
|
|
|
|
|
Total capital expenditure |
|
950 |
950 |
PANAMA LAW 9 UPDATE
In July 2021, the Government of Panama announced
the appointment of a high-level commission of senior government
ministers and officials, chaired by the Minister of Commerce, to
discuss the Company’s concession contract. During September 2021,
the Company and the high-level commission were engaged in formal
discussions in Panama. Over the course of the month the Ministry of
Commerce publicly announced the culmination of the high level
formal discussions on two topics, being environmental and labour
matters. Discussions primarily on financial matters were continuing
as at the end of the quarter. The Company welcomes the transparency
of the high-level commission process and the opportunity to resolve
this matter in the medium term.
COVID-19
The Company continues to maintain health and
sanitary protocols and to support the government health authorities
in each jurisdiction to combat the spread of COVID-19. These
measures continue to be reviewed and adjusted as needed.
Due to high vaccination rates at Cobre Panama
during Q3, post quarter end as of October 11th, fully vaccinated
employees are no longer be required to isolate prior to arrival to
site. In addition, the restrictions to the number of personnel
onsite has been lifted, which will allow the operation to return to
optimal staffing levels. Social and sanitary restrictions will
continue to remain in place, which are consistent with Government
regulation. The Company continues to support the Ministry of Health
of Panama (“MINSA”) with access and supplies to surrounding
communities.
In Zambia, the Company has provided testing and
medical equipment and assisted with the construction of isolation
facilities for the community. Ongoing support includes the
provision of oxygen, consumables, face mask and sanitation stations
and transportation of medical supplies. Frequent interaction and
sensitization with the surrounding communities is in place. The
Company is working with the Ministry of Health in the North Western
Province to provide vaccination stations to employees and
affiliated contractors in support of the national vaccination
program.
In addition to increased medical facility
resilience initiatives at the mine clinics in Mauritania, Zambia
and Panama, COVID-19 protective measures to minimize
person-to-person transmission in the workplace and protect business
continuity have been implemented across all operations.
SUSTAINABILITY
As noted in prior quarters, the Company has made
a number of commitments with respect to climate change.
-
Continued progress has been made on the Company’s Task Force on
Climate-related Financial Disclosures (“TCFD”) project and remains
on course to commence reporting aligned with the TCFD this
year.
-
Work on setting greenhouse gas (GHG) emissions targets is
progressing, with the focus on addressing the Cobre Panama power
station, inherited by the Company upon takeover of the project,
which is the most significant source of GHG emissions. In keeping
with the Company’s intention to base these commitments on actions
with a pathway to achievement, addressing this one area of the
Company’s business will have a substantial impact in reducing
overall and intensity of GHG emissions. Targets related to the
Company’s climate change policy are expected to be provided by the
end of the year.
-
The Company has established a range of carbon prices and
determinant commodity prices that will now be integrated into the
evaluation of new projects.
Details of the Company’s Environmental, Social
& Governance (“ESG”) reporting, policies and related programs,
including approach and commitments to climate change, policies and
data can be found at:
https://www.first-quantum.com/English/sustainability/default.aspx.
The Company’s primary ESG report, the annual
Environment, Safety and Social Data Report (“ESSDR”), which set out
the Company’s 2020 performance in a number of key environmental,
safety and social metrics, as well as, the ESG Data Summary and GRI
Content Index can be found at:
https://www.first-quantum.com/English/sustainability/oversight/reporting/default.aspx
COMPLETE FINANCIAL STATEMENTS AND
MANAGEMENT’S DISCUSSION AND ANALYSIS The complete
Consolidated Financial Statements and Management’s Discussion and
Analysis for the three and nine months ended September 30, 2021 are
available at www.first-quantum.com and at www.sedar.com and should
be read in conjunction with this news release.
CONFERENCE CALL DETAILSFirst Quantum will host
a conference call and webcast to discuss the results on Wednesday,
October 27, 2021 at 9:00 am (ET) to discuss third quarter
results.
Conference
call and webcast details: |
|
Toll-free North America: |
1-800-952-5114 |
|
Toronto Local and
International: |
416-406-0743 |
|
Toll-free UK: |
00-80042228835 |
|
Passcode: |
3445838# |
|
Webcast: |
www.first-quantum.com |
|
|
|
Conference call replay: |
|
Toll-free North America: |
1-800-408-3053 |
|
Toronto Local and
International: |
905-694-9451 |
|
Passcode: |
2396459# |
The conference call replay will be available
from October 27, 2021 until 11:59pm ET on November 10, 2021.
For further information, visit our website at
www.first-quantum.com or contact:
Bonita To, Director, Investor Relations (416)
361-3400 Toll-free: 1 (888) 688-6577E-Mail: info@fqml.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. The forward-looking
statements include estimates, forecasts and statements as to the
Company’s expectations of production and sales volumes, and
expected timing of completion of project development at Enterprise
and post-completion construction activity at Cobre Panama and are
subject to the impact of ore grades on future production, the
potential of production disruptions, potential production,
operational, labour or marketing disruptions as a result of the
COVID-19 global pandemic (including but not limited to the
temporary suspension of labour activities at Cobre Panama
implemented in April 2020), capital expenditure and mine production
costs, the outcome of mine permitting, other required permitting,
the outcome of legal proceedings which involve the Company,
information with respect to the future price of copper, gold,
nickel, silver, iron, cobalt, pyrite, zinc 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
continuing production at all operating facilities, the price of
copper, gold, nickel, silver, iron, cobalt, pyrite, zinc and
sulphuric acid, anticipated costs and expenditures and the ability
to achieve the Company’s goals. 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, the
temporary or permanent closure of uneconomic operations, costs for
inputs such as oil, power and sulphur, political stability in
Panama, Zambia, Peru, Mauritania, Finland, Spain, Turkey, Argentina
and Australia, adverse weather conditions in Panama, Zambia,
Finland, Spain, Turkey, Mauritania, and Australia, labour
disruptions, potential social and environmental challenges
(including the impact of climate change), power supply, mechanical
failures, water supply, procurement and delivery of parts and
supplies to the operations, the production of off-spec material and
events generally impacting global economic, political and social
stability. For mineral resource and mineral reserve figures
appearing or referred to herein, varying cut-off grades have been
used depending on the mine, method of extraction and type of ore
contained in the orebody.
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 as 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 undertakes
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 made and information contained herein are qualified by
this cautionary statement.
First Quantum Minerals (LSE:0P6E)
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First Quantum Minerals (LSE:0P6E)
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