In This Article:
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Total Copper Production (2024): 431,000 tonnes, 14% higher than the prior year, exceeding guidance of 420,000 tonnes.
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Gold Production (2024): 139,000 ounces, exceeding guidance of 135,000 ounces.
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Nickel Production (2024): 24,000 tonnes, within guidance range.
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Q4 Copper Production: 112,000 tonnes.
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Q4 Net Earnings: $99 million.
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Adjusted Earnings Per Share (Q4): $0.14.
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Copper C1 Costs (Q4): $1.68 per pound, up 7% due to lower production volumes and increased costs.
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Full-Year Copper C1 Costs: $1.74 per pound, below revised guidance.
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Revenue (Q4): Down 2% quarter over quarter.
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EBITDA (Q4): Down 13% quarter over quarter.
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Net Debt (Q4): Decreased by $61 million to $5.5 billion.
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Liquidity (Q4): $1.6 billion, including $112 million in cash and $750 million of undrawn revolver.
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2025 CapEx Guidance: $1.3 billion to $1.45 billion.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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First Quantum Minerals Ltd (FQVLF) exceeded its 2024 copper and gold production guidance, with copper production reaching 431,000 tonnes and gold production at 139,000 ounces.
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The Kansanshi S3 expansion project is on track, with strong progress reported, and is expected to be completed by mid-2025.
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The company successfully reduced net debt by $61 million in the fourth quarter, bringing it down to $5.5 billion.
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Operational initiatives led to strong performance at Kansanshi and Sentinel, with Kansanshi achieving its highest annual copper production since 2021.
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First Quantum Minerals Ltd (FQVLF) maintained strong liquidity at $1.6 billion, including $112 million in cash and $750 million of undrawn revolver.
Negative Points
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The company faces ongoing challenges in Panama, with unresolved issues related to the Cobre Panama mine and pending approval of the Preservation and Safe Management program.
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Copper C1 costs increased by 7% to $1.68 per pound due to lower production volumes and higher costs at Sentinel.
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The environmental audit in Panama could potentially lead to long-term restoration costs and impact operations.
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The Zambian energy situation remains challenging, with reliance on supplementary power imports expected to continue into 2025.
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Nickel production at Enterprise was impacted by weathering and alteration, leading to lower production and increased costs.
Q & A Highlights
Q: Given the unresolved social security issue in Panama and the canal's focus, do you anticipate starting negotiations by the end of Q1, or could this timing shift later in the year? A: The President has prioritized the social security matter before addressing the mine issue. Progress is being made, and we expect to reach a resolution as soon as possible. The canal situation does not alter our focus on constructive engagement with the government. Tristan Pascall, CEO