First Quantum Minerals Reports Sharp Decline in Q2 Copper Output

First Quantum Minerals experienced a significant drop in copper production in the second quarter, largely due to the continued suspension of its Cobre Panama operation. Despite efforts to boost production in Africa, the miner's global copper output fell by 45% to 102,700 metric tonnes compared to the same period last year, with copper sales also dropping by nearly 47% to 94,630 tonnes.

The Cobre Panama mine, one of the largest copper mines in the Americas, was shut down late last year following a ruling by Panama's supreme court that deemed the firm's contract unconstitutional. The newly-elected government has expressed intentions to permanently close the $10 billion facility but has indicated potential discussions on reopening the complex if First Quantum withdraws from international arbitration seeking compensation from the government.

In its quarterly results, First Quantum stated that arbitration was not the preferred outcome and reiterated its commitment to negotiating with Panama's new government.

Meanwhile, the company's Kansanshi mine in Zambia saw a 20% increase in copper production, reaching 41,500 tonnes in the second quarter. Production at the Sentinel mine, also in Zambia, remained relatively stable with a slight decrease of less than 1% to 53,590 tonnes.

First Quantum's CEO, Tristan Pascall, noted that both the Kansanshi and Sentinel mines are well-positioned for the remainder of the year. The company also reported a 24% increase in nickel production, with output rising to 7,400 tonnes and nickel sales up 30% to 7,645 tonnes.

Despite these efforts, the company reported a $46 million loss for the quarter, compared to a $93 million profit in the same period last year. However, First Quantum's full-year 2024 guidance remains unchanged, with expected copper production between 370,000 and 420,000 tonnes.