First Quantum Raises 2024 Copper Guidance on Kansanshi Expansion

First Quantum

Canadian miner First Quantum Minerals has revised its 2024 copper production guidance to a higher midpoint, largely driven by expected gains from the Kansanshi mine in Zambia. The company now forecasts annual copper output of 400,000-420,000 metric tonnes (t), compared to its earlier range of 370,000-420,000t.

Key Adjustments in Guidance

• Kansanshi Mine: Copper production forecast increased to 155,000-165,000t (previously 130,000-150,000t) due to the anticipated commissioning of the S3 expansion in the fourth quarter. The project includes additional concentrator capacity and new semi-autogenous grinding and ball mills.
• Trident-Sentinel Mine: Production guidance revised downward to 220,000-230,000t (from 220,000-250,000t) due to Zambia's ongoing energy crisis.

Total nickel production guidance remains steady at 22,000-25,000t, while the Cobre Panama mine remains offline.

3Q Performance Highlights

• Copper Output: Third-quarter copper production fell 48% year-on-year to 116,088t, primarily due to the lack of output from Cobre Panama. However, production increased 13% quarter-on-quarter.
• Nickel Production: Output at the Trident-Enterprise facility tripled year-on-year to 4,827t, following its first commercial sales earlier in 2024. However, sequential production was 21% lower due to reduced grades and a 9-day power outage.

Financial Results

First Quantum reported a $53 million profit for the third quarter, down from $375 million in 2023. Revenues decreased 37% to $1.28 billion, reflecting the impact of lower copper production.

Outlook

With the Kansanshi expansion set to boost output and steady nickel production forecasts, First Quantum is positioned to navigate challenges, including Zambia's energy crisis and the continued closure of the Cobre Panama mine.