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UPDATE 1-First Quantum profit beats as copper output rises, costs fall

Published 2016-04-28, 05:53 p/m
© Reuters. UPDATE 1-First Quantum profit beats as copper output rises, costs fall
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April 28 (Reuters) - Canadian base metal miner First Quantum
Minerals Ltd FM.TO reported a bigger-than-expected quarterly
profit as copper production costs fell and production rose in
its Zambia operations.
Copper production increased about 30 percent to 119,287
tonnes while sales jumped 44 percent to 131,267 tonnes in the
first quarter.
The company said in January that power supply at its mines -
Kalumbila Minerals, Kansanshi, Sentinel - in Zambia improved
following arrival of the rainy season.
Zambia power companies earlier this year cut electricity
supply to mining firms by 30 percent.
First Quantum said on Thursday the material uncertainty
regarding its ability to meet the net debt to EBITDA ratio
covenant under the debt financing agreements has been removed.
The company, which is developing the massive Cobre Panama
project, sold in March its Finnish mine Kevitsa to Swedish
mining and smelting group Boliden BOL.ST for $712 million.
Net earnings from continuing operations attributable to
First Quantum was $49 million in first quarter, compared with a
loss of $78 million a year earlier.
Excluding items, it earned 9 cents per share, beating the
average analyst estimate of 5 cents.
Total cost of copper production fell 22 percent to $1.86 per
pound in the first three months of 2016.
Sales revenue rose 20 percent to $720 million.
Up to Thursday's close of C$9.16, shares of the company had
fallen nearly 50 percent in the past 12 months, compared with a
30 percent fall in the S&P/TSE Canadian Mining Index .GSPTTMN .

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