Proactive Investors - First Quantum Minerals' (TSX:FM) unchanged 2023 production guidance signals a "positive" and strong second half for the copper-focused base metals miner, according to Stifel analysts, even as the company's second-quarter 2023 earnings and cash costs fell short of their estimates.
Overall, they are neutral on First Quantum’s 2Q results and outlook but have a ‘Buy’ rating on the stock, as the company’s quarterly copper production exceeded expectations.
"In addition to having a portfolio of world-class assets that has recently seen its political risk improve, First Quantum hosts an industry-leading team that we believe has valuable experience building more large-scale base metal mines from the ground up than any other miner," the analysts wrote.
"In our view, understanding the high level of project development expertise required, while simultaneously mitigation risks involved in successfully delivering projects from concept to commissioning, is a valuable skill we believe First Quantum brings to shareholders that are looking for growth and increasing exposure to copper," they added.
Other positive factors they point out include First Quantum maintaining its 2024 to 2026 production guidance, expectations that costs will come down significantly during the second half of the year, and the anticipation of sales from its Enterprise nickel project in Zambia during the third quarter.
Shares of First Quantum Minerals (TSX:FQM) rose 2% to C$37.49 in mid-afternoon trading on Thursday and have gained 33% year to date.