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MarketScreener Homepage  >  Equities  >  Toronto Stock Exchange  >  First Quantum Minerals Ltd.    FM   CA3359341052

FIRST QUANTUM MINERALS LTD.

(FM)
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First Quantum extends copper hedging, even as trade war clips prices

07/30/2018 | 06:12pm EST
FILE PHOTO: First Quantum Minerals Chairman, CEO and Director, Pascall, looks on during their annual general meeting in Toronto

TORONTO (Reuters) - Canadian base metal miner First Quantum Minerals Ltd said on Monday it had extended its hedging program for copper sales, as trade war worries push prices lower despite "excess demand" for its production.

The miner, whose second-quarter results included a $45 million loss from copper hedging, said it aims to ensure a level of cash flow for its $6.3 billion Cobre Panama project ahead of commercial production.

The Toronto-based company said it has 25,000 tonnes of copper under forward sales contracts, at an average price of $3.15 per pound, maturing out to December 2018. A further 98,000 tonnes, at average prices of $3.04-$3.45 per pound, mature out to June 2019.

"We continue to sell all of our production into a market where there is excess demand," said Chief Executive Philip Pascall in a statement.

"Nevertheless, in light of current conditions, we think it is prudent to extend our copper sales hedge program on a limited basis. The intent is to ensure a certain level of cash flow during Cobre Panama's commissioning and ramp-up phases that precede commercial operations."

Cobre Panama, with proven reserves of 3.18 billion tonnes and a 40-year mine life, is 80 percent owned by First Quantum and 20 percent owned by Korea Panama Mining Corp, a partnership of Korea Resources Corp [KOREC.UL] and LS-Nikko Copper.

Mine commissioning is starting this year with operations ramping up over 2019. In 2020, the mine is expected to process 85 million tonnes of ore.

First Quantum, primarily a copper miner that also produces nickel and gold, reported second-quarter earnings of $128 million, or 19 cents per share, slightly lagging analysts' expectations for a profit of 21 cents a share, on average, according to Thomson Reuters I/B/E/S.

Copper prices are down about 15 percent from a mid-June peak as uncertainty over tariffs and trade wars rattles markets.

First Quantum also said it had filed documents with the Zambia Revenue Authority challenging an $8 billion tax fine imposed in March, while it continues to work with the agency.

(Reporting by Susan Taylor)

By Susan Taylor


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
AMP LIMITED 0.32% 1.555 End-of-day quote.-0.32%
BASE CO., LTD. -1.36% 5800 End-of-day quote.-5.69%
BASE,INC. -3.96% 10680 End-of-day quote.9.43%
FIRST QUANTUM MINERALS LTD. 5.73% 24.19 Delayed Quote.0.13%
LINE CORPORATION 0.00% 5350 End-of-day quote.0.00%
NIKKO CO., LTD. 0.42% 712 End-of-day quote.-0.84%
All news about FIRST QUANTUM MINERALS LTD.
01/19Cash-strapped Zambia takes on $1.5 billion debt to buy Glencore copper mine
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01/19Zambia seals debt-funded deal to acquire Glencore's Mopani mine
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01/19Cash-strapped Zambia takes on $1.5 bln debt to buy Glencore copper mine
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01/19Zambia seeks investors to help fund Mopani after buying Glencore stake
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01/18FIRST QUANTUM MINERALS BRIEF : Cut To Market Perform at BMO, With Price Target o..
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01/13Indebted Zambia pays $400 million in VAT refunds to mining firms
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01/08Glencore in final-stage talks over Mopani stake sale to Zambia
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01/07Highland Copper Announces Further Extension of White Pine North Project Closi..
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01/06Gold Standard Ventures Appoints Jordan Neeser CFO, Lawrence Radford COO
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2020Nova Royalty Adds Senior Copper Industry Executive Andrew Greville to Board
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Financials (USD)
Sales 2020 5 136 M - -
Net income 2020 -132 M - -
Net Debt 2020 7 375 M - -
P/E ratio 2020 -99,8x
Yield 2020 0,04%
Capitalization 13 060 M 13 047 M -
EV / Sales 2020 3,98x
EV / Sales 2021 2,99x
Nbr of Employees 20 000
Free-Float 80,0%
Chart FIRST QUANTUM MINERALS LTD.
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First Quantum Minerals Ltd. Technical Analysis Chart | MarketScreener
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Technical analysis trends FIRST QUANTUM MINERALS LTD.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 20,23 $
Last Close Price 19,01 $
Spread / Highest target 44,4%
Spread / Average Target 6,41%
Spread / Lowest Target -33,9%
EPS Revisions
Managers and Directors
NameTitle
Philip K. R. Pascall Chairman & Chief Executive Officer
Geoffrey Clive Newall President & Director
Tristan Pascall Chief Operating Officer
Hannes Otto Meyer Chief Financial Officer
Andrew Bell Adams Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
FIRST QUANTUM MINERALS LTD.0.13%13 047
ANTOFAGASTA PLC4.89%20 283
KGHM POLSKA MIEDZ S.A.6.89%10 463
JIANGXI COPPER COMPANY LIMITED14.29%9 177
VEDANTA LIMITED7.81%8 803
KAZ MINERALS PLC10.18%4 678