Quick Facts / Company Snapshot
- Company Name: First Quantum Minerals Ltd.
- Primary Industry: Mining and Metals
- Key Commodities: Copper, Gold, Nickel, Silver
- 2024 Total Copper Production: 431,004 tonnes
- 2024 Total Revenue: $4,802 million
- 2024 Gross Profit: $1,350 million
- 2024 EBITDA: $1,491 million
- 2024 Net Earnings Attributable to Shareholders: $2 million
- Total Assets (Dec 31, 2024): $24,107 million
- Net Debt (Dec 31, 2024): $5,530 million
- Cash Flows from Operating Activities: $1,651 million
- Key Operating Region: Zambia (North-Western Province)
- Largest Revenue Generating Segment: Trident ($2,196 million)
- Kansanshi Copper Production: 171,000 tonnes
- Sentinel Copper Production: 231,000 tonnes
- Enterprise Nickel Production: 19,000 tonnes
- Major Development Project: Kansanshi S3 Expansion
- Ownership Structure: Publicly Traded (TSX Symbol: FM)
- Registered Office: Vancouver, British Columbia, Canada
- Head Office: Toronto, Ontario, Canada
Company Overview
First Quantum Minerals Ltd. is a global mining company that has established itself as one of the world’s largest copper producers after 25 years of operation. The company primarily produces copper, with significant secondary production in gold, nickel, and silver. The organization applies a unique approach to its operations by utilizing in-house technical, engineering, construction, and operational skills for every project. This distinct methodology has enabled the successful development and operation of complex mines and processing plants globally.
The company focuses on providing tangible benefits to investors, employees, and the communities surrounding its operations. In 2024, the company demonstrated resilience by navigating operational challenges, specifically the suspension of operations at Cobre Panamá and power constraints in Zambia. Despite these challenges, the Zambian operations delivered strong performance, achieving annual copper production that exceeded guidance ranges.
The company’s operational footprint spans multiple continents, with active mines in Zambia, Türkiye, and Mauritania. Additionally, the company holds significant development projects in Argentina and Peru, and maintains a care and maintenance status for operations in Australia and Panama.
Business Segments
The company organizes its operations into distinct business segments based on its major mining assets. In 2024, the revenue profile was heavily dominated by its Zambian operations due to the preservation status of its Panama assets.
1. Trident
- Total Segment Revenue: $2,196 million
- Percentage of Total Revenue: 45.7% (Calculated based on $4,802m total)
- Operational Scope: This segment includes the Sentinel copper mine and the Enterprise nickel mine.
- Performance: The Trident segment was the largest contributor to the company’s financial performance in 2024. The segment reported an operating profit of $700 million. It incurred cost of sales (excluding depreciation) of $1,152 million and depreciation charges of $311 million.
- Key Assets:
- Sentinel: A copper mine located in the North-Western Province of Zambia. It utilizes sophisticated in-pit crushing and conveying infrastructure.
- Enterprise: A nickel mine also located in the North-Western Province of Zambia. It achieved commercial production on June 1, 2024.
2. Kansanshi
- Total Segment Revenue: $2,059 million
- Percentage of Total Revenue: 42.9% (Calculated based on $4,802m total)
- Operational Scope: This segment comprises the Kansanshi mine and smelter located in the North-Western Province of Zambia. The company owns 80% of this operation, while holding 100% of the economic rights.
- Performance: Kansanshi generated an operating profit of $514 million in 2024. The cost of sales excluding depreciation was $1,256 million, with depreciation amounting to $251 million.
- Key Assets:
- Kansanshi Mine: An open-pit copper and gold mine.
- Kansanshi Smelter: A copper smelter that processes concentrate from Kansanshi and Sentinel.
3. Corporate & Other
- Total Segment Revenue: $553 million
- Percentage of Total Revenue: 11.5% (Calculated based on $4,802m total)
- Operational Scope: This segment encompasses the company’s remaining operations, including Guelb Moghrein, Las Cruces, Çayeli, Pyhäsalmi, and Ravensthorpe. It also includes the metal marketing division responsible for purchasing and selling third-party material, as well as exploration projects.
- Performance: This segment reported an operating loss of $171 million. It handles corporate administration, treasury, finance, and the evaluation of new mineral properties.
- Key Assets:
- Guelb Moghrein: Copper-gold mine in Mauritania.
- Çayeli: Copper-zinc mine in Türkiye.
- Ravensthorpe: Nickel mine in Australia (Care & Maintenance).
- Las Cruces: Copper development project in Spain.
4. Cobre Panamá
- Total Segment Revenue: $(6) million
- Percentage of Total Revenue: -0.1% (Calculated based on $4,802m total)
- Operational Scope: This segment represents the Cobre Panamá mine located in the Colón Province of Panama. The operation is currently in a phase of Preservation and Safe Management (P&SM) with production halted.
- Performance: Due to the suspension of operations, the segment reported an operating loss of $184 million in 2024. The revenue figure reflects adjustments, as no sales volumes were recorded for the year.
- Status: The mine is 90% owned by the company. Approximately 121,000 tonnes of copper concentrate remain unsold on-site.
History and Evolution
First Quantum Minerals Ltd. has a history spanning over 25 years. Throughout this period, the company has grown to become one of the world’s largest copper producers. The company has developed a reputation for its unique ability to apply in-house technical and engineering skills to develop complex projects.
Significant recent milestones include:
- 2013: Acquisition of Inmet Mining Corporation, which brought the Cobre Panamá project into the portfolio.
- 2015: Finalization of the precious metal stream arrangement with Franco-Nevada for Cobre Panamá.
- 2017: Acquisition of a 50% interest in KPMC from LS-Nikko Copper Inc., consolidating ownership in Cobre Panamá.
- 2023: Acquisition of a 55% stake in the La Granja project in Peru from Rio Tinto.
- 2024: Implementation of a comprehensive refinancing strategy, including a copper prepayment agreement and bond offerings, to stabilize the balance sheet following the suspension of Cobre Panamá.
- 2024: Achievement of commercial production at the Enterprise nickel mine on June 1, 2024.
Products and Services
The company produces and sells base and precious metals.
1. Copper
- 2024 Revenue: $4,015 million
- Percentage of Total Revenue: 83.6% (Calculated)
- Total Production: 431,004 tonnes
- Description: Copper is the company’s primary product. It is produced at the Kansanshi, Sentinel, Guelb Moghrein, and Çayeli mines.
- Sales Form: Sold as copper cathode, copper anode, and copper concentrate.
- Realized Price: The net realized copper price in 2024 was $4.03 per pound.
2. Gold
- 2024 Revenue: $347 million
- Percentage of Total Revenue: 7.2% (Calculated)
- Total Production: 139,040 ounces
- Description: Gold is produced primarily as a by-product at the Kansanshi and Guelb Moghrein mines.
- Performance: Gold revenues increased by 87% in 2024 compared to the prior year, driven by higher sales volumes and realized prices.
- Realized Price: The net realized gold price in 2024 was $2,294 per ounce.
3. Nickel
- 2024 Revenue: $335 million
- Percentage of Total Revenue: 7.0% (Calculated)
- Total Production: 23,718 contained tonnes
- Description: Nickel is produced at the Enterprise mine in Zambia and was produced at Ravensthorpe in Australia until it was placed on care and maintenance.
- Performance: Enterprise produced 19,000 tonnes, while Ravensthorpe contributed 5,000 tonnes before suspension.
- Realized Price: The net realized nickel price in 2024 was $7.38 per pound.
4. Other
- 2024 Revenue: $105 million
- Percentage of Total Revenue: 2.2% (Calculated)
- Description: This category includes revenues from other by-products such as silver, zinc, cobalt, magnetite, and pyrite.
- Zinc Production: Çayeli produced 3,000 tonnes of zinc in 2024.
Geographical Presence
The company operates globally with significant assets in Africa, Europe, Australia, and the Americas.
1. Zambia
- Key Operations: Kansanshi, Sentinel, Enterprise.
- Revenue Contribution: The Zambian operations (Kansanshi and Trident segments) generated a combined revenue of $4,255 million.
- Percentage of Total Revenue: 88.6% (Calculated).
- Significance: Zambia is the core operating region for the company in 2024. The operations here successfully mitigated power challenges caused by drought through supplementary power imports. The company is also investing $1.25 billion in the Kansanshi S3 Expansion project here.
2. Panama
- Key Operations: Cobre Panamá.
- Revenue Contribution: $(6) million (due to adjustments).
- Status: Currently under Preservation and Safe Management (P&SM). The mine has approximately 1,300 workers on-site for maintenance.
- Assets: Includes the mine, process plant, power plant, and port facilities.
3. Mauritania
- Key Operations: Guelb Moghrein.
- Production: 18,000 tonnes of copper and 31,000 ounces of gold in 2024.
- Development: Mining approval was received for the Oriental Hill expansion in 2024.
4. Türkiye
- Key Operations: Çayeli.
- Production: 11,000 tonnes of copper and 3,000 tonnes of zinc in 2024.
- Location: Rize Province.
5. Australia
- Key Operations: Ravensthorpe.
- Status: Placed on care and maintenance in May 2024.
- Production: 5,000 tonnes of nickel in 2024.
6. Spain
- Key Operations: Las Cruces.
- Status: Underground development project.
- Ownership: 100%.
7. Peru
- Key Projects: La Granja, Haquira.
- Status: Development projects. La Granja is a partnership with Rio Tinto (55% ownership).
8. Argentina
- Key Projects: Taca Taca.
- Status: Development project.
Financial Performance Analysis
The financial performance in 2024 reflects a year of stabilization and resilience following the disruption at Cobre Panamá.
Profit and Loss Analysis
- Sales Revenues: $4,802 million, a decrease of 26% from $6,456 million in 2023. This decline is primarily attributable to the halt in operations at Cobre Panamá.
- Gross Profit: $1,350 million, an increase of $58 million from 2023. This increase was driven by higher realized copper prices and improved sales volumes at Zambian operations.
- EBITDA: $1,491 million, a decrease of 36% from $2,328 million in 2023. The decrease reflects lower overall sales volumes due to the Cobre Panamá situation.
- Net Earnings: The company reported net earnings attributable to shareholders of $2 million ($0.00 per share), a significant turnaround from the net loss of $954 million ($1.38 loss per share) in 2023.
- Operating Profit: $810 million, compared to $78 million in 2023.
- Income Tax Expense: $388 million, down from $757 million in 2023. The effective tax rate excluding Cobre Panamá and interest expense was 29%.
- Net Finance Expense: $709 million, an increase of $96 million from the prior year. This includes interest on debt of $591 million.
Balance Sheet Analysis
- Total Assets: $24,107 million as of December 31, 2024.
- Cash and Cash Equivalents: $843 million.
- Total Debt: $6,342 million.
- Net Debt: $5,530 million, a decrease of $890 million during the year. The decrease was driven by EBITDA contribution and refinancing initiatives.
- Liquidity: The company has $750 million of committed undrawn senior debt facilities and $812 million of net unrestricted cash (inclusive of overdrafts).
- Property, Plant and Equipment: $19,193 million.
- Shareholders’ Equity: $11,469 million.
Cash Flow Analysis
- Operating Cash Flow: $1,651 million ($2.03 per share), an increase of 16% ($224 million) from 2023. This was attributable to lower taxes paid and the receipt of $500 million from a copper prepayment agreement.
- Investing Cash Flow: Cash flows used by investing activities totaled $1,294 million. This includes $1,286 million in purchases of property, plant, and equipment.
- Financing Cash Flow: Cash flows used by financing activities were $501 million. This includes proceeds from debt of $2,967 million and repayments of debt of $4,004 million.
- Interest Paid: Cash outflow on interest paid was $519 million.
Board of Directors and Leadership Team
Board of Directors
- Robert Harding: Independent Chair (Retiring May 2025). Chair of Audit and Nominating & Governance Committees.
- Tristan Pascall: Chief Executive Officer. Joined in 2007, previously General Manager of Cobre Panamá.
- Andrew Adams: Independent Director. Member of Audit and Human Resources Committees.
- Alison Beckett: Independent Director. Chair of Human Resources Committee.
- Geoff Chater: Independent Director. Member of Nominating & Governance and Human Resources Committees.
- Kathleen Hogenson: Independent Director. Chair of Nominating & Governance Committee; Member of EHS & CSR Committee.
- Kevin McArthur: Independent Director (Incoming Chair May 2025). Chair of EHS & CSR Committee; Member of Human Resources Committee.
- Juanita Montalvo: Independent Director. Appointed in 2024. Experience in social affairs in Latin America and Africa.
- Simon Scott: Independent Director. Chair of the Audit Committee; Member of EHS & CSR Committee.
- Dr. Joanne Warner: Independent Director. Member of EHS & CSR and Human Resources Committees.
- Hanjun (Kevin) Xia: Independent Director. Appointed in 2024. President of Marketing and Trading at Jiangxi Copper.
Leadership Team
- Tristan Pascall: Chief Executive Officer.
- Ryan MacWilliam: Chief Financial Officer.
- Rudi Badenhorst: Chief Operating Officer.
- Sarah Comber: Corporate Secretary.
- Juliet Wall: General Manager Finance.
- Zenon Wozniak: Director, Projects.
- John Gregory: Director, Mining.
Subsidiaries, Associates, Joint Ventures
The company operates through several key subsidiaries and joint ventures.
- Kansanshi Mining Plc (“Kansanshi”): 80% owned subsidiary operating the Kansanshi mine in Zambia.
- FQM Trident Limited (“Trident”): 100% owned subsidiary operating the Sentinel and Enterprise mines in Zambia.
- Minera Panamá S.A. (“MPSA” or “Cobre Panamá”): 90% owned subsidiary operating the Cobre Panamá mine.
- Mauritanian Copper Mines SARL (“Guelb Moghrein”): 100% owned subsidiary in Mauritania.
- FQM Australia Nickel Pty Limited (“Ravensthorpe”): 75.7% owned subsidiary operating the Ravensthorpe mine.
- Cobre Las Cruces S.A. (“Las Cruces”): 100% owned subsidiary in Spain.
- Çayeli Bakir Isletmeleri A.S. (“Çayeli”): 100% owned subsidiary in Türkiye.
- Pyhäsalmi Mine Oy: 100% owned subsidiary in Finland.
- Korea Panama Mining Corp (“KPMC”): A 50/50 joint venture with KOMIR that holds a 20% interest in Cobre Panamá.
- Minera La Granja S.A.C.: 55% owned subsidiary in Peru.
Physical Properties
The company maintains a significant physical footprint comprising mines, processing plants, and development projects.
- Kansanshi Mine (Zambia): Open-pit copper-gold mine with a smelter. Located in Solwezi. Contains 1,160.9 million tonnes of Measured and Indicated Mineral Resource.
- Sentinel Mine (Zambia): Open-pit copper mine located 150km west of Solwezi. Utilizes in-pit crushing and conveying.
- Enterprise Mine (Zambia): Open-pit nickel mine located 12km from Sentinel. Africa’s largest nickel mine.
- Cobre Panamá (Panama): Large open-pit copper mine with port and power station facilities (currently in preservation).
- Guelb Moghrein (Mauritania): Copper-gold mine located in Akjoujt.
- Çayeli (Türkiye): Underground copper-zinc mine located in Rize Province.
- Ravensthorpe (Australia): Open-pit nickel mine in Western Australia (Care & Maintenance).
- Las Cruces (Spain): Hydrometallurgical plant and mine development project in Sevilla Province.
- La Granja (Peru): Undeveloped copper resource in Cajamarca Region.
- Taca Taca (Argentina): Undeveloped copper-gold-molybdenum project in Salta Province.
- Haquira (Peru): Undeveloped copper deposit in Apurimac Region.
Segment-wise Performance
Trident Segment
- Copper Production: 231,000 tonnes (Record ex-pit mining volumes achieved in 2024).
- Nickel Production: 19,000 tonnes.
- Financials: Revenue $2,196 million; Gross Profit $733 million.
- Trends: Copper production increased by 17,000 tonnes year-over-year due to higher throughput and grades.
Kansanshi Segment
- Copper Production: 171,000 tonnes (Highest since 2021).
- Gold Production: 105,000 ounces.
- Financials: Revenue $2,059 million; Gross Profit $552 million.
- Trends: Copper production was 36,000 tonnes higher than 2023, driven by improved grade control and higher feed grades.
Cobre Panamá Segment
- Production: 0 tonnes (Production halted).
- Financials: Revenue $(6) million; Gross Loss $(49) million.
- Trends: Operations remain suspended under Preservation and Safe Management. P&SM costs were approximately $13 million per month in Q4 2024.
Corporate & Other Segment
- Production: Includes output from Guelb Moghrein (18kt Cu), Çayeli (11kt Cu), and Ravensthorpe (5kt Ni).
- Financials: Revenue $553 million; Operating Loss $(171) million.
Shareholding Pattern
- Outstanding Shares: 834,206,136 common shares as of December 31, 2024.
- Significant Shareholder: Jiangxi Copper Company Limited.
- Relationship: The company entered into a Shareholder Rights Agreement with Jiangxi Copper on July 23, 2024.
- Restrictions: Jiangxi Copper is prohibited from acquiring shares without consent and from selling to any person that would own more than 9.9% of shares.
- Treasury Shares: The company holds 6,161,000 shares in an independent trust for its long-term incentive plan.
Investments and Capital Expenditure Plans
The company has a focused capital expenditure strategy, prioritizing high-return projects and essential sustaining capital.
- 2024 Total Capital Expenditure: $1,286 million.
- Kansanshi S3 Expansion: The total capital expenditure for this project remains at $1.25 billion. Approximately $630 million was spent in 2024, with $840 million spent to date.
- 2025-2027 Capital Guidance:
- 2025: $1,300 – $1,450 million.
- 2026: $950 – $1,050 million.
- 2027: $800 – $900 million.
- Specific Allocations (2025-2027):
- Kansanshi Mining Fleet: $200 million investment over three years for trolley-compatible trucks.
- La Granja: $115 million for development, including drilling and environmental studies.
- Sentinel: $60 million for the relocation of in-pit crushers.
- Trolley Assist: $45 million for additional infrastructure at Kansanshi and Sentinel.
- Sustainability: Approximately $600 million of the three-year guidance relates to sustainability-related project capital.
Future Strategy
The company’s strategy focuses on debt reduction, project delivery, and resolving the situation in Panama.
1. Kansanshi S3 Expansion
- Goal: Extend the life of the Kansanshi mine and increase copper production.
- Timeline: First production is expected in the second half of 2025.
- Progress: The project was 62% complete by the end of 2024.
- Impact: This project represents a critical inflection point, returning the company to a trajectory of production growth and free cash flow generation.
2. Debt Management
- Goal: Strengthen the balance sheet and manage maturity profiles.
- Actions: The company refinanced its debt in early 2024, raising $1.6 billion in bonds and $1.15 billion in equity, and signed a $500 million copper prepayment agreement.
- Future: The company plans to reduce net leverage covenants over time, reaching 3.75x after June 2026.
3. Cobre Panamá Resolution
- Goal: Responsible stewardship and a long-term solution.
- Actions: Implementing a Preservation and Safe Management (P&SM) plan. Engaging in international arbitration (hearing scheduled for February 2026) while remaining open to dialogue with the Panamanian government.
4. Greenfield Growth
- La Granja (Peru): Advancing engineering studies and community engagement. The company is obliged to invest $546 million in initial funding.
- Taca Taca (Argentina): Progressing environmental impact assessments and seeking approval for concessions.
Key Strengths
- Operational Resilience: Achieved 431,004 tonnes of copper production in 2024, exceeding guidance despite major challenges.
- World-Class Assets: Operations include some of the world’s largest copper mines, such as Sentinel and Kansanshi.
- Technical Expertise: A unique ability to execute complex projects using in-house engineering and construction capabilities.
- Financial Discipline: Successfully reduced net debt by $890 million in 2024 through comprehensive refinancing and operational cash flow.
- Innovation Leader: Over 13 years of experience with trolley-assist systems and currently trialing the world’s first fully battery-powered ultra-large dump truck.
- Growth Optionality: Possesses industry-leading greenfield projects like La Granja and Taca Taca.
Key Challenges and Risks
- Cobre Panamá Suspension: The mine remains in a preservation phase with no production, impacting revenue significantly. Approximately 121,000 tonnes of concentrate remain unsold on-site.
- Power Supply in Zambia: Drought conditions restricted hydropower generation in 2024. While mitigated by imports, this remains a risk factor affecting costs (estimated impact of $0.07/lb on C1 cash costs in 2025).
- Commodity Price Volatility: Approximately half of planned production in 2025 remains exposed to spot copper prices, although hedging programs are in place.
- Regulatory Uncertainty: Facing arbitration proceedings regarding Cobre Panamá and navigating tax regimes in various jurisdictions.
- Care and Maintenance Costs: Incurring approximately $12-13 million per month for Cobre Panamá and $1.5-2 million per month for Ravensthorpe.
Conclusion and Strategic Outlook
First Quantum Minerals Ltd. enters 2025 with a clear strategic focus on delivering growth and maintaining financial stability. The imminent completion of the Kansanshi S3 Expansion in mid-2025 serves as a pivotal moment for the company, promising to enhance production profiles and cash flow generation. While the suspension of Cobre Panamá presents a continued challenge, the company’s robust Zambian operations, led by Sentinel and Kansanshi, have demonstrated the capacity to sustain the business.
The company’s proactive financial management, evidenced by its comprehensive refinancing and debt reduction in 2024, positions it well to navigate current market conditions. With a pipeline of high-quality greenfield projects like La Granja and Taca Taca, First Quantum retains significant long-term growth optionality. The management remains committed to responsible mining, technological innovation, and resolving the impasse in Panama to unlock the full value of its portfolio for all stakeholders.
Official Site: https://www.first-quantum.com
FAQ Section
- What was First Quantum Minerals’ total revenue in 2024? First Quantum Minerals reported a total sales revenue of $4,802 million for the year ended December 31, 2024.
- How much copper did First Quantum produce in 2024? The company produced a total of 431,004 tonnes of copper in 2024, exceeding its guidance range of 400,000 to 420,000 tonnes.
- What is the status of the Cobre Panamá mine? As of the end of 2024, Cobre Panamá remains in a phase of Preservation and Safe Management (P&SM) with production halted. The company is engaging in arbitration and dialogue with the government.
- What is the Kansanshi S3 Expansion project? The S3 Expansion is a major development project at the Kansanshi mine designed to increase copper production. It was 62% complete at the end of 2024, with first production expected in the second half of 2025.
- How much debt does First Quantum Minerals have? As of December 31, 2024, First Quantum Minerals had a net debt of $5,530 million and a total debt of $6,342 million.
- Where are First Quantum Minerals’ primary operations located? The company’s primary active operations are in Zambia (Kansanshi, Sentinel, Enterprise), with other mines in Mauritania (Guelb Moghrein) and Türkiye (Çayeli).
- Who is the CEO of First Quantum Minerals? Tristan Pascall is the Chief Executive Officer of First Quantum Minerals Ltd.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
