First Quantum Minerals Reports Third Quarter 2025 Results

First Quantum Minerals reported its third quarter 2025 financial and operating results. Key highlights include: - Financials: Revenues of $1.346 billion, a net loss of $48 million (-$0.06/share), and adjusted EPS of -$0.02. EBITDA was $435 million, and cash flow from operations was very strong at $1.195 billion. - Production: Copper production was 104,626 tonnes, an increase from the previous quarter. Gold production was 36,463 ounces, and nickel production was 5,767 tonnes. - Costs: Copper C1 cash costs were $1.95/lb and All-In Sustaining Costs (AISC) were $3.07/lb, at the low end or below the company's annual guidance range. - Guidance: The company reiterated its full-year 2025 production guidance of 390,000 - 410,000 tonnes of copper. - Balance Sheet: The company closed its $1 billion gold stream agreement with Royal Gold and completed a series of bond transactions, extending its earliest bond maturity to 2029. - Projects: The Kansanshi S3 Expansion project produced its first concentrate in August and is expected to be completed under its original $1.25 billion budget.

The Q3 2025 results are materially positive, as they confirm successful execution on the company's strategic priorities announced throughout the year to navigate the crisis caused by the shutdown of the Cobre Panamá mine.

• De-risking the Balance Sheet: A core risk at the beginning of 2025 was the company's debt profile, with significant near-term maturities. News releases throughout February and August detailed a series of complex debt refinancing transactions. This Q3 release confirms these efforts were successful, pushing the nearest bond maturity out to 2029. This, combined with the closing of the previously announced $1 billion gold stream with Royal Gold (announced August 5), has significantly improved the company's liquidity and reduced its financial risk. This is a crucial achievement.

• Operational Execution and Growth: Following the halt of operations at Cobre Panamá, the market's focus shifted to the performance and growth potential of the Zambian assets. The Q1 and Q2 results showed progress but also challenges. This Q3 report demonstrates strong operational improvement with increased copper production quarter-over-quarter and excellent cost control, with C1 and AISC figures coming in at or below the low end of guidance.

• Project Delivery: The most significant operational update is the successful commissioning of the Kansanshi S3 Expansion, which produced its first concentrate in August. This project, which was tracked as on-schedule in Q1 and Q2 reports, is now confirmed to be delivering production and is expected to come in under budget. This provides a tangible growth path to partially offset the lost production from Panama and demonstrates management's ability to execute on complex projects.

While the company reported a net loss, this is overshadowed by the very strong cash flow from operations ($1.195 billion), the successful balance sheet restructuring, and the delivery of a key growth project. The news provides tangible evidence that management's strategy is working, transforming the narrative from one of survival to one of operational excellence and measured growth from its Zambian base. The primary risk, the status of Cobre Panamá, remains unchanged and continues to be an overhang, but the company is now in a far stronger position to manage a prolonged shutdown.

First Quantum Minerals is a global mining company focused on copper, with additional production of gold and nickel. Its principal operating assets are located in Zambia and include the Kansanshi copper-gold mine, the Sentinel copper mine, and the Enterprise nickel mine.

The company's historical flagship project was the massive Cobre Panamá copper mine in Panama. However, following a series of disputes and public protests, the mine was ordered to halt operations in late 2023 and is currently in a state of "Preservation and Safe Management." With Cobre Panamá offline, the company's Zambian operations are its core focus. The key growth project is the recently commissioned Kansanshi S3 Expansion, designed to extend the life and increase the output of the Kansanshi mine.