First Quantum Minerals Announces 2025 Preliminary Production and 2026 - 2028 Guidance
First Quantum Turns the Corner in Zambia as Panama Stockpile Processing Offers a $1 Billion Liquidity Bridge
The news release on January 15, 2026, provides preliminary production results for 2025 and guidance for 2026-2028. Key takeaways include: - FY 2025 production met the tightened guidance range with 396kt of copper, 152koz of gold, and 23.2kt of nickel. - The Kansanshi S3 Expansion achieved commercial production on December 1, 2025, ahead of the original mid-2025 schedule and under the $1.25 billion budget. - The Government of Panama (GOP) will authorize the processing of approximately 38 million tonnes of stockpiled ore at Cobre Panamá, expected to produce ~70kt of copper. - Three-year copper production guidance (2026-2028) is set between 375kt and 490kt, with 2028 showing the strongest growth as S3 ramps up. - AISC for copper is projected at $3.00 - $3.55/lb for the guidance period. - Sentinel operations face a scheduled ball mill remedial work program in 2027 due to fatigue failures.
The news is Material - Positive for three primary reasons: - Monetization of Panama Assets: While Cobre Panamá remains in "Preservation and Safe Management" (PSM), the approval to process stockpiles is a massive breakthrough. This allows the company to generate revenue from 70kt of copper (worth ~$600M+ at current prices) to offset PSM costs and potentially pay down debt, without the political hurdle of a full "mine reopening." - Operational Execution: Completing the S3 expansion under budget and reaching commercial production by year-end 2025 restores management's credibility. S3 is the engine for the company’s "sustainable organic growth" while Panama is stalled. - De-risked Balance Sheet: Between the $1 billion Royal Gold stream, the $1 billion note offering extending maturities to 2029, and the $190 million sale of Las Cruces (announced Dec 2025), the immediate "liquidity crisis" that dominated 2024/early 2025 has been successfully navigated.
First Quantum is a global copper producer with cornerstone assets in Zambia. - Kansanshi (Zambia): The flagship asset, now including the S3 Expansion which increases processing capacity to 25 million tonnes per annum. - Sentinel (Zambia): A large-scale copper mine currently producing ~200-230ktpa. - Cobre Panamá: Currently in Preservation and Safe Management following a Supreme Court ruling in late 2023. It represents a $10 billion investment and remains one of the world's largest copper mines.