First Quantum Minerals Reports Third Quarter 2026 Results

First Quantum Minerals Ltd. (FM) reported strong third-quarter 2026 financial results, posting revenue of $2,086 million and gross profit of $678 million. The company generated EBITDA of $844 million and net earnings of $207 million, or $0.25 per share. Adjusted earnings per share came in at $0.29, while operating cash flow reached $600 million. Net debt decreased by $98 million to $5,309 million, and liquidity stood at $2.13 billion.

Operationally, copper production increased 8% quarter-over-quarter to 108,959 tonnes. Gold output rose to 47,095 ounces, while nickel production fell 13% to 9,831 tonnes. The production increase was largely driven by processing at the Cobre Panamá stockpile, where all three trains were brought online. This activity yielded 13,229 tonnes of copper and 6,355 ounces of gold, with two concentrate vessels shipped. First Quantum maintained its guidance for Cobre Panamá at 30,000–40,000 tonnes of copper and 10,000–15,000 ounces of gold.

The company revised its full-year guidance, narrowing the copper range from 405,000–475,000 tonnes to 405,000–435,000 tonnes. This adjustment cuts the top end by 40,000 tonnes and the midpoint by 20,000 tonnes, or 4.5%. Gold guidance was narrowed from 150,000–175,000 ounces to 150,000–170,000 ounces. Conversely, nickel guidance was raised from 30,000–40,000 tonnes to 40,000–45,000 tonnes.

Cost guidance was increased materially. Copper C1 cash cost moved from $2.15–$2.40/lb to $2.50–$2.65/lb, representing a midpoint increase of $0.30/lb, or 13.2%. Copper all-in sustaining cost (AISC) rose from $3.50–$3.80/lb to $4.10–$4.25/lb, a midpoint increase of $0.525/lb, or 14.4%. Capital expenditure guidance was narrowed to $1,150–$1,250 million from $1,075–$1,250 million, raising the low end by $75 million.

Panama remains a key area of focus. The Interministerial Commission delivered its final report recommending an assessment of a new agreement that could settle arbitrations and provide for a potential restart to support an orderly, self-financed closure. The President is currently reviewing the report, and no approval has been granted yet.

First Quantum Minerals Ltd. (FM) reported a quarter driven by higher copper prices, with EBITDA reaching $844 million, more than double the $400 million recorded in Q2 2026. Net earnings recovered to $207 million, and operating cash flow hit $600 million. Realized copper prices averaged $6.37/lb in the quarter, compared to $5.34/lb in Q2 and $4.38/lb in Q3 2025. The company recorded no hedge losses in Q3 following the end of its hedging program.

However, the company revised its production and cost outlooks downward. The top end of the copper production forecast was cut, and the midpoint guidance for both Kansanshi and Sentinel mines was lowered. Additionally, the cost guide was raised by double digits. Q3 All-In Sustaining Costs (AISC) came in at $4.30/lb, already exceeding the new full-year high of $4.25/lb, meaning Q4 performance must surpass Q3 levels to meet guidance. Q3 C1 costs of $2.59/lb sit near the top of the new $2.50–$2.65/lb range, leaving a narrow margin for error.

The market had partially priced in these developments prior to the release. From the Q2 results close on 2026-07-28 at $37.51 to the Q3 close on 2026-10-28 at $35.89, the stock declined 4.3%. From the 2026-08-25 high of $48.69, the share price is down 26.3%. A report on Cobre Panamá on 2026-09-30 triggered a one-day fall from $45.12 to $38.23, a drop of 15.3%. Despite this prior de-rating, the increase in the cost guide and headwinds to 2027 grade and volume are material, representing a worse outlook than the prior risk-adjusted C1 guide.

The strong quarterly results were primarily driven by copper price increases and the processing of stockpiles at Cobre Panamá, rather than a durable operating beat. While the quarter did not trigger a covenant breach, dividend cut, impairment, or management departure, the material changes to volume and cost guidance mark a significant shift in the company's outlook.

First Quantum Minerals Ltd. (TSX: FM) is a producer of copper, nickel, and gold with operations in Zambia, Panama, Mauritania, and Australia. The company’s producing assets include the Kansanshi and Sentinel copper mines in Zambia, the Enterprise nickel mine in Zambia, the Cobre Panamá mine in Panama, and the Guelb Moghrein mine in Mauritania. The Ravensthorpe nickel mine in Australia is currently in care and maintenance.

Ownership structures vary across the portfolio. First Quantum holds an 80% stake in Kansanshi, with the Zambia state-owned mining company ZCCM-IH holding the remaining 20%. At Cobre Panamá, First Quantum owns 91%, while KOMIRÉ holds 9%. The La Granja project is 55% owned by First Quantum and 45% by Rio Tinto. Ravensthorpe is 75.7% owned by First Quantum, with POSCO holding 24.3%. First Quantum maintains 100% ownership of the Sentinel, Enterprise, Guelb Moghrein, Taca Taca, and Haquira assets.

The company’s development pipeline includes the Taca Taca project in Argentina, a large, 100%-owned copper-gold-molybdenum project with an estimated 35-year mine life and $4.232 billion in development capital. In Peru, First Quantum holds La Granja, a greenfield copper resource with no reserves defined, and Haquira, an exploration-stage porphyry copper project.

Recent corporate actions include the sale of the Çayeli mine in Türkiye and the Cobre Las Cruces mine in Spain in the second quarter of 2026. Cobre Panamá has been in Preservation and Safe Management since November 2023, with current activities limited to stockpile processing rather than a full mine restart. Tristan Pascall serves as CEO.