Government of Panama Approves Processing of Stockpiled Ore at Cobre Panama

• On 2026‑04‑07 the Government of Panama formally approved First Quantum’s plan to remove, process and export ~38 million tonnes (Mt) of copper‑rich ore stockpiled at the Cobre Panamá mine.
• The stockpile contains roughly 870 kt of recoverable copper.
• Processing will start within three months after pre‑commissioning work, initially at about one‑third of nameplate capacity.
• Capital required is ~US$250 million, mainly for working‑capital inventory (consumables, spare parts, reagents, fuel).
• The program creates >1,000 direct jobs and expands the workforce to ~3,000 employees, with additional indirect employment through local suppliers.
• Existing in‑pit crushers, conveyors, flotation circuit and concentrate handling facilities will be used; only minor repairs are needed.
• Environmental rationale: processing reduces long‑term acid rock drainage risk from prolonged on‑site storage.

• Expectation vs. reality: The approval was anticipated after months of negotiations, but the formal sign‑off confirms that First Quantum can now monetize a large, previously idle asset. This moves the project from “pending” to “operational” status.
• Cash flow: Even at modest processing rates (≈33 % capacity) the company expects ~70 kt copper output from the stockpile, generating $12‑$12.5 /tonne milled revenue (~US$840‑875 M). The required US$250 M capital is a small fraction of the cash generated, implying net positive cash flow early in 2026.
• Balance sheet: The financing need is modest relative to the company’s existing liquidity (senior notes offering completed earlier in 2026) and does not materially increase leverage. It also reduces the risk of prolonged ore storage liabilities on the balance sheet.
• Operational risk: Using existing plant infrastructure limits capital exposure; only minor repairs are required, lowering execution risk. The three‑month lead time is realistic given pre‑commissioning work already underway.
• Strategic relevance: Cobre Panamá remains First Quantum’s flagship asset (≈30 % of total copper production). Restarting processing sustains cash flow while the broader dispute over mine reopening continues, providing a bridge to future negotiations or potential sale/partial divestiture.
• Market reaction: The stock has been on an upward trend since early 2025, climbing from ~$15 to $36.34 (≈+140 %). This news is likely to reinforce bullish sentiment and could trigger short‑term buying as investors price in the near‑term cash inflow.

Conclusion: The approval is a material positive development – it unlocks significant cash generation with limited additional capital, improves balance‑sheet metrics, and mitigates environmental liabilities. It does not resolve the underlying Panama dispute but materially de‑rises short‑term risk.

First Quantum Minerals Ltd. (TSX: FM) is a diversified global mining company producing copper, gold and nickel. Its flagship asset is Cobre Panamá in Panama – an open‑pit copper mine with ~1.5 bn lb Cu reserves, historically delivering >300 kt Cu annually. The mine has been in “preservation” mode since Nov 2023 due to a government dispute; the recent approval allows processing of 38 Mt of stockpiled ore, generating cash while negotiations continue.