2nd May 2014 12:28
LONDON (Alliance News) - First Quantum Minerals Ltd Friday maintained its full-year production and cost guidance for 2014, despite seeing gross profit for the quarter to end-March decline, as it increased production across of all its product lines.
Gross profit dropped to USD281.6 million, down from USD310.2 million, as it took a USD152 million hit from lower commodity prices and build up in concentrate inventory at its Kansashi site in Zambia.
Copper production was up 43%, nickel up 7%, gold up 8%, and platinum and palladium production up 22% during the quarter.
First Quantum said that as the nickel price improves, it expects its Ravensthorpe mine in Australia to become a more substantial contributor to its profitability. At Kansanshi, it recorded high production numbers despite severe seasonal rains. However, production levels were hit by an ongoing lack of in-country smelting capacity, the company said.
It will continue to focus on copper cathode production, it said, drawing down its copper concentrate inventory to release working capital throughout 2014.
The company said that it had made good progress at each of its in-development copper projects during the year, as a night construction shift was added to its Phase 1 copper smelter, which helped pull back schedule slippage from 2013.
First Quantum continues to expect copper production to increase in 2014 to between 418,000 tonnes and 444,000 tonnes, nickel production is forecast to fall slightly to between 42,000 tonnes and 47,000 tonnes, and gold production is expected to be down at between 221,000 ounces and 246,000 ounces.
Shares in First Quantum Minerals were trading down 1.3% at 1,152.90 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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