31st Jul 2014 10:38
LONDON (Alliance News) - First Quantum Minerals Ltd Thursday said its gross profit jumped in its second quarter and first half as higher production rates drove up revenue during the period.
The metals and mining company said its gross profit for the three months ended June 30 increased 45% to USD292.6 million from USD201.1 million in the previous year, as revenues increased 8.7% to USD945.1 million from USD869.3 million.
The company said its copper production increased 3.9% in the quarter to 107,808 tonnes, and its nickel production increased 12% to 12,223 tonnes, but its gold production fell 4.5% to 60,723 ounces.
First Quantum posted a gross profit increase of 12% for all of the first half to USD574.2 million and a 3.9% increase in revenues to USD1.84 billion.
The company said its copper production increased 21% in the half to 220,926 tonnes, and its nickel production increased 9.6% to 24,061 tonnes, but its gold production increased only slightly to 120,887 ounces from 119,511 ounces.
First Quantum expects both its phase 1 development for its copper smelter and Trident projects to reach commissioning in the second half towards commercial operations in 2015, significantly adding to production moving forward.
For the full year, the company continues to expect copper production to increase in 2014 to between 418,000 tonnes and 444,000 tonnes, but it revised up slightly the low end of its nickel production guidance to 45,000 tonnes from 42,000 tonnes, and revised down slightly the high end of its gold production guidance to 242,000 ounces from 246,000 ounces.
The company also increased its cash costs guidance for copper production in 2014 to USD1.45 per pound and decreased its guidance costs for nickel by 24% to USD4.16 per pound.
First Quantum shares were up 1.4% to 1,482.80 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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