1st May 2015 09:43
LONDON (Alliance News) - First Quantum Minerals Ltd Friday reported a drop in profit in the first quarter of 2015 as it limits production in its mines in order to lower sulphuric acid consumption.
The company reported a drop in gross profit to USD26 million in the three months to March 31, down from USD282 million in the same period in 2013. Sales dropped to USD650 million from USD891 million.
It said its performance was in line with its guidance for the first quarter in which it said it expected the mine's output during the period to be at its lowest for the year, as it intended to limit sulphuric acid consumption, and hence production, until free acid became available as a by-product from its smelter.
First Quantum added that it is making progress with subsequent reduction in the Kansanshi mine's copper concentrate inventory while by-product sulphuric acid from the smelter is being used in the mine's processing facilities in higher volumes earlier than anticipated.
Likewise, the ramp-up of the Sentinel mine is steadily improving as the wet season in the region eases, it said, while construction of the Cobre Panama project continues to make good progress with overall detailed design around 65% complete.
"With the uncertainty on prices for our main metals, we continue our efforts for the company to withstand a period of prolonged lower metal prices while maintaining our ability to build future production," Chief Executive Philip Pascall said in a statement.
Shares in First Quantum were trading up 0.8% at 967.50 pence Friday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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