1st Quarter Results

14th May 2008 07:00



NEWS RELEASE 08-10 May 13, 2008 www.first-quantum.com

FIRST QUANTUM MINERALS REPORTS OPERATIONAL AND FINANCIAL RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2008

(All figures expressed in US dollars)

First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM", LSE Symbol "FQM") is pleased to announce its results for the three months ended March 31, 2008. The complete financial statements and management discussion and analysis are available for review at www.first-quantum.com and should be read in conjunction with this news release.

Key features for the quarter	Q1 2008	Q1 2007	Q1 2006
Production t Cu	75,616	46,403	42,086
Sales t Cu	62,802	44,315	36,635
Net sales USDM	511.5	261.3	187.2
Operating profit USDM	354.1	145.8	122.0
Net profit USDM	182.0	78.3	55.8
Earnings per share USD	$2.68	$1.16	$0.90

Unless otherwise indicated, all comparisons of performance throughout this report are to the comparative period for the prior year.

 

 

Q1 2008 operating results

	Q1 2008	Q1 2007	Q1 2006
NET SALES (after TC/RC charges)	USD M	USD M	USD M
Kansanshi - copper	373.4	218.4	120.4
- gold	8.8	4.8	4.5
Guelb Moghrein- copper	67.2	12.8	-
- gold	16.4	3.1	-
Frontier - copper	32.6	-	-
Bwana/Lonshi - copper	13.1	22.1	62.1
- acid	-	0.1	0.2
Net sales	511.5	261.3	187.2
Copper provisional pricing adjustment included above	44.5	(17.6)	16.9
OPERATING PROFIT	USD M	USD M	USD M
Kansanshi	288.0	145.0	86.6
Guelb Moghrein	54.4	10.4	-
Frontier	18.1	-	-
Bwana/Lonshi	(6.4)	(9.6)	35.4
Total operating profit	354.1	145.8	122.0
COPPER SELLING PRICE	USD/lb	USD/lb	USD/lb
Current period sales	3.43	2.96	2.32
Prior period provisional pricing adjustment	0.32	(0.18)	0.21
TC/RC and freight parity charges	(0.24)	(0.19)	(0.27)
Realized copper price	3.51	2.59	2.26
UNIT COSTS	USD/lb	USD/lb	USD/lb
Cash costs (C1)	0.99	1.06	0.80
Total costs (C3)	1.25	1.30	1.00

Group operating profit driven by significant sales increase

Notwithstanding intermittent power blackouts and the effects of the rainy season, group operating profit, which was a quarterly record, rose significantly as a result of higher sales volume, an increase in the realized copper price and lower cash costs than in the comparative quarter of last year. Sales volume increased due to the 63% increase in production, a new quarterly production record. Kansanshi continued to increase its output due to facility upgrades and expansions and Frontier enjoyed its first full quarter of production. The realized copper price was 36% higher due to the increased LME copper price, which also resulted in large positive provisional pricing adjustments, unlike the comparative quarter when the LME copper price decreased. The profit margin also benefited from a reduction in the average cash unit cost of production (C1) mainly due to the increased copper output and a reduction in waste stripping.

Kansanshi operating profit benefits from 48% increase in copper output

Kansanshi, again, reached record production levels with its sixth consecutive quarter on quarter output increase. Against the comparative quarter of 2007 there was a 26% increase in the tonnes of copper sold. This, combined with a higher realized copper price and lower cash unit costs, contributed to Kansanshi's 99% increase in operating profits.

Copper production increased due, mainly, to a combination of an increase of 15% in oxide and 61% in sulphide ore processed and an increase in the sulphide ore grade processed. The continued facility expansions enabled the increase in ore throughput while the increase in ore grades processed was the direct result of the build up of the mining fleet which had enabled higher grade sulphide ore to be mined and stockpiled over the past few quarters. This resulted in contained copper output increases of 21% from the oxide ore and 97% from the sulphide ore.

As discussed in the previous quarter, operational issues at the Mufulira smelter limited tolled cathode output to approximately 8,200 tonnes. Kansanshi continued to focus on achieving a steady state of production from the high pressure leach system, which contributed approximately 1,700 tonnes of copper in concentrate to cathode production. Of the remaining balance of copper in concentrate production, approximately 9,000 tonnes were sold without further processing and approximately 5,900 tonnes were added to the inventory stockpiles.

Kansanshi's average cash unit cost of production (C1) of 79 cents/lb was positively impacted by the increase in copper in concentrate output as a percentage of the total copper output as the gold credit increased and leach costs decreased. Leach costs decreased due to the lower proportionate share of oxide ore production and a decrease in the processing of high acid consuming oxide ore. In addition, the lower waste stripping, increased production and improved efficiencies all helped keep under control rising cost pressures related to increased oil-based consumables and wages. 

Guelb Moghrein boosted by increasing copper and gold prices and increased sales

Guelb Moghrein's sales revenues were 426% higher as the sales issues of the comparative quarter were settled during the latter part of 2007. This, combined with increased copper and gold prices, a further reduction of the concentrate stockpile and an increase in copper production, all led to the significant increase in operating profit.

Guelb Moghrein continued to operate above throughput design level. Copper in concentrate production increased due to a 26% increase in the tonnes of ore processed as the comparative quarter was still ramping up since achieving commercial production in late 2006. In addition to the increased gold credit, the average cash unit cost of production (C1) was positively impacted by lower TC RC and freight parity costs versus the comparative quarter as improved offtake terms were negotiated. This was partially offset by rising oil-based consumables, power and wage costs.

Frontier achieves operating profit in first full quarter of operations

Frontier achieved an operating profit on the back of high copper prices despite sales volumes being limited due to the constraints imposed by the operational issues of the Mufulira smelter. This resulted in approximately 9,200 tonnes of copper in concentrate production being added to the inventory stockpile by quarter end. Alternative overseas offtake arrangements were finalized late in the quarter which enabled a sale of just over 4,000 tonnes of copper in concentrate.

With the open pit in its very early stage of development copper production was impacted by the heavy rain season, which caused delays in the mining of high grade ore. This resulted in the processing of mixed lower grade ores, which impacted the percentage of copper recovered in the process and contributed to an increase in the average mining unit cost of production. In addition, the sales of concentrate, which had been stockpiled on the Zambian side of the border, were assessed as being subject to the new Zambian export levy, which increased the average total unit cost of production (C3). Alternative arrangements have now been agreed for the export of concentrate directly from the mine, which ensures the Zambian levy does not apply.

  Bwana/Lonshi negatively impacted by DRC border closure

For the entire quarter the DRC provincial government of Katanga continued to disallow any ore shipments from the Lonshi mine to cross the border into Zambia. This required the Bwana treatment plant to process low grade ore purchased from external vendors and resulted in low copper production and increased average cash unit (C1) and total (C3) costs of production.

Meanwhile, mining operations continued at the Lonshi mine resulting in a stockpile of approximately 76,000 tonnes of ore at an average ore grade of approximately 5.8% at quarter end. The Company believes it has satisfied all requirements to allow the shipment of ore to Bwana from Lonshi. Discussions are ongoing but the border remains closed as of the date of this report.

Provisional pricing adjustment positive following increase in copper price during final settlement periods

The provisional pricing adjustments reflect the quarter's final settlement prices for prior period copper sales at an average of $3.65/lb compared to the December 31, 2007 provisional forward average LME price of $3.04/lb.

As at March 31, 2008, there were 8,974 tonnes of contained copper that were provisionally priced at an average LME copper price of $3.85/lb. This revenue will be subject to future adjustments as a result of movements in the copper price. Of this amount, 6,812 tonnes had the final price determined in April at $3.94/lb resulting in a favourable provisional pricing adjustment of approximately $1.4 million, and 2,162 tonnes will be determined in May.

Q1 2008 net profit

	Q1 2008	Q1 2007	Q1 2006
	USD M	USD M	USD M
Operating profit	354.1	145.8	122.0
Corporate costs and other expenses/income	(11.3)	(6.2)	(4.9)
Derivative losses (net)	(1.4)	(1.1)	(18.6)
Exploration	(5.8)	(2.6)	(2.1)
Interest (net)	(6.9)	(4.5)	(5.3)
Tax expense	(98.0)	(31.7)	(25.0)
Minority interests	(48.7)	(21.4)	(10.3)
Net profit	182.0	78.3	55.8
Earnings per share
- basic	$2.68	$1.16	$0.90
- diluted	$2.65	$1.14	$0.88
Weighted average shares outstanding
- basic	67.8	67.3	61.8
- diluted	68.7	68.6	63.4

Net profit driven by outstanding operating results, hampered by Zambian tax rate increases 

Net profit and earnings per share were 132% higher than the comparative quarter, which was driven by the outstanding operating results. However, the increased Zambian tax rates hampered further increases in net profit and earnings per share due to the restatement of the future income tax liability at a higher tax rate.

Other expenses impacted by foreign exchange loss

During the quarter an unrealised foreign exchange loss of $4.6 million was recognized on the movement in the USD against the Euro on the EIB subordinated debt facility for Kansanshi. This was offset by a gain included in net derivative losses.

Exploration costs up 

The Company continued with its increased exploration activities over the past few quarters resulting in higher costs than the comparative quarter. Part of the increase was targeted at discovering new opportunities in Mauritania.

Income tax expense up on increased earnings, future rate changes, and tax dispute settlements

In addition to the increased operating profits, income tax expense was negatively impacted by the increased tax rate in Zambia and amounts related to the final settlement of prior year income tax disputes in the DRC.

As a result of the Zambian government passing legislation in parliament to increase the tax rate payable by mining companies from 25% to 30%, the Company has restated its balance of future income tax liabilities to reflect the higher rate. This resulted in a charge of $17.0 million to profit during the quarter. Any receivable from the Government of Zambia for reimbursement of any increased tax charges afforded by the stability provisions of the Development Agreement has not been recognized at this point pending further clarification of the impact of the tax changes. If the tax rate used for calculating future income tax liability is kept at 25% in accordance with the provisions of the Development Agreement, the net profit for the quarter would increase to $195.6 million, earnings per share basic of $2.88 and fully diluted of $2.85.

Minority interests directly impacted by increased profits at Kansanshi and Guelb Moghrein

Minority interests increased directly with the increase in operating profits at Kansanshi and Guelb Moghrein as this represents the minority shareholder's portion of each operation's net income.

Q1 2008 cash flows

	Q1 2008	Q1 2007	Q1 2006
	USD M	USD M	USD M
Cash inflows from operating activities
- before working capital	272.6	118.9	103.8
- after working capital	143.5	74.6	83.9
Cash inflows from financing activities	20.1	(25.8)	(13.2)
Cash outflows from investing activities	(94.0)	(102.0)	(46.1)
Net incash flows	69.6	(53.2)	24.6
Cash flows per share
- before working capital	$4.02	$1.77	$1.68
- after working capital	$2.12	$1.11	$1.36

Cash inflows from operating activities increase on significant increase in net profit

Operating cash flows before working capital movements benefited from the Company's operating results. Non-cash related expenses that were included in the operating results including depreciation, minority interests and future tax expense were significantly higher than the comparative quarter.

Operating cash flows after working capital movements for the quarter were impacted by a build up inventory of $60.5 million and an increase in accounts receivable of $100.3 million, which were offset by an increase in current taxes payable of $49.4 million. Inventory was particularly impacted by an increase in concentrate stockpiles at Kansanshi and Frontier.. Current taxes increased due to the positive results and the timing of tax payments.

Cash inflows from financing activities increase due to debt draw down

Financing activities included a long-term debt draw down of $50.0 million and repayments totalling $25.3 million on the corporate revolving credit and term loan facility and the Kansanshi project completion facility. The funds from the draw down were used for capital investment purposes. These financing cash inflows were higher during the current quarter as there were no draw downs in the comparative quarter.

Cash outflows from investing activities increase on capital investment 

The Company spent $64.6 million on capital upgrades at Kansanshi, Frontier and Guelb Moghrein and $30.0 million on the Kolwezi development project. In addition, $21.9 million was spent on acquiring investments in marketable securities. Capital expenditures continued at Kansanshi on sulphide expansion and the gold plant commissioning, while Guelb Moghrein continued investment in the gold plant and other expansion projects. Compared to the same quarter in 2007, the Company spent more on capital upgrades and development and less on marketable security investments during the current quarter.

Q1 2008 balance sheet

	Q1 2008	YE 2007	YE 2006
	USD M	USD M	USD M
Cash	269.6	200.0	249.5
Property, plant and equipment	1,393.9	1,320.5	1,078.0
Total assets	2,917.9	2,682.7	1,719.7
Long term debt	390.3	361.2	294.9
Total liabilities	1,250.0	1,096.7	799.9
Shareholders' equity	1,667.9	1,586.0	919.8
Net working capital	575.0	457.3	312.8
Net debt to net debt plus equity	7%	9%	5%

Group assets rise on positive cash flows and capital investment 

The Company's positive operating cash flow enabled continued capital expenditure and investment. Working capital also rose significantly during the period.

Inventory increases consisted of an additional $33.5 million in finished products, $17.5 million in consumable stores and $11.8 million in ore stockpiles. The Company had stockpiles of approximately 31,600 tonnes of copper in concentrate at quarter end, which was an increase of 13,300 tonnes during the quarter. Operational issues at the Mufulira smelter resulted in a significant reduction in the processing of concentrates from Kansanshi and Frontier. This resulted in the stockpiling of concentrates while management arranges alternative processing and offtake arrangements. Of this stockpiled total, approximately 8,000 tonnes of Kansanshi production remain stockpiled at the Mufulira smelter awaiting treatment, while 6,200 tonnes remained onsite at Kansanshi and 16,300 tonnes remained at Frontier.

The total investment in marketable securities at cost amounted to $330.3 million. However, due to the current market price of Equinox, the Company recognized a fair value loss of $76.8 million through comprehensive income, thus reducing the fair value of the investment since December 31, 2007.

Property, plant and equipment balances increased by $73.4 million, net of depreciation, as the Company continued capital investment in the Kansanshi sulphide circuit upgrade, the Kolwezi development project and expansions at Guelb Moghrein. 

Group liabilities increase on current taxes, debt draw downs and minority interest 

Current tax payable increased due to the positive operating results and the timing of payments. Long-term debt increased due to net draw downs during the quarter. Minority interests increased due to the positive operating results at Kansanshi and Guelb Moghrein.

Shareholders' equity increases on net earnings 

The Company declared a dividend of 54 cents per share totalling $36.1 million during the quarter. Due to the decline in fair value of the Company's investments in marketable securities, a comprehensive loss after tax of $65.2 million was recognized during the quarter.

As at the date of this report the Company has 68,378,922 shares outstanding.

Growth activities

Scandinavian Minerals Limited acquisition offer

In April 2008, the Company entered into a definitive agreement ("Arrangement Agreement") to acquire, by way of a court-approved plan of arrangement, all of the outstanding common shares of Scandinavian Minerals Limited ("SML"), which owns the Kevitsa nickel - copper - PGE property in northern Finland.

The Kevitsa nickel-copper-PGE deposit in Finland fits the Company's strategy of developing or acquiring projects to bring into commercial production and subsequent efficient operation. This acquisition is also consistent with the Company's goal of diversifying assets geographically and across commodities.

The value of the transaction is approximately $282 million on the basis of CDN $9.00 in cash plus 0.01 common shares of the Company for each common share of SML. The implied value of the purchase price is CDN $9.92 per SML share based on the closing price of the Company's shares on the Toronto Stock Exchange of CDN $92.18 on May 5, 2008.

First Quantum will finance the acquisition through a combination of cash-on-hand and access to existing credit facilities. The transaction is not contingent on any financing condition.

The Board of Directors of SML has unanimously approved the transaction and resolved to recommend to shareholders of SML that they vote in favour of the transaction. In addition, the directors and senior offices of SML have entered into voting agreements with the Company, pursuant to which they have irrevocably agreed to vote their shares (including any shares issuable upon the exercise of options), representing approximately 13.6% of the issued and outstanding common shares of SML, in favour of the transaction.

The transaction will be carried out by way of a statutory plan of arrangement pursuant to the Canada Business Corporations Act and must be approved by the affirmative vote of SML shareholders at a special meeting of shareholders to be called and held to consider the transaction and the Ontario Superior Court of Justice. The proposed transaction is expected to close in the second quarter of 2008, shortly after receipt of shareholder and court approvals. The completion of the transaction is subject to customary closing conditions, including the receipt of any required regulatory approvals. The Arrangement Agreement contains customary non-solicitation provisions, but permits SML, in certain circumstances, to terminate the arrangement and accept an unsolicited superior proposal, subject to fulfilling certain conditions. SML has agreed to pay the Company a break fee of US$8 million in such circumstances and certain other limited circumstances if the transaction is not completed.

Details regarding these and other terms of the transaction are set out in the Arrangement Agreement, which has been filed by the Company and SML on the Canadian SEDAR website at www.sedar.com.

  Kolwezi development in DRC 

The Board of Kingamyambo Musonoi Tailings SARL ("KMT") (owned by First Quantum 65%, La Generale Des Carrieres et Des Mines ("Gecamines") 12.5%, Industrial Development Corporation of South Africa ("IDC") 10%, the International Finance Corporation ("IFC") 7.5% and the Government of the Democratic Republic of Congo 5% ("RDC") committed in November 2007 to proceed with the development of the Kolwezi tailings project ("Kolwezi"). First Quantum with support from its contributing equity partners of KMT ("IDC and IFC") will finance or procure third party debt project financing totalling up to $593 million. This satisfied the obligations of First Quantum, the IDC and the IFC under the Contract of Association to complete feasibility studies, carry out an environmental impact assessment, prepare an environmental management plan, and to obtain commitments with respect to the financing of the project.

Site works commenced and commercial start-up remains expected for the first quarter of 2010. The plant will commence operations at 35,000 tonnes per year copper and 7,000 tonnes per year of cobalt hydroxide at a capital cost of $553 million. The plant will be designed and constructed such that its capacity can be doubled for an incremental capital cost of $40 million. The mine life is expected to be 22 years at an annual production rate of 70,000 tonnes of copper cathode per year. The future development of a cobalt metal facility and the expansion of copper and cobalt capacity will be considered in light of practical experience on site and on commodity market conditions.

Progress continued on the detailed design for the project with Lycopodium Engineering in Perth, with engineering design at approximately 52% complete and drafting at approximately 36% complete. Approximately $159.0 million of the project budget has been ordered at quarter end. Construction works are underway on site for infrastructure items which include process plant earthworks, power supply, water supply, roads access, construction camp, site housing and site buildings.

Official approval was received for the construction of a new road from Zambia to Kolwezi, and consultation with officials from both countries is in progress to facilitate finalization of the new border post. The acid plant design is underway and orders have been placed for long lead equipment items. Substantial design completion is estimated for the latter part of 2008 and the project construction completion and commencement of pre-commissioning is estimated for the fourth quarter of 2009.

The Government of the Democratic Republic of Congo ("DRC") announced during 2007 a review of over 60 mining agreements entered into over the last decade with foreign companies. The Kolwezi mining convention was included in this review and on February 19, 2008 formal notification of the outcome of the review was received by the Company. The notification listed a number of conditions to be met by the Company. The Company has legal advice that the convention is valid and binding and that KMT has complied with all its terms. The convention provides a dispute resolution mechanism through international arbitration. The Company through KMT responded to the letter and awaits a response from a panel set up by the DRC to manage the review process.

Kansanshi sulphide expansion project construction nearing completion

The construction works for the Kansanshi sulphide circuit expansion to an annual throughput in excess of 12 million tonnes are nearing completion. Pre commissioning commenced in April and will progress in a sequence from crushing to floatation and tailings, followed by milling. The SAG mill shell and ball mill heads arrived during the first quarter and the SAG mill is currently being installed. The completion of the project will occur following the SAG mill installation. The construction completion and commissioning is expected during the second quarter of 2008.

Kansanshi fourth 35,000 tonne per year electrowinning tank house is progressing well

Kansanshi is progressing well with the construction of a fourth 35,000 tonne per year electrowinning tank house to bring electrowinning capacity to 140,000 tonnes of copper cathode per year. Concrete works are complete and structural, mechanical and piping works are in progress. All procurement is complete and the focus is on expediting the remaining equipment deliveries to site. Construction completion is expected during the third quarter of 2008, with commissioning of the new tank house to occur subsequent to construction completion. It is not expected that Kansanshi will utilize the full tank house capacity. It will, however, provide flexibility to make up for periods of power disruptions.

Guelb Moghrein plant expansion study underway

Guelb Moghrein is currently finalizing a plant expansion study to increase copper output to 45,000 tonnes per year. This expansion comprises a 49% increase in mill throughput from additional milling and flotation capacity, the installation of a 20 MW power station, and dedicated saline and fresh water pipelines.

Additional mining equipment is expected to arrive in the third quarter which will enable an increase in waste stripping and the exposure of more ore.

Steady progress is being made on the construction of the gold flotation circuit and the CIL circuit upgrade, which is scheduled for commissioning in the third quarter. Flotation cell tanks are in place, the regrind mill foundations are ready for pouring, and the erection of the additional leach tank has commenced. The first phase of the power station expansion is underway with the installation of Engine No.5, also for commissioning in the third quarter.

Production should rise in the second half of 2008 as the benefit of debottlenecking the flotation circuit is realized. 

Outlook 

Group copper production estimate for 2008 is 310,000 tonnes

The Company continues to expect to produce approximately 310,000 tonnes of copper in 2008. This expected production includes approximately 181,000 tonnes from Kansanshi, approximately 84,000 tonnes from Frontier, approximately 33,000 tonnes from Guelb Moghrein and approximately 12,000 tonnes from Bwana/Lonshi.

For the 2008 year, the Company anticipates group average cash unit cost of production (C1) to be in the range of $1.15 to $1.20 per pound of copper, as a result of higher leach costs from increased world sulphur prices, higher TC RC and freight parity charges for Frontier and increased diesel prices.

During April, total copper production was about 25,500 tonnes sourced as follows:

 

 

The Company sold approximately 23,100 tonnes of copper in April.

Group copper production five-year estimate 

The Company is investing significantly in additional capacity at its existing production facilities and as a result plans that these operations will achieve the following average production levels over the years 2009 to 2013:

 

In addition the Company expects Group production will rise even further as a result of new operations being brought on stream.

Zambian budget announcement

The Government of the Republic of Zambia ("GRZ") announced in January 2008 a number of proposed changes to the tax regime in the country in relation to mining companies. These changes were passed by parliament in late March and the majority of changes take effect from April 1, 2008. These changes include a new windfall tax on copper sales revenue based on trigger prices for copper above $2.50/lb; a new variable tax of 15% of taxable income where the profit margin exceeds 8% and no windfall tax applies; a concentrate export levy of 15%; an increase in the royalty rate from 0.6% to 3%; an increase in the income tax rate from 25% to 30%; and other changes including a reduction in capital allowances and quarantining of hedging losses and gains. These changes, if finally enforceable, will result in higher tax payments in that country, which will be material at current commodity prices, as well as to potentially discourage further investment in both new and existing projects.

The Company has entered into Development Agreements with GRZ on existing operations which unequivocally provide for stability in the regulatory environment, including taxation, and rights of international arbitration in the event of any dispute, which the Company will pursue if necessary to protect its contractual rights. Currently, the Company is seeking mediation along with other mining companies operating in Zambia with similar agreements. The financial impact of the proposed changes on the Company is uncertain.

Frontier production achieves design levels; expected to produce approximately 84,000 tonnes of copper in 2008

Frontier is now producing concentrates at design production rates, recoveries and quality. The wet season has passed allowing improved mining rates which will continue until the end of the year. Emphasis is placed on exposing a larger competent ground footprint before the end of the dry season to minimize the effect of the next wet season on the larger machines.

Limited smelter capacity will open up with the construction of two smelters in Zambia which may allow for the treatment of some of the concentrates. However, the majority of concentrates will be sold without further processing for the foreseeable future with much of the groundwork being completed during the first quarter to achieve this change. This is expected to result in a significant reduction of copper in concentrate inventories later in the year.

Bwana/Lonshi border issues continue to impact production

The DRC border has been closed for the export of copper ores and exploration core samples from the Lonshi mine into Zambia since November 2007. The Company has been working with the DRC authorities to resolve this issue. The mining operations at the Lonshi mine continued but as the ore body reaches its end, there will be retrenchment of personnel.

Mining operations at the Lonshi mine continued and ore is being stockpiled in anticipation of the ore export embargo being lifted. Capacity at Bwana is such that any production backlog should be recouped and annual targets for cathode copper are expected to be achieved.

Evaluations of alternative options for the continued commercial operation of the Bwana processing facility, beyond the completion of the Lonshi oxide resource, are currently being undertaken. The planning for a trial decline at the Lonshi mine, to gather geotechnical information for the evaluation of an underground sulphide operation to augment the Frontier feed with high grade ore, is underway.

  On Behalf of the Board of Directors 12g3-2b-82-4461

of First Quantum Minerals Ltd. Listed in Standard and Poor's 

"G. Clive Newall"

G. Clive Newall 

For further information visit our web site at www.first-quantum.com

Contact: Clive Newall, President

1st Floor, Mill House Mill Bay Lane Horsham West Sussex RH12 1TQ United Kingdom

Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: [email protected].

Or

Harriet Pask or Sarah MacLeod

Hogarth Partnership Ltd. Tel: +44 (0) 20 7357 9477

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Certain information contained in this news release "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and forward-looking information under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the prices of gold, copper, cobalt and sulphuric acid, estimated future production, estimated costs of future production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual prices of copper, gold, cobalt and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the Alberta, British Columbia, and Ontario Securities Commissions, the Autorité des marchés financiers in Quebec, the United States Securities and Exchange Commission and the London Stock Exchange. The preceding discussion and analysis and financial review should be read in conjunction with management's discussion of critical accounting policies, risk factors and comments regarding forward looking statements contained in the unaudited consolidated financial statements for the period ended June 30, 2007. The discussion and analysis of the Company's results of operations should also be read in conjunction with the audited consolidated financial statements and related notes.

  

Summary of quarterly and current year to date results

The following unaudited table sets out a summary of the quarterly results for the Company for the last eight quarters and the current year to date:

	2006	2006	2006	2006	2007	2007	2007	2007	2008
Statement of Operations and Retained Earnings	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
(millions, except where indicated)
Revenues
Current period copper sales (1)	$165.6	$295.9	$311.4	$243.7	$270.9	$315.7	$460.2	$448.4	$441.8
Prior period provisional copper adjustments (2)	16.9	60.4	11.7	(31.7)	(17.6)	22.6	3.2	(34.7)	44.5
Other revenues	4.7	6.2	5.3	4.4	8.0	12.5	20.4	29.6	25.2
Total revenues	187.2	362.5	328.4	216.4	261.3	350.8	483.8	443.3	511.5
Cost of sales	53.2	65.2	81.7	88.5	101.9	121.3	152.6	168.4	137.1
Net earnings	55.8	149.5	133.2	60.9	78.3	123.1	183.6	135.3	182.0
Basic earnings per share	$0.90	$2.32	$2.00	$0.93	$1.16	$1.83	$2.71	$2.00	$2.68
Diluted earnings per share	$0.88	$2.27	$1.96	$0.91	$1.14	$1.79	$2.66	$1.97	$2.65
Copper selling price
Current period copper sales (per lb)	$2.32	$3.14	$3.37	$2.89	$2.96	$3.28	$3.58	$2.97	$3.43
Prior period provisional adjustments (per lb)	0.21	0.57	0.11	(0.35)	(0.18)	0.23	0.02	(0.21)	0.32
Gross copper selling price (per lb)	2.53	3.71	3.48	2.54	2.78	3.51	3.60	2.76	3.75
Tolling and refining charges (per lb)	(0.12)	(0.19)	(0.19)	(0.08)	(0.06)	(0.03)	(0.05)	(0.06)	(0.05)
Freight parity charges (per lb)	(0.15)	(0.16)	(0.12)	(0.14)	(0.13)	(0.10)	(0.10)	(0.14)	(0.19)
Realized copper price (per lb)	2.26	3.36	3.17	2.32	2.59	3.38	3.45	2.56	3.51
Average LME cash copper price (per lb)	2.24	3.29	3.48	3.21	2.69	3.46	3.50	3.28	3.52
Realized gold price (per oz)	$563	$631	$581	$628	$661	$629	$700	$736	$868
Average gold price (per oz)	$554	$627	$622	$614	$650	$667	$681	$788	$927
Total copper sold (tonnes)(3)	36,635	48,094	46,302	41,454	44,315	45,366	60,904	73,322	62,802
Total copper produced (tonnes) (3)	42,086	49,180	45,480	46,531	46,403	49,979	57,565	72,746	75,616
Total gold sold (ounces) (3)	8,079	9,611	8,864	6,944	12,004	19,422	29,182	40,081	29,071
Cash Costs (C1) (per lb) (4) (5)	$0.80	$0.89	$1.00	$1.14	$1.06	$1.12	$0.98	$0.98	$0.99
Total Costs (C3) (per lb) (4) (5)	$1.00	$1.09	$1.23	$1.38	$1.30	$1.38	$1.22	$1.19	$1.25
Financial Position
Working capital (restated)	$106.9	$245.6	$308.0	$312.8	$246.7	$390.8	$464.8	$457.3	$575.0
Copper in concentrate inventory (tonnes)
Kansanshi	7,157	8,389	7,242	9,046	7,102	10,578	9,733	8,325	14,243
Guelb Moghrein	-	-	2,345	6,068	10,182	10,897	8,483	2,867	1,057
Frontier	-	-	-	-	-	-	-	7,104	16,328
Total copper in concentrate inventory (tonnes)	7,157	8,389	9,587	15,114	17,284	21,475	18,216	18,296	31,628
Total assets	$839.5	$1,398.1	$1,574.0	$1,719.7	$1,797.1	$2,035.4	$2,300.4	$2,682.7	$2,917.9
Weighted average # shares (000's)	61,808	64,564	66,615	67,287	67,318	67,531	67,681	67,689	67,837
Cash Flows from
Operating activities
Before working capital movements	$103.8	$213.5	$176.3	$70.6	$118.9	$175.2	$256.9	$220.8	$272.6
After working capital movements	83.9	142.5	118.3	129.3	74.6	40.5	201.6	224.1	143.5
Financing activities	(13.2)	32.1	(58.6)	53.1	(25.8)	38.0	(42.8)	50.6	20.1
Investing activities	(46.1)	(91.8)	(60.1)	(122.8)	(102.0)	(114.8)	(96.2)	(297.3)	(94.0)
Cash Flows from Operating activities per share
Before working capital movements	$1.68	$3.31	$2.65	$1.05	$1.77	$2.59	$3.80	$3.26	$4.02
After working capital movements	$1.36	$2.21	$1.77	$1.92	$1.11	$0.60	$2.98	$3.29	$2.12

  

			2006			2006			2006			2006			2007			2007			2007			2007			2008
			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1
Kansanshi Production Statistics
Mining
Waste mined (000's tonnes)			2,588			5,516			6,683			7,123			5,316			6,681			6,482			6,482			3,671
Ore mined (000's tonnes)			1,382			2,552			3,220			2,380			2,600			3,371			4,650			4,867			5,433
Ore grade (%)			1.7			1.4			1.4			1.4			1.5			1.6			1.6			1.8			1.6
Processing (3)
Sulphide Ore processed (000's tonnes)			782			1,140			1,277			1,212			1,171			1,372			1,759			1,830			1,891
Oxide Ore processed (000's tonnes)			1,044			1,246			1,401			1,080			1,263			1,499			1,465			1,538			1,455
Contained copper (tonnes)			32,213			36,981			32,882			31,545			38,231			36,766			41,605			51,572			55,995
Sulphide ore grade processed (%)			1.9			1.6			1.2			0.9			0.8			1.1			1.0			1.3			1.3
Oxide ore grade processed (%)			1.7			1.5			1.2			1.6			1.8			1.4			1.7			1.6			1.8
Recovery (%)			92			94			95			92			93			99			99			99			93
Copper cathode produced (tonnes)			15,796			17,501			17,158			17,201			22,823			20,322			23,705			26,399			27,522
Copper cathode tolled produced (tonnes)			-			1,186			3,036			1,805			5,521			12,204			14,314			16,142			8,219
Copper in concentrate produced (tonnes)			14,572			16,924			11,984			10,015			7,056			3,727			3,140			8,471			16,562
Total copper production			30,368			35,611			32,178			29,021			35,400			36,253			41,159			51,012			52,303
Concentrate grade (%)			29.3			25.8			26.4			26.9			25.2			26.6			27.8			28.3			27.6
Combined Costs (per lb) (4) (5)
Mining			$0.12			$0.14			$0.23			$0.21			$0.20			$0.24			$0.24			$0.20			$0.20
Processing			0.41			0.44			0.50			0.62			0.54			0.59			0.59			0.53			0.50
Site Administration			0.03			0.04			0.04			0.04			0.03			0.02			0.03			0.03			0.02
TC RCs and freight parity charges			0.31			0.42			0.31			0.27			0.14			0.16			0.15			0.18			0.15
Gold / Acid credit			(0.07)			(0.08)			(0.07)			(0.05)			(0.06)			(0.06)			(0.07)			(0.09)			(0.08)
Combined Total Cash Costs (C1)			$0.80			$0.96			$1.01			$1.09			$0.85			$0.95			$0.94			$0.85			$0.79
Combined Total Costs (C3)			$0.95			$1.13			$1.23			$1.28			$1.05			$1.17			$1.13			$0.86			$0.92
Oxide Circuit Costs (per lb) (4) (5)
Mining			$0.11			$0.13			$0.19			$0.15			$0.16			$0.22			$0.19			$0.18			$0.16
Processing			0.51			0.52			0.54			0.70			0.56			0.68			0.64			0.64			0.59
Site Administration			0.03			0.01			0.02			0.04			0.03			0.02			0.03			0.03			0.03
Oxide Circuit Total Cash Costs (C1)			$0.65			$0.66			$0.75			$0.89			$0.75			$0.92			$0.86			$0.85			$0.78
Oxide Circuit Total Costs (C3)			$0.81			$0.84			$0.96			$1.05			$0.92			$1.12			$1.02			$0.86			$0.88
Sulphide Circuit Costs (per lb) (4) (5)
Mining			$0.10			$0.13			$0.20			$0.20			$0.28			$0.26			$0.32			$0.23			$0.24
Processing			0.28			0.35			0.45			0.52			0.45			0.48			0.52			0.39			0.39
Site Administration			0.04			0.02			0.02			0.04			0.03			0.02			0.03			0.03			0.02
TC RCs and freight parity charges			0.68			0.89			0.73			0.62			0.42			0.39			0.35			0.39			0.33
Gold / Acid credit			(0.16)			(0.17)			(0.16)			(0.13)			(0.18)			(0.14)			(0.17)			(0.20)			(0.17)
Sulphide Circuit Total Cash Costs (C1)			$0.94			$1.22			$1.24			$1.25			$1.00			$1.01			$1.05			$0.84			$0.81
Sulphide Circuit Total Costs (C3)			$1.09			$1.39			$1.47			$1.49			$1.25			$1.24			$1.29			$0.86			$0.95
Revenues ($ millions) (3)
Copper cathodes			$84.8			$142.3			$158.6			$110.9			$175.8			$249.1			$307.1			$268.0			$305.5
Copper in concentrates			35.6			109.6			65.3			20.1			42.6			6.9			16.0			37.2			67.9
Gold			4.5			6.0			5.2			2.8			4.8			4.7			6.3			10.2			8.8
Total revenues			$124.9			$257.9			$229.1			$133.8			$223.2			$260.7			$329.4			$315.4			$382.2
Copper cathode sold (tonnes)			15,556			17,568			17,181			17,360			22,798			20,207			24,909			27,897			29,811
Copper tolled cathode sold (tonnes)			-			1,186			3,036			1,805			5,521			12,204			14,314			16,142			8,219
Copper in concentrate sold (tonnes)			9,282			15,692			13,131			8,215			9,000			250			2,696			7,927			8,981
Gold sold (ounces)			8,079			9,611			8,864			4,428			7,764			7,118			9,862			16,053			11,995

  

	2006	2006	2006	2006	2007	2007	2007	2007	2008
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Guelb Moghrein Production Statistics
Mining
Waste mined (000's tonnes)	1,156	1,721	1,660	1,719	1,610	1,400	1,487	1,358	1,388
Ore mined (000's tonnes)	41	144	179	400	462	539	674	650	662
Ore grade (%)	1.9	1.9	1.8	1.5	1.4	1.4	1.3	1.4	1.3
Processing (3)
Sulphide Ore processed (000's tonnes)	-	-	-	334	410	464	509	470	517
Contained copper (tonnes)	-	-	-	6,552	7,791	8,894	10,006	8,410	9,241
Sulphide ore grade processed (%)	-	-	-	2.0	1.9	1.9	2.0	1.8	1.8
Recovery (%)	-	-	-	78	83	79	81	85	83
Copper in concentrate produced (tonnes)	-	-	-	5,031	6,446	7,050	8,101	7,158	7,668
Gold in concentrate produced (ounces)	-	-	-	10,355	13,588	12,814	14,699	13,060	14,191
Sulphide Circuit Costs (per lb) (4) (5)
Mining	-	-	-	$0.40	$0.21	$0.17	$0.12	$0.20	$0.20
Processing	-	-	-	0.77	0.56	0.52	0.47	0.64	0.63
Site Administration	-	-	-	0.08	0.07	0.06	0.07	0.22	0.13
TC RCs and freight parity charges	-	-	-	0.86	0.66	0.43	0.38	0.57	0.38
Gold / Acid credit	-	-	-	(0.15)	(0.21)	(0.48)	(0.78)	(1.26)	(0.97)
Sulphide Circuit Total Cash Costs (C1)	-	-	-	$1.96	$1.29	$0.71	$0.26	$0.37	$0.37
Sulphide Circuit Total Costs (C3)	-	-	-	$2.45	$1.66	$1.09	$0.76	$1.05	$0.89
Revenues ($ millions) (3)
Copper in concentrates	-	-	-	$5.6	$12.8	$41.2	$74.1	$55.3	$67.2
Gold	-	-	-	1.6	3.1	7.6	14.1	19.3	16.4
Total revenues	-	-	-	$7.2	$15.9	$48.8	$88.2	$74.6	$83.6
Copper in concentrate sold (tonnes)	-	-	-	1,308	2,332	6,336	10,514	12,774	9,757
Gold sold (ounces)	-	-	-	2,516	4,240	12,304	19,320	24,028	17,076
Frontier Production Statistics
Mining
Waste mined (000's tonnes)	-	-	-	-	888	2,857	3,619	2,810	2,225
Ore mined (000's tonnes)	-	-	-	-	81	160	1,442	2,042	1,064
Ore grade (%)	-	-	-	-	1.1	0.9	1.0	1.2	1.8
Processing (3)
Sulphide Ore processed (000's tonnes)	-	-	-	-	-	-	-	835	1,499
Contained copper (tonnes)	-	-	-	-	-	-	-	11,872	18,238
Sulphide ore grade processed (%)	-	-	-	-	-	-	-	1.4	1.2
Recovery (%)	-	-	-	-	-	-	-	73	74
Copper in concentrate produced (tonnes)	-	-	-	-	-	-	-	8,712	13,437
Sulphide Circuit Costs (per lb) (4)
Mining	-	-	-	-	-	-	-	$0.41	$0.61
Processing	-	-	-	-	-	-	-	0.32	0.29
Site Administration	-	-	-	-	-	-	-	0.17	0.15
TC RCs and freight parity charges	-	-	-	-	-	-	-	0.39	0.65
Sulphide Circuit Total Cash Costs (C1)	-	-	-	-	-	-	-	$1.29	$1.70
Sulphide Circuit Total Costs (C3)	-	-	-	-	-	-	-	$1.59	$2.18
Revenues ($ millions) (3)
Copper in concentrates	-	-	-	-	-	-	-	$16.1	$32.6
Copper in concentrate sold (tonnes)	-	-	-	-	-	-	-	2,684	4,214

  

	2006	2006	2006	2006	2007	2007	2007	2007	2008
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Bwana/Lonshi Production Statistics
Mining
Waste mined (000's tonnes)	3,241	5,607	5,915	4,081	2,105	3,425	2,992	1,732	898
Ore mined (000's tonnes)	147	183	110	80	16	94	160	82	37
Ore grade (%)	8.4	10.7	11.9	10.4	7.5	6.1	6.8	6.1	4.4
Processing
Oxide Ore processed (000's tonnes)	335	314	322	294	242	327	353	355	242
Contained copper (tonnes)	13,401	15,625	15,011	13,037	5,007	7,653	9,819	6,787	2,279
Oxide ore grade processed (%)	4.0	5.0	4.7	4.3	2.1	2.3	2.8	1.9	0.9
Recovery (%)	87	87	89	96	91	87	85	86	97
Copper cathode produced (tonnes)	11,718	13,569	13,302	12,479	4,557	6,676	8,305	5,864	2,208
Acid produced (tonnes)	68,195	71,421	63,830	73,901	67,227	69,108	67,537	72,477	66,414
Surplus acid (tonnes)	937	910	508	8	586	1,483	11	-	10
Oxide Circuit Costs (per lb) (4) (5)
Mining	$0.41	$0.32	$0.50	$0.60	$1.49	$1.57	$1.04	$1.37	$1.65
Processing	0.38	0.35	0.38	0.43	1.05	0.81	0.65	0.90	2.15
Site Administration	0.10	0.10	0.10	0.07	0.20	0.15	0.21	0.35	0.58
Gold / Acid credit	(0.09)	(0.08)	(0.06)	(0.09)	(0.24)	(0.14)	(0.09)	(0.17)	(0.78)
Oxide Circuit Total Cash Costs (C1)	$0.80	$0.69	$0.92	$1.01	$2.50	$2.39	$1.81	$2.45	$3.60
Oxide Circuit Total Costs (C3)	$1.10	$0.98	$1.18	$1.26	$2.92	$2.77	$2.25	$2.81	$4.13
Revenues ($ millions)
Copper cathodes	$62.0	$104.5	$99.2	$75.4	$22.1	$41.2	$66.1	$37.1	$13.1
Copper cathodes sold (tonnes)	11,797	13,648	12,954	12,766	4,664	6,369	8,471	5,898	1,820

(1)  Recognized at the settlement price or the LME copper price at the end of the respective period (2) The provisional adjustment reflects the settlement or provisional price adjustment of prior period copper sales, therefore the sum of the periods will not equal the year to date (3) Copper sold or produced does not include tonnes sold or produced prior to achieving commercial production (4) For the definition of cash and total costs, reference should be made to the regulatory disclosures section. (5) Mining costs included in cash and total costs have been restated to reflect the removal of the deferred stripping accounting policy and the retroactive restatement of prior period balances.

  Consolidated Balance Sheets

 (unaudited)

(expressed in millions of US dollars, except where indicated)

		March 31, 2008		December 31, 2007
Assets
Current assets
Cash and cash equivalents		269.6		200.0
Restricted cash (note 7)		-		22.5
Accounts receivable		373.1		272.0
Inventory (note 3)		341.7		279.4
Current portion of other assets (note 6)		12.0		12.7
		996.4		786.6
Available-for-sale investments (note 4)		512.1		567.0
Property, plant and equipment (note 5)		1,393.9		1,320.5
Other assets (note 6)		15.5		8.6
		2,917.9		2,682.7
Liabilities
Current liabilities
Accounts payable and accrued liabilities		127.9		104.9
Current taxes payable		176.6		127.2
Current portion of long-term debt (note 7)		89.6		73.7
Current portion of other liabilities (note 8)		27.2		23.5
		421.3		329.3
Long-term debt (note 7)		300.7		287.5
Other liabilities (note 8)		38.9		40.1
Future income tax liabilities		225.0		224.4
		985.9		881.3
Minority interests		264.1		215.4
		1,250.0		1,096.7
Shareholders' equity
Capital stock		397.2		396.0
Retained earnings		1,133.3		987.4
Accumulated other comprehensive income		137.4		202.6
		1,667.9		1,586.0
		2,917.9		2,682.7
Commitments and contingencies (notes 12 and 13)
Subsequent event (note 14)

Approved by the Board of Directors

Peter St George Andrew Adams

Director  Director

The accompanying notes are an integral part of these consolidated financial statements.

For a copy of the notes visit the Company's website at www.first-quantum.com.

  Consolidated Statements of Earnings and Comprehensive Income

 (unaudited)

(expressed in millions of US dollars, except where indicated)

					Three months ended March 31
					2008	2007
Sales revenues
	Copper				486.3	253.3
	Gold				25.2	7.9
	Acid				-	0.1
					511.5	261.3
Cost of sales					(137.1)	(101.9)
Depletion and amortization					(20.3)	(13.6)
					354.1	145.8
Other expenses/income
	Exploration				(5.8)	(2.6)
	General and administrative				(6.7)	(5.7)
	Interest				(8.6)	(7.6)
	Other expenses/income (note 10)				(4.3)	1.5
					(25.4)	(14.4)
Earnings before income taxes and minority interests					328.7	131.4
Income taxes					(98.0)	(31.7)
Minority interests					(48.7)	(21.4)
Net earnings for the period					182.0	78.3
Other comprehensive income
	Unrealized gain (loss) on available-for-sale investments,  net of tax of $11.6 and $(3.0)				(65.2)	14.8
					(65.2)	14.8
Comprehensive income					116.8	93.1
Earnings per common share
	Basic				$2.68	$1.16
	Diluted				$2.65	$1.14
Weighted average shares outstanding (000's)
	Basic				67,837	67,318
	Diluted				68,728	68,601
Total shares issued and outstanding (000's)					68,180	67,470

The accompanying notes are an integral part of these consolidated financial statements.

For a copy of the notes visit the Company's website at www.first-quantum.com.

  Statements of Changes in Shareholders' Equity

For the years ended December 31, 2007 and 2006

 (unaudited)

(expressed in millions of US dollars, except where indicated)

					Three months ended March 31
					2008	2007
Capital stock
Common shares
Balance - beginning of period					415.2	399.6
	Stock options exercised				1.7	3.0
Balance - end of period					416.9	402.6
Treasury shares
Balance - beginning of period					(34.3)	(15.6)
	Shares purchased				(2.5)	(4.0)
Balance - end of period					(36.8)	(19.6)
Contributed surplus
Balance - beginning of period					15.1	12.0
	Compensation expense for the period				2.4	2.3
	Transfers upon exercise of stock options				(0.4)	(0.8)
Balance - end of period					17.1	13.5
Total capital stock					397.2	396.5
Retained earnings
Balance - beginning of period					987.4	518.8
Net earnings for the period					182.0	78.3
Dividends					(36.1)	(36.4)
Balance - end of period					1,133.3	560.7
Accumulated other comprehensive income
Balance - beginning of period					202.6	(2.5)
	Change in fair value of available-for-sale investments				(65.2)	14.8
Balance - end of period					137.4	12.3
Retained earnings and accumulated other comprehensive income					1,270.7	573.0

The accompanying notes are an integral part of these consolidated financial statements.

For a copy of the notes visit the Company's website at www.first-quantum.com.

  Consolidated Statements of Cash Flows

 (unaudited)

(expressed in millions of US dollars, except where indicated)

 

		Three months ended March 31

					2008	2007
Cash flows from operating activities
Net earnings for the period					182.0	78.3
Items not affecting cash
Depletion and amortization					20.3	13.6
Minority interests					48.7	21.4
Unrealized foreign exchange loss					4.2	0.9
Future income tax expense					15.3	1.7
Stock-based compensation expense					2.4	2.3
Unrealized derivative instruments gain					(1.8)	(1.3)
Other					1.5	2.0
					272.6	118.9
Change in non-cash operating working capital
Increase in accounts receivable and other					(100.3)	(7.2)
Increase in inventory					(60.5)	(22.7)
Decrease in accounts payable and accrued liabilities					(15.2)	(19.5)
Increase in current taxes payable					49.4	9.3
Long term incentive plan contributions					(2.5)	(4.0)
					143.5	74.8
Cash flows from financing activities
Proceeds from long-term debt					50.0	-
Repayments of long-term debt					(25.3)	(25.6)
Proceeds on issuance of common shares					1.3	2.2
Other					(5.9)	(2.4)
					20.1	(25.8)
Cash flows from investing activities
Restricted cash					22.5	15.0
Payments for property, plant and equipment					(94.6)	(55.4)
Acquisition of available-for-sale investments					(21.9)	(61.6)
					(94.0)	(102.0)
Effect of exchange rate changes on cash					-	(0.2)
Increase (decrease) in cash and cash equivalents					69.6	(53.2)
Cash and cash equivalents - beginning of period					200.0	249.5
Cash and cash equivalents - end of period					269.6	196.3

The accompanying notes are an integral part of these consolidated financial statements.

For a copy of the notes visit the Company's website at www.first-quantum.com.

 

  Segmented Information

(unaudited)

(expressed in millions of US dollars, except where indicated)

For the three month period ended March 31, 2008, segmented information is presented as follows:

	Kansanshi	Guelb Moghrein	Frontier	Bwana/ Lonshi	Kolwezi	Corporate	Total
Segmented revenues	382.2	83.6	32.6	26.5	-	6.4	531.3
Less inter-segment revenues	-	-	-	(13.4)	-	(6.4)	(19.8)
Revenues	382.2	83.6	32.6	13.1	-	-	511.5
Cost of sales	(79.8)	(26.4)	(13.4)	(17.5)	-	-	(137.1)
Depletion and amortization	(14.4)	(2.8)	(1.1)	(2.0)	-	-	(20.3)
Operating profit (loss)	288.0	54.4	18.1	(6.4)	-	-	354.1
Interest on long-term debt	(2.0)	(0.6)	(4.4)	-	-	(1.6)	(8.6)
Other	(6.6)	(2.6)	0.3	(1.5)	-	(6.4)	(16.8)
Segmented profit before undernoted items	279.4	51.2	14.0	(7.9)	-	(8.0)	328.7
Income taxes	(86.6)	-	(11.8)	(1.1)	-	1.5	(98.0)
Minority interests	(38.7)	(9.9)	(0.1)	-	-	-	(48.7)
Segmented profit (loss)	154.1	41.3	2.1	(9.0)	-	(6.5)	182.0
Property, plant and equipment	558.2	108.8	243.0	45.1	434.6	4.2	1,393.9
Total assets	1,022.8	225.4	363.2	128.4	444.8	733.3	2,917.9
Capital expenditures	53.0	7.7	13.3	4.4	30.4	-	108.8

For the three month period ended March 31, 2007, segmented information is presented as follows:

	Kansanshi	Guelb Moghrein	Frontier	Bwana/ Lonshi	Kolwezi	Corporate	Total
Segmented revenues	223.2	15.9	-	30.5	-	3.4	273.0
Less inter-segment revenues	-	-	-	(8.3)	-	(3.4)	(11.7)
Revenues	223.2	15.9	-	22.2	-	-	261.3
Cost of sales	(68.9)	(4.1)	-	(28.9)	-	-	(101.9)
Depletion and amortization	(9.3)	(1.4)	-	(2.9)	-	-	(13.6)
Operating profit (loss)	145.0	10.4	-	(9.6)	-	-	145.8
Interest on long-term debt	(4.3)	(1.4)	-	(0.1)	-	(1.8)	(7.6)
Other	(2.0)	(0.1)	-	(0.4)	-	(4.3)	(6.8)
Segmented profit before undernoted items	138.7	8.9	-	(10.1)	-	(6.1)	131.4
Income taxes	(34.9)	-	-	2.1	-	1.1	(31.7)
Minority interests	(19.7)	(1.7)	-	-	-	-	(21.4)
Segmented profit (loss)	84.1	7.2	-	(8.0)	-	(5.0)	78.3
Property, plant and equipment	424.1	104.2	149.5	46.8	391.0	0.7	1,116.3
Total assets	691.2	161.2	150.9	133.6	391.8	268.4	1,797.1
Capital expenditures	21.7	1.6	33.1	0.7	0.7	6.6	64.4

ENDQRFEAESDFAPPEEE

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Related Shares:

FQM.L