First Quantum 2022 achieves annual copper production of 776kt

First Quantum achieved annual copper production of 776kt that was within the 2022 revised guidance range of 755kt to 785kt. Copper production in Q4 2022 was 206kt, 4kt above Q4 2021 and 11kt above Q3 2022.

Cobre Panamá achieved record copper production of 350kt for the full year, 19kt more than 2021. Copper production in Q4 2022 of 90kt was an increase of 10kt from Q4 2021, but 2kt lower than Q3 2022 due to a total plant shutdown in November for planned maintenance. Cobre Panamá’s performance for the last three quarters remained strong and achieved new weekly and monthly throughput records in December. 

Sentinel achieved copper production of 242kt for the full year, 9kt higher than 2021, and record quarterly production of 73kt in Q4 2022, 13kt higher than Q4 2021 and 9kt higher than Q3 2022. Production was impacted in Q1 2022 by a delay to Stage 2 North-wall stripping due to wet underfoot conditions during an extended rainy season but has improved each quarter since then. Throughput has also been strong, achieving monthly and quarterly records in Q4 2022 and an annual record in 2022.

Kansanshi copper production of 146kt for the full year was 56kt lower than 2021. The lower production reflects a combination of lower sulphide grades from narrow-veined regions, depleting oxide ore and restricted access to high-grade blocks due to an accumulation of water in the main pit in the second and third quarters of 2022. Copper production in Q4 2022 was 35kt, a reduction of 17kt from Q4 2021, but 5kt higher than Q3 2022 as access to high-grade areas improved following successful dewatering of the pit.

Other sites achieved consolidated copper production of 38kt for the full year, a 12kt reduction from 2021, resulting from declining production from short life mines. Copper production at the Pyhäsalmi mine in Finland ceased at the end of Q3 2022.

As per the news release on January 10, 2023, First Quantum continues to engage with the Government of Panama and the Company remains ready to reach an agreement that is fair and equitable to both parties.

The Company had indicated to the Government of Panama that it is prepared to accept and pay a minimum of $375 million per year to the Government of Panama, comprised of corporate taxes and a profit-based mineral royalty of 12 to 16 percent, with downside protections.

As previously announced, MPSA is working through a number of steps to address the resolution from the Ministry requiring MPSA to suspend commercial operations at Cobre Panama. At this time, the timing and impact of any care and maintenance regime enacted by the Ministry remain uncertain. Given this, production guidance for Cobre Panama is based on normal operations with no disruption to production.

Production for 2023 for Cobre Panamá includes commissioning in Q1 2023 with a ramp-up over the course of the year to achieve an annualized throughput rate of 100 million tonnes per annum by the end of 2023.

Kansanshi copper production in 2023 and 2024 reflects similar levels as 2022 with lower oxide grades and sulphide grades while mining vein-hoisted areas. Copper and gold production in 2025 includes some limited production associated with the S3 Expansion, expected to commence in the second half of 2025.

Higher gold production in 2024 for other sites is due to higher production expected at Guelb Moghrein with the expansion of the Carbon-in-Leach plant, to be complete in the first half of 2024, and the inclusion of Cutback 4.

Nickel production at Enterprise is expected to commence in the first half of 2023 with ramp up to full plant throughput and recovery in 2024. 2023 production guidance for Enterprise includes 5kt of pre-commercial production results.