First Quantum announces 2022 production and 2023-2025 Guidance
TORONTO – First Quantum Minerals announces preliminary production for the three months (“Q4”) and year ended December 31, 2022 and guidance for production, capital expenditure and costs for the years 2023 to 2025.
“It is pleasing to see that the focus on operational improvements has resulted in a strong end to 2022. We continue to monitor the macroeconomic conditions closely and debt reduction remains a priority,” commented Tristan Pascall, Chief Executive Officer. “Disciplined and responsible growth continue to be a focus at First Quantum. The CP100 Expansion remains on schedule to exit 2023 at 100 million tonnes per annum and work is well underway for the S3 Expansion. We are also pleased that the Enterprise nickel project will enter first production this year. These projects are a key part of the Company’s brownfield growth strategy over the next several years.”
HIGHLIGHTS
Q4 and 2022 Production: First Quantum achieved annual copper production of 776 thousand tonnes (“kt”) a 5% reduction from 2021. Cobre Panamá delivered record annual production of 350kt, while Sentinel saw a year-on-year increase to 242kt. Kansanshi production of 146kt was lower than 2021 due to lower grades. Copper production in Q4 2022 was 206kt, 2% higher than Q4 2021 and 6% higher than Q3 2022 with record quarterly production achieved at Sentinel.
Three–year guidance: Copper and nickel production are forecast to grow to between 775-865kt and 45-60kt, respectively, by 2025. Capital expenditure guidance has increased to $1.6 billion in 2023 and $1.8 billion in 2024, reducing to $1.5 billion in 2025 with the completion of the S3 Expansion project at Kansanshi. Increases in 2023 and 2024 are principally due to inflationary pressures on sustaining capital and timing of expenditures for project capital. This includes the re-phasing of the S3 Expansion, and higher costs for crusher relocations at the mine sites.
Cobre Panamá: As per the news release on January 10, 2023, First Quantum continues to engage with the Government of Panamá and 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, Minera Panamá, S.A. (“MPSA”) is working through a number of steps to address the resolution from the National Directorate of Mineral Resources of the Ministry of Commerce and Industries (“the Ministry”) requiring MPSA to suspend commercial operations at Cobre Panamá. At this time, the timing and impact of any care and maintenance regime enacted by the Ministry remain uncertain. Given this, production guidance is based on normal operations with no disruption to production.
