First Quantum nudges up Cu guidance

Canada-based miner First Quantum boosted its copper output by 4pc in the third quarter from a year earlier and nudged up its output guidance to 595,000t for the full year.

The global mining company's copper output rose to 151,241t in the quarter from 145,376t a year earlier. Sales rose by 4pc to 151,342t. Realized sales prices rose to $2.84/lb from $2.37/lb a year earlier.

The company boosted its production guidance for the year to 595,000t from 590,000t in June.

The increase in output reflected an 8pc gain to 64,000t at its Kansanshi mine and a 5pc gain to 56,000t at its Sentinel mine, both in Zambia.

Overall cash costs for the company were $1.34/lb, up from $1.21/lb a year earlier.

Sales revenues rose to $978mn in the latest quarter from $877mn a year earlier. The company swung to a profit of $61mn from a loss of $52mn a year earlier.

The producer also owns or operates the Ravensthorpe zinc mine in Western Australia; the Guelb Moghrein copper mine in Mauritania; the Las Cruces zinc mine in Spain; the copper/zinc Pyhasalmi mine in Finland; and the Cayeli copper/zinc mine in Turkey.

The company is awaiting clarification by Panama's supreme court regarding Law 9 and its effect on a mining concession contract entered into by a subsidiary of a company that is part of First Quantum's Cobre Panama project.

The company is "confident of a resolution in the near-medium term" regarding the project, based on support for the concession contract from the Panama government, the mining chamber and other business associations in the country.

The Cobre Panama project is over 80pc complete, with power station construction completed and ramp up progressing while the process plant and mine site are 74pc complete with commissioning activities continuing in this quarter.

First Quantum has previously said it expected the Panama project to ramp up to 150,000t of copper next year and a further ramp up to 270,000-300,000t in 2020.