Miner First Quantum Reports US$249 Million Net Loss, Impacted by Lower Production

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

First Quantum posted a US$249 million net loss in Q1, driven partly by declines in copper and gold production to 96,500 tonnes and 34,000 ounces, respectively.

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Net Loss

First Quantum reported a consolidated net loss of US$249 million during Q1, compared to US$72 million a year ago. This was the outcome of lower production, a drop in sales, and hedge losses. Higher fuel prices are expected to increase base costs in Q2.

During the first quarter, the Canadian miner recorded copper production of 96,469 tonnes, a 4% decrease from Q4. The drop was led by the Kansanshi and Sentinel mines in Zambia, which recorded declines of 2,310 tonnes and 2,983 tonnes, respectively, due to lower feed grades and recoveries.

Copper sales during the quarter stood at 90,049 tonnes.

For this year, the company has increased its guidance from 375,000-435,000 tonnes to 405,000-475,000 tonnes following recent agreements at the shuttered Cobre Panama mine.

Meanwhile, the company's gold production was 34,000 ounces in Q1, considerably below the 40,000 ounces recorded during the same period last year. Gold is extracted by First Quantum as a byproduct of its operations.

The company has, however, lowered its gold guidance by 25,000 ounces to 150,000 to 175,000 ounces as the Guelb Mghrein mine in Mauritania's transition to gold is deferred to 2027.

Industrial Info Resources is tracking 28 First Quantum projects worldwide, totalling investments of US$8 billion.

Fuel Prices

First Quantum, like other miners, was hit by the higher fuel prices triggered by the war in the Middle East and the closure of the Strait of Hormuz. This increase is expected to impact the miner's cost base during Q2.

The company uses about 320 million litres of fuel annually in its Zambian operations, which are imported via East African ports from Middle Eastern (60%) and Indian (40%) refineries. Current market dynamics have prompted the company to seek alternative fuel sources, including ports and storage facilities in Namibia.

The company anticipates that increased fuel prices will impact its cost base in the second quarter. "2026 has begun against a backdrop of heightened global uncertainty, driven by the conflict in the Middle East and its impact on key supply chains. In response, we have been actively diversifying our fuel sourcing and procuring additional fuel supplies. Our long standing investments in innovation and electrification, including trolley-assist, continue to structurally reduce fuel intensity and our sites are advancing additional initiatives to further improve efficiency," highlighted First Quantum Chief Executive Officer Tristan Pascall.

Cobre Panama and Other Projects

In April, the Panamanian government approved First Quantum to process and export stockpiled ore at the Cobre Panama mine, a move intended to mitigate environmental and operational risks.

About 38 million tonnes of stockpiled ore will be processed, yielding roughly 70,000 tonnes of copper and boosting this year's copper production. The capital costs for this operation are estimated at US$250 million.

The government of Panama is currently awaiting the final outcome of an audit of the mine, shuttered in 2023, before deciding on the fate of the asset.

"In Panama, we received formal approval to proceed with the removal and processing of stockpiled ore, an important step in the responsible environmental management of Cobre Panamá. We are progressing steadily towards restarting processing activities, including the hiring of approximately 1,000 new positions, which attracted more than 60,000 applicants. We expect copper to be produced late in the second quarter. We remain committed to constructive engagement with the government of Panama for a mutually beneficial resolution for the mine," said Pascall.

At the same time, the Canadian miner announced the continuation of the sale of the Cayeli copper mine in Turkey and the Los Cruces copper mine in Spain, both expected to take place during Q2.

In terms of greenfield projects, the company completed its technical report for its Taca Taca copper project in Argentina, which could produce about 291,000 tonnes during its first decade.

Key Takeaways

• First Quantum reports net loss and lower output in Q1.
• The miner increased its copper guidance for this year amid Cobre Panama's new processing permit.
• Industrial Info Resources is tracking 28 First Quantum projects worldwide worth US$8 billion.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).