First Quantum Minerals Reports Second Quarter 2017 Results
First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM") today announced a comparative loss[1] of $18 million ($0.03 per share[1]) and cash flows from continuing operating activities of $205 million ($0.30 per share[1]) for the three months ended June 30, 2017. The comparative loss includes a $97 million loss realized under the copper sales hedge program for which no tax credit is available.
Net loss from continuing operations attributable to shareholders of the Company[1] amounted to $35 million ($0.05 per share) inclusive of the loss under the sales hedge program for which no tax credit is available.
SECOND QUARTER 2017 HIGHLIGHTS[2]
[1] Net earnings (loss) attributable to shareholders of the Company and Earnings before interest, tax, depreciation, amortization and impairment ("EBITDA") have been adjusted to exclude items which are not reflective of underlying performance to arrive at comparative earnings (loss) and comparative EBITDA. EBITDA, comparative earnings (loss), comparative earnings (loss) per share, comparative EBITDA and cash flows per share are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors. Refer to the "Regulatory Disclosures" section in the MD&A for the quarter ended June 30, 2017 for further information.
[2] On June 1, 2016 the sale of the Kevitsa mine was completed. In accordance with the requirements of IFRS 5 - Non-current assets Held for Sale and Discontinued Operations, the financial and operating information presented for 2016 exclude the Kevitsa mine.
[3 ]Production is presented on a copper contained basis, and is presented prior to processing through the Kansanshi smelter.
[4] C1, AISC and C3 cost per pound are not recognized under IFRS. Refer to the "Regulatory Disclosures" section in the MD&A for the quarter ended June 30, 2017 for further information.
CEO'S COMMENTS
"We are pleased with the overall performance in the quarter and half year," noted Philip Pascall, Chairman and CEO.
"Operationally, our Kansanshi complex and Las Cruces mine turned in good results as margin improvement measures, implemented last year at Las Cruces and ongoing at Kansanshi, are making a considerable positive difference. Pyhäsalmi continued to operate profitably despite later-stage mine life conditions, Çayeli began its recovery from first quarter difficulties and Sentinel is moving progressively to steady-state operations with solid months in June and July. Ravensthorpe however, continues to face an ongoing challenging nickel price market.
"Development of our tier-one Cobre Panama project continues to advance strongly. With some challenging aspects of the project now behind us and phased commissioning within 18 months, we are building the team that will be operating the mine and processing facilities, port and power plant. This project, when in operation, will add significant geographic diversification to the Company.
"First Quantum's financial position is much improved. Its debt maturity structure has been greatly strengthened following the liability management initiatives undertaken. With the cash generated by our operations, cash on hand, committed, undrawn credit facilities and continuing initiatives to further strengthen the balance sheet, the Company is well-positioned to continue to execute its strategy," Mr. Pascall concluded.
CONFERENCE CALL & WEBCAST
Conference call and webcast details are as follows:
COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS
The complete unaudited consolidated financial statements and Management's Discussion and Analysis for the quarter ended June 30, 2017 are available at http://www.first-quantum.com and should be read in conjunction with this news release.
On Behalf of the Board of Directors of First Quantum Minerals Ltd.
G. Clive Newall
President
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The forward-looking statements include estimates, forecasts and statements as to the Company's expectations of production and sales volumes, and expected timing of completion of project development at Cobre Panama and Enterprise and are subject to the impact of ore grades on future production, the potential of production disruptions, capital expenditure and mine production costs, the outcome of mine permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, nickel, zinc, pyrite, cobalt and sulphuric acid, estimated mineral reserves and mineral resources, First Quantum's exploration and development program, estimated future expenses, exploration and development capital requirements, the Company's hedging policy, and goals and strategies. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about continuing production at all operating facilities, the price of copper, gold, nickel, zinc, pyrite, cobalt and sulphuric acid, anticipated costs and expenditures and the ability to achieve the Company's goals. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to, future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania, Finland, Spain, Turkey, Panama, Argentina and Australia, adverse weather conditions in Zambia, Finland, Spain, Turkey, Mauritania and Panama, labour disruptions, power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, and the production of off-spec material.
See the Company's Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of these factors are beyond First Quantum's control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made herein are qualified by this cautionary statement.
visit our website at http://www.first-quantum.com; North American contact: Sharon Loung, Director, Investor Relations, Tel: +1(647)346-3934 Fax: (604) 688-3818, Toll Free: +1(888)688-6577, E-Mail: [email protected]; United Kingdom contact: Clive Newall, President, Tel: +44-140-327-3484, Fax: +44-140-327-3494, E-Mail: [email protected]
