TSX-listed First Quantum Minerals has reported a net loss attributable to shareholders of $23-million, which equates to a $0.03 loss a share, and adjusted earnings of $2-million for the three months ended March 31.

Despite the company recording a gross profit of $331-million and earnings before interest, taxes, depreciation, and amortisation (Ebitda) of $377-million in the first quarter, the net loss is largely a result of lower overall sales volumes, ongoing costs at the halted Cobre Panamá mine of about $13-million a month, increased financing and tax costs, as well as foreign exchange impacts or impairments.

“Kansanshi and Sentinel held up well in the first quarter and we remain on track for meaningful production growth over the remainder of the year, driven by the S3 Expansion project at Kansanshi . . . Construction is progressing steadily and remains on schedule. In Panama, following the suspension of arbitration, we reaffirm our commitment to constructive engagement with the government and people of Panama to reach a resolution for the Cobre Panamá mine,” First Quantum CEO Tristan Pascall said on April 24.

He added that amid concerns about global growth and trade uncertainty, the company was focused on strengthening its financial position.

“Our copper hedges provide important protection and our gold production provides a natural hedge during this period of volatility. We further enhanced our near-term liquidity position by $750-million through the recent notes offering and, following quarter-end, entering into an additional prepayment agreement. These initiatives represent meaningful progress in strengthening our financial flexibility and we remain focused on further initiatives to support the balance sheet,” Pascall said.

The first-quarter results were weaker than the fourth quarter of 2024 owing to reduced sales volumes of copper, gold, and nickel. Copper production was 99 703 t, an 11% decrease from the previous quarter. Copper C1 cash cost rose by 16% to $1.95/lb.

First Quantum said that it had agreed to discontinue the International Chamber of Commerce arbitration and suspend the Canada-Panama Free Trade Agreement arbitration. The company is awaiting official communication on the next steps regarding the power plant and copper concentrate at Cobre Panamá.

At the Kansanshi S3 Expansion, construction remains on schedule with 83% completed and 20% of systems handed over for commissioning. Production is expected to begin in the second half of 2025. In Zambia, supplementary power arrangements with regional traders continue, and up to 60% of electricity for the Kansanshi S3 Expansion is expected to come from imports.

As part of a board renewal programme, Peter Buzzi and Ambassador Brian Nichols were nominated to be appointed as directors at the AGM on May 8, 2025.

Current board members Andrew Adams and Joanne Warner will retire at that time. Robert Harding will also retire, and Kevin McArthur will take over as chair.

The company continued its hedging programme during the quarter, securing price protection for about half of its 2025 production and sales and 40% for the first half of 2026.

On April 23, First Quantum secured a further $500-million through a copper prepayment agreement with Jiangxi Copper Company.

In operational performance, copper production declined owing to seasonal rains in Zambia, though dewatering and pumping solutions functioned adequately. Copper sales were slightly higher than production at 101 960 t.

At Kansanshi, copper production was 46 544 t, down by 1 595 t from the previous quarter owing to lower feed grades. Gold production remained strong at 29 868 oz.

First Quantum reported that copper C1 cash cost increased by $0.13/lb to $1.34/lb owing to reduced production and higher smelter costs. The 2025 production guidance remains unchanged. A six-week smelter maintenance shutdown is planned for the second quarter, and initial S3 Expansion feed will come from low-grade stockpiles.

Sentinel produced 46 361 t of copper, a decrease of 10 199 t from the previous quarter owing to reduced throughput and lower ore grades. Copper C1 cash cost rose by $0.44 to $2.55/lb. A maintenance programme is underway to address mill fatigue.

First Quantum reported that its production guidance remained unchanged. A four-day plant shutdown is planned in the second quarter, with tailings thickener upgrades scheduled for the second half. The focus remains on optimising throughput and improving flotation recovery. Ore grades are expected to rise later in the year as mining reaches deeper levels.

The company’s Enterprise project produced 4 649 t of nickel in the first quarter, a 25% increase owing to improved throughput, despite lower grades. Smaller dump trucks helped mining operations in wetter areas.

Nickel C1 cash cost increased by $0.16 to $4.78/lb owing to freight costs. Production guidance remained at 15 000 t to 25 000 t. A four-day maintenance shutdown was planned, although the focus remained on improving ore quality and grade control through drilling and optimized mining practices, First Quantum said.

Meanwhile, in South America, Cobre Panamá production has been halted since November 2023. Costs in the first quarter averaged $13-million a month, covering labour, maintenance, contractors, electricity, and public engagement efforts. Preservation and safe management costs are expected to remain steady until operations resume.

Financially, the First Quantum’s performance continues to be affected by the Cobre Panamá suspension and lower sales volumes. Gross profit of $331-million was $74-million lower than the previous quarter, while Ebitda fell by $78-million to $377-million. Operating cash flows decreased by $440-million to $143-million owing to lower earnings, changes in receivables, and higher taxes. Net debt rose by $257-million to $5 787-million, with total debt at $6 530-million as of March 31, mainly owing to capital spending on the Kansanshi S3 project.