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First Quantum Minerals’ (TSX:FM) all-is-well update prompts share buy-up

Mining
TSX:FM
16 September 2020 13:23 (EDT)
First Quantum Mining - CEO, Philip Pascall

Source: Reuters

Shares in mining giant First Quantum Minerals (FM) have risen almost seven per cent this morning following the release of an all-is-well update.

Despite the ongoing impact of COVID-19, the company’s operations in Panama and Zambia are continuing more or less in line with expectations.

Total copper production for 2020 is anticipated to be between 725,000 and 770,000 tonnes, while gold production is expected to be between 230,000 and 250,000 ounces and nickel between 15,000 and 17,000 tonnes.

First Quantum had a case of the virus at its Cobre Panama mine 120 kilometres west of Panama City, which put the project on hold from early April until July. With no new cases reported since May, Cobre Panama returned to full-scale production on August 8.

The company says the primary focus at Cobre Panama now is to deliver consistent operational performance, which includes maintaining a throughput rate of 85 million tonnes per year.

Total production at the site is expected to be well within its previously announced guidance, between 180,000 and 200,000 tonnes of copper and between 70,000 and 80,000 ounces of gold.

In Zambia, the Kansanshi operation recently saw an update to its mineral reserves and resources, which resulted in a 70 per cent and 40 per cent increase, respectively. The site has not been heavily impacted by the virus, and is now expected to have a total mine life of 24 years.

Most notably, First Quantum’s Sentinel operation, also in Zambia, has exceeded expectations so far this quarter, achieving 25,000 tonnes of copper in August compared to 23,000 tonnes in July.

The company says the strong performance is due to consistent milling rates and better than expected grades, which puts Sentinel firmly in place to hit its targets for 2020.

First Quantum Minerals (FM) is currently up 6.72 per cent and is trading at C$13.97 per share at 12:35pm EDT.

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