Q2 2024 First Quantum Minerals Ltd Earnings Call Transcript
Key Points
- First Quantum Minerals Ltd (FQVLF) reported a solid operational quarter in Zambia, with both Constantia and Sentinel set up well for the second half of the year.
- The company remains on track to deliver on its copper production guidance and announced commercial production at Enterprise on June 1.
- Copper C1 cash cost declined by $0.29 to average $1.73 per pound, benefiting from higher gold production at Kansanshi and record gold prices.
- The company has initiated a copper hedging program to manage balance sheet strength, covering roughly 40% of production until the end of 2025.
- First Quantum Minerals Ltd (FQVLF) reached a shareholder rights agreement with Chunky Copper, formalizing their relationship and removing uncertainty for stakeholders.
- The company made the difficult decision to place Ravensthorpe on care and maintenance due to high-cost structure, impacting nickel production guidance.
- Copper sales volumes lagged during the quarter by approximately 8,000 tons due to timing of shipments, vessel delays, and port congestion.
- Severe drought conditions in Zambia have led to a 40% reduction in power availability, necessitating costly power imports.
- The situation in Panama remains unresolved, with 121,000 dry metric tonnes of concentrate on-site awaiting approval for shipment.
- The company reported a Q2 net loss attributable to shareholders of $46 million, impacted by further impairment at Ravensthorpe.
Operator. Welcome to the First Quantum Minerals Limited Second Quarter 2024 Results Conference Call. (Operator Instructions)
I would now like to turn the conference over to Bonita To, Director, Investor Relations. Please go ahead.
Thank you, operator, and thank you, everyone, for joining us today to discuss our second quarter results. During the call, we will be making forward-looking statements. As such, I encourage you to read the cautionary notes that accompany this presentation, our MD&A and the related news release.
As a reminder, the presentation is available on our website and that all dollar references are in U.S. dollars unless otherwise noted. On today's call, we have Tristan Pascall, our Chief Executive Officer; and Ryan MacWilliam, Chief Financial Officer; and Rudi Badenhorst, our Chief Operating Officer.
And with that, I will turn the call over to Tristan for opening remarks.
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