First Quantum Minerals (FM) Q4 2024 earnings summary

Executive summary

• Q4 2024 net earnings attributable to shareholders were $99 million, with adjusted EPS of $0.04–$0.14, reflecting lower copper and gold sales and prices.

• Operational performance in Zambia was strong, offsetting challenges from the ongoing suspension of Cobre Panamá.

• Kansanshi S3 Expansion made strong progress, with commercial production at Enterprise and first S3 production expected in H2 2025.

• Copper and gold production exceeded 2024 guidance, setting a strong foundation for 2025.

• Major priorities for 2025 include delivering Kansanshi S3, strengthening the balance sheet, and resolving the Panama situation.

Financial highlights

• Q4 2024 revenue was $1.3 billion, EBITDA $455 million, and gross profit $405 million, all down quarter-over-quarter due to lower sales and higher costs.

• Net earnings attributable to shareholders for Q4 2024 were $99 million; adjusted EPS was $0.04.

• Q4 copper C1 cash cost was $1.68/lb, up 7% quarter-over-quarter; AISC was $2.58/lb.

• Net debt decreased by $61 million to $5.5 billion in Q4; liquidity stood at $1.6 billion, with $812 million unrestricted cash and $750 million undrawn RCF.

• A $13 million gain was recognized on the copper sales hedge program in Q4.

Outlook and guidance

• 2025 copper production guidance: 380,000–440,000 tonnes; Kansanshi 160–190kt, Sentinel 200–230kt, Enterprise nickel 15–25kt.

• Kansanshi S3 Expansion remains on schedule for mid-2025 completion, with initial feed from low-grade stockpiles.

• 2025 CapEx guidance is $1.3–$1.45 billion, including $100 million carried over from 2024.

• 2025 copper C1 cash cost guidance (excluding Cobre Panamá): $1.85–$2.10/lb; AISC: $3.05–$3.35/lb.

• Power sourcing plans in Zambia are expected to minimize operational interruptions in 2025.