REG - First Quantum Min Ld - 2nd Quarter Results <Origin Href="QuoteRef">DGE.L</Origin> <Origin Href="QuoteRef">FM.TO</Origin>

First Quantum MineralsAnnouncement

06/09/2014 22:42

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RNS Number : 8073N
First Quantum Minerals Ld
31 July 2014 
 
   NEWS RELEASE14-27July 30, 2014www.first-quantum.com  
 
 
July 30, 2014 
 
www.first-quantum.com 
 
FIRST QUANTUM MINERALS REPORTS SECOND QUARTER 2014 RESULTS 
 
(In United States dollars, except where noted otherwise) 
 
First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol
"FM", LSE Symbol "FQM") today announced comparative net earnings1 of $133.6
million or $0.23 per share for the three months ended June 30, 2014 inclusive
of $19.5 million or $0.04 per share of unfavorable, recurring
acquisition-related adjustments. 
 
SECOND QUARTER 2014 Highlights2 
 
·      Higher production in main metals: 
 
-       Copper up 4% to 107,808 tonnes 
 
-       Nickel up 12% to 12,223 tonnes 
 
·      Significantly increased copper sales: 
 
-       Revenues up 11% to $685.1 million despite lower market price 
 
-       Overall sales volume up 20% to 114,449 tonnes 
 
-       Kansanshi sales volume up 26% over Q2 2013 and Q1 2014 
 
·      14% higher nickel revenues to $147.7 million despite 11% lower sales
volume 
 
·      Low cash cost of production maintained: 
 
-       Copper up 8% to $1.45 per pound 
 
-       Nickel down 24% to $4.16 per pound 
 
·      Growth projects supported by strong cash flow from operations and
enhanced financing: 
 
-       $388.6 million of cash flow generated by operations3 
 
-       $769.4 million cash balance including restricted cash at June 30,
2014 
 
-       Further enhanced financial flexibility with issuance of $850.0 million
of senior notes 
 
·      $618.6 million invested in the expansion of the production base 
 
-       Sentinel advanced to 94% overall completion 
 
-       Phase 1 copper smelter advanced to 78% overall completion; initial
commissioning started in July 
 
-       Enterprise nickel advanced 
 
-       Proposed acquisition of Lumina Copper Corporation expected to close on
or before August 30, 2014 
 
1Earnings attributable to shareholders of the Company have been adjusted to
remove the effect of unusual items to arrive at comparative
earnings.Comparative earnings and comparative earnings per share are not
measures recognized under International Financial Reporting Standards ("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. 
 
2 Results are compared to the second quarter 2013, unless noted otherwise. 
 
3 Cash flow from operations before changes in working capital and tax paid. 
 
ceo's COMMENTS 
 
"Continued solid operations and the benefits of our cost control drive
underlie the results for the quarter. The operational flexibility that has
been built into Kansanshi was particularly evident as good headway was made on
reducing concentrate inventory by utilizing as much of its recently-expanded
oxide circuit as economically feasible. Both our nickel operations had good
quarters with Kevitsa turning in one of its best performances since startup,"
noted Philip Pascall, First Quantum's CEO and Chairman. 
 
"The second half of 2014 is an important one for First Quantum. Both the Phase
1 copper smelter and Trident project are tracking well for staged
commissioning during this period towards commercial operations in 2015. These
are significant components in the Company's growth and when in operation, they
are expected to employ an additional 2,400 people, add up to 300,000 tonnes of
new copper production capacity and enhance the overall unit operating cost. 
 
"Our balance sheet remains strong. With the addition of extra financing
flexibility during the quarter, funding for our growth projects is well
provided for and we were able to take the opportunity to supplement our growth
pipeline with our proposed acquisition of Lumina Copper Corporation. This
underscores our belief in the fundamentals of copper and is another step in
ourlong-stated objective of geographical diversification through the
acquisition of world class, early-stage copper assets. The Taca Taca project
is at the stage where we can apply our resources and development expertise to
realize its full potential and further add to our copper production profile,"
Mr. Pascall concluded. 
 
FINANCIAL HIGHLIGHTS 
 
                                                                                                           Three months ended June 30  Six months      
                                                                                                                                       ended June 30   
 (U.S. dollars millions, except where noted otherwise)                                                     2014                        2013            2014        20131       
 Sales revenues                                                                                            945.1                       869.3           1,835.6     1,770.5     
 Gross profit                                                                                              292.6                       201.1           574.2       511.3       
 EBITDA2                                                                                                   381.5                       284.2           745.1       594.6       
 Net earnings attributable to shareholders of the Company3                                                 133.6                       71.9            260.4       184.3       
 Earnings per share                                                                                        $0.23                       $0.12           $0.44       $0.35       
 Diluted earnings per share                                                                                $0.23                       $0.12           $0.44       $0.34       
 Comparative earnings3                                                                                     133.6                       103.6           260.4       257.4       
 Comparative earnings per share3Cash flow from operations, before changes in working capital and tax paid  $0.23388.6                  $0.18281.6      $0.44758.7  $0.48606.3  
 
 
1 Financial results for the six months ended June 30, 2013 include the results
of the Las Cruces mine (100%), the Çayeli mine (100%), and the Pyhäsalmi mine
(100%) (together "the acquired operations") from March 22, 2013, the date of
acquisition. 
 
2 Earnings before interest, tax, depreciation and amortization ("EBITDA") are
not recognized under IFRS. Refer to the "Regulatory Disclosures" section in
the Management's Discussion and Analysis ("MD&A") for the three and six months
ended June 30, 2014,for further information. 
 
3 Net earnings attributable to shareholders of the Company have been adjusted
to remove the effect of unusual items to arrive at comparative earnings.
Comparative earnings and comparative earnings 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. 
 
OPERATING HIGHLIGHTS 
 
                                                Three months ended June 30  Six months      
                                                                            ended June 30   
 (U.S. dollars where applicable)                2014                        2013            2014     20131    
 Copper production (tonnes)                     107,808                     103,694         220,926  183,002  
 Copper sales (tonnes)                          114,449                     95,491          217,235  184,600  
 Cash cost of copper production (C1)2 (per lb)  $1.45                       $1.34           $1.41    $1.43    
 Realized copper price (per lb)                 $2.97                       $3.10           $3.03    $3.29    
 Nickel production (contained tonnes)           12,223                      10,875          24,061   21,947   
 Nickel sales (contained tonnes)                10,651                      11,927          24,748   22,975   
 Cash cost of nickel production (C1)2 (per lb)  $4.16                       $5.45           $4.30    $5.38    
 Realized nickel price (per payable lb)         $8.45                       $6.82           $7.38    $7.29    
 Gold production (ounces)                       60,723                      63,567          120,887  119,511  
 Gold sales (ounces)                            60,135                      59,381          113,261  118,172  
 
 
1 Operating results for the six months ended June 30, 2013 include those of
the Las Cruces mine (100%), the Çayeli mine (100%) and the Pyhäsalmi mine
(100%) from March 22, 2013, the date of acquisition. 
 
2 Cash costs (C1) is not recognized under IFRS. Refer to the "Regulatory
Disclosures" section in the MD&A for the three and six months ended June 30,
2014,for further information. 
 
UPDATED Full year 2014 GUIDANCE 
 
·      Total production 
 
o  copper between 418,000 and 444,000 tonnes 
 
o  nickel between 45,000 and 48,000 tonnes 
 
o  gold between 221,000 and 242,000 ounces 
 
o  zinc between 55,000 and 60,000 tonnes 
 
o  palladium between 22,000 and 24,000 ounces 
 
o  platinum between 26,000 and 29,000 ounces 
 
·      Cash cost of production 
 
o  copper between $1.32 and $1.48 per pound 
 
o  nickel between $4.40 and $4.90 per pound 
 
·      Capital expenditures of between $2.2 billion and $2.4 billion,
excluding capitalization of any pre-commercial production costs and
capitalized interest 
 
CONFERENCE CALL & WEBCAST 
 
The Company will host a conference call and webcast to discuss the results on
Thursday, July 31, 2014. 
 
Conference call and webcast details are as follows: 
 
Date:                                         July 31, 2014 
 
Time:                                        9:00 am (EDT); 2:00 pm (BST);
6:00 am (PDT) 
 
Webcast:                                 www.first-quantum.com 
 
Dial in:                                      North America: 800 709 0218
(toll free) 
 
International and North America: 1 647 722 6851 
 
United Kingdom: 0800 496 0830 (toll free) or 44 207 855 8971 
 
Replay:                                     Canada and international: 1 416
626 4100 
 
OR 
 
Toll free North America: 800 558 5253 
 
Passcode:                                21724489 
 
The conference call replay will be available from 11:00 am (EDT) July 31, 2014
until 11:59 pm (EDT) on August 7, 2014. 
 
COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS 
 
The complete unaudited condensed interim consolidated financial statements,
and MD&A for the three and six months ended June 30, 2014 are available at
www.first-quantum.com and should be read in conjunction with this news
release. 
 
BASIS OF PRESENTATION 
 
This news release and the Company's financial statements have been prepared in
accordance with IFRS and are presented in United States dollars, except where
noted. Changes in accounting policies have been applied consistently to
comparative periods unless otherwise noted. 
 
On Behalf of the Board of Directors                                           
                                                                  
12g3-2b-82-4461 
 
of First Quantum Minerals Ltd.                                                
                                                                      Listed
in Standard and Poor's 
 
G. Clive Newall 
 
President 
 
For further information visit our website at www.first-quantum.com 
 
North American contact: Sharon Loung, Director, Investor Relations
Tel: (647) 346-3934 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail:
sharon.loung@fqml.com 

United Kingdom contact: Clive Newall, President
Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: clive.newall@fqml.com 
 
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. These
forward-looking statements are principally included in the Development
activities section and are also disclosed in other sections of the document.
The forward looking statements include estimates, forecasts and statements as
to the Company's expectations of production and sales volumes, expected timing
of completion of project development at Kansanshi, Sentinel, Enterprise and
Cobre Panama, 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, cobalt,
nickel, zinc, pyrite, PGE, 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 the price of copper, gold, nickel, zinc, pyrite, PGE, cobalt
and sulphuric acid, anticipated costs and expenditures and the ability to
achieve the Company's goals. Although management believes that the assumptions
made and the expectations represented by such statements or information are
reasonable, there can be no assurance that a forward-looking statement or
information herein will prove to be accurate. 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, costs
for inputs such as oil, power and sulphur, political stability in Zambia,
Peru, Mauritania, Finland, Spain, Turkey, Panama and Australia, adverse
weather conditions in Zambia, Finland, Spain, Turkey and Mauritania, labour
disruptions, mechanical failures, water supply, procurement and delivery of
parts and supplies to the operations, 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 undertake 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. 
 
This information is provided by RNS
The company news service from the London Stock Exchange