First Quantum CEO makes Zambia sale a priority in 2025

FIRST Quantum Minerals CEO Tristan Pascall said he would assess “the potential benefits of a minority stake sale in Zambia” as one of the group’s targets for 2025.Commenting in a production update, he also said improving the balance sheet and managing Zambian power challenges were priorities.According to reports in November Japan’s Mitsui & Co was in poll position to buy a stake in First Quantum’s Zambian production which consists of the Kansanshi and Sentinel operations. The Japanese company is considering buying a roughly 20% interest in the Sentinel and Kansanshi mines for about $2bn, but it may have competition.Many in the industry see Manara, a joint venture involving Saudi Arabia’s Ma’aden, as the most likely winner. Backed by the Saudi sovereign wealth fund, Manara is spearheading the kingdom’s ambitious plan to become a major player in metals and mining.The potential sale of a stake in the Zambia mines was to restore strength to First Quantum’s balance sheet after it lost production from Cobre Panama at the end of 2023 when the Central America’s government ruled the mine’s operating licence was unconstitutional.The government, now under new administration, appears to have a more conciliatory view of Cobre Panama. It is conducting an environmental audit, due in February, aimed at supporting “decision-making about the future of the mine”, said Pascall. Its Zambian assets are First Quantum’s main source of production after it placed nickel producer Ravensthorpe in Australia on care and maintenance last year.For the 2024 financial year First Quantum produced 431,000 tons of copper which exceeded its forecast output of 400,000 to 420,000 tons. This was largely owing to Kansanshi which achieved its highest copper and gold production since 2021 on the back of higher grades, the company said.Commenting on production over the next three years, First Quantum said it had adjusted Kansanshi’s production lower to account for a more conservative ramp-up from its $1.25bn S3 Expansion project. The mine will increase production to between 210,000 and 240,000 tons in 2027 from a guided range of 160,000 to 190,000 tons this year.In total, First Quantum expected to produce 380,000 to 440,000 tons of copper this year, rising to 430,000 to 490,000 tons in 2027. The guidance excludes a potential return to production of Cobre Panama. The group is also targeting 135,000 to 155,000 ounces in gold production compared to 139,000 oz last year.Cash and all-in sustaining costs would be negatively affected by import power costs as Zambia continued to struggle with consistent supply amid drought conditions. For 2025, AISC would be between $3.05 to $3.35 per pound of copper.First Quantum expected to spend $1.3bn to $1.45bn in capital this year of which part would be the S3 Expansion where $400m was still to be spent (over three years).The post First Quantum CEO makes Zambia sale a priority in 2025 appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com