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First Quantum cuts senior staff salary by 20%

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(Kitco News) - Copper producer First Quantum (TSE:FM) said Tuesday it is temporarily reducing the salary of certain senior staff, including the CEO, by 20%.

The company said it is actively reducing costs while preparing for the possibility of depressed commodity prices well into 2021.

"The company continues to actively manage all site operating costs while focusing on productivity and cost efficiency and is preparing for an extended period of health protocols and travel restrictions, and commodity prices that could remain depressed into 2021.

"Capital spending is being reviewed companywide with the potential to defer some capital spending originally planned for this year. Operating costs at all sites are being reviewed to identify opportunities to further reduce costs," said the company in a statement.

Despite clampdowns as governments worldwide attempt to contain the spread of COVID-19, the company said it has not yet experienced any significant disruption to sales, supply chains and product shipments.

First Quantum said its previous production and cost expectations remain current.

At the company's Cobre Panama operation, the company said contractors have been stricken.

"Several members of the contractor workforce at the Cobre Panama operation have been confirmed as having contracted the COVID-19 virus. The affected personnel are being cared for in the public healthcare system as per the Panama Ministry of Health requirements. Cobre Panama has already implemented the appropriate control, isolation and quarantine measures in line with Government guidelines and its site-specific conditions.

"On Friday March 20, the Government of Panama by means of Executive Decree 500 clarified that Cobre Panama is specifically authorized to continue operating, albeit with strict adherence to the protocols established by the Ministry of Health which will require a reduced labour force operating on 12 hour shifts."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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