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(Kitco News) - First Quantum (TSX: FM), one of the world's largest copper producers, announced Tuesday that its total copper output for Q2 2023 was 187,175 tonnes, up from the 138,753 tonnes reported in Q1 2023 as each of the company's three largest operations reported improved grades during the period.
The company said that copper C1 cash cost of $1.98 per lb for Q2 2023 was $0.26 per lb lower than Q1 2023, adding that the improvement in copper C1 cash costs was related to improved production volumes and lower fuel and explosive costs.
First Quantum noted that production at the three major copper operations is expected to be higher in the second half of the year.
According to a press release, the company’s 2023 guidance for copper, gold and nickel production remains unchanged, however full year production for each metal is expected to be towards the lower end of guidance to reflect year-to-date production.
First Quantum also reported that gross profit for the second quarter of $265 million was 5% lower than Q1 2023 due to higher depreciation, while EBITDA of $568 million for the same period was 10% higher due to higher sales volumes, partially offset by lower realized metal prices.
Net earnings attributable to shareholders of the company were $93 million ($0.13 earnings per share) in Q2 2023 (Q2 2022: net earnings of $419 million) and adjusted earnings were $85 million ($0.12 adjusted earnings per share) compared to adjusted net earnings of $337 million in Q2 2022.
In addition, on July 25, the company announced an interim dividend of CDN$0.08 per share, in respect of the financial year ended December 31, 2023 (July 26, 2022: CDN$0.16 per share).
CEO Tristan Pascall commented on the results, “After a challenging start to the year, it is pleasing to see the improvements at our three largest operations. During the second quarter, Sentinel achieved its highest monthly production for the year in May and Cobre Panamá and Kansanshi achieved the same records in June. We remain well on track for a stronger performance in the second half of the year.
“While we expect the positive operational momentum to continue into the second half of the year, we are cognizant of the global economic slowdown. I believe that we are well-positioned to navigate through the near-term challenges with our focus on improving productivity and unit costs.”
First Quantum is a global copper company. The company produces copper in the form of concentrate, cathode and anode, and has inventories of nickel, gold and cobalt. The company operates long-life mines in several countries and employs more than 20,000 people world-wide.
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