TORONTO, February 12, 2018
TORONTO, February 12, 2018 /PRNewswire/ --
(In United States dollars, except where noted otherwise)
First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM") today announced a comparative loss of $36 million ($0.05 per share), a net loss from continuing operations attributable to shareholders of the Company of $115 million ($0.17 per share) and cash flows from continuing operating activities of $203 million ($0.30 per share) for the three months ended December 31, 2017. The results include a $188 million loss realized under the copper sales hedge program for which no tax credit is available and $79 million for impairments and other comparative adjustments.
Results for the full year 2017 are a comparative loss of $111 million ($0.16 per share), a net loss from continuing operations attributable to shareholders of the Company of $316 million ($0.46 per share) and cash flows from continuing operating activities of $914 million ($1.33 per share). The results include a loss realized under the sales hedge program of $568 million for which no tax credit is available, and impairments and other costs and comparative adjustments of $205 million.
FOURTH QUARTER 2017 SUMMARY
1 Net earnings (loss) attributable to shareholders of the Company has been adjusted to exclude items which are not reflective of underlying performance to arrive at comparative earnings (loss). Comparative earnings (loss), comparative earnings (loss) per share, comparative EBITDA and cash flows 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. Refer to the "Regulatory Disclosures" section in the MD&A for the year ended December 31, 2017 for further information. 2 On June 1, 2016 the sale of the Kevitsa mine was completed. In accordance with the requirements of IFRS 5 - Non-current assets Held for Sale and Discontinued Operations, the financial and operating information of 2016 was presented to exclude Kevitsa. On October 1, 2017, Ravensthorpe was placed on care and maintenance. 3 Production is presented on a copper contained basis, and is presented prior to processing through the Kansanshi smelter. 4 AISC, C1 and C3 costs per pound are not recognized under IFRS. Refer to the "Regulatory Disclosures" section in the MD&A for the year ended December 31, 2017 for further information.
"2017 was another successful year for First Quantum. Our achievements were realized through the continued dedication and efforts of our entire workforce and partners," noted Philip Pascall, Chairman and CEO.
"We made significant progress on our copper growth objective. Sentinel's ramp-up over the year accounted for a good part of that progress as did the continued strong performances at the Kansanshi complex and Las Cruces. While our smaller operations are managing the challenges of being in the latter part of their lives, they do make good contributions both in production and providing unique training and experience for our valuable workforce. 2017 marked the sixth consecutive year that we have increased our copper production. This is an achievement we are proud of especially in light of the tough conditions faced by our industry over the past few years.
"2018 is an important year for us with the start of the critical phased commissioning of our largest project to date - Cobre Panama. We believe the project will enter operations at a time when the fundamentals for copper will be at their strongest. This has informed our decision to bring forward an expansion and increase our ownership interest.
"Through this period of significant growth for our Company, we are also committed to deleveraging the balance sheet and providing some return to our shareholders who have been supportive of our vision and strategy," Mr. Pascall concluded.
Three months ended Year ended December 31 December 31 (U.S. dollars where applicable) 2017 2016 2017 2016 COPPER - Production (tonnes) 154,319 146,101 573,963 539,458 - Sales (tonnes) 151,905 136,265 580,130 535,613 - Cost of production: o AISC (per lb) $1.76 $1.71 $1.65 $1.46 o C1 (per lb) $1.30 $1.22 $1.23 $1.06 o C3 (per lb) $2.16 $1.91 $2.05 $1.83 - Realized price (per lb) $2.50 $2.18 $2.33 $2.26 NICKEL Production (contained - tonnes) - 6,206 17,837 23,624 - Sales (contained tonnes) 865 6,073 18,683 25,882 - Cost of production: o AISC (per lb) ($0.51) $5.03 $5.29 $5.29 o C1 (per lb) ($0.61) $4.46 $4.45 $4.66 o C3 (per lb) ($0.51) $6.16 $6.17 $6.34 Realized price (per payable - lb) $5.37 $4.50 $4.67 $4.25 GOLD - Production (ounces) 51,904 54,234 199,736 214,012 - Sales (ounces) 50,723 45,620 201,376 232,783
Three months ended Year ended December 31 December 31 (U.S. dollars millions, except where noted otherwise) 2017 2016 2017 2016 Sales revenues 885 689 3,310 2,673 Gross profit 117 52 335 339 Net earnings (loss) from continuing operations attributable to shareholders of the Company (115) 12 (316) 222 Net loss from discontinued operations - - - (267) Net earnings (loss) per share from continuing operations attributable to shareholders of the Company ($0.17) $0.02 ($0.46) $0.32 Net earnings (loss) per share ($0.17) $0.02 ($0.46) ($0.07) Basic and diluted earnings (loss) per share ($0.17) $0.02 ($0.46) ($0.07) Comparative EBITDA 318 218 1,154 964 Comparative earnings (loss) (36) 27 (111) 165 Comparative earnings (loss) per share ($0.05) $0.04 ($0.16) $0.24 Cash flows from continuing operating activities 203 93 914 914
5 2016 figures include discontinued operations.
Capital Expenditures  (U.S. dollars millions) 2018 2019 2020 Total Cobre Panama  1,180 382 - Third-party contribution  (354) (89) - First Quantum's share  826 293 - Capitalized stripping 200 200 200 Sustaining capital and other projects 360 400 400 Total net capital expenditures 1,386 893 600
6 Excludes capitalization of any net pre-commercial production costs, revenue and interest. 7 Reflects the revised total capital expenditure estimate of $6.3 billion. Third-party contributions are from the pro-rata funding under a $1 billion precious 8 metals stream agreement and KORES' 10% indirect interest in the project. 9 Based on the current 90% ownership.
Production (000's) 2018 2019 2020 Copper - excluding Cobre Panama (tonnes) 590 595 610 Nickel (contained tonnes) - - - Gold - excluding Cobre Panama (ounces) 200 200 195 Zinc (tonnes) 20 17 5 Cobre Panama  - copper (tonnes) - 150+ 270 - 300
10 Assumes the following: a) Start of commissioning in fourth quarter 2018. b) Continued ramp-up in 2019 with copper production estimated at a minimum of 150,000 tonnes. c) Further ramp-up in 2020 with copper production between 270,000 and 300,000 tonnes.
Copper AISC and C1 Cost  (Per pound) 2018 2019 2020 AISC $1.65 - $1.85 $1.65 - $1.80 $1.65 - $1.80 C1 $1.20 - $1.40 $1.20 - $1.40 $1.20 - $1.40
11 Does not include estimates for Cobre Panama which are projected at $1.20 per pound C1 and $1.50 per pound AISC, net of a by-product credit of $0.25 per pound at steady-state.
CONFERENCE CALL & WEBCAST
Conference call and webcast details are as follows:
Date: February 12, 2018 Time: 9:00 am (EST); 2:00 pm (GMT); 6:00 am (PST) Webcast: http://www.first-quantum.com Dial in: North America: (toll free) (877)291-4570 North America and international: 1(647)-788-4919 United Kingdom: (toll free) 0-800-051-7107 Replay: Available from noon (EST) on February 12, until 11:59 pm (EST) on February 19, 2018 North America: (toll free) (800)585-8367 North America and international: 1(416)621-4642 Passcode: 4089109
COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS
The complete audited consolidated financial statements and Management's Discussion and Analysis for the year ended December 31, 2017 are available at http://www.first-quantum.com and should be read in conjunction with this news release.
On Behalf of the Board of Directors of First Quantum Minerals Ltd.
G. Clive Newall
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. The forward-looking statements include estimates, forecasts and statements as to the Company's expectations of production and sales volumes, and expected timing of completion of project development at Cobre Panama and Enterprise and are subject to the impact of ore grades on future production, the potential of production disruptions, capital expenditure and mine production costs, the outcome of mine permitting, other required permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, nickel, zinc, pyrite, cobalt 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 continuing production at all operating facilities, the price of copper, gold, nickel, zinc, pyrite, cobalt and sulphuric acid, anticipated costs and expenditures and the ability to achieve the Company's goals. 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, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania, Finland, Spain, Turkey, Panama, Argentina, the United States and Australia, adverse weather conditions in Zambia, Finland, Spain, Turkey, Mauritania and Panama, labour disruptions, potential social and environmental challenges, power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, and 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 undertakes 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.
Visit our website at http://www.first-quantum.com
North American contact:
Director, Investor Relations,
Toll Free: 1(888)688-6577
United Kingdom contact: