Yesterday, 11:29 AM
- Rio Tinto (RIO +1.3%) owns more than half of the shares of Turquoise Hill Resources (TRQ -1.7%), and likely will buy out the shares it does not already own in the next 12-18 months, CIBC analyst Tom Meyer predicts.
- Rio will make its move once key risks from the Oyu Tolgoi copper-gold project in Mongolia are removed, the analyst says, such as financing, a cost update on Oyu Tolgoi’s underground development, and next year’s Mongolian election.
- But Meyer maintains an Underperform rating and $4 price target on TRQ in a relative valuation call, saying higher-cost, higher-leveraged copper plays such as First Quantum Minerals (OTCPK:FQVLF) and HudBay Minerals (NYSE:HBM) offer more upside if commodity prices go up in the short term.
Fri, Aug. 28, 9:53 AM
- First Quantum Minerals (OTCPK:FQVLF) says it has started production at its $2.1B Sentinel copper mine in Zambia, which has been under construction since 2012.
- First Quantum expects the mine to produce 280K-300K metric tons/year of copper at full production from one large low-grade ore body containing 0.51% copper.
- Ramp up to commercial production levels is expected to begin after the state power utility connects electricity to the mine by next month.
Mon, Aug. 3, 12:58 PM
- A series of power shortages has forced Zambia’s largest copper producer, First Quantum Minerals (OTCPK:FQVLF), to halt production at one of its largest mines, in a major operational scale-down that will result in the loss of nearly 1,500 jobs.
- The miner says it is starting a rigorous cost-cutting program to save its $2.1B Sentinel copper mine following the decision of the state power company to slash power supplies to its operation due to a nationwide shortfall.
- Zambia recently enjoyed one of the most reliable electricity grids in the region, depending on its vast hydro power plants and imports from South Africa to maintain a steady supply to its mines, but both sources have faced pressure in recent months as a severe drought has lowered water levels at dams.
Wed, Jul. 29, 5:29 PM
Fri, Jul. 17, 4:58 PM
- First Quantum Minerals (OTCPK:FQVLF) fell 3.2% in Toronto trading today on top of a 6% loss yesterday, despite releasing a statement to intended to clarify information filed in its updated technical report for its Kansanshi mine in Zambia.
- The update “creates more questions than answers,” Scotiabank says, which says the 2016 copper and gold production numbers provided in the updated mine plan are 19% and 56%, respectively, below the bank’s predictions.
Wed, Jun. 24, 5:23 PM
- Zambia’s government is set to roll back contentious mining taxes, cutting royalties for underground mines below the recently revised 9% and ending a nine-month standoff that has hurt production and profits in Africa’s second largest copper producer.
- As of July 1, the government will revert to a 30% corporate tax - which many firms elude claiming they are not profitable - and reduced royalties of 9% on open pit mines and 6% on underground operations.
- A return to lower levies should be a windfall for mining companies operating in the country, such as Barrick Gold (NYSE:ABX), Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and First Quantum Mineral (OTCPK:FQVLF), Zambia’s largest foreign investor, all of which slowed operations as the taxation dispute raged.
- Withheld value-added tax refunds, however, remains a point of contention, as major copper miners say they are owed nearly $800M in value-added tax refunds stretching back to 2013.
Thu, May 21, 2:48 PM
- First Quantum Minerals (OTCPK:FQVLF -4.6%) lays out plans for C$600M in new spending over the next 18 months to speed up project development, as it raises as much as C$1.44B in a public offering.
- First Quantum is earmarking C$300M-C$400M for expansion of the Kansanshi copper mine in Zambia, C$150M to advance permitting for the Haquira project in Peru, plus some money for the Taca Taca deposit in Argentina; the C$600M comes on top of C$1.4B budgeted for projects such as Cobre Panama.
- "It's better to build at the bottom of the cycle than at the top, but also to try and get as much of that pipeline into production to coincide with the inevitable rise in the copper price in the next two or three years," company president Clive Newall tells analysts.
Wed, May 20, 5:22 PM
- First Quantum Minerals (OTCPK:FQVLF) says it plans to raise C$1.25B ($1.02B) in a public offering in Canada, with an underwriters option to purchase additional shares which could bring total proceeds to ~C$1.44B.
- The company says it plans to use the funds raised to advance and expand existing production facilities, reduce debt and make acquisitions.
Wed, Apr. 15, 8:24 AM
- Barrick Gold (NYSE:ABX) says it welcomes the decision by Zambia's government to set its mining royalties at 9% for both open-pit and underground mines, but that it will review the details before reconsidering plans to shutter its Lumwana copper mine.
- Zambia's January decision to increase royalties for open pit mines to 20% from 6% and those for underground mines to 8% from 6% had rattled unions, miners and investors, forcing the government to review the plan; companies such as Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and First Quantum Minerals (OTCPK:FQVLF) stopped expansion plans worth $1.5B.
- The new 9% rate still would be considered on the high end compared to other mining jurisdictions, but it might make more mines viable.
Fri, Apr. 10, 4:58 PM
- Credit Suisse sees potential for a near-term rally in gold prices, and expects copper prices to do well this year.
- The firm upgrades First Quantum Minerals (OTCPK:FQVLF) to Outperform from Neutral on positive copper and stock re-rating catalysts in H2 2015, and likes HudBay Minerals (NYSE:HBM) and Tahoe Resources (NYSE:TAHO); it downgrades Teck Resources (NYSE:TCK) to Neutral from Outperform based on a weaker outlook for coking coal and valuation.
- Among gold miners, CS prefers Agnico Eagle Mines (NYSE:AEM) for its lower cost assets, operational consistency, strong free cash flow and organic exploration and growth opportunities, and Goldcorp (NYSE:GG) for its growth and relatively strong balance sheet; Yamana Gold (NYSE:AUY) and Detour Gold (OTCPK:DRGDF) provide leverage to a gold price rally.
Tue, Mar. 10, 3:45 PM
- Peabody Energy (BTU -5.6%) slides sharply after Jefferies downgrades shares to Hold from Buy with a $6 price target, cut from $10, on continued concerns about domestic thermal coal fundamentals due to low natural gas prices, weakening exports, MATS related coal plant closures and increased renewable capacity.
- BTU's Australian coal business is more likely to improve in the near-term due to higher seaborne thermal coal prices, the firm says, but operating costs have not declined nearly as much as competitors due to its extensive hedging program.
- Jefferies is bearish on mining shares in the near-term, and the firm revised many of its commodity price forecasts lower, but it has placed four metals and mining stocks above the rest: Freeport McMoRan (FCX -3.5%), Rio Tinto (RIO -2.6%), First Quantum (OTCPK:FQVLF -6.8%) and Angofagasta (OTCPK:ANFGY -5.8%).
Fri, Feb. 20, 8:02 AM
Wed, Feb. 4, 11:21 AM
- Zambia's newly elected president has directed the government to expedite talks with miners and promptly resolve the impasse over the new mining tax regime to ensure the smooth running of the mining industry.
- In January, the country began implementing a new tax regime, requiring open-pit mines to pay as much as a 20% royalty on their revenue, up from 6%, while underground mines would pay an 8% royalty, up from 6%.
- The plan prompted Barrick Gold (ABX +1.2%) to announce it would suspend operations at its Lumwana copper mine, which supports nearly 4K direct jobs in the area, and other miners such as Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and First Quantum Minerals (OTCPK:FQVLF) to shelve expansion projects.
Tue, Jan. 27, 10:58 AM
- First Quantum Minerals (OTCPK:FQVLF -8.5%) says it has substantially reduced planned capital spending in 2015 for its Cobre Panama copper project to $600M, while projecting total capital spending for the year of $1.2B-$1.4B.
- Says Q4 copper production fell 8.3% Y/Y to 105.1K metric tons while copper sales fell less than 1% to 94.8K metric tons; gold output fell 9% to 57.5K oz.
- For 2015, the company expects copper output of 410K-440K metric tons and gold production of 218K-247K oz.
Wed, Jan. 14, 12:49 PM
- As TD Securities analysts test free cash flow for Canadian copper producers at US$2.50/lb. for copper, every company in their coverage area except Copper Mountain Mining (OTCPK:CPPMF -13.5%) is found to have negative free cash flow.
- First Quantum Minerals (OTCPK:FQVLF -11.4%) might have the biggest problem, the TD analysts say, calculating that its free cash flow is negative US$1.2B at $2.50 copper due to a royalty hike in Zambia and major spending commitments at the Cobre Panama project.
- The favorite names in a low price environment are Lundin Mining (OTCPK:LUNMF -12.7%), HudBay Minerals (HBM -13.7%) and Nevsun Resources (NSU -4.7%), thanks to their solid balance sheets and low capital spending requirements in 2015.
Dec. 23, 2014, 12:58 PM
- The new tax laws in Zambia could turn out to be a positive for First Quantum Minerals (OTCPK:FQVLF) even as high-cost producers such as Barrick Gold (NYSE:ABX) begin to close operations, CIBC analyst Tom Meyer says.
- Zambia's budget, which included a revision to the mining tax scheme that would require open pit miners to pay a 20% mineral royalty tax, was passed on Dec. 17 and First Quantum’s stock has come under pressure since ~40% of the company’s operating base is located in the country.
- "As a low cost producer in Zambia, First Quantum could be a net beneficiary of the new system,” Meyer says, adding that a comparison of effective tax rates under the two systems "shows that the new system is increasingly favorable for the miners when the copper price is rising.”
FQVLF vs. ETF Alternatives
First Quantum Minerals Ltd. is a growing mining and metals company engaged in mineral exploration, development and mining. The Company produces LME grade "A" copper cathode, copper in concentrate, gold and sulphuric acid.
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