Wed, Jul. 27, 6:05 PM
Wed, Jul. 27, 5:13 PM
Mon, Jul. 25, 3:46 PM
- Teck Resources (TCK -0.6%) is upgraded to Hold from Sell and First Quantum Minerals (OTCPK:FQVLF) is raised to Buy from Hold at Canaccord Genuity, which sees the two companies as a “pinprick of light in the commodities tunnel.”
- The firm says TCK’s status as the largest and most diversified base metals producer in Canada, as well as ongoing improvement in met coal and zinc prices, will provide support to the stock's current trading multiples.
- First Quantum is the only company in the group followed by Canaccord that boasts a growing copper production profile, as both the Sentinel and Cobre Panama projects ramp up.
- The firm rates its two other names under coverage in the Canadian base metals sector, HudBay Minerals (NYSE:HBM) and Lundin Mining (OTCPK:LUNMF), at Buy.
Fri, May 6, 10:57 AM
- The liquidity crisis is largely over at First Quantum Minerals (OTCPK:FQVLF), although there much work still is needed to improve the balance sheet, company execs tell Financial Post.
- After the share price fell nearly 70% in 2015 as copper prices dropped amid a $4.7B debt load, in February the company warned investors that there was "significant doubt” it could continue as a going concern; the warning is being lifted, as copper prices have rebounded and the miner was able to cut costs and find a buyer for its Kevitsa mine, which is being sold for $712M.
- First Quantum says it is still examining options to improve the balance sheet, including a proposed $2.5B financing package for the Cobre Panama project; rumors say the company also is looking to sell its Ravensthorpe mine in Australia, but CEO Clive Newall says no sale process is occurring now.
- Now read First Quantum Minerals: Going concern warning resolved... for now
Thu, Apr. 28, 6:08 PM
Thu, Mar. 10, 8:49 AM
- First Quantum Minerals (OTCPK:FQVLF) agrees to sell its Kevitsa nickel-copper-platinum group elements mine in Finland to Swedish miner Boliden (OTCPK:BDNNF) for $712M.
- First Quantum says it sold the mine to strengthen its balance sheet and improve its capital structure; at year-end 2015, the company had ~$4.7B in net debt.
- The company is currently focused on developing its Cobre Panama project for commissioning in 2018, which is expected to cost ~$6B.
Fri, Mar. 4, 12:58 PM
- Vale (VALE +18.3%) and U.S. Steel (X +15.3%) are pacing the biggest weekly rally since 2008 for stocks of mining and metals companies, Bloomberg says as its index of 47 metals, mining and steel producers has racked up a 20% gain this week.
- Vale has rallied nearly 80% this week, as iron ore prices extended a rebound and Brazilian stocks jumped as the latest developments in the federal investigation of vast corruption threaten to topple the Rousseff government.
- Copper suppliers Freeport McMoRan (FCX +12.4%), Teck Resources (TCK +10.3%) and First Quantum Minerals (OTCPK:FQVLF +11.4%) also are among the top gainers, as copper prices climb to their highest in four months on speculation that China will announce more steps to boost growth.
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) also heads for its seventh straight gain, the stock's longest winning run in two years.
Fri, Feb. 19, 6:14 PM
- First Quantum Minerals (OTCPK:FQVLF) warns of a “significant doubt” that it can continue as a going concern, as it struggles to manage a massive debt load in an environment of weak base metal prices.
- The miner made the disclosure because it is in danger of breaching a key debt covenant: It needs to maintain a debt-to-EBITDA ratio of less than 5.5x to avoid a breach in H1 2016, and less than 4.5X in H2.
- By comparison, analysts at Dundee Capital estimated the ratio was 6.3x at the end of 2015.
- First Quantum President Clive Newall downplays the risk, saying the company enjoys good relations with its lenders and is working to fix its balance sheet; however, the company had more than US$4.6B of debt at the end of December, vs. US$365M of cash.
Thu, Feb. 18, 5:12 PM
- First Quantum Minerals (OTCPK:FQVLF) declares C$0.01/share final dividend.
- Payable May 4; for shareholders of record April 13; ex-div April 11.
Thu, Feb. 18, 5:06 PM
- First Quantum Minerals (OTCPK:FQVLF): Q3 EPS of $0.28
- Revenue of $765M (-6.8% Y/Y)
Wed, Feb. 3, 5:33 PM
- Mining companies that have been hit hard by weakening Chinese demand surged the most in five months today, as a rally in metal prices signaled production cuts are starting to pay off, Bloomberg reports.
- Newmont Mining (NEM +11.3%), Freeport McMoRan (FCX +11.2%) and First Quantum Minerals (OTCPK:FQVLF +16.6%) all gained at least 11% today in leading the Bloomberg Americas Mining Index to a 7% surge and its biggest increase since August.
- Gold futures broke above their 200-day MA for the first time since October, and zinc, copper, aluminum, nickel, lead and tin all gained, helped by the outlook for tighter supplies and a plunge in the dollar.
- In today's trade: ABX +8.8%, GG +10.2%, AEM +5.5%, SLW +8.7%, KGC +10.3%, NG +6.6%, AU +9.6%, FNV +7%, GFI +8.5%, HMY +5.1%, SBGL +6.1%, IAG +9.6%, GOLD +3.6%, EGO +8.3%.
- ETFs: GLD, GDX, NUGT, IAU, GGN, DUST, PHYS, SGOL, UGL, GLDX, DGP, GTU, GLL, JJC, UGLD, DZZ, DBB, SGDM, ASA, OUNZ, DGL, DGZ, RING, DGLD, JJN, PSAU, JJU, TGLDX, CPER, UBG, JJT, BOM, RJZ, BOS, FOIL
Wed, Jan. 13, 9:16 AM
- First Quantum Minerals (OTCPK:FQVLF) is considering the sale of future precious metals output from some of its mines as it looks for ways to cut debt, Bloomberg reports.
- First Quantum is said to be working with Standard Chartered to study options for precious metals streaming transactions for mines including its Kevitsa nickel mine in Finland and the Kansanshi copper asset in Zambia.
- The miner reportedly also has been fielding offers for the Kevitsa mine, which may fetch at least $1B.
Tue, Jan. 12, 12:46 PM
- BHP Billiton (BHP -4.3%) could cut is payout in half when it releases results, and Rio Tinto (RIO -4.5%) also could cut its dividend later this year, HSBC analysts say, citing the need for the miners to cut expenses to help indebted balance sheets and offset weak commodities prices.
- HSBC also says Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and First Quantum Minerals (OTCPK:FQVLF) are most at risk if commodities remain weak, although continued South African rand weakness would help Anglo, while strength in copper and other stock-specific reasons could favor returns for Freeport McMoRan (FCX -13.4%) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY).
- The firm downgrades BHP and First Quantum to Reduce, maintains a Reduce rating on Anglo, and has a Buy rating on FCX and Glencore.
Nov. 6, 2015, 10:56 AM
- First Quantum Minerals (OTCPK:FQVLF) has retained Jefferies to explore a sale of its two nickel mines, as the miner looks to reduce debt levels and double down on its bets in copper, Reuters reports.
- The assets reportedly on the block are Kevitsa, a nickel-copper-platinum mine in Finland and Ravensthorpe, a nickel mine located in Western Australia that the company bought in 2010.
- A Cormark Securities analyst Alec Meikle recently valued Kevitsa and Ravensthorpe at a respective $840M and $372M.
Oct. 8, 2015, 12:46 PM
- Mining companies operating in Zambia ask the government to set mineral royalties for both underground and open pit operations at 6% to mitigate the negative impact of falling copper prices on the industry.
- The government of Africa's second leading copper producer already cut mineral royalties for underground mines to 6% from 9% and those of open cast mines to 9% from 20% following an outcry by mining firms.
- Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) Zambian unit has said it plans to lay off more than 3.8K workers due to lower metal prices and high production costs; other foreign mining companies operating in Zambia include First Quantum Minerals (OTCPK:FQVLF), Barrick Gold (NYSE:ABX) and Vedanta Resources (OTCPK:VDNRF).
Oct. 6, 2015, 9:12 AM
- First Quantum Minerals (OTCPK:FQVLF) says it has revised its deal with Franco-Nevada (NYSE:FNV) for its flagship copper-gold Cobre Panama project in Panama after reviewing the costs.
- Under the new precious metal stream agreement, FNV will have to pay an initial contribution of $330M-$340M to First Quantum in October.
- First Quantum says it now estimates the total project cost for the open-pit mine, which is 35% complete, at $5.95B, ~7% below earlier estimates; the mine is expected to produce 320K metric tons of copper, 100K oz. of gold and 1.8M oz. of silver a year upon completion, with first concentrate production scheduled for late 2017.