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First Quantum Minerals' Q1: Saved By Cobre Panama


  • First Quantum produced 452 million lb copper and 78,048 toz gold in Q1.
  • The copper AISC declined to $1.72/lb.
  • The operating cash flow improved to $743 million and net income to $142 million.
  • The Shoemaker-Levy development is progressing well.
  • First Quantum should produce 1.73-1.87 billion lb copper, 280,000-300,000 toz gold, and 50.7-59.5 million lb nickel in 2021.

Mining Industry
Photo by Hello my names is james,I'm photographer./iStock via Getty Images

First Quantum Minerals (OTCPK:FQVLF) released the Q1 2021 financial results. As expected, high copper prices provided a significant boost to its revenues and cash flows. The net income improved too

This article was written by

Peter Arendas profile picture

Peter Arendas is an associate professor at the University of Economics in Bratislava. He has over 15 years of investing experience. Peter specializes in covering small and mid-cap companies in the resource sector with an in-depth insight into the precious and industrial metals royalty & streaming industry.

Peter is the leader of the investing group Learn more.

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Comments (6)

What do you think of reports that the Panamanian government is demanding up to 16% royalties for the Cobre Panama mine and is also seeking to end First Quantum's tax exemption in the country. Should we therefore review its relative optimism about First Quantum?
FQVLF's debt is (still) high b/c of the enormous costs associated with Cobre in an extremely harsh and difficult access environment, not helped by COVID either. However, now that the mine is operational of late and Cu prices are at all time highs (and going higher), FQVLF will be able to unload a lot of its debt. COBRE is a bonanza and couldn't have come online at a better time. Kudos to the smart and hard driving Canadian mgmt. Job well done!

As long as Panama keeps its end of the bargain and doesn't become another Zambia or Congo, it's heady times ahead for FQVLF until the (Biden $TTTTTTT debt spending induced) next recession hits.

Long FQVLF since 5/20 @$5.70
alessandro molinari profile picture
cobre panama has exceeded estimates, or the mine is ahead of its time. consequently there will be a boom in revenue for Franco Nevada in the quarterly to be announced in a few days
@alessandro molinari What percentage of FN's revenue comes from cobre?
alessandro molinari profile picture
@DrT last year 13% on 1 billion in revenue:s21.q4cdn.com/...
as you can see from page 18 of the slides by First Quantum :seekingalpha.com/...
if it proceeds at this rate this year it would exceed 20%
Peter Arendas profile picture
@alessandro molinari Yes, this is good news for Franco.
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