| First Quantum Minerals revises deal with Franco-Nevada | |
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Oct 5 (Reuters) - First Quantum Minerals Ltd said it has revised its deal with Franco-Nevada Corp for its flagship copper-gold Cobre Panama project in Central America after reviewing the costs. Under the new precious-metal stream agreement with the Vancouver-based miner, royalty firm Franco-Nevada will have to pay an initial contribution of $330 million to $340 million to First Quantum in October. First Quantum's chairman and chief executive, Philip Pascall, said the company is acting "to ensure that profitability and cash flow from our mining operations are maximized and protected in these volatile market conditions and sustained lower commodity prices and second, that cash outflows are limited to essential and economically attractive projects so that our balance sheet integrity is maintained." The Canadian base metals miner acquired the project in Panama in a hostile takeover of rival Inmet Mining Corp for C$5.1 billion ($4.8 billion) in 2013. First Quantum said it now estimates that the total project cost for the open-pit Panama mine, which is 35 percent complete, will be $5.95 billion, about 7 percent below earlier estimates. The project, which has cost $2.62 billion to date, is scheduled for process commissioning and first concentrate production in late 2017, First Quantum said. It expects the mine to produce about 320,000 tonnes of copper, 100,000 ounces of gold and 1.8 million ounces of silver a year on completion. Remaining costs for project completion will be met by $666 million from the Korea Panama Mining Corp, $1 billion payable by Franco-Nevada under the agreement and $1.663 billion by First Quantum. Capital costs for the project were reduced with better construction efficiency and lower costs for equipment and bulk materials such as rebar and structural steel, First Quantum said. (Reporting by Rachel Chitra in Bengaluru; Editing by Leslie Adler)
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Franco Nevada Corp.
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PRODUCER |
CODE : FNV.TO |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Franco Nevada is a zinc and lead royalty company based in Canada. Franco Nevada produces zinc, lead, copper, gold, nickel, pgm, platinum, silver and uranium in Australia, in Canada, in Ghana, in Indonesia, in Mauritania, in Mexico, in South Africa and in USA, develops copper, gold, lead, molybdenum, nickel, silver and zinc in Canada, in Dominican Republic and in Greece, and holds various exploration projects in Argentina and in Australia. Its main assets in production are BALD MOUNTAIN in USA, HEMLO, HOLLISTER, ROBINSON (NEVADA) and HOLLOWAY in Canada, NORTH LANUT and MT. MURO in Indonesia, EZULWINI, MARIGOLD, MESQUITE, PANDORA JV and (MWS) BUFFELSFONTEIN TAILING PROJECT in South Africa, TASIAST in Mauritania, CERRO SAN PEDRO, PALMAREJO, GOLDSTRIKE and STILLWATER MINE in Mexico, MOUNT KEITH - OC and MOUNT KEITH - SP in Australia and AHAFO SOUTH in Ghana, its main assets in development are DEE PROJECT, TULSEQUAH CHIEF, ROSEMONT RANCH and PROSPERITY in Canada, PERAMA HILL in Greece and FALCONDO MINE in Dominican Republic and its main exploration properties are DETOUR LAKE, EDSON, WEYBURN UNIT and MIDALE UNIT in Canada, TARICORI and PINSON in Peru, PECULIAR KNOB, ADMIRAL HILL and MOOLART WELL in Australia and CALCATREU in Argentina. Franco Nevada is listed in Canada and in United States of America. Its market capitalisation is CA$ 30.0 billions as of today (US$ 21.9 billions, € 20.5 billions). Its stock quote reached its lowest recent point on March 08, 2019 at CA$ 100.00, and its highest recent level on April 26, 2024 at CA$ 167.97. Franco Nevada has 178 480 000 shares outstanding. |