FIRST QUANTUM MINERALS REPORTS OPERATIONAL AND FINANCIAL RESULTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2009
(All figures expressed in US dollars)
Vancouver, BC - March 16, 2010 - First Quantum Minerals Ltd. (�First Quantum� or the �Company�, TSX Symbol �FM�, LSE Symbol �FQM�) today announced its results for the three months and year ended December 31, 2009. The complete financial statements and management discussion and analysis are available for review at www.first-quantum.com and should be read in conjunction with this news release.
SUMMARY OPERATING AND FINANCIAL DATA
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Three months ended
December 31 |
Year ended
December 31 |
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(USD millions unless otherwise noted) |
2009 |
2008 |
2009 |
2008 |
2007 |
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Realized copper price (per lb) |
$2.79 |
$(0.04) |
$2.16 |
$2.22 |
$2.97 |
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Production � copper (tonnes) |
98,528 |
95,635 |
373,940 |
334,415 |
226,693 |
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Production � gold (ounces) |
62,679 |
39,644 |
193,288 |
116,177 |
107,961 |
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Sales � copper (tonnes) |
98,171 |
97,280 |
366,581 |
334,787 |
223,907 |
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Net sales |
$656.3 |
$12.4 |
$1,902.9 |
$1,740.4 |
$1,539.2 |
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Net earnings (loss) |
$227.2 |
$(491.6) |
$463.4 |
$45.9 |
$520.3 |
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Earnings (loss) per share |
$2.91 |
$(7.19) |
$6.14 |
$0.67 |
$7.72 |
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Average copper unit cash cost of production (C1)1(per lb) |
$0.97 |
$1.26 |
$0.96 |
$1.23 |
$1.04 |
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Cash |
$959.5 |
$216.5 |
$959.5 |
$216.5 |
$222.5 | 1C1 cost is a non-GAAP measure. See �Regulatory disclosures � non-GAAP measures� for further information
Unless otherwise indicated, all comparisons of performance throughout this report are to the comparative periods for 2008
FOURTH QUARTER HIGHLIGHTS
� Record quarterly and yearly copper production on successful plant expansions at Kansanshi and Guelb Moghrein
� 58% increase in Q4 gold production to record levels at Kansanshi and Guelb Moghrein on gold circuit and gold plant expansions
� 23% reduction in the Q4 average copper unit cash cost of production (C1) due to cost saving initiatives, lower process input costs and higher gold credit; annual reduction of 22%
� Q4 net earnings of $227.2 million and EPS of $2.91 realized on higher copper price and lower production costs
� Announcements made to acquire the Ravensthorpe nickel operation in Australia for $340.0 million and Kiwara PLC, which holds prospecting licenses in Zambia, for approximately $260.2 million
� Strong closing cash and working capital position realized on cash flows from operations and financing activities in 2009
RECENT DEVELOPMENTS
� Development of the Kevitsa nickel-copper-PGE project in Finland was approved in Q4 with increased mineral reserves published in November 2009. Project construction has commenced and commercial production is targeted for mid 2012.
� Construction work has commenced at the Ravensthorpe nickel operation on modifying the crushing, conveying, stockpile and reclaim areas and will continue for approximately the next 12 months, followed by approximately six months of commissioning and ramp-up. The total modification cost is estimated at $150.0 million.
� In February 2010, the C ompany established a physical metal marketing division to manage offtake sales, marketing, logistics and administration for all tonnage produced by the Company�s mining operations.
� In Q1 2010, the Company, along with partners the IFC (International Finance Corporation) and the Industrial Development Corporation of South Africa (�IDC�), commenced international arbitration against La G�n�rale des carri�res et des mines (�G�camines�) and the R�publique d�mocratique du Congo (�RDC�) regarding the cancellation of the Kolwezi project.
� The Company continues to evaluate the Lonshi underground project with a development decision pending. A drilling program is currently underway to define possible extensions to the ore body.
� The Bwana Mkubwa copper SX/EW plant was restarted in January 2010 to process the stockpiled ore from the depleted Lonshi open pit mine. Grade A copper cathode production at an average rate of 800 tonnes of co pper cathode per month is expected to continue until the end of 2010.
NEAR TERM OUTLOOK
� Estimated production for 2010 is 385,000 tonnes of copper and 240,000 ounces of gold
� Estimated average C1 cost for 2010 is $0.97 per pound. The gold credit is expected to increase with the additional estimated production. Management of processing costs will remain a key objective in the year. Higher mining costs are expected due to increased stripping activity.
� Kansanshi now has three distinct fully operational processing routes. These routes, which cater for oxide/leach, mixed float and sulphide feeds, will continue to be optimized and metallurgical recoveries are expected to be enhanced. Gold production is expected to improve as a result of the commissioning of additional gravity concentrators in early 2010. New AC powered mining equipment will be commissioned with the objective of reducing unit costs and improving fleet reliability. Following an extensive geological review and drilling program at Kansanshi, a revised mineral resource and reserve estimate is pending.
� At Frontier, additional mining flexibility will be applied to the mining operations through advanced mine planning and the utilization of AC powered haul trucks. The new haul trucks are expected to reduce costs and enhance operational reliability which in turn should result in an increase in mining volumes to ensure that ore feed rates are maintained or improved. In addition, a dewatering shaft project has commenced in order to maintain favourable ground conditions for mining as the open pit deepens.
� At Guelb Moghrein, the final commissioning of the new heavy fuel oil (�HFO�) power station in Q1 is expected to lower generating costs as all power will be derived from the new power station with all other power generator units expected to remain off-line. The commissioning of the high pressure grinding rollers (�HPGR�) unit in early 2010 should mark the completion of the 3.8 million tonne per annum expansion project and allow for the further enhancement of both gold and copper recoveries.
� An intensive drilling program is planned in 2010 for the Kalumbila exploration project in Zambia, which was acquired with Kiwara PLC and additional drilling programs have been initiated in Zambia, Finland and the RDC.
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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 U.S. and Canadian securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to future price of copper or gold, estimation of mineral reserves and mineral resources, our exploration and development program, estimated future expenses, exploration and development capital requirements, and our 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 word s 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, we have made numerous assumptions including among other things, assumptions about the price of copper and gold, anticipated costs and expenditures and our ability to achieve our goals. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. 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 our 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 info rmation.
See our annual information form and our quarterly and annual management�s discussion and analysis for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although we have 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 the factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake 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. |
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