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First Quantum Operating Profit Falls on Copper Price

Industry News 10:21:47AM May 03, 2012 Source:SMM

May 2 (Reuters) - First Quantum Minerals Ltd's quarterly operating profit slid 42 percent on lower average copper prices and sales volumes, the base metals miner said on Wednesday.

Adjusted to remove one-time items, profit in the first quarter, ended March 31, was C$119 million ($120.32 million), or 25 Canadian cents a share, compared with C$206.7 million, or 48 Canadian cents a share, in the first quarter of 2011.

Net earnings attributable to shareholders were C$1.3 billion, or C$2.82 a share. That compared with C$206.7 million, or 48 Canadian cents a share, in the year-before period.

First Quantum was awarded a $1.25 billion settlement in early March after a long-running dispute over the ownership of the Kolwezi project in the Democratic Republic of Congo.

Revenue rose slightly to C$708.8 million on new nickel output from the Ravensthorpe mine in Australia.

Copper production was down 12 percent to 65,869 tonnes compared with 74,888 tonnes in the year-earlier period, while copper sales fell 4 percent to 67,789 tonnes.

The average realized price per pound of copper fell to $3.67 from $4.23 in the first quarter of 2011, while costs per pound rose 38 percent to $1.59.

The Canadian miner expects to produce 270,000 tonnes to 290,000 tonnes of copper in 2012. With numerous development projects under way, it plans to spend $1.2 billion to $1.4 billion on development costs this year.

First Quantum owns mines in Australia, Zambia and Mauritania, along with development projects in Finland, Zambia and Peru.

 

First Quantum Operating Profit Falls on Copper Price

Industry News 10:21:47AM May 03, 2012 Source:SMM

May 2 (Reuters) - First Quantum Minerals Ltd's quarterly operating profit slid 42 percent on lower average copper prices and sales volumes, the base metals miner said on Wednesday.

Adjusted to remove one-time items, profit in the first quarter, ended March 31, was C$119 million ($120.32 million), or 25 Canadian cents a share, compared with C$206.7 million, or 48 Canadian cents a share, in the first quarter of 2011.

Net earnings attributable to shareholders were C$1.3 billion, or C$2.82 a share. That compared with C$206.7 million, or 48 Canadian cents a share, in the year-before period.

First Quantum was awarded a $1.25 billion settlement in early March after a long-running dispute over the ownership of the Kolwezi project in the Democratic Republic of Congo.

Revenue rose slightly to C$708.8 million on new nickel output from the Ravensthorpe mine in Australia.

Copper production was down 12 percent to 65,869 tonnes compared with 74,888 tonnes in the year-earlier period, while copper sales fell 4 percent to 67,789 tonnes.

The average realized price per pound of copper fell to $3.67 from $4.23 in the first quarter of 2011, while costs per pound rose 38 percent to $1.59.

The Canadian miner expects to produce 270,000 tonnes to 290,000 tonnes of copper in 2012. With numerous development projects under way, it plans to spend $1.2 billion to $1.4 billion on development costs this year.

First Quantum owns mines in Australia, Zambia and Mauritania, along with development projects in Finland, Zambia and Peru.