Mr. G. Clive Newall reports
FIRST QUANTUM MINERALS ANNOUNCES ITS 2014 PRODUCTION AND SALES AND 2015 PRODUCTION AND CAPITAL EXPENDITURE OUTLOOK
First Quantum Minerals Ltd. has released its production and sales results for the three months and year ended Dec. 31, 2014, and its production and capital expenditure outlook for the full-year 2015.
Chief executive officer's comments
"Over all, our operations performed well in 2014, recording the highest annual copper production in the company's history. Limited local smelter capacity in Zambia persisted and affected Kansanshi's performance and sales, and a structural failure in an atmospheric leach tank at Ravensthorpe suspended operations there in mid-December. The spill from the failure was contained within the plant's protective area, there were no environmental effects or injuries, and we anticipate the mine will be back in production shortly.
"Two thousand fifteen is an important year for First Quantum. Our smelter in Zambia is being commissioned with first anodes poured during December, 2014. First concentrate was also successfully produced at Sentinel during the fourth quarter 2014. The smelter's ramp-up will influence the rate of production buildup of our new Sentinel mine. This will also influence, as more acid becomes available, the level and mix of operations and unit cost of production at Kansanshi.
"The financial and commodity markets have started 2015 with high volatility on concerns about the global economy, demand for natural resources and companies' liquidity positions. As a result, our share price, along with others in the sector, has been materially affected. While we have high confidence in the mid to long-term outlook for copper, we are mindful of the current concerns. As always, we pay close attention to the company's financial position to make sure there is sufficient flexibility despite having an active project development pipeline. At Cobre Panama, we have substantially reduced the planned capital expenditure for 2015 to $600-million without compromising the project's progress. We also maintain strong and supportive relationships with our principal banks that have worked with us throughout the development of the company and through several economic and commodity cycles," noted Philip Pascall, First Quantum's chief executive officer and chairman.
Full-year 2014 highlights:
- Production for copper, nickel, gold and zinc was all within the
company's previously announced market guidance range while platinum and
palladium were above:
- Copper increased 4 per cent to 427,655 tonnes.
- Nickel decreased 3 per cent to 45,879 tonnes.
- Gold decreased 7 per cent to 229,813 ounces.
- Zinc increased 12 per cent to 55,980 tonnes.
- Platinum increased 12 per cent to 34,090 ounces.
- Palladium increased 5 per cent to 25,990 ounces.
- Sales of copper and zinc were higher while nickel and gold were lower compared with
2013:
- Copper increased 7 per cent to 411,203 tonnes.
- Nickel decreased 3 per cent to 47,749 tonnes.
- Gold decreased 6 per cent to 214,104 ounces.
- Zinc increased 8 per cent to 56,268 tonnes.
FOURTH QUARTER AND YEAR PRODUCTION SUMMARY
Q4 Q4 Year Year
2014 2013 2014 2013
Copper (tonnes) 105,176 114,791 427,655 412,281
Nickel (contained tonnes) 9,934 12,634 45,879 47,066
Gold (ounces) 57,480 63,199 229,813 248,078
Zinc (tonnes) 12,557 15,393 55,980 49,933
Platinum (ounces) 9,311 7,993 34,090 30,403
Palladium (ounces) 7,234 6,600 25,990 24,639
FOURTH QUARTER AND YEAR SALES SUMMARY
Q4 Q4 Year Year
2014 2013 2014 2013
Copper (tonnes) 94,836 95,598 411,203 386,057
Nickel (contained tonnes) 12,189 13,795 47,749 49,105
Gold (ounces) 48,608 50,399 214,104 228,962
Zinc (tonnes) 12,663 17,866 56,268 51,925
Platinum (ounces) 8,330 11,375 33,898 28,930
Palladium (ounces) 6,256 8,167 25,846 23,420
FOURTH QUARTER AND YEAR PRODUCTION AND SALES SUMMARIES BY MINE
Q4 Q4 Year Year
Kansanshi 2014 2013 2014 2013
Production
Copper (tonnes) 61,924 72,602 262,287 270,724
Gold (ounces) 36,705 43,508 154,431 167,395
Sales
Copper (tonnes) 52,721 57,692 247,312 248,746
Gold (ounces) 27,731 36,844 142,609 152,632
Q4 Q4 Year Year
Las Cruces 2014 2013 2014 2013
Production
Copper (tonnes) 17,525 18,346 71,090 69,304
Sales
Copper (tonnes) 15,594 16,883 71,120 66,806
Q4 Q4 Year Year
Guelb Moghrein 2014 2013 2014 2013
Production
Copper (tonnes) 9,768 8,866 33,079 37,970
Gold (ounces) 13,901 13,336 48,948 58,191
Sales
Copper (tonnes) 8,519 6,327 30,095 36,585
Gold (ounces) 13,421 8,281 45,901 56,040
Q4 Q4 Year Year
Ravensthorpe 2014 2013 2014 2013
Production
Nickel (contained tonnes) 7,736 10,244 36,445 38,103
Sales
Nickel (contained tonnes) 9,912 10,142 37,981 40,612
Q4 Q4 Year Year
Kevitsa 2014 2013 2014 2013
Production
Nickel (contained tonnes) 2,197 2,390 9,433 8,963
Copper (tonnes) 4,101 4,015 17,535 14,775
Gold (ounces) 3,093 3,008 12,844 11,723
Platinum (ounces) 9,311 7,993 34,090 30,403
Palladium (ounces) 7,234 6,600 25,990 24,639
Sales
Nickel (contained tonnes) 2,277 3,652 9,768 8,493
Copper (tonnes) 5,545 2,938 19,542 12,652
Gold (ounces) 3,229 1,182 10,876 7,358
Platinum (ounces) 8,330 11,375 33,898 28,930
Palladium (ounces) 6,256 8,167 25,846 23,420
Q4 Q4 Year Year
Cayeli 2014 2013 2014 2013
Production
Copper (tonnes) 7,820 7,538 29,360 31,510
Zinc (tonnes) 8,513 9,837 36,218 43,097
Sales
Copper (tonnes) 8,419 7,940 29,241 31,370
Zinc (tonnes) 9,362 12,179 37,298 43,354
Q4 Q4 Year Year
Pyhasalmi 2014 2013 2014 2013
Production
Copper (tonnes) 4,038 3,422 14,304 14,854
Zinc (tonnes) 4,043 5,556 19,762 21,679
Sales
Copper (tonnes) 4,038 3,819 13,894 15,221
Zinc (tonnes) 3,300 5,687 18,970 22,339
Production and sales numbers are preliminary and subject to final adjustment.
Production and sales numbers for Las Cruces, Cayeli and Pyhasalmi for year
2013 are on a pro forma full-year basis.
FULL-YEAR 2015 OUTLOOK
Copper Nickel Gold Zinc Platinum Palladium
(000s (000s (000s (000s (000s (000s
tonnes) tonnes) ounces) tonnes) ounces) ounces)
Total 410-440 32-40 218-247 40-45 25-35 26-29
Kansanshi 250-265 -- 150-170 -- -- --
Las Cruces 69-72 -- -- -- -- --
Guelb Moghrein 40-45 -- 52-57 -- -- --
Ravensthorpe -- 24-30 -- -- -- --
Kevitsa 16-18 8-10 11-13 -- 25-35 26-29
Cayeli 24-27 -- -- 22-25 -- --
Pyhasalmi 11-13 -- 5-7 18-20 -- --
Full-year 2015 outlook highlights:
- In addition to the attached full-year 2015 outlook, total physical production at Sentinel in 2015
is expected to be between 150,000 and 200,000 tonnes of copper. Sentinel
is performing well in the commissioning phase and ramping up as planned
toward commercial operation midway through 2015.
- Total capital expenditure, excluding capitalization of any precommercial production costs and capitalized interest, is estimated to be
between $1.2-billion to $1.4-billion.
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