TORONTO, Jan. 09, 2020 (GLOBE NEWSWIRE) — First Quantum Minerals Ltd. (“First Quantum” or the “Company”) (TSX:FM) today announced preliminary production for the three months and year ended December 31, 2019, and guidance for production, capital expenditure and costs for the years 2020 to 2022.

2019 PRELIMINARY PRODUCTION

The Company achieved its highest ever annual copper production of 702,000 tonnes, an increase of 96kt from 2018 production. Copper production in Q4 2019 was 204kt compared to 158kt in the same quarter in 2018.

Cobre Panama’s final mill (8^th mill), came on line in mid-December, providing additional capacity on the third milling train.  Mill throughput can now ramp-up to annualized production of 85 million tonnes.  Mill throughput for the month of December was 6.6 million tonnes. Production for Q4 2019 was 60kt with 25kt produced in the month of December.

Kansanshi copper production for the fourth quarter was in line with the comparable period of 2018 though, as noted in Q2 and Q3 2019, lower oxide ore grades and resulting recoveries contributed to lower copper production for the year compared with 2018.

Sentinel copper production for the fourth quarter reflects lower feed grades and lower recoveries due to transitional ore mined from the east cutback of the pit which resulted in lower production compared with the comparable period of 2018.

Amounts are preliminary and subject to final adjustment. The final production figures will be provided in the Company’s financial results for the fourth quarter and year ended December 31, 2019.

 ¹  Production presented on a copper concentrate basis, i.e. mine production only. Production does not include output from the Kansanshi smelter.
 ²  Copper and gold production volumes include pre-commercial and commercial production from Cobre Panama. Cobre Panama was declared in commercial production from September 1, 2019.

2020 – 2022 GUIDANCE

Guidance is based on a number of assumptions and estimates as of December 31, 2019, including among other things, assumptions about metal prices and anticipated costs and expenditures. Guidance involves estimates of known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different.

Production guidance

Production guidance by operation

Copper

Gold

Nickel

Cash cost and all-in sustaining cost

Production at Ravensthorpe is expected to ramp-up through 2020.  In the first two full years of production, 2021 and 2022, C1 and all-in sustaining cost costs are expected to be between $4.60 – $4.80/lb and $5.10 – $5.40/lb respectively.

Capital expenditure

On Behalf of the Board of Directors of First Quantum Minerals Ltd.                
G. Clive Newall
President

For further information visit our website at www.first-quantum.com

North American contact: Lisa Doddridge, Director, Investor Relations
Tel: (416) 361-3752 Toll free: 1 (888) 688-6577
United Kingdom contact: Clive Newall, President
Tel: +44 7802 721663
E-Mail: info@fqml.com

CAUTIONARY STATEMENT ON 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 securities laws. The forward-looking statements include estimates, forecasts and statements as to the Company’s expectations of production and sales volumes, and expected timing of completion of project development at Enterprise and post completion of construction activity at Cobre Panama and are subject to the impact of ore grades on future production, the potential of production disruptions (including at Cobre Las Cruces as a result of the land slippage in January 2019), capital expenditure and mine production costs, the outcome of mine permitting, other required permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, silver, nickel, zinc, pyrite, cobalt, iron and sulphuric acid, estimated mineral reserves and mineral resources, First Quantum’s exploration and development program, estimated future expenses, exploration and development capital requirements, the Company’s hedging policy, and 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 words 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, the Company has made numerous assumptions including among other things, assumptions about continuing production at all operating facilities, the price of copper, gold, nickel, zinc, pyrite, cobalt, iron and sulphuric acid, anticipated costs and expenditures and the ability to achieve the Company’s goals. 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 the 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 information. These factors include, but are not limited to, future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania, Finland, Spain, Turkey, Panama, Argentina and Australia, adverse weather conditions in Zambia, Finland, Spain, Turkey, Mauritania and Panama, labour disruptions, potential social and environmental challenges, power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, and the production of off-spec material.

See the Company’s Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has 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 these factors are beyond First Quantum’s control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes 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.

Source: Globe News Wire

Kansanshi Mine PLC has awarded its unionized workers a seven per cent salary increase across the board.

This follows the signing of the 2020 collective agreement with the Mineworkers Union of Zambia (MUZ), National Union of Miners and allied workers (NUMAW) and United Mineworkers Unions of Zambia (UMUZ).

NUMAW president James Chansa, who spoke on behalf of other unions, said the negotiations were due to the many challenges in the sector.

Chansa said the unions will work towards ensuring adherence to agreed conditions and further urged workers to continue working hard.

Meanwhile, Kansanshi Mine PLC Human Resource Manager, Maimbo Silimi said the collective agreement includes a seven per cent increase in salaries and an adjustments to the funeral grant, among other conditions.

He said the mining firm has also introduced long service awards for employees reaching five, 10 and 15 years.

Silimi said Kansanshi Mine was cognizant of the importance of its workforce, hence the adjustments to their packages.

©Zambia Reports 2020.

Source: Zambia Reports

KALONDE NYATI, Lusaka
UNIONISED workers at Kansanshi Mining Plc have been awarded a seven percent salary increment effective today.
Kansanshi Mining Plc human resources manager Maimbo Silimi said the increment will go a long way in cushioning the cost of living.
Speaking during the signing ceremony in Lusaka yesterday, Mr Silimi said the increment has been awarded despite the operational challenges affecting the mining firm  CLICK TO READ MORE 

Source: Zambia Daily Mail

Kansanshi, Africa’s largest copper mine, is located near Solwezi in Zambia. The mine site is very remote, so getting parts and replacement material to site is time consuming and costly.

Of particular concern for the operation was excessive wear in the tailings lines, as well as the overflow tank in the continuous counter-current decantation (CCD) circuit.

There is approximately 8km of tailings pipes running from the plant to the tailings dam. The mine had previously lined its pipes with a combination of high-density polyethylene (HDPE) liners and alumina ceramic tiles. These, however, only achieved a wear life of approximately nine months.

Kansanshi approached Weir Minerals Africa for an alternative solution and the company, which has a long-standing relationship with the mine, specified Linatex premium rubber to line the tailings pipeline. Known for its excellent wet abrasion properties, Linatex rubber also requires a considerably shorter time for lining installation when compared to alumina ceramic tiles.

The lining was completed well within the allotted time, saving Kansanshi unnecessary and costly plant downtime.

After 36 months in operation, the Linatex lining showed minimal signs of wear, and the installation has reduced the mine’s total ownership cost by over R1.6 million (US$107,000) per year.

Kansanshi also needed a more cost-effective wear solution for the overflow tank in the CCD circuit. This had previously been lined with alumina ceramic tiles, which only lasted between 60 and 90 days. The tiles were wearing away quickly due to the high impact and abrasion of the stones and sand flowing through the tank. Wash out between the tiles was preventing the tiles from adhering to the metal substrate and the subsequent damage to the tank required repair work.

In response, the Weir Minerals team specified Linagard nitrile-based rubber (NBR). The expected cost savings from the increased production and reduced maintenance offset the installation costs.

The Weir Minerals technical lining manager was on site for the duration of the tank re-lining to provide technical assistance to Kansanshi’s maintenance team.

Since installation, the Linagard NBR 30 has lasted 36 months without any visible signs of wear. According to Weir Minerals, this represents 18 times longer wear life than the previously installed alumina ceramic tiles and eliminated the need to repair the tank every 2-3 months.

Kansanshi has experienced significantly reduced downtime and increased productivity since the installation of the Linatex solutions, and mine maintenance personnel can focus on other areas of the mine. Weir Minerals stated that the mine’s costs have been reduced by R10.4 million (US$698,000) per year with its Linatex solutions.

Kansanshi Mining Plc has flagged off the 2019/2020 farming season by releasing farming inputs to more than 7,400 farmers in Solwezi and the surrounding areas in North-Western Province.

Solwezi District Commissioner Rosemary Kamalonga, who flagged off the 2019/2020 farming season, said government recognized the importance that Kansanshi Mining Plc attached to uplifting people’s living standards.

She said it was relieving to note that Kansanshi Mining Plc, which had trained more than 36,000 farmers under its Conservation Farming Programme, had continued to distribute farming inputs to farmers supported by the mine’s Corporate Social Responsibility (CSR) wing.

“Government is happy with its current partnership with Kansanshi Mining Plc in the crusade to improve food security through concerted efforts to ensure that agriculture assumes its rightful position as an alternative to mining and that Solwezi alone can be a food basket for Zambia,” Kamalonga said.

She added that the government equally recognized the mining company’s efforts to meet various community needs and extend social services to the people.

Kamalonga expressed government’s gratitude to what Kansanshi Mining Plc had done to empower residents in Solwezi and surrounding areas.

Kansanshi Foundation Supervisor Maximillian Katanga explained that 12,600 bags each of D Compound, Urea and seed respectively were ready for distribution to local farmers.

“Farmers pay K425 towards the inputs comprising a 50Kg bag of Urea, a 50Kg bag of D Compound and 10Kg bag maize seed to which Kansanshi adds the balance for each farmer so that they can manage to complete one lima of crops. 300 tonnes of lime has also been distributed to farmers, free of charge, with a view to boosting their yields,” explained Katanga.

Solwezi District Agriculture Coordinating Officer (DACO) Muyobo Shimabale also expressed gratitude for being part of the programme and thanked Kansanshi Mining Plc for supplementing what the Ministry of Agriculture was doing.

“I wish to encourage farmers to continue practicing conversation farming as it is in tune with climate change. When conversation farming is practiced, even in low rainfall periods, farmers are able to get the best results,” Shimabale said.

One of the beneficiaries of the farming inputs, Victoria Musumali, who produced 48 bags of maize from one lima during the 2018/2019 farming season, thanked Kansanshi Mine for the input support because she was able to feed her family and sell surplus maize to the Food Reserve Agency (FRA) and pay for her children’s school fees, among other needs for the family.

Kansanshi Mine provides training in farming’s best practice to farmers, farming input loans and close monitoring of the farmers’ activities to ensure maximum returns from their farming projects.

The model applied in the farming practices strictly observed sustainable permaculture rotation of maize, soya and groundnuts with minimum tillage, the use of mulch and early planting.

LUSAKA, ZAMBIA – First Quantum Minerals has recorded a 39 per cent increase in production at its Sentinel mine in the first quarter of 2018, compared with the same period of last year.

While the company’s Kansanshi smelter at Solwezi exceeded its target for the quarter, with 350,591 tonnes of concentrate processed.
The mining firm has also reported comparative earnings of US$49 million, even after a US$121 million loss realised under a programme to hedge copper sales, for which no tax credit is available.

“We are pleased with the quarter’s results in all aspects of the company. The solid performances at our Zambian operations are of particular note considering the severity of the seasonal rains,” noted FQM Chairman and CEO Philip Pascall, after the company released its first quarter 2018 financial and operating results on Thursday.

In executing several proactive measures to strengthen the balance sheet and improve liquidity, the global mining company FQM  ended the quarter with US$810 million in net unrestricted cash and cash equivalents, US$1,670 million of committed undrawn facilities and in full compliance with all financial covenants.

The mining firm has also put in place a new US$400 million five-year term facility agreement in the subsidiary that owns the Sentinel mine. Repayments are scheduled to start in December 2019.

The mining firm also completed a US$1.85 billion senior note programme, which will be used to repay an existing term loan facility, the outstanding balance on a revolving credit debt facility, fees associated with the offering and for general corporate purposes.

“With the reduction in our copper forward sales contracts, the value of maintaining our capital investment programme through a challenging economic environment is becoming more visible. The significant turnaround in our financial results from a year ago is indicative of First Quantum’s enhanced earnings and cash generating capability. This is expected to grow substantially when Cobre Panama begins commercial operations,” said Mr Pascall, referring to the company’s massive US$5.48 billion Cobre Project in Panama, which will become one of the largest copper mines in the world.

“While we had several successes in the quarter, we also had a few challenges. Such occurrences are not unexpected in the resource industry with the onset of improved commodity prices and sentiment. While this can be momentarily distracting, these matters do get resolved through open discussion and transparency which we are committed to,” Mr. Pascall concluded.

-Ends-

About First Quantum Minerals Ltd
First Quantum Minerals Ltd is a global metals and mining company producing mainly copper, gold, nickel and zinc. The company’s assets are located in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru.
In 2017, First Quantum produced 573,963 tonnes of copper, 199,736 ounces of gold and 17,837 tonnes of nickel.
In Zambia it operates the Kansanshi mine – the largest copper mine in Africa – and smelter and the Sentinel mine in Kalumbila.
The company is listed on the Lusaka and Toronto stock exchanges.
https://www.first-quantum.com/

Source: LANGMEAD & BAKER

ZCCM Investments Holdings PLC (“ZCCM-IH”) Files a Notice of Arbitration against Kansanshi Holdings Limited and Kansanshi Mining PLC.

On 26 October 2016, ZCCM-IH filed a Notice of Arbitration in London against Kansanshi Holdings Limited and Kansanshi Mining PLC for various Claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited. ZCCM-IH applied to the Arbitral Tribunal to bring a derivative claim on behalf of Kansanshi Mining PLC which application was heard on 10-12 January 2018.

Further to the Cautionary Renewal released by ZCCM-IH on 6th February 2018, regarding these matters and in compliance with the requirements of the Securities Act No 41 of 2016 and the General Obligations of Disclosure under the Continuing Obligations of the Listings Requirements of the Lusaka Securities Exchange, shareholders are informed that on 22nd February the Tribunal denied ZCCM-IH permission to bring its proposed derivative claim on behalf of Kansanshi Mining PLC.

On 22nd March 2018, following the award denying permission, ZCCM-IH filed an Arbitration Claim in the Commercial Court in London applying to challenge the award dated 22nd February 2018.

Shareholders of ZCCM-IH are accordingly advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Tuesday, 10th April 2018

Lusaka Securities Exchange Sponsoring Broker
	T | +260-211-232456 E | advisory@sbz.com.zm W | www.sbz.com.zm Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 1 November 2016