First Quantum Minerals: Strong 2024 Results and Robust 2025-2027 Guidance

First Quantum Minerals Ltd. (TSX: FM) has announced its preliminary production results for the three months and year ended December 31, 2024, as well as guidance for production, capital expenditure, and costs for the years 2025 to 2027. The company's Zambian operations delivered strong results in 2024, supported by a focus on operational excellence across copper, gold, and nickel production. The S3 Expansion at Kansanshi remains on track for completion in mid-2025, representing an inflection point that will enhance the Company's financial resilience and support sustainable growth.



In 2024, First Quantum achieved annual copper production of 431 thousand tonnes (kt), exceeding the guidance range of 400 to 420kt. Kansanshi achieved its highest copper and gold production since 2021 and 2022, respectively, driven primarily by higher grades. Sentinel's increased copper production reflected higher grades and throughput, with the highest average grades since 2017. Copper production in Q4 2024 was 112kt, 14kt above Q4 2023 (excluding Cobre Panamá) but 4kt below Q3 2024.



Three-year guidance, excluding Cobre Panamá, shows a slight lowering of copper production guidance for 2025 and 2026, reflecting a conservative ramp-up of S3 at Kansanshi and a rescheduling of mining at Sentinel to de-risk future ore supply. Gold production guidance has increased due to the continued discipline in mining high-veined areas with higher gold grades at Kansanshi. Nickel production guidance for Enterprise represents the ramp-up of operations as the orebody becomes more accessible. Total C1 and AISC unit cost ranges are marginally above previous guidance, driven by higher contractor and employee costs and imported power costs. 2025 capital expenditure guidance has increased to reflect approximately $100 million of expenditures carried over from 2024 along with higher cost pressures, such as power costs and labour rates. The S3 Expansion project remains on budget.

Cobre Panamá currently remains in a phase of Preservation and Safe Management (P&SM) with production halted. Approximately 1,300 workers remain on site, and further workforce reductions may occur depending on the timing of the P&SM program that would permit the shipment of 121 thousand dry metric tonnes of copper concentrate that remains on site. Implementation of the P&SM program continues to await approval from the Panamanian authorities.

On January 6, 2025, Panama's Ministry of Environment (MiAMBIENTE) released the Terms of Reference for an Environmental Audit of the Cobre Panamá mine, which will be conducted by international experts to provide updated information on the status of the site and support the Government of Panama's decision-making about the future of the mine. The Terms of Reference for the Environmental Audit will be submitted to a public consultation process, with a public comment period expected to conclude February 7, 2025.

On January 12, 2025, the Minister of Environment and the Minister of Security conducted a site visit of Cobre Panamá. During the visit, the ministers were given a tour of the mine site, highlighting the P&SM plan that is designed to ensure site stability, protect the assets of the mine, and ensure the well-being of the workforce, communities, and the environment. The visit also enabled the ministers to inspect 7,960 tons of ammonium nitrate stored at the mine's Punta Rincón port. The Minister of Environment has subsequently stated that the material should be exported.

First Quantum's strong 2024 results and robust 2025-2027 guidance demonstrate the company's commitment to operational excellence and sustainable growth. As the company moves into 2025, its priorities include building balance sheet strength, advancing key initiatives, and working constructively with the Government of Panama on responsible stewardship and progress toward a resolution for the Cobre Panamá mine. Investors should closely monitor the company's progress as it continues to execute on its strategic plan.