First Quantum Minerals Q3 Earnings Call Highlights

The company resumed concentrate exports, shipping 33,000 wet metric tonnes of copper concentrate in August and approximately 39,000 wet metric tonnes in September. It began the program with 38 million tonnes of stockpiled ore, which management said is sufficient to support processing until the middle of 2027.

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First Quantum maintained its 2026 stockpile-processing outlook of 30,000 to 40,000 tonnes of copper and 10,000 to 15,000 ounces of gold from Cobre Panamá. The company lowered its estimate for stockpile-processing costs to $200 million from $250 million, with $80 million spent to date.

In September, Panama's Interministerial Commission issued recommendations regarding the mine's future. Pascall said the report recommended that the government negotiate a new framework with First Quantum that could resolve outstanding arbitration proceedings and allow a restart to support a self-funded, long-term closure process. The recommendations also address environmental, social and economic outcomes, he said.

The Commission noted that an immediate closure would place a substantial burden on Panama and instead recommended progressive closure over several decades funded through mine activity, according to Pascall. The report also said the mine's territorial footprint should not expand and should be progressively reduced through closure and rehabilitation.

Pascall described the report as a positive step toward formal dialogue but said the company must still negotiate legal, environmental and commercial terms with the government. He said Panama's immediate focus is earthquake relief, and the company expects formal discussions to begin after a government announcement.

If full operations are approved, management expects Cobre Panamá could reach roughly 80% of its prior operating level within six to nine months. Pascall said the principal work would involve rebuilding mining activity, including returning trucks to service and training operators. First Quantum continues to estimate that a full restart would require another $250 million beyond the stockpile-processing program for working capital, capital expenditures and commissioning costs.

Production trends and revised guidance

First Quantum produced approximately 109,000 tonnes of copper in the third quarter and sold 110,000 tonnes. Kansanshi produced about 46,000 tonnes, up 2,000 tonnes sequentially, as its S3 expansion operated above design capacity due to strong utilization, operating time and milling rates.

The company narrowed Kansanshi's 2026 copper-production guidance to 175,000 to 185,000 tonnes and lowered its gold outlook to 95,000 to 105,000 ounces. Management said stripping at Southeast Dome is taking longer than planned, which will result in lower grades continuing into 2027. The company did not quantify the extent of the delay and said it would provide further guidance early next year.

At Sentinel, production totaled approximately 49,000 tonnes of copper, down about 1,000 tonnes from the prior quarter as lower grades outweighed improved throughput. Access to higher-grade areas was delayed by lower mining volumes during the mid-life overhaul of Rope Shovel 1. First Quantum expects grades and throughput to improve in the fourth quarter as the shovel returns, a larger hydraulic face shovel is deployed and In-Pit Crusher 4 resumes operation.

• Sentinel's 2026 copper guidance was updated to 190,000 to 200,000 tonnes.

• Enterprise produced just under 10,000 tonnes of nickel, down 13% from the prior quarter because of lower grades. Its 2026 contained-nickel guidance increased to 40,000 to 45,000 tonnes.

• Guelb Moghrein produced 1,000 tonnes of copper and 16,000 ounces of gold. Gold guidance increased to 45,000 to 50,000 ounces following its transition to a gold-focused operation.

At Kansanshi, First Quantum sold 70,000 tonnes of surplus sulphuric acid after prioritizing lower acid-consuming material. MacWilliam said acid prices in Zambia increased from $180 per tonne in the first quarter to $460 per tonne in the third quarter. The acid sales generated $33 million in revenue and provided a 14-cent-per-pound byproduct credit to copper C1 costs.

Costs, balance sheet and project pipeline

Excluding Cobre Panamá stockpile processing, copper C1 costs were $2.40 per pound, eight cents lower than the previous quarter. Including Cobre Panamá, C1 costs were $2.59 per pound, up five cents sequentially. A full quarter of Cobre Panamá processing added 13 cents per pound, MacWilliam said.

The company updated copper C1 cost guidance to $2.50 to $2.65 per pound, citing elevated diesel prices and a stronger Zambian kwacha. All-in sustaining cost guidance increased to $4.10 to $4.25 per pound, largely due to higher royalties associated with stronger copper prices and lower production volumes. Total capital-expenditure guidance was narrowed to $1.15 billion to $1.25 billion.

Net debt declined by $98 million to $5.3 billion, while net leverage improved to 2.6 times, the company's lowest level since the third quarter of 2023, before Cobre Panamá's production suspension. Pascall said First Quantum remains focused on deleveraging and is targeting net debt to EBITDA near one times before sanctioning its Taca Taca project.

Management said Taca Taca's environmental and social impact assessment approval is expected this year following a public consultation scheduled for November. The company is also preparing an application under Argentina's RIGI investment framework. At La Granja, engineering, environmental baseline work, community engagement and resettlement planning are advancing, with a technical report on reserves expected in 2027.

About First Quantum Minerals (TSE:FM)

First Quantum is engaged in the production of copper, nickel and gold, and related activities including exploration and development. The Company has operating mines located in Zambia, Türkiye and Mauritania. The Company's Cobre Panamá mine was placed into a phase of Preservation and Safe Management in November 2023. The Company's Ravensthorpe mine was placed into a care and maintenance process in May 2024. The Company is progressing the Taca Taca copper-gold-molybdenum project in Argentina and is exploring La Granja and the Haquira copper deposits in Peru.

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