First Quantum Minerals' third quarter copper production rose 9.8% on the year to 211,396 mt, due to record production at both Sentinel in Zambia and Cobre Panama in Panama, with all-in sustaining cost of $1.48/lb, and a C1 cash cost of $1.07/lb, the company said late Oct. 28.
The Toronto-listed company said copper production during the first nine months increased 15.6% year on year to 575,740 mt.
"Sentinel performed exceptionally in the quarter, achieving its highest ever quarterly production of 70,829 mt and record low cash costs," the company said in a statement.
"Increased throughput and higher grades resulted in the 25% increase in copper production from the same period in 2019, while lower maintenance costs, lower fuel prices and currency depreciation drove improved unit costs."
Analysts at investment bank Jefferies Group said: "The most significant risk to the company, in our view, is Zambia risk due to the weak Zambian economy. However, even there, this risk is likely in the form of potentially higher taxes and royalties rather than something more onerous."
Copper guidance increased
The company said it has updated its 2020 production guidance, with total copper production now up to between 750,000 – 785,000 mt, gold production guidance also increasing to be between 245,000 – 260,000 oz, while 2020 nickel production guidance is expected to fall between 13,000 - 15,000 mt from 15,000 - 17,000 mt.
"Production guidance includes current assumptions on the impact of COVID-19 on operations," the company said.
"Guidance involves estimates of known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different."
The company said third-quarter gold output increased 4% year on year to 72,926 oz, with gold production during the first nine months increasing 17.7% year on year to 206,386 oz. The company did not provide third-quarter nickel production figures.
National Bank Financial analysts said in a research note that at First Quantum's Ravensthorpe nickel mine in Western Australia, operations continued ramp-up through the third quarter with production of 5,133 mt.
"Production in the quarter was impacted by two unplanned high pressure acid leach descales," National Bank Financial analysts said.
The company said total 2020 capital expenditure guidance remains unchanged at $675 million.
