Production from the Kansanshi copper mine in the North-Western Province of Zambia has come along just in time for First Quantum Minerals (FM-T, FQM-L), which posted net earnings of US$54.8 million (US86) on revenues of US$187.1 million in the first quarter of the year.
The earnings represent a year-on-year doubling of first-quarter earnings for the company, which started production from Kansanshi in April last year. In the first quarter of 2005 First Quantum made US$27.2 million on revenues of US$38.2 million.
Kansanshi was the big revenue-earner for First Quantum, pulling in US$124.9 million from production of 15,796 tonnes copper, while the Lonshi mine in the Democratic Republic of Congo and the Bwana Mkubwa solvent extraction-electrowinning plant across the border in Zambia produced 11,718 tonnes copper, taking in US$68.1 million in revenues.
First Quantum’s cash costs averaged out at US$1,785 per tonne (US81 per lb.) with Kansanshi at US$1,410 and Bwana Mkubwa at US$1,985. The first quarter is the wet season in the African Copper Belt and costs typically rise. The company realized an average of US$4,982 per tonne (US$2.26 per lb.) from copper sales.
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