First Quantum profitable (December 08, 2003)

The third quarter of 2003 was a good one for First Quantum Minerals (FM-T), as its Bwana Mkubwa operation in the Zambian copper belt produced 8,862 tonnes copper at a cash cost of US$925 per tonne (US42 per lb.).

First Quantum posted net earnings of US$3.2 million (US6 per share) on revenue of US$17.8 million for the quarter ended Sept. 30. For the first nine months of 2003, the company showed a profit of US$3.1 million on revenue of US$40.8 million.

The most nearly comparable figures for the previous year indicate a quarterly loss of US$394,000 on revenue of US$6.3 million, and a 9-month loss of US$2.8 million on revenue of US$39.5 million, both to the end of August 2002.

First Quantum’s main operations, the Bwana Mkubwa plant near Ndola, Zambia, and the Lonshi mine, immediately across the border in the Congo, returned an operating profit of US$6.2 million in the quarter. Lonshi produced 260,000 tonnes ore in the third quarter — the first major production from the new open pit there. Expansion of Bwana Mkubwa’s solvent extraction-electrowinning plant meant the quarterly production rate was about three-and-a-half times the comparable figure in 2002.

The sulphuric acid plant at Bwana Mkubwa produced 36,245 tonnes of acid, with 20,275 tonnes sold to other operations. Sulphuric acid sales are registered as a credit against the operation’s cash cost.

Site clearance and earthworks, and some foundation pouring, have started at the Kansanshi copper project, in the Northwestern Province of Zambia, near Solwezi. The project is expected to be commissioned in late 2004 and commercial production should start in early 2005.

First Quantum owns 80% of the project, with Zambia Consolidated Copper Mines holding the rest.

First Quantum also arranged a US$30-million term-debt facility for Bwana Mkubwa, which will be used to retire existing project debt, pay for some additional capital expenditures at Bwana Mkubwa, and build an acid plant for Kansanshi.