Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • First Quantum reported Q2 2025 net earnings of USD 18 million and EBITDA of USD 400 million.
  • Copper production fell 9% quarter-over-quarter to 91,069 tonnes, while gold output reached 27,764 ounces.
  • Net debt decreased by USD 334 million to USD 5.45 billion due to cash inflows from copper prepayment.

First Quantum Minerals Ltd. (TSX:FM) reported net earnings attributable to shareholders of USD 18 million (USD 0.02 per share) for the second quarter of 2025, with adjusted earnings of USD 17 million (also USD 0.02 per share). EBITDA reached USD 400 million, up from USD 377 million in the first quarter, supported by higher realized copper and gold prices and increased gold sales volumes.

Total copper production for the quarter was 91,069 tonnes, representing a 9% decline from the previous quarter, mainly due to reduced output at Kansanshi. C1 cash cost for copper rose USD 0.05 per pound to USD 2.00, driven by lower production volumes. Copper sales totaled 101,173 tonnes, benefiting from the export of 8,248 tonnes from Cobre Panamá, where shipments resumed after government approval of the Preservation and Safe Management (P&SM) plan.

Gold production remained a bright spot, totaling 27,764 ounces in Q2 2025, aided by gravity concentrator upgrades at Kansanshi. Nickel production at Enterprise dropped to 4,018 tonnes, down 14% from the previous quarter, as grade and throughput declined due to changes in the mining sequence. Nickel C1 cash cost rose USD 1.05 to USD 5.83 per pound.

At Cobre Panamá, operations have been suspended since November 2023, but the P&SM plan approved in May 2025 has enabled copper concentrate exports and pre-commissioning of the power plant. Cobre Panamá exported three concentrate shipments by July, with a fourth expected soon. P&SM costs averaged USD 15 million per month in Q2 and are expected to rise to USD 17–18 million monthly in Q4 with the restart of the power plant.

The Kansanshi S3 Expansion project is nearing completion, with the first production expected in H2 2025. As of Q2 2025, the project was 91% complete, and operational readiness stood at 93%. Construction spending has passed its peak and is expected to decline going forward.

In exploration, First Quantum reported progress on evaluating a newly identified near-surface gold zone at Kansanshi's South East Dome area. Preliminary testing yielded positive results, and additional bulk sampling and pilot plant work are underway, though this potential production is not yet included in the company’s mine plan or guidance.

Financially, the company recorded gross profit of USD 351 million and operating cash flow of USD 780 million, significantly higher than Q1 due to a USD 500 million copper prepayment and resumed shipments from Panama. Net debt declined by USD 334 million to USD 5.45 billion.

First Quantum also continued hedging programs to manage metal price risk, with copper collar contracts covering 228,800 tonnes and gold collars covering 78,318 ounces, both maturing through June 2026.