FQM records $420m loss

FIRST Quantum Minerals (FQM) has recorded a loss of more than $420 million after posting revenue of $673 million for the third quarter of 2015.

Despite this, the firm is, however, impressed with effective operations at all its facilities.
The mining company which recorded a profit during the 2014 third quarter incurred a loss of 62 cents per share in the 2015 third quarter.
“Good operations at all our facilities combined with the benefits from our cost and cash containment efforts and the excellent operation of our new smelter yielded solid results for the quarter,” FQM chairperson and chief executive officer, Philip Pascall said with reference to 2015 third quarter results.
In presenting the company’s third quarter 2015 results, FQM president Clive Newall, said the net loss attributable to shareholders of $427 million in additional to a $471 million deferred income tax charge triggered by the reinstatement of corporate tax by the Zambian Government from July 1 this year.
Mr Newall explained that, another setback was the unrealised foreign exchange loss of $94 million on the revaluation of Zambia’s value added tax (VAT) receivable due to the depreciation of the kwacha against the US dollar in the third quarter.
In a related turn of events, the full quarter operation of the world-class Kansanshi Smelter in Solwezi, yielded positive developments with 254, 709 tonnes of concentrate processed with an average copper recovery above design at 97.8 percent.
Production totalled 57, 085 tonnes of copper anode and 229,000 tonnes of sulphuric acid.
According to the third quarter highlights, copper production, sales and cash cost were better than both comparative quarter and second quarter of 2015.
Mr Newall said production derived 107,485 tonnes, while sales accounted for 104,613 tonnes, with the cash cost—prevailing at $1.18 per pound.
He said the company recorded its best quarterly nickel production since the third quarter of 2014 on higher output at Kevitsa in Finland and the steady improvement at Ravensthorpe in Australia. – Story courtesy of SUMA SYSTEMS.