First Quantum Minerals (FM) Q1 2026 earnings summary

Executive summary

• Q1 2026 copper production was 96,469 tonnes, down 4% from Q4 2025 due to lower grades, with strong operational milestones at Kansanshi S3 circuit despite macroeconomic and supply chain challenges.

• Net loss attributable to shareholders was $196 million ($0.24 per share), with adjusted loss per share of $0.18, driven by lower sales volumes, hedge losses, and a stronger Zambian Kwacha.

• Major developments included approval to process and export Cobre Panamá stockpiled ore, with a conservative ramp-up plan and significant local employment impact.

• Sale agreements for Çayeli ($340 million) and Las Cruces ($190 million), and a new $2.2 billion term loan and revolving credit facility, strengthened the balance sheet.

• Taca Taca project advanced with a technical report and IFC alignment, confirming robust economics and sustainability focus.

Financial highlights

• Q1 2026 revenue declined 5% year-over-year to $1.4 billion, with EBITDA down 30% to $326 million and a net loss of $196 million.

• Adjusted loss per share was $0.18; gross profit was $278 million, with $144 million in hedge losses.

• Net debt increased by $92 million to $5.28 billion, reflecting planned CapEx, interest, and tax outflows.

• Gross realized copper price was $5.16/lb, up 6% quarter-over-quarter, despite $129 million in hedge losses.

• All-in sustaining cost (AISC) for copper was $4.05/lb in Q1 2026.

Outlook and guidance

• 2026 copper production guidance increased to 405,000–475,000 tonnes, reflecting inclusion of Cobre Panamá stockpiled ore.

• Updated 2026 copper C1 cash cost guidance: $2.15–$2.40/lb, with a potential further $0.25/lb increase if fuel and FX trends persist.

• Capital expenditure guidance increased to $1,075–$1,250 million for 2026.

• Gold production guidance lowered to 150,000–175,000 ounces due to timing changes at Guelb Moghrein.

• No changes to guidance for recent commodity price or FX movements; further updates expected later in the year.