KANSANSHI Mining has recorded its highest production since 2014 following increased smelter availability and sulphuric acid supply from its state-of-the-art Kansanshi Smelter in Solwezi.
First Quantum Minerals (FQM) attributed the overall strong performance of the corporate group to improvement in handling costs and efficiency.
According to FQM 2016 second quarter results, the mining company set new quarterly records for copper production with sales of 131,349 tonnes and 132,030 tonnes respectively, which surpassed previous records set in the first quarter of the year.
The results released by FQM president Clive Newal on behalf of the Board of Directors indicate that the 53 percent increase in copper production at Sentinel Mine in Kalumbila, North-Western Province over the first quarter of 2016 was reflective of steady operational and power supply improvements.
The statement says that the higher sales volume compared to the first quarter of this year, was mostly due to increased production at Sentinel Mine.
FQM chairperson and chief executive officer, Philip Pascall said, “strong performance by all parts of First Quantum continues, as focus on two of our most important priorities pay off.”
“Firstly, all our company’s operations have shown improvements in costs and efficiency. The greatest impact was attributable to Kansanshi, and the operation of its smelter. This provides the mine with more acid than previously available, and at virtually no cost. The extra acid helps recovery of mixed and high acid consuming oxide ores.
“The combination of higher recoveries, negligible acid cost, and the lower smelting treatment costs, make a significant difference. Other aspects of Kansanshi, particularly mining, have also improved markedly, as they have across the company.
“Secondly, successful completion of the sale of Kevitsa, and refinancing the senior debt facility have further strengthened the company’s financial position, and hence its ability to continue developing the Cobre Panama project, amid volatile market conditions and sustained lower commodity prices.
“Going forward, we are making progress with the complex process of arranging project financing for Cobre Panama. We will continue to be alert to any opportunities for further cost savings and improvements in profitability and cash flow.”
Among the highlights contained in the results published, the average price for copper of $2.21 per pound, which FQM realised, exceeded the average price of $2.15 at the London Metal Export (LME), primarily on account of the company’s copper sales hedge programme.
The company successfully completed two main initiatives in the strategy to protect the company in volatile market conditions and sustained lower commodity prices.
These were putting in place a new $1.815 billion debt facility, comprising of equal amounts of Term Loan and Revolving Credit Facility.
The new facility, which has improved financial covenants and amortisation schedule, will mature in 2019 and replaces the previous $3.0 billion facility.
The mining giant also completed the sale of the Kevitsa Mine to Boliden AB for $712 million in cash plus restricted cash and working capital adjustments of which $663 million was received on June 1, this year.
The statement says the remaining amount is due to be received in the third quarter of 2016.
FQM ended the quarter with $895 million in unrestricted cash, $593 million in committed, undrawn facilities, working capital of $553 million and in full compliance with all financial covenants
Yes… let’s retire HH once and for all
HH IS A PATHETIC LIAR
HH over-promising
HH false hope
August 11 vote PF ( Edgar )
I thank you
This Kansanshi report will not help PF on copperbelt at all.
HH is now giving rallies in Bemba, and Scot singing better than JK & team. People are too excited about UPND, its just a matter of 10 sleepless nights, I can’t wait to see new ministers.
Yes let’s retire those big liars who have failed to repair the Chingola road. If HH, Nawakwi, Kabimba…..are part of this failed project to tar the Chingola road then let us restire them too and look for better people. Otherwise I am not supporting Brother Katondo Boys candidate right now.The Northwestern economical giant has been neglected for so long. Glad to see increased production at Kansanshi
Good rational thinking.
@1.1 Nostradamus, I am at a loss with the first part of your comment. The good news seems to be eating you up since UPND thrives on bad news for our economy.
I have no quarrel with the second part if HH has finally acknowledged the importance of my language Bemba and has now learnt the language. He will fit better in society if he learns languages as one zambia one nation.
Waiting to see the Grand re-opening of Mulungushi Textiles in Kabwe today. Its 1 August. Also looking forward to hear that 2,500 have been employed. Kabwe people please update us.
Why do we have to bring HH, Edgar, Nawakwi etal in this report. This is business report can we comment on the financial results of FQM and how it would help the economy of Zambia regardless of whether Edgar Lungu or HH or Nawakwi wins.
Well done President Lungu, and PF, for enhancing Kansanshi’s production.
Another 5 year tenure will see Zambia cross 2m tonnes per year of copper
The problem when you have people that can not make single sense from a simple report is very sad. What is there to get excited about FQM report.
1. They have not paid taxes despite having record production instead the Government paid them back US$90 Million for VAT refund.
2. What economy growth is this mine putting in Solwezi. Take a look a Kalumbila mine there have put up houses, roads, etc in the area but this FQM is failing to build a tar road in Solwezi which its trucks uses every day.
3. Why have they not stated the profit it has made but only increased production. Check its balance sheet and you will notice they have recorded a loss to avoid paying taxes.
No wonder we have people who when asked why are you voting for Lungu, they can only provide two answers;
He is humble and…
HH 10 point plan If you read it there is no difference with a business proposal.
I got shivers the first time I read the first two proposals.