Thursday, May 09, 2013

FQM records 15% rise in profits
By Gift Chanda
Wed 08 May 2013, 14:00 CAT

FIRST Quantum Minerals has recorded a 15 per cent jump in profits in the first three months of this year, mostly due to a surge in copper and gold sales.

The base metals miner, which operates the Kansanshi mine in Zambia, posted a gross profit of US $310.2 million in the first quarter this year, an increase of US$39.9 million over the same quarter last year.

"Gross profit was negatively impacted by lower realised copper and gold prices, higher royalty rates and higher depreciation. The Zambian copper royalty rate was increased from three per cent to six per cent, effective April 2012, resulting in an increase of US $17.2 million in the royalty expense in the first quarter of 2013 compared to first quarter of 2012," the company said.

Sales revenue was US $172.5-million or 24 per cent higher at US $901.2-million compared to the same quarter of 2012, the company said in a commentary accompanying the financial results ending March 31, 2013.

FQM's copper production rose 20 per cent to 79,308 tonnes in the period under review primarily due to increased throughput at its Kansanshi mine in North Western Province in Zambia.

The company said it expects copper production this year to be between 250,000 and 270,000 tonnes of copper and 126,000 and 140,000 ounces of gold.

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