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First Quantum earnings dip on Inmet buy

Keywords: Tags  First Quantum Minerals, earnings report, Inmet Mining, copper, nickel, Kevitsa, Kansanshi, Cayeli Las Cruces

NEW YORK — First Quantum Minerals Ltd.’s earnings dipped in the first quarter due to an increase in general and administrative costs related to the company’s acquisition of Inmet Mining Corp.

Vancouver, British Columbia-based First Quantum posted net income attributable to shareholders of $112.4 million, down 40 percent from $186.7 million in the fourth quarter of 2012 and well below nearly $1.34 billion in the first three months of last year, when earnings were considerably higher due to the company’s sale of assets in the Democratic Republic of the Congo (, May 3, 2012).

First Quantum’s quarterly sales increased 23.7 percent to $901.2 million as higher copper and nickel sales volumes offset the impact of lower average copper and nickel prices. The increase included $39.8 million sales revenue from the company’s Kevitsa nickel-copper-platinum project in Finland and $29.8 million from Inmet’s mining operations in Spain (Las Cruces), Turkey (Çayeli) and Finland (Pyhäsalmi). First Quantum completed the Canadian $5.1-billion acquisition of Inmet in April (, April 3).

Copper production totaled 79,308 tonnes in the first quarter, up 20.4 percent from 65,869 tonnes a year earlier due to increased throughput at Kansanshi Mine in Zambia and the addition of material from Inmet’s operations, and sales rose 31.5 percent to 89,109 tonnes from 67,789 tonnes.

First-quarter nickel production jumped 29.1 percent to 11,072 tonnes from 8,573 tonnes a year ago, and sales more than doubled to 11,048 tonnes from 5,332 tonnes.

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