Back to top

Image: Bigstock

First Quantum (FQVLF) to Shut Production at Cobre Panama Mine

Read MoreHide Full Article

First Quantum Minerals Ltd. (FQVLF - Free Report) received orders from Panama's trade and industry ministry to end operations at its Cobre Panama, per reports. The ministry formally advised the company to halt all activities related to extraction, processing, refining, transportation, export and sales at the mine.

Previously, on Nov 28, 2023, the company announced that the Supreme Court struck down its contract to operate at the Cobre Panama mine. Panama's Supreme Court of Justice ruled that Law 406 is unconstitutional. On Oct 20, 2023, Law 406 approved the concession contract for the Cobre Panama mine.

The company halted operations at its Cobre Panama mine due to a blockade of small boats at the Punta Rincon port on Nov 20, which hampered the delivery of essential supplies. It is implementing a Preservation and Safe Maintenance program to safeguard the mine's compliance and environmental integrity, asset preservation and safe maintenance.

Cobre Panama accounted for roughly 40% of First Quantum's revenues and 1.5% of the world’s copper supply in 2022. In the third quarter of 2023, the mine produced 112,734 metric tons of copper and contributed $930 million to the company’s quarterly revenues.

In the same quarter, First Quantum recorded total revenues of $2,029 million, of which $1,791 million was contributed by copper sales. The company reported revenues of $1,727 million in the third quarter of 2022.

Price Performance

First Quantum’s shares have lost 66.4% in the past year against the industry’s growth of 7.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

First Quantum currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the basic materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , Universal Stainless & Alloy Products, Inc. (USAP - Free Report) and The Andersons Inc. (ANDE - Free Report) . While AXTA sports a Zacks Rank #1 (Strong Buy), both USAP and ANDE carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share, and the same moved north 23% in the past 60 days. Its shares have risen 15.7% in a year.

Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share, which has remained unchanged in the past 60 days. USAP’s shares have rallied 96% in the past year.

The consensus estimate for ANDE's current-year earnings has moved north 3.3% over the past 60 days. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 64.4%. ANDE’s shares have rallied around 32% in a year.

Published in