First Quantum Minerals’ Revenue to Decline Amid Cobre Panamá Challenges

First Quantum

Canadian mining company First Quantum Minerals (TSX: FM) is projected to see its revenues decline by -14% year over year in fiscal 2023, and by -26% in 2024, based on Visible Alpha consensus estimates. Analyst projections suggest a dip in revenues across all of the miner’s major mining operations in 2023 and most in 2024, followed by a recovery in 2025.

For 2024, analysts have made major negative revisions to the company’s total revenue line following news of the miner being forced to halt production at its Cobre Panamá copper mine in November 2023. The Cobre Panamá project, among the world’s largest open-pit copper mines, was forced to shut down following a ruling by Panama’s Supreme Court deeming its contract unconstitutional. This mine contributed 39% to the company’s total revenue in 2022 and was expected to be a key driver of growth for the next three years. Without Cobre Panamá, First Quantum Minerals’ production in 2024 will rely heavily on its Zambian operations, including the Kansanshi and Sentinel mines. Together, these two mines are projected to constitute 69% of the company’s total revenue in 2024, compensating for the halt in Cobre Panamá production.

Sector: Materials
Industry: Copper
VA Ticker(s): FM_CA