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First Quantum says Q2 earnings drop 42 per cent to US$78 million

TORONTO — First Quantum Minerals Ltd. says its earnings dropped 42 per cent in the second quarter from last year even as its copper production reached a record high.

The company, which reports in U.S. dollars, says it had net earnings of $78 million in the last quarter compared with $135 million for the same quarter last year.

RBC Capital Markets analyst Sam Crittenden says the company's adjusted earnings of 13 cents per share were in line with the consensus and his expectation.

The company says commercial production at its massive Cobre Panama project is now expected in the third quarter rather than the fourth, while cost expectations have gone up by six per cent to $6.7 billion.

The company says it also reached a settlement deal last week with the Zambian government on duties that was in line with its guidance.

First Quantum produced 168,399 tonnes of copper in the quarter compared with 150,950 tonnes last year, and pulled in revenue of $939 million compared with $1.05 billion last year.  

On the Toronto Stock Exchange, its shares closed at $12.24, down 27 cents or 2.2 per cent in Monday trading.


Companies in this story: (TSX:FM).

The Canadian Press