Vancouver — Southern African copper producer
The company generated US$113.5 million in revenue for the year, or 88% more than the US$60.5 million created in 2003. Earnings amounted to US$28 million (or US47 per share), compared with US$4.6 million (US9 per share) in the previous year.
First Quantum produced 41,546 tonnes copper in 2004, a 41% increase over the 29,513 tonnes cranked out in 2003, while the average realized copper price increased to US$1.13 from US75 per lb.
In Zambia, the Bwana Mkubwa mine, which uses solvent extraction-electrowinning, processed more than 980,000 tonnes of oxide ore at an average grade of 4.8% acid-soluble copper. Recoveries averaged 88%; cash costs, US46 per lb. The plant also produced more than 140,000 tonnes of sulphuric acid last year, though sales were down because of a 27% increase in acid consumption in the leach circuit. A new ore delivery system improved throughput, and an increase in electrical current flow enabled more copper to be plated at the electrowinning circuit.
The Lonshi copper mine in the Democratic Republic of Congo (DRC), which feeds ore to the Bwana Mkubwa SX-EW plant, mined 669,000 tonnes of ore grading 5.5% copper in 2004. The 6% drop in the amount of ore mined, compared with 2003 figures, was more than offset by a 15% increase in grade. To meet the increased demand for ore feed at Bwana Mkubwa, the company bolstered its mining fleet at Lonshi and developed a revised mining plan. The new plan, factoring in higher copper prices, saw a boost in reserves and will use an increased stripping ratio of 12-to-1 versus the previous 8-to-1.
Construction at First Quantum’s 80%-owned Kansanshi copper-gold project is complete, and waste stripping and stockpiling of ore has begun. A 330-Kv power line is feeding power to the site where the processing circuit is being commissioned. Full commercial production, including the oxide circuit, is anticipated by April.
At the Frontier (formerly Lufua) project in the DRC, an independent resource estimate has been tabled. The 87.6-million-tonne resource of 1.17% copper contains a high-grade cobalt resource of 5.6 million tonnes grading 0.169%. Infill drilling, designed to upgrade the resource to reserve status, has been completed, and a prefeasibility study should be finished by mid-2005.
Following the recent purchase of an 80% interest in the Guelb Moghrein copper-gold deposit in Mauritania, the company will be updating the historical measured and indicated resource of 23.7 million tonnes at 1.9% copper and 1.4 grams gold per tonne so that it complies with National Instrument 43-101. Production is envisaged for late 2005.
The company recently realized a gain of US$16 million as a result of its sale of 4 million shares of
An inaugural dividend of 6 per share will be paid to shareholders in late April.
Shares in First Quantum have increased appreciably over the past year, rallying from a low of $11.50 to a recent close of more than $25 (near its 52-week high of $26.33). The company, with 61.2 million shares outstanding, posts a market capitalization in excess of $1.5 billion.
Be the first to comment on "First Quantum revenue soars on copper gains"