Proactive Investors - First Quantum Minerals (TSX:FM) (TSX:FQM) saw its first-quarter 2023 earnings fall more than 80% to US$75 million, or $0.11 per share, as the miner cited a standoff with the government of Panama and a severe rainy season in Zambia as reasons for a 33% quarter-over-quarter decline in its copper output.
Production at Cobre Panamá, the company’s large open-pit copper mine in Panama, was impacted following a dispute with the country’s government over tax and royalty payments.
First Quantum, though, announced that it reached a new agreement with the Panama’s government in March, with mining operations increasing up to full production levels within two days.
Meanwhile, output at the company’s Sentinel mine in Zambia slid 51% due to water accumulation on the pit, while production at its Kansanshi operations in Zambia slipped 18% as a result of the rainy season and lower feed grades.
Despite its challenges, the company’s CEO Tristan Pascall noted that First Quantum remains on track to achieve its targets for the remainder of year.
“We are focused on improving operational performance and expect production to recover over the course of the year and, as such, we remain committed to our guidance for 2023,” Pascall said in a statement.