First Quantum Minerals Ltd. reported a net loss of US$196 million in the first quarter, widening from a loss of US$23 million in the same period last year. The Canadian mining company attributed the decline to lower copper production at its key operations, including the Cobre Panamá mine in Panama, and increased operational costs.
Financial Highlights
The company's revenue fell to US$1.1 billion from US$1.3 billion a year earlier, impacted by a 12% drop in copper output. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at US$234 million, down from US$412 million in the prior-year quarter.
Operational Challenges
First Quantum faced several headwinds during the quarter, including lower ore grades at its mines and higher input costs for fuel and reagents. The Cobre Panamá mine, which accounts for a significant portion of the company's production, experienced a temporary shutdown due to maintenance issues.
Despite the challenging quarter, the company reaffirmed its full-year production guidance of 775,000 to 835,000 tonnes of copper. First Quantum also announced plans to cut costs by US$100 million annually through operational efficiencies and workforce reductions.
Market Reaction
Shares of First Quantum fell 3.5% on the Toronto Stock Exchange following the earnings release. Analysts noted that the results were largely in line with expectations, but the wider loss and lower revenue raised concerns about the company's near-term profitability.
First Quantum's net debt increased to US$5.6 billion from US$5.2 billion at the end of 2025, driven by capital expenditures at its expansion projects. The company said it remains focused on reducing leverage and improving cash flow generation.
