Copper miner First Quantum beats Q3 profit estimates on higher production, prices; output guidance narrowed

Overview

• Canada copper and nickel miner's Q3 revenue rose, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations, driven by higher production and metal prices

• Company narrowed copper and gold production guidance, raised nickel guidance for 2026

Outlook

• First Quantum narrows 2026 copper production guidance to 405,000–435,000 tonnes, down from 405,000–475,000 tonnes

• Company raises 2026 nickel production guidance to 40,000–45,000 tonnes, up from 30,000–40,000 tonnes

• 2026 copper C1 cash cost guidance increased to $2.50–$2.65/lb due to higher fuel prices, strong Zambian kwacha

Result Drivers

• HIGHER PRODUCTION - Co said Q3 copper production rose 8% from Q2, mainly due to processing stockpiles at Cobre Panamá and strong performance at Kansanshi

• STRONGER METAL PRICES - Co said improved realized copper prices contributed to higher financial results in Q3

• SULPHURIC ACID SALES - Surplus acid sales at Kansanshi generated $33 mln in revenue, supporting lower copper cash costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty mining & metals peer group is "buy"

• Wall Street's median 12-month price target for First Quantum Minerals Ltd. is C$50.00, about 38.7% above its October 27 closing price of C$36.06

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• Oct 28 - Canada's Amerigo Resources Q3 net income surges on higher copper prices

• Oct 27 - Freeport-McMoRan Q3 revenue rises on higher copper prices

• Oct 26 - Canada's Capstone Copper announces $3 billion investment plan in Chile

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)