Canada's First Quantum posts surprise Q1 loss per share

Overview

• Canada copper and nickel miner posted Q1 adjusted loss per share, missing analyst expectations

• Q1 copper production fell 4% from prior quarter due to lower grades at Sentinel and Kansanshi

• Company raised 2026 copper production guidance but increased cost outlook amid higher fuel prices

Outlook

• First Quantum raises 2026 copper production guidance to 405,000–475,000 tonnes

• Company increases 2026 copper C1 cash cost guidance to $2.15–$2.40 per lb

• Higher fuel prices expected to impact unit costs in second qtr due to supply disruptions

Result Drivers

• LOWER GRADES - Co said lower copper production at Sentinel and Kansanshi was due to lower ore grades in line with mine plans

• HIGHER COSTS - Co said stronger Zambian Kwacha and increased fuel prices raised operating costs

• HEDGE LOSSES - Co said realized losses under its sales hedge program reduced EBITDA

Company press release: ID:nGNX94p8Q8

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "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$44.60, about 24.2% above its April 27 closing price of C$35.92

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 29 three months ago

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