Base and precious metals miner First Quantum lowered its nickel production guidance for 2021 to 20,000-24,000mt from its previous outlook of 23,000-27,000mt due to supply delays at its Ravensthorpe mine.
This, despite reporting a robust production of the metal during the first half and second quarter of the year amid expansion at the Ravensthorpe mine with the construction of Shoemaker levy.
The firm kept its copper output projections unchanged at 785,000-850,000mt though it lifted its forecast for copper at its Cobre Panama mine from 305,000-325,000mt to 310,000-335,000mt. First Quantum reduced the guidance from its Kansanshi mine to 200,000-215,000mt from 210,000-225,000mt.
First Quantum reported record production from the Cobre Panama mine in the second quarter after it was affected by COVID-19 pandemic related shutdowns and reductions during the same prior-year period. The company reported a realized copper price averaging $3.55/lb in Q2 2021, up 37pc from the prior-year quarter.
First Quantum’s nickel and copper production and sales stood as follows in January-June and April-June timeframes:
| Metal | H1 2021 (mt) | H1 2020 (mt) | change | Q2 2021 (mt) | Q2 2020 (mt) | change |
| Copper | ||||||
| Production | 404,753 | 364,344 | 11.09pc | 199,689 | 169,059 | 18.12pc |
| Sales | 414,524 | 349,897 | 18.47pc | 203,790 | 159,944 | 27.41pc |
| Nickel | ||||||
| Production | 9,185 | 1,979 | 364.12pc | 4,543 | 1,979 | 129.56pc |
| Sales | 9,267 | 1,791 | 417.42pc | 6,910 | 1,791 | 285.82pc |
The miner’s revenue increased by 60.5pc to $3.5bn in H1 2021 from $2.2bn in the same period last year. In Q2 2021, revenue climbed by 82.2pc to $1.8bn from $1bn in the same year-ago quarter. First Quantum reported net earnings of $282mn in H1 2021 against a net loss of $218mn in January-June last year. The company’s net earnings in Q2 stood at $140mn against a loss of $156mn in Q2 2020.