First Quantum Minerals (FM) AI Stock Analysis

• Market Cap: C$19.47B
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 68.8
• Beta (1Y): 1.39
• Revenue Growth: -7.46%
• EPS Growth: N/A
• Country: CA
• Employees: 20,000
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Copper
• EPS (TTM): 0.03
• Shares Outstanding: 834,206,100
• 10 Day Avg. Volume: 2,201,861
• 30 Day Avg. Volume: 2,212,593
• PEG Ratio: -53.50
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 29.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$24.76
• Price Target Upside: 6.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 67 Neutral
• Price Target: C$25.00 ▲(7.11% Upside)

First Quantum Minerals has a balanced financial structure with strong cash flow management and operational efficiency. However, challenges in revenue growth and high valuation metrics weigh on the stock. Positive corporate events and strategic project progress provide a favorable outlook, but production and cost challenges remain concerns.

Positive Factors

Financial Performance

First Quantum reported EBITDA that beat expectations due to higher copper sales volumes, reaffirming full-year production and cost guidance.

Operational Developments

First Quantum's potential to continue a positive re-rate is supported by progress towards restarting the Cobre Panama mine.

Strategic Deals

A new $500 million copper prepayment deal with Jiangxi was announced, strengthening First Quantum's financial position.

Negative Factors

Debt and Financial Risk

Net debt has increased, raising concerns, although the company's hedging program may mitigate risks from copper price fluctuations.

Regulatory and Agreement Risks

The terms of a new agreement with the government are still unknown, potentially leading to more value capture for the government and less for First Quantum.

First Quantum Minerals Business Overview & Revenue Model

Company Description

First Quantum Minerals Ltd. is a global mining and metals company primarily engaged in the exploration, development, and production of mineral resources. The company is headquartered in Vancouver, Canada, and operates mines across various continents, including Africa, Australia, and the Americas. First Quantum is primarily focused on copper, but it also produces nickel, gold, and other metals. The company is recognized for its efficient and sustainable mining practices, contributing significantly to the global supply of these essential minerals.

How the Company Makes Money

First Quantum Minerals makes money primarily through the extraction and sale of copper, which constitutes the majority of its revenue. The company operates several large-scale mining operations that extract copper ore, which is then processed into copper concentrate or cathodes. These products are sold to industrial consumers, manufacturers, and commodity traders worldwide. Besides copper, the company also generates revenue from by-products such as nickel and gold, which are extracted and sold in conjunction with copper. Key revenue streams include long-term contracts and spot market sales, with strategic partnerships and joint ventures enhancing its operational capabilities and market reach. Factors such as global copper prices, efficient production techniques, and cost management significantly influence the company's earnings.

First Quantum Minerals Financial Statement Overview

Summary

First Quantum Minerals shows a mixed income statement with modest revenue growth and solid operating margins. However, the company faces challenges with high leverage and decreased free cash flow, indicating cash management issues.

Income Statement

First Quantum Minerals shows a mixed income statement with signs of recovery. The TTM revenue increased slightly to $4.956 billion from $4.802 billion annually, indicating a modest growth trajectory. Gross profit margin for TTM stands at 30.76%, showing profitability, but net profit margin is low at 2.78%, indicating issues in translating sales to profit. EBIT and EBITDA margins are solid at 20.27% and 37.68% respectively, suggesting effective core operations despite a previous year of significant net loss.

Balance Sheet

The balance sheet presents a stable financial position with total assets at $24.18 billion. Debt-to-equity ratio remains high at 0.58, reflecting significant leverage, which is a potential risk. However, ROE at 1.22% for TTM is low, indicating limited efficiency in using equity to generate profit. The equity ratio of 46.91% shows a balanced capital structure but suggests room for improving equity utilization.

Cash Flow

First Quantum Minerals displays varied cash flow results with a TTM operating cash flow of $1.383 billion. Free cash flow has decreased significantly to $119 million in TTM from $365 million annually, indicating cash management challenges. The operating cash flow to net income ratio is robust at 10.02, reflecting strong cash generation relative to net income, but the free cash flow to net income ratio is low at 0.86, highlighting pressures on liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.95B	4.80B	6.46B	7.63B	7.21B	5.20B
Gross Profit	1.54B	1.35B	1.29B	2.20B	2.56B	1.08B
EBITDA	1.90B	1.59B	1.28B	3.28B	3.73B	1.98B
Net Income	202.00M	2.00M	-954.00M	1.03B	832.00M	-224.00M
Balance Sheet
Total Assets	24.28B	24.11B	23.76B	25.08B	25.27B	24.24B
Cash, Cash Equivalents and Short-Term Investments	747.00M	843.00M	1.16B	1.69B	1.86B	950.00M
Total Debt	6.20B	6.37B	7.58B	7.38B	7.91B	8.36B
Total Liabilities	12.57B	12.21B	12.98B	12.84B	13.78B	14.20B
Stockholders Equity	11.40B	11.47B	10.25B	10.90B	10.02B	8.87B
Cash Flow
Free Cash Flow	560.00M	365.00M	127.00M	1.17B	1.89B	1.00B
Operating Cash Flow	1.77B	1.65B	1.43B	2.33B	2.88B	1.61B
Investing Cash Flow	-1.26B	-1.29B	-1.38B	-1.17B	-1.10B	-673.00M
Financing Cash Flow	-647.00M	-501.00M	-776.00M	-1.33B	-841.00M	-543.00M

First Quantum Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FM, the sentiment is Positive. The current price of 23.34 is below the 20-day moving average (MA) of 23.52, above the 50-day MA of 22.63, and above the 200-day MA of 19.83, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 26.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FM.

First Quantum Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FM	67 Neutral	C$19.47B	68.82	1.79%	―	-7.46%	―
Sector *	44 Neutral	C$861.96M	-6.77	-14.90%	2.79%	16.54%	-27.01%
HBM	―	$3.65B	23.66	6.50%	0.16%	―	―
TGB	―	$972.49M	10.75	-12.40%	―	―	―
LUNMF	―	$8.95B	24.68	2.66%	2.11%	―	―
CSCCF	―	$4.73B	63.74	2.51%	―	―	―
ERO	―	$1.45B	9.83	19.31%	―	―	―

First Quantum Minerals Corporate Events

First Quantum Minerals Extends Tender Offer Deadlines in Refinancing Move

First Quantum Minerals has announced an extension to the expiration, guaranteed delivery, and settlement dates for its cash tender offer to purchase its outstanding 6.875% Senior Notes due 2027. This extension is part of a refinancing strategy, where the company plans to issue new senior notes to finance the purchase and redemption of the existing notes, aiming to optimize its financial structure.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Announces $250 Million Cash Tender Offer

First Quantum Minerals Ltd. announced a cash tender offer to purchase up to $250 million of its 9.375% Senior Secured Second Lien Notes due 2029. This move is part of a broader financial strategy, as the company has concurrently priced and upsized a $1 billion offering of new senior notes due 2034, intending to use part of the proceeds for the tender offer. The tender offer, which expires on September 3, 2025, is aimed at optimizing the company’s debt structure and potentially improving its financial flexibility.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Upsizes Senior Notes Offering to $1 Billion

First Quantum Minerals Ltd. has announced the successful pricing and upsizing of its senior notes offering, raising $1.0 billion with a 7.250% interest rate due in 2034. The proceeds will be used to fund a tender offer for existing notes, refinance a portion of its debt, and cover related expenses, potentially strengthening the company’s financial position and enhancing its debt management strategy.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Launches $750 Million Senior Notes Offering

First Quantum Minerals Ltd. announced a $750 million senior notes offering to finance a tender offer for its existing 6.875% senior notes due 2027. This move is part of the company’s strategy to manage its debt obligations and optimize its financial structure, potentially impacting its financial stability and market positioning.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Announces Tender Offer for Senior Notes

First Quantum Minerals Ltd. has announced a cash tender offer to purchase any and all of its outstanding 6.875% Senior Notes due 2027. This move is part of a refinancing strategy where the company plans to issue new senior notes to fund the purchase and potential redemption of the existing notes. The tender offer aims to manage the company’s debt profile effectively, although the completion of the new notes issuance and satisfaction of financing conditions remain uncertain.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Secures $1 Billion Gold Streaming Deal to Bolster Financial Stability

First Quantum Minerals Ltd. has entered into a $1.0 billion gold streaming agreement with RGLD Gold AG, a subsidiary of Royal Gold, Inc. This transaction is designed to enhance the company’s financial stability by providing non-debt capital, which will be used for capital expenditures, working capital, and debt repayment. The agreement allows First Quantum to maintain exposure to the majority of its gold production while preserving full exposure to its copper production at the Kansanshi Mine. The deal is expected to significantly improve the company’s liquidity and reduce its net debt to EBITDA ratio, thereby strengthening its financial position and industry standing.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Reports Q2 2025 Results with Key Project Milestones

First Quantum Minerals reported a net earnings of $18 million for Q2 2025, with significant milestones including government approval for the Cobre Panamá project and progress on the Kansanshi S3 Expansion. Despite a decrease in copper production, the company anticipates a stronger second half of the year and has initiated gold hedges to support liquidity. The company is also exploring a new gold zone at Kansanshi, showing promising preliminary results.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum to Announce Q2 2025 Results

First Quantum Minerals Ltd. announced that it will release its second quarter 2025 financial and operating results on July 23, 2025, after the Toronto Stock Exchange closes. The company will also host a conference call and webcast on July 24, 2025, to discuss these results, which could provide insights into its operational performance and market positioning.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Reports Fatality at Trident Operation

First Quantum Minerals Ltd. announced a fatal incident at its Trident operation, where an employee died following an accident involving a dump truck at the Sentinel pit. The company has notified local authorities and is conducting an internal investigation, while operations in the affected area have been temporarily suspended. CEO Tristan Pascall expressed condolences to the family and emphasized the company’s commitment to safety and support for those impacted.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Secures Approval for Cobre Panamá Management Program

First Quantum Minerals Ltd. announced that its subsidiary, Minera Panamá S.A., received approval from the Government of Panama for the Preservation and Safe Management program at the Cobre Panamá mine. This approval will enable the company to fund preservation activities through the export of 121,000 dry metric tonnes of copper concentrate. The company emphasizes its commitment to sustainability, local procurement, and maintaining transparent dialogue with stakeholders, which could enhance its operational stability and industry positioning.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Releases 2024 Sustainability Reports Amidst Operational Challenges

First Quantum Minerals has released its 2024 sustainability reports, highlighting its commitment to environmental and community responsibilities despite challenges in Panama and Zambia. The company aims to reduce its greenhouse gas emissions by 50% by 2035, although current geopolitical and environmental conditions have impacted its decarbonization timeline. In 2024, First Quantum contributed over $3.5 billion economically to its host countries, emphasizing its role in supporting local economies through substantial tax payments, wages, and community investments.

The most recent analyst rating on (TSE:FM) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on First Quantum Minerals stock, see the TSE:FM Stock Forecast page.

First Quantum Minerals Announces Successful Election of Directors

First Quantum Minerals Ltd. announced the successful election of its board of directors during the 2024 Annual Meeting of Shareholders, with 85.72% of issued shares voted. The election results indicate strong shareholder support, with most directors receiving over 85% of votes cast in their favor, reflecting confidence in the company’s leadership and strategic direction.