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First Quantum Minerals Ltd (TSE:FM)
TSX:FM
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First Quantum Minerals (FM) AI Stock Analysis

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TSE:FM

First Quantum Minerals

(TSX:FM)

Rating:66Neutral
Price Target:
C$25.00
▲(7.11% Upside)
First Quantum Minerals' overall stock score is driven by its strong cash flow management and operational efficiency, as highlighted in the financial performance. However, the high P/E ratio and lack of dividend yield weigh negatively on the valuation. Technical indicators suggest a neutral to slightly positive outlook, while the earnings call provides a balanced view with both progress and challenges. The absence of significant corporate events means the focus remains on financial and operational metrics.
Positive Factors
Financial Performance
First Quantum reported 1Q EBITDA that beat consensus due to higher than expected copper sales volumes, and management reiterated full-year production and cost guidance.
Operational Developments
Panama's president is allowing the restart of Cobre Panama's 300MW coal-fired power plant, enabling First Quantum to operate the Punta Rincon port.
Strategic Partnerships
A new $500m copper prepayment deal with Jiangxi was announced, which strengthens the company's financial position.
Negative Factors
Debt and Risk Management
Net debt increased, but the company's hedging program should protect it from risk to the copper price later this year if an air pocket in demand is hit, as expected.
Government Relations
The terms of a new agreement with the government are still unknown and could lead to more value capture for the government and less for First Quantum.

First Quantum Minerals (FM) vs. iShares MSCI Canada ETF (EWC)

First Quantum Minerals Business Overview & Revenue Model

Company DescriptionFirst Quantum Minerals (FM) is a global mining company based in Canada, primarily engaged in the exploration, development, and production of mineral resources, particularly copper and nickel. The company operates several mines across various countries, including Zambia, Panama, and Australia. First Quantum is known for its focus on sustainable mining practices and its commitment to maximizing the potential of mineral deposits while minimizing environmental impact.
How the Company Makes MoneyFirst Quantum Minerals generates revenue primarily through the sale of copper, which is its core product, accounting for a significant portion of its earnings. The company also produces nickel, gold, and other by-products, contributing additional revenue streams. The revenue model is largely based on the global market prices for these metals, which can fluctuate based on supply and demand dynamics. Additionally, First Quantum has established strategic partnerships and joint ventures that enhance its operational capabilities and market reach, further supporting its revenue generation. The company benefits from long-term contracts with various industrial customers, ensuring a steady cash flow while also engaging in spot market sales to capitalize on favorable price conditions.

First Quantum Minerals Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative developments. The company made significant progress on key projects and financial resilience, but faced production challenges and uncertainties in Panama. The overall sentiment is balanced.
Q2-2025 Updates
Positive Updates
Progress on Key Priorities
Meaningful progress in resolving issues in Panama, proactive balance sheet management, and the S3 expansion project at Kansanshi remains on budget and on schedule.
Kansanshi S3 Expansion Project
First ore fed into the comminution circuit, and the project remains on budget and on schedule. Expected to see reduced cash spending as peak capital expenditure has passed.
Gold Hedging and New Exploration Opportunity
Initiation of new gold hedges to strengthen liquidity and identification of a promising new exploration opportunity in a near-surface gold zone at Kansanshi.
Environmental Stewardship at Cobre Panama
Approval received for the preservation and safe management program, with successful and incident-free shipping of concentrates.
Financial Resilience and Liquidity Strengthening
Revenue grew by 3% quarter-over-quarter, a $41 million improvement in net earnings, and proactive steps to strengthen liquidity with a $500 million copper prepayment and gold hedging.
Negative Updates
Copper Production Decline
Copper production was down 9% from the first quarter, mainly due to lower production at Kansanshi. Copper C1 cash costs increased by $0.05 to $2 per pound.
Challenges at Sentinel
Copper production decreased by approximately 3,000 tonnes due to mining lower grades and ball mill fatigue issues.
Panama Restart Uncertainty
Uncertainty remains around the timeline for a restart agreement with the Panama government. The environmental audit process has not progressed as expected.
Nickel Production Decline
Nickel production decreased by 14% from the previous quarter due to lower throughput and grades, and increased mining contractor costs.
Power Restrictions in Zambia
Power restrictions remain in effect in Zambia despite recovering lake levels, although no disruptions were experienced due to import contracts.
Company Guidance
During the Q2 2025 results conference call for First Quantum Minerals, significant guidance was provided regarding various operational and financial metrics. Key priorities for the year included resolving issues in Panama, managing the balance sheet and liquidity, ensuring safe operational performance, and completing the Kansanshi S3 expansion project. The Kansanshi S3 project remains on budget and schedule, with first ore fed into the comminution circuit, and cash spending is expected to decline post-peak capital expenditure. Despite lower copper production at Zambian operations, the company anticipates stronger output in the second half of 2025, maintaining its guidance of 160,000 to 190,000 tonnes of copper and 100,000 to 110,000 ounces of gold. New gold hedges were initiated to strengthen liquidity, with approximately 78,000 ounces of gold hedged at average floor and cap strikes of $3,000 and $4,000 per ounce, respectively. The company also explored initiatives like a minority stake sale in Zambia, while identifying a promising near-surface gold zone at Kansanshi for future exploration. Additionally, the preservation and safe management program at Cobre Panama was approved, facilitating concentrate shipments and power plant reactivation. Financially, the quarter saw a 3% revenue increase, a 6% EBITDA growth, and an improvement in net debt by $334 million, reducing it to $5.5 billion, with liquidity strong at $1.7 billion.

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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.95B4.80B6.46B7.63B7.21B5.20B
Gross Profit1.54B1.35B1.29B2.20B2.56B1.08B
EBITDA1.90B1.59B1.28B3.28B3.73B1.98B
Net Income202.00M2.00M-954.00M1.03B832.00M-224.00M
Balance Sheet
Total Assets24.28B24.11B23.76B25.08B25.27B24.24B
Cash, Cash Equivalents and Short-Term Investments747.00M843.00M1.16B1.69B1.86B950.00M
Total Debt6.20B6.37B7.58B7.38B7.91B8.36B
Total Liabilities12.57B12.21B12.98B12.84B13.78B14.20B
Stockholders Equity11.40B11.47B10.25B10.90B10.02B8.87B
Cash Flow
Free Cash Flow560.00M365.00M127.00M1.17B1.89B1.00B
Operating Cash Flow1.77B1.65B1.43B2.33B2.88B1.61B
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 Price23.34
Price Trends
50DMA
23.36
Negative
100DMA
21.24
Positive
200DMA
20.21
Positive
Market Momentum
MACD
0.02
Negative
RSI
50.51
Neutral
STOCH
80.17
Negative
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 above the 20-day moving average (MA) of 23.25, below the 50-day MA of 23.36, and above the 200-day MA of 20.21, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$19.82B71.241.79%-7.46%
61
Neutral
$10.31B6.180.76%2.94%3.30%-36.34%
$4.65B16.0510.81%0.12%
$1.01B10.75-5.19%
$9.79B24.682.61%1.86%
$5.38B70.802.51%
$1.52B10.5219.31%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FM
First Quantum Minerals
23.34
6.83
41.37%
HBM
Hudbay Minerals
11.80
3.96
50.51%
TGB
Taseko Mines
3.18
0.98
44.55%
LUNMF
Lundin Mining
11.46
1.45
14.49%
CSCCF
Capstone Copper
7.09
0.24
3.50%
ERO
Ero Copper
14.03
-6.19
-30.61%

First Quantum Minerals Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
First Quantum Minerals Extends Tender Offer Deadlines in Refinancing Move
Neutral
Aug 6, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
First Quantum Minerals Announces $250 Million Cash Tender Offer
Positive
Aug 6, 2025

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.

Private Placements and Financing
First Quantum Minerals Upsizes Senior Notes Offering to $1 Billion
Positive
Aug 6, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
First Quantum Minerals Launches $750 Million Senior Notes Offering
Neutral
Aug 6, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
First Quantum Minerals Announces Tender Offer for Senior Notes
Neutral
Aug 6, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
First Quantum Secures $1 Billion Gold Streaming Deal to Bolster Financial Stability
Positive
Aug 5, 2025

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.

Business Operations and StrategyFinancial Disclosures
First Quantum Minerals Reports Q2 2025 Results with Key Project Milestones
Positive
Jul 24, 2025

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.

Financial Disclosures
First Quantum to Announce Q2 2025 Results
Neutral
Jun 25, 2025

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.

Business Operations and Strategy
First Quantum Minerals Reports Fatality at Trident Operation
Negative
Jun 23, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
First Quantum Secures Approval for Cobre Panamá Management Program
Positive
Jun 2, 2025

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.

Business Operations and StrategyFinancial Disclosures
First Quantum Minerals Releases 2024 Sustainability Reports Amidst Operational Challenges
Neutral
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025