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Can someone tell me please if these can be put in an isa.
First Quantum's shares are rated at 15 times forecast underlying earnings for 2013. That makes First Quantum one of the highest rated copper miners in the world, with a rating well above London-listed peers Antofagasta (ANTO) on 13 times forward earnings, Vedanta (VED) on 12 times and both Eurasian Natural Resources (ENRC) and Kazakhmys (KAZ) on 10 times. Granted, First Quantum has the lowest production costs and - so far - first-rate management. But its shares will become a much riskier proposition if the £3bn bid for Inmet goes through, especially with the prospect of heavy spending on the Cobre project in Panama, too. And fears of that happening may drive the price lower....but as always dyor and good luck.
Yet new copper supply from miners is forecast to rise by 6.7 per cent in 2013 and, unless labour disputes significantly curtail production as in years past, the copper market could head into surplus towards the tail-end of 2013. With First Quantum highly levered to copper prices, any serious dip could send its share price downwards fairly quickly. What's more, the acquisition of Inmet would see First Quantum lose its status as a prime takeover target for other miners. The size of the enlarged group could deter predators, especially as the biggest industry players are trimming their operations worldwide. Many brokers, including Citigroup, have a 20 per cent bid premium built into valuation models for First Quantum - and that could soon be removed.
First Quantum would have to take on significant debt to fund the Inmet acquisition and build two big mines, so it would not generate free cash until 2014 at the earliest. Meanwhile, its copper production, which rose 16 per cent in 2012 to 307,115 tonnes, may stagnate at between 302,000 and 330,000 tonnes in 2013. Simultaneously, its production costs may rise slightly, although they should remain among the lowest quartile of global copper miners. These factors mean First Quantum's balance sheet could come under pressure if copper prices soften considerably. That said, most industry commentators don't think they will. Copper is most analysts' standout favourite metal and almost none of them expects a significant price drop in the near term - especially not in the first quarter following strong starts to the year in the US and China. That said, few industry analysts predicted iron ore's quick meltdown last summer, when prices dropped nearly 40 per cent in four months.
Major mining companies the world over are shelving expensive projects as they tackle soaring development costs and irate shareholders who want higher dividends. Yet copper miner First Quantum Minerals (FQM) is ploughing in the opposite direction. It is making an enormous C$5.1bn (£3.3bn) hostile takeover bid for Inmet Mining, which could dangerously stretch its balance sheet just as rivals are slimming down. We view the bid as the catalyst for a derating and downgrade First Quantum's shares to a 'sell'. Big acquisitions made near the peak of a commodities cycle have hurt major miners in the past, most recently during the 2008-09 credit crunch. But First Quantum's highly rated bosses sailed through that turbulence and have a reputation as world-class mine-builders, able to develop mines cheaper and faster than anyone else. First Quantum's large team of engineers and geologists has just finished building two mines, Kevitsa and Ravensthorpe, with a third project, Sentinel, under construction and expected to come online next year. Rather than risk losing its established and expensive construction team (or keeping them on the payroll underused), First Quantum wants to take control of Inmet's huge Cobre copper project in Panama to plug the gap between development projects. But the company is bidding top dollar for the acquisition and analysts from Citigroup estimate that First Quantum will have to make at least $400m of cost savings just to make the deal add to earnings even at today's high copper prices. That might be plausible, given First Quantum's reputation, but its bosses admit they have not been allowed to conduct "even the most cursory due diligence review" of the project because Inmet refuses to support the bid. Citigroup analysts also reckon there is a 70 per cent chance that First Quantum will have to increase its offer now that Inmet has entered talks with other suitors - and that would further undermine the economics of the bid.
First Quantum Minerals: Exane BNP lowers target price from 1470p to 1450p, while keeping a neutral rating.
FIRST QUANTUM ACQUIRES 19.2% OWNERSHIP STAKE IN EMPIRE MINING CORPORATION First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM", LSE Symbol "FQM") today announced that it has acquired ownership of an aggregate of 15,000,000 common shares ("Common Shares") in the capital of Empire Mining Corporation ("Empire") by way of a private placement (the "Private Placement") undertaken in reliance upon the minimum amount exemption available under applicable Canadian securities laws. The Private Placement was completed at a price of C$0.10 per Common Share, for a total purchase price of $1,500,000. As a result of the Private Placement, First Quantum has ownership of an aggregate of 15,000,000 Common Shares, representing 19.2% of the 78,134,977 Common Shares outstanding immediately following completion of the Private Placement. For purposes of calculating the percentage of Common Shares owned by First Quantum, First Quantum has assumed that there were 63,134,977 Common Shares outstanding prior to completion of the Private Placement, as disclosed by Empire in a binding letter agreement with First Quantum entered into on August 17, 2012 (the "Letter Agreement").
Gross profit has taken a 'knock'
Operational outlook for 2012 · Expected production unchanged at approximately; 270,000 to 290,000 tonnes of copper, 36,000 to 40,000 tonnes of contained nickel and 170,000 to 190,000 ounces of gold. · Expected average C1 cash cost for copper operations unchanged at approximately $1.55 per pound of copper. · Expected average C1 cash cost for Ravensthorpe reduced from previous guidance, to approximately $6.50 per pound of nickel. · Expected total capital expenditure unchanged at approximately; $1.2 to $1.4 billion in 2012.
Development projects progressing · Mechanical construction for the oxide circuit 7.2 million tonnes per annum ("Mtpa") upgrade is complete and optimization of the new circuit elements is planned for Q3 2012. The stage two expansion to 14.5 Mtpa is on track for commissioning in the first half of 2013. · The fifth Kansanshi acid plant is scheduled to be commissioned at the end of Q3 2012 which will allow for full utilization of the 7.2 Mtpa oxide circuit capacity in Q4 2012. · Detailed design works on the smelter continued in Q2 2012. The overall project is scheduled for construction completion in mid-2014 followed by commissioning and ramp up. · Board approval for the full Sentinel project was given on May 9, 2012, resulting in a ramp-up of project development activities. Strong financial position maintained to finance development projects · Cash of $0.9 billion and available debt facilities of $1.3 billion as at June 30, 2012. · Cash generated by operations totalled $232.9 million for the quarter and $371.4 million for the year to date.
Overall copper production was 11% higher than Q2 2011 on increased throughput and grade · Total copper production was 11% higher than Q2 2011 due to higher sulphide ore grades processed at Kansanshi and higher throughput from the expansion of the oxide circuit. Guelb Moghrein achieved another strong period of throughput however production was lower than the prior year period as a result of lower grades processed. · Total gold production was 7% higher than Q2 2011 due to higher throughput and recovery at Kansanshi Ravensthorpe follows successful commencement of operations with another strong quarter in Q2 2012 · Nickel production was in-line with plan and C1 costs were below plan for Q2 2012 on the back of continued, efficient operation of the plant. Year-over-year comparative earnings impacted by lower average realized copper price · Sales revenues increased to $722.3 million as a result of nickel revenue from Ravensthorpe, higher copper and gold sales volumes, offset partially by the impact of lower copper prices. · Cash costs of copper production increased as a result of inflationary cost pressures principally related to sulphuric acid, energy and other consumables, offset partially by higher production. · Comparative earnings were lower than Q2 2011 due to lower realized copper prices and higher production costs. This was offset partially by the earnings contribution from Ravensthorpe and higher sales volumes of copper and gold. Kevitsa first production achieved in Q2 2012; commercial production on track for Q3 2012 · First concentrate was produced on May 26, 2012. Mining and processing activities continue to ramp up as forecasted towards design production levels.
FIRST QUANTUM TEMPORARILY SUSPENDS OPERATIONS AT ITS GUELB MOGHREIN MINE First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM", LSE Symbol "FQM") today announced that it has temporarily suspended normal operations at its Guelb Moghrein copper-gold mine in Mauritania due to illegal strike action by some unionized employees. The Company continues to work through a government-facilitated mediation process to achieve a resolution to the illegal strike and will update stakeholders as warranted.
http://www.investegate.co.uk/Article.aspx?id=201207171414058578H
First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM", LSE Symbol "FQM") today announced that its wholly-owned subsidiary, FQM (Peru) Ltd. ("FQM Peru"), has acquired ownership of an aggregate of 42,067,745 common shares ("Common Shares") in the capital of Zincore Metals Inc. ("Zincore"), representing 19.99% of the issued and outstanding Common Shares immediately following completion of such acquisition.
http://www.investegate.co.uk/Article.aspx?id=201205140700202263D
"These independent third-party estimates confirm those of our exploration team and justify our plans to develop Sentinel into a state-of-the-art facility capable of producing up to 300,000 tonnes of copper in concentrate annually. Our strategy is to develop this facility over a two-year timeframe at the same time as a new copper smelter in Zambia that would process all of Sentinel's concentrate production, eliminating the need to export concentrate to offshore smelters." "Altogether, we estimate Sentinel and the smelter project will require a capital investment of over US$2.4 billion, including an extensive infrastructure development program, and create approximately 2,400 direct jobs for Zambians." "We plan to fully activate the development of Sentinel on conclusion of commercial negotiations that are currently underway," noted Mr. Philip Pascall, First Quantum's Chairman and CEO.
First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM", LSE Symbol "FQM") today issued the mineral resource and reserve estimates for its Sentinel copper project in Zambia. The project is part of the Trident project that is located approximately 150 kilometres west of the Company's flagship Kansanshi mine. Highlights: · An estimated measured and indicated ("M&I") resource of 1,027 million tonnes ("Mt") @ 0.51% copper ("Cu"), using a 0.2% Cu cut-off, containing 5.2 Mt of Cu. · An estimated recoverable proved and probable mineral reserve of 774 Mt @ 0.50% Cu, using a 0.2% Cu cut-off, containing 3.9 Mt of Cu. · A strip ratio of 2.2:1. · A mine life estimated to be in excess of 15 years with potential to increase with planned delineation drilling and future successful exploration.
http://www.investegate.co.uk/Article.aspx?id=201203260700270341A
FIRST QUANTUM SIGNS US$1 BILLION FINANCING FACILTY FOR ITS ZAMBIA OPERATIONS First Quantum Minerals Ltd. ("First Quantum" or the "Company" or "FQM", TSX Symbol "FM", LSE Symbol "FQM") is pleased to announce the signing of a US$1 billion senior term and revolving facilities agreement by Kansanshi Mining PLC, holder of First Quantum's 80% owned Kansanshi copper-gold project in Zambia. The five year facility featuring flexible drawing provisions will enable execution of planned capital works at the Kansanshi project. The facility includes customary conditions precedent to first drawdown which are expected to be satisfied during Q1 2012. The Mandated Lead Arrangers for the facility are: Standard Chartered Bank, The Standard Bank of South Africa, BNP Paribas, Citibank N.A., and African Export-Import Bank.
http://www.investegate.co.uk/Article.aspx?id=201201310700114366W
Citigroup upgrades First Quantum Minerals from hold to buy, target price cut from 1700p to 1400p.
Arbuthnot Securities reiterated its "reduce" recommendation for First Quantum (FQM) with a 1,280p target price. A weak second quarter performance by the mining company has led the broker to reduce its forecasts, cutting earnings per share predictions by 10% for 2011 and 5% for 2012 and 2013. Arbuthnot has also added additional risk to its discounted cash flow calculations, valuing the company at 1,286p on a sum of parts valuation. Shares in First Quantum tumbled 67p to 1,395p
Yesturdays close at 6653 / 5 gives a new price of 1330.6 to break even, so it actually went up a tiny bit today. GLA