First Quantum Q1 2025 Net Cash Flow Drops By $440M As Net Loss Hits $23M
First Quantum Minerals (TSX: FM) posted its Q1 2025 financials with topline revenue dropping down to $1.19 billion, down 5% from $1.26 billion in Q4 2024. Gross profit declined to $331 million, falling by $74 million.
The company also reported a net loss of $23 million in Q1 2025, a steep reversal from the $99 million net profit in Q4 2024, with adjusted earnings collapsing to just $2 million—down 94% quarter-over-quarter. Earnings per share also fell to $0.03 loss per share, compared to a positive $0.12 in the previous quarter.
EBITDA also took a hit, sinking to $377 million—a 17% decline from Q4’s $455 million.
Net cash flow from operations plunged to $143 million from $583 million in Q4 2024—a staggering 76% decline—impacted by reduced EBITDA, increased receivables, and higher taxes. This quarter marks the lowest cash generation level since 2020. Adjusted free cash flow metrics were not provided but are assumed to be negative given capex levels.
Capital expenditures, primarily related to the Kansanshi S3 expansion, pushed net debt up by $257 million to $5.79 billion, with total debt reaching $6.53 billion.
From an operational standpoint, Sentinel’s copper production dropped by 10,199 tonnes quarter-over-quarter to 46,361 tonnes. Kansanshi saw a more modest decline of 1,595 tonnes to 46,544 tonnes. Gold production at Kansanshi was a rare bright spot, maintaining strength at 29,868 ounces.
The company’s C1 cash cost for copper production rose to $1.95/lb, up 16% from $1.68/lb last quarter, primarily due to lower production volumes and inflationary pressure on Zambian labor and maintenance.
Total copper production dropped 11% quarter-over-quarter to 99,703 tonnes, driven largely by reduced throughput and ore grades at Sentinel and Kansanshi, while total gold production hit 40,254 ounces.
Meanwhile, nickel production at Enterprise climbed 25% to 4,649 tonnes, although nickel cash costs also rose to $4.78/lb due to freight issues.
First Quantum’s performance continues to be significantly impacted by the ongoing suspension at Cobre Panamá, which has been idle since November 2023. Costs associated with maintaining the site averaged $13 million per month, with no revenue contribution from one of the company’s most critical assets. Despite President José Raúl Mulino’s recent support for restarting operations, no formal resolution or regulatory approvals have materialized.
The Kansanshi S3 expansion remains on track for mid-2025 commissioning, now 83% complete, but future cost overruns or delays could exacerbate financial strain. Power reliability issues in Zambia further complicate matters, with up to 60% of Kansanshi’s electricity expected to come from imports by H2 2025, driving up cash costs by an estimated $0.07/lb.
The company reaffirmed its 2025 guidance—copper production between 380,000 and 440,000 tonnes, gold between 135,000 and 155,000 ounces, and nickel between 15,000 and 25,000 tonnes—but the outlook remains heavily dependent on the execution of the Kansanshi ramp-up.
First Quantum last traded at $18.23 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
