First Quantum Minerals (TSX: FM) reported a Q3 2025 net loss of $78 million, swinging from a $53 million profit despite revenue rising to $1.35 billion from $1.28 billion in Q3 2024.
Results point to cost pressure despite stronger realized prices. Gross profit fell 21% year over year to $360 million as gross margin compressed to 26.7% from 35.7% a year ago. Operating profit then declined 32% year over year to $223 million, taking operating margin down to 16.6% from 25.7% a year ago.
The quarter included a $25 million loss on redemption of debt and an $8 million favorable VAT phasing adjustment, leading the quarterly loss, which translates to $0.06 loss per share versus earnings of $0.13 per share.
Adjusted loss was $16 million versus adjusted earnings of $119 million last year. EBITDA was $435 million, down from $520 million in Q3 2024.
Copper and gold got boosts in net realized prices, with copper price posting $4.30 per pound versus $4.15 a year ago, and gold notching $3,358 per ounce versus $2,383. Net realized nickel price dropped to $6.86 per pound versus $7.35.
Consolidated copper C1 cash cost rose to $1.95 per pound from $1.57 a year ago while AISC was $3.07 per pound versus $2.42. The gap between net realized copper price and AISC narrowed, evidencing margin compression despite stronger prices.
Operating cash flow surged to $1.20 billion from $260 million a year ago, driven largely by the $1.0 billion upfront cash received under the gold streaming agreement with Royal Gold. Cash and cash equivalents ended at a balance of $971 million from $843 million at year-end 2-24. Deferred revenue also climbed to $2.90 billion from $1.76 billion at year-end, reflecting the gold stream and prepayments.
Copper production was 104,626 tonnes, down 10% from Q3 2024, but copper sales went 6% up to 118,825 tonnes. Sales exceeded production by 14,199 tonnes due to 24,306 tonnes shipped from Cobre Panamá under the preservation and safe management plan while Kansanshi sales lagged production as anode inventories were replenished after a smelter shutdown.
Gold production was also down 11% to 36,463 ounces, while gold sales were relatively flat year over year at 43,658 ounces. Nickel production rose 20% year over year to 5,767 tonnes, though sales of 2,917 tonnes were lower as inventories built.
Full-year 2025 copper production guidance narrowed to 390,000 to 410,000 tonnes, with Kansanshi raised to 175,000 to 185,000 tonnes and Sentinel reduced to 190,000 to 200,000 tonnes. Gold guidance moved to 140,000 to 150,000 ounces, tilted to the upper end on Kansanshi grades, while nickel guidance narrowed to 18,000 to 23,000 tonnes. Copper C1 cost guidance is now $1.95 to $2.10 per pound and AISC $3.10 to $3.25 per pound while nickel C1 cost guidance fell to $4.75 to $5.50 per pound and AISC to $6.50 to $7.50 per pound.
Total capex guidance was cut to $1.15 to $1.25 billion from $1.30 to $1.45 billion on timing and spend to date. Kansasnshi S3 remains under its original $1.25 billion budget, with year-to-date spend of about $233 million and $1.08 billion cumulative.
Depreciation excluding Cobre Panamá is guided at $675 million to $725 million, with Cobre Panamá depreciation under P&SM of $80 million to $100 million annualized.
Cobre Panamá progressed through preservation while adding costs. All 122,520 dry metric tonnes of concentrate authorized under the plan were exported by Q3, with proceeds funding preservation work. P&SM costs averaged about $15 million per month in Q3 and are expected at $15 million to $17 million per month with the planned Q4 power plant restart.
A $1.0 billion gold stream provides long-dated non-debt capital but increases deferred revenue and reduces future gold upside at Kansanshi. Interest expense is guided at $550 million to $575 million for 2025, with cash interest paid of $450 million to $475 million and capitalized interest of about $75 million.
First Quantum last traded at $31.13 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.
