First Quantum Warns Of Cobre Panama Shut Down Over Illegal Blockade
Operations at First Quantum’s (TSX: FM) Cobre Panama operations have been further reduced as the company makes a $567 million tax and royalty payment to the Panamanian government. The reductions come as an illegal blockade continues to impact its operations.
Operations at the mine have been reduced to a single ore processing train after shipments at its Punta Rincon port have been blocked by a team of small boats. The company anticipates the on-site power plant will run out of supplies this week, at which point the company has indicated it will temporarily halt production.
On the legal side of things, the company indicated that the Supreme Court of Panama will be reviewing Law 406, which approved the current concession contract, for constitutionality beginning on November 24, with the ruling expected to be delivered in that session.
READ: First Quantum Reduces Operations At Cobre Panama As Protests Drag On
The company at the same time has taken a stance of educating the public on its contributions to the country as well, seemingly in an effort to win further favor from the populous. Aside from highlighting its $567 tax and royalty payment, which is for December 2021 through to October 2023, First Quantum again is focusing on the fact that it employs over 2% of the working population of the country and spends $20 million a week in payments to Panamanian suppliers.
The Cobre Panama operation as a whole amounts to 5% of the annual GDP of Panama.
First Quantum last traded at $15.31 on the TSX.
Information for this briefing was found via Sedar, Bloomberg, and 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
