First Quantum’s Zambian Mines Boost Q3 Copper Production Despite Power Challenges

First Quantum Minerals (FQM) reported strong operational and financial results for the third quarter of 2024, driven largely by the performance of its Zambian operations at the Kansanshi and Sentinel mines. Despite ongoing power issues, FQM's proactive measures minimized disruptions, leading to a notable increase in copper output.

Kansanshi, FQM's flagship mine in Zambia, achieved record copper production of 49,810 tonnes in Q3, the highest quarterly output since 2021. This represents an increase of 8,303 tonnes from the previous quarter, largely due to improved mining discipline and higher feed grades in the mixed and oxide circuits. Gold production also rose to 31,659 ounces, marking the highest level since Q1 2022.

Sentinel mine, also located in Zambia, recorded Q3 copper production of 58,412 tonnes, up 9% from Q2 2024. This growth was attributed to better ore fragmentation and enhanced in-pit crusher performance. Copper C1 cash costs at Sentinel fell by $0.16 per pound from the previous quarter, reaching $1.57 per pound, driven by higher production volumes. Production guidance for Sentinel has been adjusted to 220,000-230,000 tonnes for 2024, with expectations for further improvements as Stage 3 (Western Cut-back) progresses.

In total, FQM's copper production in Zambia increased by 13% quarter-over-quarter, reaching 116,088 tonnes. This growth came despite challenges posed by Zambia's ongoing power crisis, which was exacerbated by drought conditions affecting hydropower generation. During planned maintenance by power utility ZESCO in September, power supplied to the mines was reduced by 30%. However, FQM mitigated the impact by sourcing additional power, limiting production disruptions to a 10% reduction during the critical period. By the end of the quarter, power availability returned to normal levels following the restoration of 150 MW from Maamba Collieries and increased imports from South Africa.

The S3 Expansion at Kansanshi remains on schedule, with major components such as the SAG and ball mills now assembled. Focus has shifted to piping and electrical installations, with the expansion expected to be completed by mid-2025. FQM has increased its production guidance for Kansanshi to 155,000-165,000 tonnes of copper and 90,000-100,000 ounces of gold for 2024.

FQM remains optimistic about the future of its Zambian operations, with both Kansanshi and Sentinel mines poised for further output growth. The S3 Expansion is expected to enhance Kansanshi's production capabilities, while Sentinel's ongoing improvements in mining productivity should support continued performance gains.