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    First Quantum loss widens: cost, grade and restart signals for mine planners

    April 30, 2026|

    Reviewed by Joe Ashwell

    First Quantum loss widens: cost, grade and restart signals for mine planners

    First reported on MINING.com

    30 Second Briefing

    First Quantum Minerals’ Q1 2026 net loss widened to $196 million as copper output at its Sentinel and Kansanshi mines in Zambia slipped to 45,252 tonnes and 45,345 tonnes respectively on lower grades and recoveries, despite improved throughput. The miner warned that higher fuel and input costs could lift cash costs by about $0.25/lb (circa 11%), even as it leans on in-house smelter capacity to reduce exposure to tight sulphuric acid markets. Full-year copper guidance was raised to 405,000–475,000 tonnes, driven by planned processing of stockpiled ore at Cobre Panamá and rehiring about 1,000 workers ahead of a potential restart.

    Technical Brief

    • Adjusted Q1 2026 loss reached $147 million, equivalent to $0.18 per share.
    • Sentinel’s quarter-on-quarter copper output reduction was 2,983 tonnes, attributed to lower grades and recoveries.
    • Kansanshi’s production dropped 2,310 tonnes quarter-on-quarter, also linked to grade and recovery deterioration.
    • Management flagged higher-than-expected operating costs at Sentinel as the primary driver of the earnings miss.
    • First Quantum is diversifying fuel sourcing and increasing procurement volumes to manage energy price volatility.
    • In-house smelter capacity is being leveraged to reduce dependence on tight external sulphuric acid markets.

    Our Take

    The widening Q1 2026 loss at First Quantum comes as our recent coverage shows the company still committing to capital- and standards-intensive copper growth, including the IFC-aligned Taca Taca project in Argentina and trolley-assist or battery-electric haulage trials at Kansanshi, which could delay near-term cost relief but position the portfolio better on ESG and power costs over time.

    With Cobre Panamá’s 2023 shutdown already removing an estimated 5% of Panama’s GDP and 7% of export earnings, the reported potential $0.25/lb (about 11%) cash cost uplift from energy and FX pressures suggests that any restart or stockpile processing at Cobre Panamá will be highly sensitive to power pricing and contract structure, not just permitting outcomes.

    The planned US$2.05 billion graphite refinery at Baie-Comeau indicates First Quantum is moving further into battery-materials processing alongside its core copper and nickel business, which in our database is relatively rare among large copper-focused producers and could diversify earnings but also adds another large, long-dated project to fund while the group is loss-making.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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