First Quantum Minerals Ltd. (“First Quantum” or “the
Company”) (TSX:FM) today provides an update on operations
and continuing efforts to mitigate the impact of COVID-19.
Operational Performance
The Company expects to produce 725,000 – 770,000
tonnes of copper, 230,000 – 250,000 ounces of gold and 15,000 –
17,000 tonnes of nickel for the full year 2020, as previously
stated. Operations continue to perform as expected despite the
challenges presented by the current pandemic and the necessary
heightened focus on health and sanitisation protocols. With the
resumption of normal operations at Cobre Panama, the Company is not
expecting any additional disruptions related to COVID-19 now that
all precautionary measures have been put into practice.
Cobre Panama reached full production on the
three SAG mill trains on August 8, 2020, slightly ahead of schedule
after the operation had been placed on Preservation and Safe
Maintenance in early April by order of the Ministry of Health of
the Republic of Panama (“MINSA”). With the cooperation of MINSA,
the Company announced the resumption of normal operations in July
with the ramp-up expected to reach full production levels in
mid-August. This was achieved ahead of expectation in August during
which Cobre Panama produced just over 25,000 tonnes of copper The
focus is now on delivering consistent operational performance and
maintaining the throughput rate of 85 million tonnes per annum for
the remainder of the year. Production for 2020 is expected to be
well within our existing guidance of between 180,000 and 200,000
tonnes of copper and 70,000 and 80,000 ounces of gold.
Kansanshi continues to operate as expected,
delivering consistent production despite declines in oxide grades
and recovery. The Company’s recently updated Mineral Reserves and
Resources at Kansanshi resulted in a 70% and 40% increase
respectively over the last update in May 2015. This extended the
the mine life to 24 years (see the Company’s release dated
September 14, 2020).
Sentinel has exceeded expectations so far in the
quarter, achieving higher than average monthly production in July,
with over 23,000 tonnes of copper production and in August, with
over 25,000 tonnes of copper production. This strong performance is
due to consistent milling rates and better than expected grades in
August and positions the operation well to achieve guidance
previously provided.
Continued COVID-19 Efforts
The Company continues to prioritize the health
and safety of personnel and focus on measures to prevent the
transmission of COVID-19 amongst the workforce and communities
surrounding our operations. When COVID-19 was declared an
international public health emergency by the World Health
Organization in late January 2020, the Company moved quickly to
introduce health and sanitation protocols across its sites in
compliance with both local and international guidelines. These
health protocols are regularly reviewed and adjusted as needed.
Specifically, Cobre Panama has undertaken a deep
disinfection program and has developed heightened health protocols
which are regularly inspected by MINSA. There have been no cases
onsite since May 2020. In addition to the protocols in place
throughout the operation, before any personnel is permitted to
enter the site, they are tested and quarantined off-site in Company
provided accommodation to ensure the site remain virus-free. These
strict protocols and sanitary vigilance remain in place as a “new
normal” way of working. The Company is also supporting the wider
community in Panama, with donations of medical equipment and
supplies, as well as responding to the Panamanian Government’s
request to support families in need with food and other
supplies.
In Zambia, the Company has worked with Zambian
Health Authorities to adopt and implement strict procedures at all
of its mine sites to manage the COVID-19 risks. This has enabled
normal levels of operations throughout the crisis. In addition to
practicing social distancing and ensuring stringent hygiene
practices, implementing self-isolation policies, utilizing
alternate office space and working from home to limit interaction,
establishing a comprehensive contact tracing protocol, increased
capacity to generate therapeutic oxygen and building extensive
isolation facilities with intensive care capability, Kansanshi and
Sentinel have also procured their own serological testing equipment
to ensure that both sites can monitor and manage the situation
appropriately. The Company has also pledged financial support for
the provision of medical logistics support in the Solwezi and
Kalumbila districts of North-Western Zambia.
COVID-19 protective measures to minimize
person-to-person transmission in the work place and protect
business continuity have been implemented across all operations, in
addition to increased medical facility resilience initiatives at
the mine clinics in Mauritania, Zambia and Panama. The Company will
continue to monitor the mitigation efforts at the operations and
work with Governments and Health Ministries as new protocols are
established or required.
For further information visit our website at
www.first-quantum.com
North American contact: Lisa Doddridge, Director,
Investor Relations Tel: (416) 361-6400 Toll-free: 1 (888) 688-6577
United Kingdom contact: Clive Newall, President Tel: +44 7802
721663E-Mail: info@fqml.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATIONCertain statements and information herein,
including all statements that are not historical facts, contain
forward-looking statements and forward-looking information within
the meaning of applicable securities laws. The forward-looking
statements include estimates, forecasts and statements as to the
Company’s expectations of production and sales volumes, and
expected timing of completion of project development at Enterprise
and post-completion construction activity at Cobre Panama and are
subject to the impact of ore grades on future production, the
potential of production disruptions, potential production,
operational, labour or marketing disruptions as a result of the
COVID-19 global pandemic (including but not limited to the
temporary suspension of labour activities at Cobre Panama
implemented in April 2020), capital expenditure and mine production
costs, the outcome of mine permitting, other required permitting,
the outcome of legal proceedings which involve the Company,
information with respect to the future price of copper, gold,
silver, nickel, zinc, pyrite, cobalt, iron and sulphuric acid,
estimated mineral reserves and mineral resources, First Quantum’s
exploration and development program, estimated future expenses,
exploration and development capital requirements, the Company’s
hedging policy, and goals and strategies. Often, but not always,
forward-looking statements or information can be identified by the
use of words such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate” or “believes” or
variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved.
With respect to forward-looking statements and
information contained herein, the Company has made numerous
assumptions including among other things, assumptions about
continuing production at all operating facilities, the price of
copper, gold, silver, nickel, zinc, pyrite, cobalt, iron and
sulphuric acid, anticipated costs and expenditures and the ability
to achieve the Company’s goals. Forward-looking statements and
information by their nature are based on assumptions and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information. These factors include,
but are not limited to, future production volumes and costs, the
temporary or permanent closure of uneconomic operations, costs for
inputs such as oil, power and sulphur, political stability in
Zambia, Peru, Mauritania, Finland, Spain, Turkey, Panama, Argentina
and Australia, adverse weather conditions in Zambia, Finland,
Spain, Turkey, Mauritania, Australia and Panama, labour
disruptions, potential social and environmental challenges
(including the impact of climate change), power supply, mechanical
failures, water supply, procurement and delivery of parts and
supplies to the operations, the production of off-spec material and
events generally impacting global economic, political and social
stability.
See the Company’s Annual Information Form for
additional information on risks, uncertainties and other factors
relating to the forward-looking statements and information.
Although the Company has attempted to identify factors that would
cause actual actions, events or results to differ materially from
those disclosed in the forward-looking statements or information,
there may be other factors that cause actual results, performances,
achievements or events not to be anticipated, estimated or
intended. Also, many of these factors are beyond First Quantum’s
control. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company undertakes
no obligation to reissue or update forward-looking statements or
information as a result of new information or events after the date
hereof except as may be required by law. All forward-looking
statements and information made herein are qualified by this
cautionary statement.
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