Panama mine closure fallout – First Quantum analyzing sale of assets

The Canadian company First Quantum is analyzing the sale of some of its assets, including some of its smaller operations, to compensate for the closure of the mine located in the mountains of Donoso and Omar Torrijos in the province of Colón.

At the beginning of January, international media, as well as the National Bank of Canada, had reported that the mining company had begun talks with some of its Asian capital partners to sell some of its mines located in Zambia, Africa.

In its preliminary report for the last quarter of 2023 and projections for 2024, First Quantum indicated that it “is evaluating a variety of options to maintain a strong financial position and preserve value for its shareholders, including the sale of smaller mines and interests in its largest mining assets.”

Additionally, the Canadian mining company suspended the payment of dividends corresponding to the last quarter of last year.

 Tristan Pascall, CEO of First Quantum, said that following the suspension of production at Cobre Panama, the company is taking decisive measures to conserve capital, reduce costs, and strengthen its financial position.

After the suspension of operations in Panama as a result of the unconstitutionality ruling of the Supreme Court of Justice, First Quantum reports that the production of the Donoso mine closed the year at 331 tons of copper, remaining below the 350 thousand tons registered. in 2022 and far from the projections of 380 thousand that the mining company had calculated for 2023. Regarding gold production, the company obtained 130 thousand ounces, 10 thousand less than in 2022.

The mining company confirmed that on Tuesday, January 16, it will deliver the preliminary draft required by the Ministry of Commerce and Industries for the maintenance work that must be followed to conclude the definitive closure of the mine.

The company estimates costs will range between $15 million and $20 million per month, but does not explain who will bear that expense.

“At Cobre Panamá, approximately 1,400 workers currently remain to carry out the care and maintenance program, but it is possible that there will be reductions to a workforce of less than a thousand workers, depending on the environmental management programs,” clarified the company.