Kansanshi Expansion Powers First Quantum’s Q3 Growth Despite Modest Loss

First Quantum Minerals reported a resilient third quarter in 2025, marked by solid operational achievements across its African assets and the successful commissioning of the Kansanshi S3 Expansion project in Zambia. While the company posted a modest net loss, its underlying performance showed strength, with rising copper and nickel production, improved cost efficiency, and enhanced liquidity following a $1 billion gold stream transaction with Royal Gold. The developments reflect the miner’s strategic focus on operational excellence, disciplined capital management, and reinforcing Zambia’s reputation as a regional leader in copper production.

The Kansanshi S3 Expansion reached a major milestone in August, producing its first concentrate ahead of schedule and above early expectations. This development significantly boosted group copper output, which rose 15% quarter-on-quarter to 104,626 tonnes, driven primarily by increased production from Kansanshi and Sentinel mines. Nickel output also surged by 44% to 5,767 tonnes, led by ramp-up at the Enterprise mine. Despite a net loss of $48 million, or $0.06 per share, and an adjusted loss of $16 million, or $0.02 per share, the company maintained a healthy EBITDA of $435 million and gross profit of $360 million, underscoring its operational strength amid a volatile commodities market.

Cost optimization was another highlight of the quarter. The copper C1 cash cost declined to $1.95 per pound, down $0.05 from the previous quarter, reflecting better grades and cost discipline. Kansanshi Mine, now benefiting from the S3 Expansion, increased output to 46,881 tonnes, including 6,136 tonnes from S3 alone, while reducing cash costs to $1.34 per pound. Sentinel Mine delivered 51,336 tonnes of copper, supported by improved mill throughput and crusher upgrades, and the Enterprise Mine achieved significantly lower cash costs of $4.17 per pound. Meanwhile, operations at Cobre Panamá continued under the Preservation and Safe Management Plan, maintaining safety and environmental standards while broader negotiations progress.

Financially, First Quantum strengthened its balance sheet through a landmark $1 billion gold stream deal with Royal Gold and extended debt maturities to 2029, improving liquidity and reducing near-term refinancing risks. The company reaffirmed its 2025 guidance, projecting copper production between 390,000 and 410,000 tonnes, gold output of 140,000–150,000 ounces, and nickel output of 18,000–23,000 tonnes. Additionally, reduced capital expenditure guidance to $1.15–$1.25 billion reflects improved project efficiency and cost management.

The near-completion of the Kansanshi S3 Expansion, delivered under budget and ahead of expectations, positions Zambia more firmly as a major copper hub in Africa. As the S3 ramp-up continues and Sentinel’s higher-grade output contributes further, First Quantum anticipates a stronger Q4 performance. These advancements not only enhance Zambia’s industrial competitiveness but also underscore Africa’s expanding role in global copper supply chains, vital to the clean energy transition and infrastructure development.

Mini-Glossary

• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of operational profitability.
• C1 Cash Cost: The direct cost of producing a pound of copper, excluding capital and overhead expenses.
• Gold Stream: A financing arrangement where a company sells a portion of future gold production for upfront cash.
• Preservation and Safe Management Plan: A protocol ensuring mine safety and maintenance when full operations are temporarily suspended.