First Quantum targets 80% Cobre Panama operations within 6 to 9 months after approval
Key Facts
First Quantum Minerals said it aims to raise operations at the Cobre Panama mine to around 80% within 6 to 9 months, but starting that process depends on the project receiving official approval. The chief executive said on the third-quarter results call on October 29 that the company remained committed to that timeframe. He added that reaching the target level depends heavily on mining operations being ready, including the recovery of equipment and the availability and training of operators. Resuming operations therefore depends on two parallel tracks: an official decision allowing the project to proceed and the field capability to re-equip the mining fleet. The target comes as the company continues processing existing ore stockpiles at the site, a process that has already contributed to third-quarter production.
The chief executive said 18 trucks had been commissioned, but the circuit was operating with around 7 trucks at the time of the call. The gap reflects that commissioning equipment does not mean the entire fleet is ready to operate within the mining cycle. Recovering the trucks and providing and training their operators remain factors linking the announced timeline to operational readiness. On processing, the company said all three processing trains entered service sequentially during the quarter. The second train began operating in July, while refurbishment, testing and commissioning of the first train were completed without major issues. This progress shows that processing facilities advanced during the quarter, while the targeted production increase also remains tied to restoring mining operations.
Cobre Panama produced 13,229 tonnes of copper in the third quarter, compared with 3,216 tonnes in the second quarter, and generated revenue of 203 million dollars and EBITDA of about 67 million dollars. The company said total copper production reached 108,959 tonnes during the quarter, up 8% from the previous quarter, attributing the increase mainly to the stockpile processing program at Cobre Panama and higher production at Kansanshi. The company’s revenue was 2.086 billion dollars, up 38% from the second quarter, supported by higher sales volumes and stronger realized metal prices. EBITDA also rose to 844 million dollars from 400 million dollars in the previous quarter. The chief executive said growth in the measure reflected higher production and full exposure to stronger copper prices. The company shipped its first batch of copper concentrate, weighing 33,000 wet metric tonnes, in August, then sent a second vessel carrying 38,611 wet metric tonnes in September.
On the balance sheet, net debt fell by 98 million dollars in the third quarter to 5,309 million dollars on September 30, with the company attributing the decline mainly to repayment of 171 million dollars of debt. Total liquidity was 2.13 billion dollars on the same date, comprising 781 million dollars in cash and 1.35 billion dollars available and undrawn under the revolving credit facility. Cash flow from operating activities also rose to 600 million dollars in the quarter, an increase of 470 million dollars from the second quarter. By contrast, the company said its 2026 copper production guidance narrowed to a range of 405,000–435,000 tonnes, from 405,000–475,000 tonnes, because of lower grades at Sentinel and Kansanshi. The company left its Cobre Panama guidance unchanged. These figures place the restart target in the context of improved production and liquidity during the quarter, alongside a revision to annual production expectations because of performance at other mines.
The deleveraging target is therefore tied to the project approval phase and is not an immediate target alongside the gradual production ramp-up. Current activity at the site depends on a stockpile processing program with estimated required spending of about 200 million dollars; cash outflows related to its costs had reached about 80 million dollars by the end of the third quarter. The company estimated the stockpile at about 38 million tonnes of mineralized ore containing about 70,000 tonnes of recoverable copper. It said this quantity is enough to support the processing program through mid-2027. This separates the current stockpile-based program from the goal of restoring a higher operating level, which remains conditional on approvals and field readiness.
On the government track, Panama’s ministerial commission submitted its final report to President José Raúl Mulino on September 30, and the company said the president was reviewing it. The commission recommended assessing the possibility of reaching a new agreement with Cobre Panama or First Quantum to settle outstanding arbitrations and set terms for a potential restart that would allow an orderly, self-funded closure. The report contains 17 recommendations and 6 guiding principles for considering the mine’s future. This process makes the official decision a central element of any operational recovery timeline, alongside restoring equipment and training workers. The company had scheduled its third-quarter results call for October 29, 2026, at 9 a.m. Eastern time, when the chief executive reiterated the company’s commitment to the 6 to 9 months timeframe after official approval.