First Quantum Reports Fourth Quarter And Full Year Financial Results.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--April 22, 2002 (All figures expressed in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars) First Quantum Minerals First Quantum Minerals Ltd. is a growing mining and metals company whose principle activities include mineral exploration, development and mining. The Company produces LME grade "A" copper cathode, copper in concentrate, gold and sulphuric acid. Ltd. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :FQMLF) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :FM.)(LSE LSE - Language Sensitive Editor :FQM FQM Fédération Québécoise des Municipalités (Canada) FQM Fédération Québécoise des Massothérapeutes FQM Food Quality Management FQM Fundamental Query and Manipulation FQM Field Quality Management ) announced financial results for the three months and full year ended November November: see month. 30, 2001. Key Points -- Attributable copper production of 50,411 tonnes (111 million pounds) in 2001 -- Weighted average cash cost of $0.64 per pound of copper. -- Strong operating and financial performance continued at Bwana Mkubwa -- Mopani Copper Mines Plc continued to under perform contributing a loss of $8.54 million -- Loss for 2001 of $20.98 million or $0.58 per share, including write downs of $10.61 million or $0.29 per share -- Expansion of Bwana Mkubwa to 30,000 tonnes copper cathode to be completed by September 2002 -- Feasibility study at Kansanshi nearing completion, construction may begin in 2002 with production by 2004 Overview 2001 was a tough year. A broad based global economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , led to major weakness within the manufacturing sector of the world economies. This severely reduced demand for industrial metals including copper and cobalt Cobalt, town, Canada Cobalt (kō`bôlt), town (1991 pop. 1,470), E Ont., Canada, NE of Sudbury, near Lake Timiskaming. Once a center for cobalt and silver mining, the area is now economically depressed. . In fact, during 2001 nearly 600,000 tonnes of copper reached terminal warehouses as the worlds' economies contracted. As inventories surged copper prices fell to their lowest levels since 1987. Despite this difficult macro economic environment, First Quantum was successful in achieving several of its planned objectives for 2001. The Company secured its future foundation of low cost copper production through both exploration and acquisition. The high grade Lonshi Copper Deposit located in the Democratic Republic of Congo Congo, river, Africa Congo (kŏng`gō) or Zaïre (zī`ēr, zäēr`), great river of equatorial Africa, c. ("DRC DRC Democratic Republic of Congo DRC Down (Stage) Right Center DRC Director(ate) of Reserve Components DRC Disability Rights Commission (United Kingdom) ") was discovered as a product of its exploration efforts to secure new oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. feed for the Bwana Mkubwa operation. Taking advantage of the low copper price environment, the Company acquired the Kansanshi Copper Deposit in Zambia Zambia (zăm`bēə), officially Republic of Zambia, republic (2005 est. pop. 11,262,000), 290,584 sq mi (752,614 sq km), central Africa. , one of the premier undeveloped copper deposits in the world. Lastly, the Company improved its balance sheet through the refinancing Refinancing An extension and/or increase in amount of existing debt. of high cost debt and issuing of new equity to institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. .While First Quantum achieved many of its goals in 2001, it did not achieve all of them. In particular, the under performance of Mopani Mopani or mopane can be:
tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. the Nkana Nkana is a section of the city of Kitwe, Copperbelt Province, Zambia which started off in the early part of the 20th century as a railway station to support the growing complex of copper mining operations. It was named after Chief Nkana, the local traditional ruler. and Mufulira Mufulira (m  flē`rä), city (1990 pop. 152,944), N central Zambia, on the border with the Congo. Divisions was not achieved. First Quantum had expected to see a greater
degree of advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. then has occurred to date.In early 2002, the Mopani shareholders appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. a new Chief Executive Officer and initiatives have been taken to apply stringent cost controls. This will position Mopani well in the future. Mopani is now forecast to make a loss in the financial year 2002, but will return to profitability in 2003. In August of 2000, the Connemara Connemara (kŏnəmär`ə), wild, mountainous region, Co. Galway, W Republic of Ireland, lying between the Atlantic Ocean and Loughs Corrib and Mask. Many mountains, lakes, streams, and glens help make it a well-known vacation area. gold operation was put on care and maintenance to preserve the reserves until such time as the political and economic climate in Zimbabwe Zimbabwe, ruined city, Zimbabwe Zimbabwe (zĭmbäb`wā) [Bantu,=stone houses], ruined city, SE Zimbabwe, near Fort Victoria. It was discovered by European explorers c. improved. Unfortunately, during 2001 conditions in Zimbabwe continued to deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. leading First Quantum to write down the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the Connemara assets by $9.09 million. In addition, the Company chose to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. its interest in the Kolwezi Kolwezi (kōlwĕz`ē), city (1984 pop. 416,122), Katanga province, SE Congo (Kinshasa). It is a center for copper and cobalt mining. There are copper-ore concentration plants, a zinc refinery, and a brewery. and Likasi Likasi (lĭkäs`ē), formerly Jadotville (zhädōvēl`), city (1984 pop. 213,862), Katanga province, SE Congo (Kinshasa). It is a major industrial, mining, and transportation center. tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. projects located in the DRC resulting in the write-off of $1.28 million. Financial Results (see attached financial statements) The 100% owned Bwana Mkubwa Mining Limited ("Bwana Mkubwa") had a strong fourth quarter, despite low copper prices, reporting a $2.22 million operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before non-cash items. Fourth quarter financial results were negatively impacted by low productivity at the 44% owned Mopani Copper Mines Plc ("Mopani"). This resulted in both reduced ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. production and high unit costs which in combination with weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. cobalt prices resulted in Mopani contributing
an operating loss operating lossThe excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.48 million before non-cash items. Revenues totaled $33.08 million in the fourth quarter of 2001 similar to $33.35 million in 2000. At Mopani, the Company's portion of external revenues was $27.14 million during the quarter. External revenues at Bwana Mkubwa were $5.51 million. Earnings before interest, taxes, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization and, write downs of Connemara and the Kolwezi and Likasi tailings projects, for the fourth quarter of 2001 were $4.04 million or $0.09 per share compared to $8.61 million or $0.34 per share in 2000. Cash flow from operating activities, before changes in non-cash operating working capital, for the period was $(3.06) million or $(0.07) per share compared to $6.31 million or $0.25 per share in 2000. The Company reported a net loss for the period of $(18.43) million or $(0.43) per share versus earnings of $4.36 million or $0.17 per share in 2000. Revenues were $138.12 million in 2001 up 52% from $91.18 million in 2000 as a result of a full year of operations at Mopani. At Mopani, the Company's portion of external revenues was $110.95 million in 2001 compared to $57.01 million in 2000. External revenues at the Bwana Mkubwa decreased 12% in 2001 to $24.55 million compared to $28.11 million in 2000 as a result of lower realized copper and sulphuric acid sulphuric acid: see sulfuric acid. prices. Copper continues to be the largest contributor to the Company's revenue in 2001 representing 66%, tolling charges contributed 15%, cobalt 10% and sulphuric acid 7% compared to 63% copper, 10% tolling charges 9% cobalt and 11% sulphuric acid in 2000. Net loss for the year 2001 was $(20.98) million or $(0.58) per share, compared with earnings of $7.53 million or $0.30 per share in 2000. Net loss for the year 2001, before write downs of Connemara and the Kolwezi and Likasi tailings projects, was $(10.61) million or $(0.29) per share and before the loss contributed by Mopani was $(2.07) million or $(0.06) per share. Earnings before interest and financing fees, taxes, depletion and amortization and write downs of Connemara and deferred exploration costs for 2001 were $11.29 million or $0.31 per share compared to $22.51 million or $0.89 per share in 2000. Cash flows from operating activities, before changes in non-cash operating working capital was $4.65 million or $0.13 per share, compared to $17.87 million or $0.71 per share the previous year. The Company ended the year with a working capital of $1.42 million, significantly improved compared to a deficit at November 30, 2000 of $(6.32) million. At November 30, 2001, cash was $9.84 million compared to $2.60 million in 2000. The averaged realized copper price for 2001 was $0.82 per pound compared to the average LME See London Metal Exchange. LME See London Metal Exchange (LME). copper price for the year of $0.72. The difference in copper prices realized was the result of a proactive forward hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. strategy. The average realized copper price in 2000 was $0.80 per pound. The average realized price for cobalt in 2001 was $7.15 per pound, compared to $9.94 per pound in 2000. Cobalt is not hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. . Operations Review (see attached tables) Attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk copper production was 50,411 tonnes in 2001 as compared to 32,470 tonnes in 2000. Surplus acid production was 62,783 tonnes in 2001 compared to 61,889 tonnes in 2000 and cobalt production was 872 tonnes in 2001 compared to 367 tonnes in 2000. Weighted average cash costs in 2001 were $0.64 per pound of copper compared to $0.42 per pound in 2000. Bwana Mkubwa Mine (100% Interest) During the year ended November 30, 2001, the Bwana Mkubwa Copper Mine continued to operate efficiently, producing 9,662 tonnes of copper and 62,783 tonnes of surplus sulphuric acid for sale to third parties in the Copperbelt Copperbelt, mining region, N central Zambia, central Africa. A natural extension of the mineral-rich region of Katanga, the Copperbelt is one of the richest sources of copper in the world. Cobalt, selenium, silver, and gold are also produced. region, compared to 10,025 tonnes copper and 61,889 tonnes surplus sulphuric acid in 2000. A Definitive Engineering and Capital Cost Study for the expansion of the existing process plant to produce up to 35,000 tonnes per annum Per annum Yearly. of copper cathode utilizing ore from the Lonshi deposit, located 36 kilometres southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. and milling facilities at Bwana Mkubwa commenced during the fourth quarter. Full production from the expanded plant should be achieved by the fourth quarter, 2002. At Bwana Mkubwa, cash costs net of credits which include surplus sulphuric acid profits were $0.18 per pound of copper in 2001 compared with costs of $0.11 per pound of copper in 2000 due to lower sulphuric acid prices. Total cash costs net of credits were $0.61 per pound of copper in 2001, compared to $0.57 per pound of copper in 2000. Mopani Copper Mines (44% Interest) Mopani did not achieve its aggressive production forecast in 2001 despite higher copper and cobalt production levels compared to the previous year. Total copper production was 83,161 tonnes in 2001 compared to 45,804 tonnes in 2000 while total cobalt production was 1,780 tonnes in 2001 compared to 749 tonnes in 2000. The increase in metal production in 2001 reflects a full year of production compared to eight months in 2000. Gross profit fell during the year primarily as a result of higher operating costs operating costs npl → gastos mpl operacionales and lower cobalt prices. Overall the net loss to the Company in 2001 at Mopani was US$(8.54)million after taxes and minority interests compared to net earnings of $4.64 million in 2000. As a result of a full year of operation at Mopani, costs of sales in 2001 rose to $123.49 million compared to $66.16 million in 2000. At Mopani during 2001, cash costs net of credits, which include cobalt and tolling profits, were $0.75 per pound of copper, while total costs net of credits were $0.94 per pound of copper. This compares to cash costs in 2000 of $0.56 per pound of copper and total costs of $0.71 per pound of copper. The increase in operating costs at Mopani, on a per pound of copper basis, is attributed to operating inefficiencies and low cobalt prices. Attributable production from Mopani for the year ended November 30, 2001 was 40,749 tonnes copper and 872 tonnes cobalt, compared to 22,445 tonnes copper and 367 tonnes cobalt in 2000. Kansanshi Copper Deposit (80% Interest) On August 15, 2001 the Company purchased an effective 80% interest in the Kansanshi Copper Deposit in Zambia. The acquisition was financed by the assumption of $5.39 million in debt which was subsequently repaid by the payment of $2.45 million and the issuance of 1,400,000 First Quantum common shares. In addition, the Company has agreed to pay a deferred payment of $25 million, subject to certain conditions, less an amount equal to the value of the 1,400,000 common shares at the date on which commercial production commences at Kansanshi. As part of the Kansanshi acquisition the Company has paid $2.0 million to ZCCM ZCCM Zambia Consolidated Copper Mines Investment Holdings ("ZCCM") and will pay a further $4.0 million to ZCCM upon a positive development decision at Kansanshi. This decision and payment, subject to certain conditions, must be paid by January January: see month. 10, 2003. ZCCM holds a 20% interest in Kansanshi. The Kansanshi deposit is one of the premier undeveloped copper deposits in the world. Kansanshi hosts an open pit mineral resource of 267 million tonnes grading 1.28% copper and 0.16 gram per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. gold containing 3.4 million tonnes (7.5 billion pounds) of copper and 1.4 million ounces of gold. Outlook There are increasing signs that the United States economy has bottomed and should embark em·bark v. em·barked, em·bark·ing, em·barks v.tr. 1. To cause to board a vessel or aircraft: stopped to embark passengers. 2. upon at least a modest recovery in 2002. Europe should follow the United States led upturn, while China continues to enjoy healthy growth as a result of domestic infrastructure spending and a large influx of foreign direct investment. With renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. growth of the worlds' economies commodity prices will begin to move higher in the second half of 2002. This will coincide with increasing production at Bwana Mkubwa and improved operating results at Mopani. Bwana Mkubwa Mine Bwana Mkubwa continues to operate profitably and made significant advancements in enhancing its asset base and extending the life of its operations. In September 2001, the Company commenced open pit mining operations and by mid-April Noun 1. mid-April - the middle part of April period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" Apr, April - the month following March and preceding May 2002, 442,000 tonnes of ore grading 4.31% copper containing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 16,000 tonnes of copper was stockpiled. An estimated 730,000 tonnes of ore grading 5.43% copper is to be mined during the period December December: see month. , 2001 to November 2002. In early March 2002, the Company completed the construction and commissioning of Phase One of the expansion of the Bwana Mkubwa facility. Phase One consisted of the installation of crushing, milling and pre-leach filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids facilities necessary to process ore from the high grade Lonshi copper deposit. In addition, construction of a second sulphuric acid plant has been completed at Bwana Mkubwa expanding acid production from 300 tonnes per day to 420 tonnes per day. Phase One expansion was financed from current working capital at an estimated cost of $5.50 million. Phase Two of the expansion construction is well underway which will result in the expansion of the leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. , filtration, solvent extraction Solvent extraction A technique, also called liquid extraction, for separating the components of a liquid solution. This technique depends upon the selective dissolving of one or more constituents of the solution into a suitable immiscible liquid solvent. , and electrowinning Electrowinning, also called electroextraction, is the electrodeposition of metals from their ores that have been put in solution or liquefied. Electrorefining uses a similar process to remove impurities from a metal. facilities to a minimum of 30,000 tonnes of LME grade copper cathode per year from the current production rate of 10,000 tonnes of copper cathode. Phase Two construction of Bwana Mkubwa expansion will be completed during the third quarter, 2002 at an estimated cost of $18 million. The Company is well advanced in finalizing a project loan facility for the full Phase Two estimated cost. For the year ending November 2002 Bwana Mkubwa is anticipated to produce 16,000 tonnes of copper cathode and 99,000 tonnes of surplus sulphuric acid. When the Bwana Mkubwa facility is fully expanded to process the Lonshi ore, cash costs net of credits are budgeted to be $0.30 per pound of copper putting the Bwana Mkubwa operation in the lowest quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. in terms of cost of production. Bwana Mkubwa will continue to be a cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to of the company and a major contributor to cash flow. Kansanshi Copper Deposit Complementing the success of the Bwana Mkubwa operation is the planned completion of a bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. on the Kansanshi copper deposit. Kansanshi hosts an open pit mineral resource of 267 million tonnes grading 1.28% copper and 0.16 grams per tonnes gold containing 3.4 million tonnes (7.5 billion pounds) copper and 1.4 million ounces of gold. The study will consider all aspects of the potential development of a new, large scale open pit mine at Kansanshi. The Company anticipates that first phase construction including engineering civils and some earthworks earthworks: see land art. , subject to certain conditions, could commence late in 2002 with production commencing in early 2004. Kansanshi, with a capital cost of approximately $120 million, is being designed to produce approximately 75,000 tonnes (165 million pounds) of copper per year. Early indications are that Kansanshi will produce copper for approximately $0.40 per pound, net of credits, adding to First Quantum's low cost production base at Bwana Mkubwa. Mopani Copper Mines At Mopani, new management will focus on cost cutting activities and improving productivity in an effort to reach a positive cash flow position in 2002. We believe Mopani's performance will be assisted by rising copper and cobalt prices. Mopani funding requirements are being met by Glencore Glencore International AG (formerly called Marc Rich & Co AG) is one of the world's largest suppliers of commodities and raw materials, and is also among the world's largest privately held companies. As of 2006, it was Europe's sixth-largest company in terms of turnover. , the 51% shareholder in Carlisa Investments Corp. which holds 90% of the equity in Mopani. As of April 18, 2002 the Company elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to reduce its interest in Carlisa from 49% to 18.8% rather than repay to Glencore its share of advances made. The Company is not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to make any further capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. to Mopani. Depending upon the future profitability and ongoing capital requirements at Mopani, First Quantum, in the event of non-contribution of future funding, may reduce its interest further in Carlisa. Mopani continues to have an aggressive cost cutting exercise together with initiatives to increase production and improve productivity. Mopani is forecasting 101,000 tonnes copper and 2,000 tonnes cobalt production for the year ending November, 2002. Cash costs net of credits are forecast at $0.76 per pound of copper in 2002. Our new arrangement at Mopani has taken away the risk of First Quantum's growth being constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by Mopani's potential need for additional capital. While we have reduced our ownership interest in Mopani, we continue to believe in the viability of the assets and their financial and strategic value to First Quantum. We believe that First Quantum is uniquely positioned to participate in an expected environment of higher copper prices upon renewed growth in world economies. We also believe that worldwide mine production over the next several years will be unable to keep up with projected global demand growth for copper. This could result in much higher copper prices than we see today. On Behalf of the Board of Directors of First Quantum Minerals Ltd., G. Clive CLIVE Computer-aided Learning in Veterinary Education. A consortium of six veterinary schools in the United Kingdom providing computer based learning in veterinary undergraduates courses. Newall Newall is a surname, and may refer to: In the Peerage of the United Kingdom:
Certain of the information contained in this news release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements, including but not limited to those with respect to the prices of gold, copper and sulphuric acid, estimated future production, estimated costs of future production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, the actual prices of copper, gold and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the Company's documents filed from time to time with the British Columbia Securities Commission The British Columbia Securities Commission (BCSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of British Columbia. External links
ATTRIBUTABLE PRODUCTION SUMMARY
For The Three Months and Year Ended November 30, 2001
(All figures in United States dollars)
2001 2000
Fourth Full Fourth Full
Quarter Year Quarter Year
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Total
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Copper Production (tonnes) 13,116 50,411 12,111 32,470
Total Cost Copper (US$/lb)(1) 0.92 0.77 0.64 0.66
Cash Cost Copper (US$/lb)(1) 0.66 0.64 0.37 0.42
Cobalt Production (tonnes) 246 872 211 367
Surplus Sulfuric Acid (tonnes) 16,311 62,783 15,602 61,889
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Mufulira Division, Zambia
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Copper Production (tonnes) 5,179 18,298 4,713 13,600
Total Cost Copper (US$/lb)(1) 0.97 0.96 0.65 0.64
Cash Cost Copper (US$/lb)(1) 0.76 0.78 0.49 0.52
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Nkana Division, Zambia
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Copper Production (tonnes) 5,667 22,451 4,960 8,845
Cobalt Production (tonnes) 246 872 211 367
Total Cost Copper (US$/lb)(1) 1.00 0.93 0.63 0.81
Cash Cost Copper (US$/lb)(1) 0.77 0.72 0.40 0.61
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Bwana Mkubwa Mine, Zambia
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Copper Production (tonnes) 2270 9,662 2,438 10,025
Surplus Acid Production (tonnes) 16,311 62,783 15,602 61,889
Total Cost Copper (US$/lb)(1) 0.61 0.61 0.62 0.57
Cash Cost Copper (US$/lb)(1) 0.18 0.18 0.07 0.11
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Notes:
(1) costs are net of credits.
Operation Statistics By Quarter - 2001
(All figures in United States dollars)
Bwana Mkubwa Mine, Zambia
Copper & Acid Production
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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Ore Processed (tonnes) 447,170 477,970 493,950 471,430 1,890,520
Copper Grade (%) 0.69 0.71 0.66 0.64 0.67
Contained Copper (tonnes) 3,085 3,398 3,260 3,031 12,774
Surplus Acid Production
(tonnes) 14,642 13,997 17,833 16,311 62,783
Copper Production (tonnes) 2,323 2,581 2,488 2,270 9,662
Total Cost Copper ($/lb)(1) 0.69 0.60 0.54 0.61 0.61
Cash Cost Copper ($/lb)(1) 0.21 0.18 0.14 0.18 0.18
Mufulira Division, Zambia
Copper Production
(Table represents 100% Mopani production)
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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Ore Processed (tonnes) 498,736 388,317 433,593 608,384 1,929,030
Copper Grade (%) 2.38 2.28 2.33 2.18 2.29
Contained Copper
(tonnes)(2) 11,867 8,854 10,103 13,251 44,075
Copper Production
(tonnes)(2) 8,712 9,433 8,628 10,570 37,343
Total Cost Copper ($/lb)(1) 0.72 1.16 0.97 0.97 0.96
Cash Cost Copper ($/lb)(1) 0.58 0.99 0.78 0.76 0.78
Nkana Division, Zambia
Copper & Cobalt Production
(Table represents 100% Mopani production)
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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Ore Processed (tonnes) 760,972 827,253 749,144 795,142 3,132,511
Copper Grade (%) 1.77 1.68 1.81 1.68 1.73
Cobalt Grade (%) 0.14 0.13 0.15 0.13 0.14
Contained Copper
(tonnes)(2) 13,451 13,886 13,560 13,420 54,317
Contained Cobalt
(tonnes)(2) 1,040 1,101 1,124 991 4,256
Copper Production
(tonnes)(2) 9,922 11,331 12,999 11,566 45,818
Cobalt Production (tonnes)(2) 368 455 456 501 1,780
Total Cost Copper ($/lb)(1) 0.87 0.83 1.01 1.00 0.93
Cash Cost Copper ($/lb)(1) 0.71 0.54 0.85 0.77 0.72
Notes: (1) costs are net of credits. (2) Variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality in metal production figures versus contained metal in ore figures, relate to factors that include inventory of copper in circuit, as well as, metal accounting and delivery allied with tolling contracts. Therefore, metal production and contained metal should not be used to calculate metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. recoveries. Total copper recoveries at Nkana and Mufulira are approximately 90% and 92% respectively. Total cobalt recoveries at Nkana are approximately 50%.
Consolidated Balance Sheets
As at November 30, 2001 and November 30 2000
(expressed in U.S. dollars)
2001 2000
$ $
Assets
Current assets
Cash and cash equivalents 9,835,973 2,595,236
Accounts receivable and prepaid expenses 13,766,804 15,736,945
Inventory (note 5) 25,904,367 17,744,692
-------------------------
49,507,144 36,076,873
Management fees receivable (note 6) 2,846,824 992,974
Investments (note 7) 2,313,839 2,160,614
Deferred exploration and acquisition
costs (note 8) 108,892 1,387,037
Property, plant and equipment (note 9) 99,787,291 86,974,711
Deferred financing fees (note 11) 160,077 981,332
-------------------------
154,724,067 128,573,541
-------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 29,941,550 16,619,238
Current portion of provision for
retrenchment benefits (note 13) 2,551,176 3,033,100
Current portion of long-term debt (note
10) 15,595,590 22,744,585
-------------------------
48,088,316 42,396,923
Long-term debt (note 10) 28,910,211 29,729,875
Deferred revenue (note 21) 850,394 106,075
Future income tax liability (note 12) 5,064,129 1,527,016
Provision for retrenchment benefits
(note 13) 13,293,700 11,407,119
Provision for removal and restoration
(note 3) 9,849,980 9,849,980
-------------------------
106,056,730 95,016,988
Minority interests 2,323,077 603,493
-------------------------
108,379,807 95,620,481
-------------------------
Shareholders' Equity
Share capital (note 14) 77,187,634 42,821,156
Deficit (30,843,374) (9,868,096)
-------------------------
46,344,260 32,953,060
-------------------------
154,724,067 128,573,541
-------------------------
Going concern assumption (note 1)
Subsequent events (note 23)
Approved by the Board of Directors
Martin R. Rowley, Director
Philip K. R. Pascall, Director
Consolidated Statements of Loss and Deficit
For years ended November 30, 2001 and 2000
(expressed in U.S. dollars)
2001 2000
$ $
Revenues
Copper 91,471,909 57,535,137
Acid 9,521,086 10,451,849
Cobalt 13,750,380 8,043,938
Gold - 4,474,026
Toll charges 20,753,950 9,088,568
Management fees (note 6) 1,853,850 992,974
Other 750,862 595,788
-------------------------
138,102,037 91,182,280
-------------------------
Costs and expenses
Cost of sales 123,489,452 66,163,843
Depletion and amortization 12,367,849 10,730,127
Exploration 617,160 315,443
Foreign exchange loss (gain) 726,479 (70,799)
General and administrative 2,134,538 1,605,849
Interest and financing fees on long-term
debt 6,306,846 5,004,755
Writedown of mineral properties and
deferred exploration costs (notes 8 and 9) 10,369,240 -
-------------------------
156,011,564 83,749,218
-------------------------
Earnings (loss) before income taxes,
minority interest and equity loss (17,909,527) 7,433,062
Provision for current income taxes (note 12) (7,150) (35,183)
Future income taxes (expense) (note 12) (3,537,113) 542,733
Minority interest (note 6) 449,276 (244,435)
Equity earnings (loss) (note 7) 29,236 (167,723)
-------------------------
Net earnings (loss) for the year (20,975,278) 7,528,454
Deficit - Beginning of year (9,868,096)(15,326,801)
Future income tax adjustment (note 12) - (2,069,749)
-------------------------
Deficit - End of year (30,843,374) (9,868,096)
-------------------------
Earnings (loss) per share (note 17)
Basic (0.58) 0.30
-------------------------
Diluted (0.58) 0.27
-------------------------
Consolidated Statements of Cash Flows
For the years ended November 30, 2001 and 2000
(expressed in U.S. dollars)
2001 2000
$ $
Cash flows from operating activities
Net earnings (loss) for the year (20,975,278) 7,528,454
Items not affecting cash
Management fees (note 6) (1,853,850) (992,974)
Minority interest (449,276) 244,435
Depletion and amortization 12,367,849 10,730,127
Amortization of financing fees on
long-term debt 1,042,900 1,310,326
Equity loss (earnings) (29,236) 167,723
Net recognition of deferred revenue (106,075) (1,036,323)
Writedown of mineral properties and
deferred exploration costs 10,369,240 -
Accrued interest on deferred liability 746,343 461,155
Future income tax expense (recovery) 3,537,113 (542,733)
-----------------------------
4,649,730 17,870,190
-----------------------------
Change in non-cash operating working
capital
Decrease (increase) in receivables and
prepaid expenses 2,826,761 (9,610,090)
Increase in inventory (8,660,014) (7,120,753)
Increase in accounts payable and accrued
liabilities 7,723,531 8,259,106
-----------------------------
1,890,278 (8,471,737)
-----------------------------
6,540,008 9,398,453
-----------------------------
Cash flows from financing activities
Proceeds from long-term debt 22,797,381 28,411,778
Repayments of principal on long-term
debt (30,568,161) (13,493,677)
Payments for deferred finance fees (221,645) -
Proceeds from issue of common shares and
warrants 31,422,256 1,520,595
-----------------------------
23,429,831 16,438,696
-----------------------------
Cash flows from investing activities
Payments to acquire property, plant and
equipment (22,605,113) (15,465,293)
Purchase of Mopani interest - (9,569,348)
Proceeds from sale of property, plant
and equipment - 102,000
Payments for exploration of mineral
properties - (132,689)
Purchase of investments (123,989) -
Proceeds from sale of investments - 120,005
-----------------------------
(22,729,102) (24,945,325)
-----------------------------
Increase in cash and cash equivalents 7,240,737 891,824
Cash and cash equivalents - Beginning of
year 2,595,236 1,703,412
-----------------------------
Cash and cash equivalents - End of year 9,835,973 2,595,236
-----------------------------
Supplemental cash flow information (note 20)
Segmented Data
For the year ended November 30, 2001
(expressed in U.S. dollars)
Bwana
Mopani Mkubwa Connemara Corporate/
(Zambia) (Zambia) (Zimbabwe) other Total
$ $ $ $ $
(note 23)
Revenues from
external
customers 110,947,760 24,549,565 39,700 - 135,537,025
Interest and
other
income 300,860 73,141 54,351 2,136,663 2,565,015
Inter-segment
sales (cost of
sales) (342,409 342,409 - - -
Management fee
income (cost) (1,781,150) - - 1,781,150 -
Cost of
sales (109,869,763)(13,319,234)(300,458) - (123,489,455)
-----------------------------------------------------------
Segment gross
profit (744,702) 11,645,881 (206,407) 3,917,813 14,612,585
Depletion and
amortization 3,659,309 8,601,784 90,765 15,974 12,367,832
General and
administrative 265,580 - - 1,868,974 2,134,554
Exploration and
write offs - - 9,091,095 1,895,305 10,986,400
Foreign exchange
(gain) loss 817,811 (36,438) 96,861 (151,754) 726,480
Interest and
financing fees 3,498,110 970,324 90,980 1,747,432 6,306,846
-----------------------------------------------------------
Segment profit
(loss) before
the undernoted
items (8,985,512) 2,110,211(9,576,108)(1,458,118)(17,909,527)
Minority
interest 449,276 - - - 449,276
Equity earnings - - - 29,236 29,236
Future income
tax (recovery) - (3,537,113) - - (3,537,113)
Income tax - (7,068) (82) - (7,150)
-----------------------------------------------------------
Segment profit
(loss) after
tax (8,536,236)(1,433,970)(9,576,190)(1,428,882)(20,975,278)
-----------------------------------------------------------
Property,
plant and
equipment
additions 16,609,530 3,807,001 267,296 12,976,424 33,660,251
-----------------------------------------------------------
Total
assets 95,424,299 43,103,941 1,242,082 143,728,155 283,498,477
Intercompany
balances
included
in total
assets (36,291) (15,059,543) (30,026)(113,648,550)(128,774,410)
-----------------------------------------------------------
Total
consolidated
assets 95,388,008 28,044,398 1,212,056 30,079,605 154,724,067
-----------------------------------------------------------
Comisa and Kansanshi have not been included as separate segments in this analysis because they have not yet reached the commercial production stage. All associated costs are being capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. and are included in corporate/other assets.
Segmented Data
For the year ended November 30, 2000
(expressed in U.S. dollars)
Bwana
Mopani Mkubwa Connemara Corporate/
(Zambia) (Zambia) (Zimbabwe) other Total
$ $ $ $ $
Revenues from
external
customers 57,010,959 28,108,533 4,524,672 - 89,644,164
Other income 72,676 308,047 16,963 1,140,430 1,538,116
Inter-segment
sales
(cost of sales) (406,394) 406,394 - - -
Management fees
income (cost) (954,034) - - 954,034 -
Cost of sales (48,629,552)(12,763,400)(4,770,891) -(66,163,843)
--------------------------------------------------------
Segment gross
profit (loss) 7,093,655 16,059,574 (229,256) 2,094,464 25,018,437
Depletion and
amortization 1,344,422 8,327,708 1,006,127 51,870 10,730,127
General and
administrative 32,742 - - 1,573,107 1,605,849
Exploration - - - 315,443 315,443
Foreign exchange
gain - (4,279) (10,038) (56,482) (70,799)
Interest and
financing fees 829,918 1,585,629 286,343 2,302,865 5,004,755
--------------------------------------------------------
Segment profit
(loss)
before tax 4,886,573 6,150,516(1,511,688)(2,092,339) 7,433,062
Minority
interest 244,435 - - - 244,435
Equity earnings
(loss) - - - 167,723 167,723
Future income tax
recovery - (542,733) - - (542,733)
Income tax - 33,145 2,038 - 35,183
--------------------------------------------------------
Segment profit
(loss) 4,642,138 6,660,104(1,513,726)(2,260,062) 7,528,454
--------------------------------------------------------
Property, plant
and equipment
additions 49,090,610 418,401 499,617 2,456 50,011,084
--------------------------------------------------------
Total assets 78,977,768 32,610,313 10,224,233 6,761,227 128,573,541
--------------------------------------------------------
The notes are an integral part of these consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . For a copy of the notes visit our website at www.first-quantum.com The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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