First Quantum Reports Operational and Financial Results for Three Months Ended March 31, 2005; All Figures Expressed in US Dollars.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 British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- 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. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :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 ) is pleased to announce its results for the three months ended March 31, 2005. The complete financial statements are available for review at www.first-quantum.com. Highlights - Three Months Ended March 31, 2005 - Bwana / Lonshi copper production of 11,963 tonnes of cathode with a cash cost (C1) of $0.60 per pound - Pre-commercial production at Kansanshi was 518 tonnes of copper cathode and 5,810 tonnes of contained copper from concentrates - Net earnings of $27.2 million or $0.44 per share including a gain on sale of Anvil anvil Iron block on which metal is placed for shaping, originally by hand with a hammer. The blacksmith's anvil is usually of wrought iron (sometimes of cast iron), with a smooth working surface of hardened steel. of $16.1 million or $0.26 per share - Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before operating working capital movements was $19.7 million or $0.32 per share - Cash flow from operations after operating working capital movements was $22.9 million or $0.37 per share Financial Results (see attached financial statements) For reporting purposes, there are no revenues and expenses shown from Kansanshi in the Statement of Earnings and Deficit as commercial production for reporting purposes was only achieved in April 2005. During the first quarter, $5.4 million worth of revenue was charged against pre-production costs at Kansanshi. Revenues for the quarter were a record $38.2 million (Q1 04: $25.3m), the majority of which came from copper proceeds as the high acid consumption at Bwana meant that acid revenues were limited. Copper revenues were up 73% on the comparative period in 2004 due to improved copper prices and a 23% increase in copper sales volumes at Bwana. Acid revenues decreased $3.2m from Q4 2004 due to the increase in acid consumption. The realized copper price rose to $1.45 per pound (Q1 04: $1.03/lb). The realized copper price was significantly up from last year and previous quarters as all copper sales were at unhedged market prices. The average LME See London Metal Exchange. LME See London Metal Exchange (LME). price for the first quarter of 2005 was $1.44 per pound (2004: $1.24/lb) Cost of sales for the first quarter ended March 31, 2005 was $16.2 million (2004: $12.1m). The 34% increase in cost of sales was primarily due to the 23% increase in copper cathode sold. Other expenses (income) of $(8.9 million) (2004: $4.3m) included a one time gain from the disposal of the company's investment in Anvil. Net earnings for the quarter increased to $27.2 million (2004: $6.7m) or $0.44 per share (2004: $0.11). The cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. from operating activities was $22.9 million (2004: $6.6m) or $0.37 per share (2004: $0.11). The significant turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in cash flow from operations is attributable to the improvement in revenue resulting from increased copper production and improved copper prices. The cash flow from operating activities before non-cash working capital movements was $19.7 million (2004: $12.1m) or $0.32 per share (2004: $0.20). Bwana / Lonshi Mining For the first quarter ended March 31, 2005, 152,000 tonnes of ore (Q1 2004: 66,000t) grading 5.3% (Q1 04: 5.4%) and 2,596,000 tonnes of waste (Q1 2004: 1,036,000t) were mined. Mid-way through 2004, the company increased the size of its mining fleet at Lonshi to meet the additional ore requirements of the increased copper production, which has meant that more material has been mined than in the comparative period last year. Although heavy rain fell during January January: see month. and February February: see month. , road improvements made during the dry season meant that production continued throughout the rains but at lower levels than in more recent quarters. The mining in the wet did however result in higher costs due to lower production and operating in less than ideal conditions. Processing Processing initiatives such as the two new CCDs and the increased electrical current flow implemented after the first quarter 2004 have meant that copper production has increased 23% from Q1 2004 to 11,963 tonnes. Q4 2004 production was lower than Q1 2005 due to non-recurring production related matters in 2004. Cash costs (C1) for the quarter were $0.60 per pound (Q1 04: $0.39) and total costs (C3) were $0.77 per pound (Q1 04: $0.53). Cash costs (C1) have increased principally due to the higher acid consumption as a result of dolomite dolomite (dō`ləmīt', dŏl`ə–). 1 Mineral, calcium magnesium carbonate, CaMg (CO3)2. contained in the ore processed. Compared with Q4 2004 acid costs per pound of copper produced are up $0.06 and the acid credit is down $0.03 per pound. This coupled with a $0.02 increase in ore costs due to the increased mining costs explains the majority of the increase in C costs from Q4 2004. Kansanshi Copper-Gold Operation Mining During the quarter, 2,120,000 tonnes of ore (Q4 04: 1,346,000) and 1,651,000 tonnes of waste (Q4 04: 2,857,000) had been mined. Consistent with the Lonshi mining operations, heavy rain fell during January and early February, although mining continued when access to the pit permitted. As with other mining operations around the world, the shortage of mining truck tyres is proving problematic, with up to 50% of the 100 tonnes trucks being unavailable due to the lack of tyres. The company is presently working at minimizing the impact of the ongoing tyre Tyre (tīr), ancient city of Phoenicia, S of Sidon. It is the present-day Sur in Lebanon, a small town on a peninsula jutting into the Mediterranean from the mainland of Syria S of Beirut. shortage by investing in smaller size vehicles that would reduce the dependency dependency In international relations, a weak state dominated by or under the jurisdiction of a more powerful state but not formally annexed by it. Examples include American Samoa (U.S.) and Greenland (Denmark). on the Euclids. Processing: For the quarter, copper production increased to 6,328 tonnes including 5,810 tonnes of copper in concentrate and 518 tonnes of copper cathode. Due to the phased start-up Start-up The earliest stage of a new business venture. and commissioning at Kansanshi the sulphide sulphide: see sulfide. circuit was running at commercial levels during the quarter but as the 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. circuit had not reached commercial production the costs and revenue associated with all production continue to be deferred. Commercial production for reporting purposes was reached in April 2005. Acid production at Solwezi Solwezi is the capital of the North Western Province of Zambia. Solwezi has approximately 65,000 inhabitants at an elevation of 1235 m above sea level. Kaonde is the largest tribe represented in Solwezi. was 22,329 tonnes, of which 4,429 tonnes was consumed con·sume v. con·sumed, con·sum·ing, con·sumes v.tr. 1. To take in as food; eat or drink up. See Synonyms at eat. 2. a. internally and 8,365 tonnes were transferred to the Bwana/ Lonshi operation. 8,851 tonnes were sold externally but as the rest of the plant had not reached commercial production, the revenues were charged against pre-production costs. Guelb Moghrein Copper-Gold Deposit Guelb is located 250 kilometres northeast of the nation's capital, Nouakchott Nouakchott (nwäkshôt`), city (1991 est. pop. 500,000), capital of Mauritania and Nouakchott dist., W Mauritania, a port on the Atlantic Ocean. , near the town of Akjoujt Akjoujt is a town in western Mauritania. It is located at around . It is the capital of Inchiri region. The town's main industry is gold and copper mining. in Mauritania Mauritania (môrĭtā`nēə), officially Islamic Republic of Mauritania, republic (2005 est. pop. 3,087,000), 397,953 sq mi (1,030,700 sq km), NW Africa. . It consists of an open pit mineable, copper/gold deposit. In January 2005, the detailed design and engineering contract was awarded with site establishment commencing in March 2005. The company expects to develop Guelb in 2005 with production start-up expected in the fourth quarter of 2005. Production will be initially targeted at approximately 30,000 tonnes of copper and 50,000 ounces of gold per year in the form of a copper-gold concentrate which will be trucked to the port of Nouakchott and exported to international smelters. As at March 31, 2005, the company had 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. acquisition and development costs totaling $13.8 million (2004: $10.3m). Of the capitalized amount $7.5 million relates to the discounted value of two future acquisition payments which are due to be paid in 2005 and 2006 respectively. Frontier Copper Deposit, In May 2004, First Quantum announced the results of an independent copper-cobalt resource estimate completed at its wholly owned Frontier Project located in Haut Katanga Province For other uses, see Katanga (disambiguation). Katanga is the southern province of the Democratic Republic of the Congo, due under the new constitution to be replaced by four smaller provinces by February 2009. , 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) ). As at March 31, 2005 a project engineering study is substantially complete and a final report is expected in the second quarter of 2005. As at March 31, 2005, the company had spent $4.2 million (2004: $3.7m) on this project. Geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. work is continuing with a further 2000 new soil samples being taken to expand the geochemical database. An updated resource is expected to be published in Q2 2005. Work is ongoing on an environmental impact assessment at Frontier as well as considering aspects such as power supply. Kashime Copper Prospect In December December: see month. 2004, the company announced the results of a reverse circulation drill program completed at the Kashime copper prospect (Kashime). Mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. at Kashime occurs as disseminated disseminated /dis·sem·i·nat·ed/ (-sem´i-nat?ed) scattered; distributed over a considerable area. dis·sem·i·nat·ed adj. Spread over a large area of a body, a tissue, or an organ. to semi massive bornite bornite Common copper-ore mineral, copper and iron sulfide (Cu5FeS4). Typical occurrences are found in Mount Lyell, Tasmania; Chile; Peru; and Butte, Mont. Bornite may form isometric crystals but occurs most commonly as irregular masses. and chalcopyrite chalcopyrite (kăl'kəpī`rīt, kăl`kōpī'rīt) or copper pyrites (pīrī`tēz, pə–), brass-yellow mineral, sometimes with an iridescent tarnish. , oxidized oxidized having been modified by the process of oxidation. oxidized cellulose see absorbable cellulose. in part, and is hosted by an altered, schistose schist n. Any of various medium-grained to coarse-grained metamorphic rocks composed of laminated, often flaky parallel layers of chiefly micaceous minerals. , carbonaceous car·bo·na·ceous adj. Consisting of, containing, relating to, or yielding carbon. carbonaceous Adjective of, resembling, or containing carbon Adj. 1. sandstone sandstone, sedimentary rock formed by the cementing together of grains of sand. The usual cementing material in sandstone is calcium carbonate, iron oxides, or silica, and the hardness of sandstone varies according to the character of the cementing material; quartz unit overlain o·ver·lain v. Past participle of overlie. by a barren bar·ren adj. 1. Not producing offspring. 2. Incapable of producing offspring. barren see infertility. barren adjective Gynecology Infertile, sterile, fruitless, inconceivable hanging wall dolomitic dol·o·mite n. 1. A white or light-colored mineral, essentially CaMg(CO3)2, used in fertilizer, as a furnace refractory, and as a construction and ceramic material. 2. marble. The mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. unit dips southwards south·ward adv. & adj. Toward, to, or in the south. n. A southward direction, point, or region. south at 10 - 20 degrees, and depth of oxidation oxidation /ox·i·da·tion/ (ok?si-da´shun) the act of oxidizing or state of being oxidized.ox·idative ox·i·da·tion n. 1. The combination of a substance with oxygen. 2. is controlled by proximity to faulting. The drill program tested the most anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. 1000 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, long section of a 2000 metre long, +300 parts per million parts per million mg/kg or ml/l; see ppm. copper soil anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. . Highlights from the 13 hole drill program included 56 metres grading 2.08% copper; 55 metres grading 1.20% copper and 101 meters grading 0.92% copper. Follow up drilling to further test the prospect is planned for 2005. As at March 31, 2005, no costs associated with this exploration property had been deferred. During the quarter, 14 core holes were drilled over a strike of approximately 4,000 metres, results are pending. The company currently has two drill rigs operating at Kashime. Investments -Carlisa The Company holds an 18.8% interest in Carlisa Investment Corporation (Carlisa), which holds a 90% interest in Mopani Mopani or mopane can be:
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 this investment as at March 31, 2005 is $9.5 million (2004: $9.5m; 2003: $9.5m). In 2004, Mopani increased its finished copper production to approximately 160,000 tonnes from 134,000 tonnes 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. production rose marginally to 2,000 tonnes. Investments -Anvil On February 28, 2005 the Company disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of all of its 4,029,617 common shares in Anvil at a net price of CA$6.75 per share. In the first quarter of 2005, the Company recognized a gain of approximately $16.1 million on the Anvil Sale. The 36,996,171 ordinary shares that were previously listed on the ASX ASX See: Australian Stock Exchange were converted into 3,699,617 common shares of Anvil and re-registered on the TSX. The Company continues to hold 296,631 warrants in Anvil at an exercise price of CA$1.13. Outlook In the second quarter of 2005, with commercial production at Kansanshi achieved in April 2005, the income statement will benefit from the revenues associated with production that are no longer being capitalized. It is anticipated that unit costs in the short term, will be higher than those indicated in the AR Cameron Report as the plant gradually works up to full design capacity. From the date of commercial production, April 19 to April 30, approximately 958 tonnes of contained copper in concentrate had been produced and 1,100 tonnes of copper cathode. In addition, a $29 million capital program in 2005 will expand the sulphide circuit again to eight million tonnes of treatment capacity which will result in an average of 145,000 tonnes of finished copper production per year during 2006-2009. An additional expansion of the sulphide circuit is also under consideration to increase the sulphide treatment capacity to 12 million tonnes of sulphide ore to maintain annual finished copper production of 145,000 tonnes as oxide ore is depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d and sulphide ore grades Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly begin to fall. First Quantum has also been investigating alternative processing routes for a portion of the increased copper concentrate production. To this end, the Company has purchased a complete "second-hand" pressure oxidation facility. The pressure oxidation facility is currently being dismantled dis·man·tle tr.v. dis·man·tled, dis·man·tling, dis·man·tles 1. a. To take apart; disassemble; tear down. b. and over the next several months will be transported to Kansanshi. Once on site, the pressure oxidation facility and ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. equipment will be reconstructed re·con·struct tr.v. re·con·struct·ed, re·con·struct·ing, re·con·structs 1. To construct again; rebuild. 2. and commissioned for use. An additional advantage of this technology at Kansanshi is that it will generate much of the acid required for oxide leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. . It will also enable 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. circuit to operate at elevated temperatures and hence substantially improve copper recovery in mixed ores. A full report of the impact of this process route is being prepared by independent consultants, Bateman Engineering Pty Ltd PTY LTD Propriety Limited (company structure in Australia) . With a strong start to the year the Bwana / Lonshi operation is currently on track to exceed its initial production estimates of between 40,000 to 45,000 tonnes of copper cathode in 2005 with 11,963 tonnes of copper cathode already produced in the first quarter. C1 (cash) costs for the first quarter have exceeded the expected range of between $0.50 and $0.55 per pound of finished copper due to the gangue gangue also gang n. Worthless rock or other material in which valuable minerals are found. [French, from German Gang, lode, from Middle High German ganc acid consumption averaging 3.4:1 for the quarter. For the remainder of 2005 it is expected that the high gangue acid consumption will decrease as ore is sourced from a different area of the Lonshi pit, this should improve the C1 cost from the first quarter. In April, the Bwana/ Lonshi operation produced approximately 3,826 tonnes of copper cathode. At Guelb a National Instrument 43-101 compliant Reserve / Resource statement is expected after the completion of some in-fill drilling in the second quarter of 2005. A Project Engineering Report has been completed and the results are expected to be published in the second quarter of 2005. The contracts for the plant engineering and construction have been awarded. Construction activities are underway. Guelb is expected to be financed through a combination of cash on hand, project debt and end user/supplier finance. At Frontier, the project engineering study is substantially complete. This coupled with an updated resource / reserve statement is expected to be published in the second quarter of 2005. At the newly discovered Kashime prospect exploration drilling recommenced in February, 2005 and is ongoing. 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 12g3-2b-82-4461 Listed in Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index Sedar Profile #00006237 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, cobalt and sulphuric acid sulphuric acid: see sulfuric 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 by such forward-looking statements. Such factors include, among others, the actual prices of gold, copper, cobalt 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 in the Company's documents filed from time to time with the Alberta, British Columbia, Ontario and Quebec Securities Commission and the 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. Securities and Exchange Commission and the Alternative Investment Market operated by the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . The preceding discussion and analysis and financial review should be read in conjunction with management's discussion of critical accounting policies, risk factors and comments regarding forward looking statements contained in the audited 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 the period ended December 31, 2004. The following discussion and analysis of the Company's results of operations should also be read in conjunction with the unaudited consolidated financial statements and related notes.
---------------------------------------------------------------------
SUMMARY OF QUARTERLY RESULTS
---------------------------------------------------------------------
Statement of Operations 2005 2004 2004 2004 2004
and Deficit Q1 Q4 Q3 Q2 Q1
(millions, except where indicated)
Total Revenues $38.2 $30.7 $31.2 $26.3 $25.3
Cost of Sales 16.2 14.5 14.1 13.1 12.1
Net Earnings (Loss) 27.2 9.3 7.9 4.1 6.7
Basic Earnings per share $0.44 $0.16 $0.13 $0.07 $0.11
Diluted Earnings per share $0.43 $0.15 $0.13 $0.07 $0.11
Realized copper price $1.45 $1.20 $1.16 $1.11 $1.03
Cash Costs (C1) $0.60 $0.48 $0.45 $0.48 $0.39
Cash Costs (C3) $0.77 $0.59 $0.68 $0.67 $0.53
Financial Position (millions)
Working Capital 61.4 33.9 51.8 28.0 40.2
Total Assets 523.1 473.1 385.0 276.4 241.8
Weighted Average #
Shares (000's) 61,267 60,123 59,867 59,434 58,568
Bwana/Lonshi Production Statistics
Mining:
Waste Mined (000's) 2,596 2,926 4,213 2,854 1,036
Ore Mined (000's) 152 261 257 85 66
Ore Grade % 5.3 6.4 4.7 5.2 5.4
Processing:
Ore Processed (000's) 264 256 278 237 209
Contained Copper (tonnes) 13,804 12,824 12,908 10,813 10,904
Grade % 5.2 5.0 4.6 4.6 5.2
Recovery % 87 85 88 89 89
Copper Produced (tonnes) 11,963 10,942 11,330 9,585 9,689
Acid Produced (tonnes) 32,936 35,671 35,920 34,265 34,344
Surplus Acid (tonnes) 49 9,664 16,884 19,149 20,763
Kansanshi Production Statistics
Mining:
Waste Mine (000's) 1,651 2,857 1,175 - -
Ore Mined (000's) 2,120 1,346 - - -
Ore Grade % 1.7 2.4 - - -
Processing:
Ore Processed (000's) 688 - - - -
Contained Copper (tonnes) 11,541 - - - -
Recovery % 55 - - - -
Copper Produced (tonnes) 6,328 - - - -
Acid Produced (tonnes) 22,339 - - - -
Surplus Acid (tonnes) 8,851 - - - -
---------------------------------------------------------------------
Notes:
C1 - costs are cash operating costs, including mining, processing,
site administration and refining; net of by product credits.
C3 - costs are total production costs, including mining, processing,
site administration and refining; depreciation and amortization
charges; royalties, related head office, interest costs and
finance charges; net of by product credits.
Consolidated Balance Sheets
As at March 31, 2005 and December 31, 2004
(expressed in thousands of US dollars)
(unaudited)
2005 2004
$ $
Assets
Current assets
Cash and cash equivalents 78,989 50,356
Restricted cash (note 8) 1,755 1,931
Accounts receivable and prepaid expenses 21,620 21,927
Inventory (note 4) 42,493 31,674
-------------------
144,857 105,888
Investments (note 5) 9,522 15,340
Exploration properties 444 444
Property, plant and equipment (note 6) 340,584 319,222
Other assets and deferred charges (note 7) 27,702 32,167
-------------------
523,109 473,061
-------------------
-------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 33,528 33,884
Current taxes payable (note 9) 7,170 3,248
Current portion of long-term debt (note 8) 30,391 22,865
Current portion of other liabilities (note 10) 12,368 12,012
-------------------
83,457 72,009
Long-term debt (note 8) 207,204 191,661
Asset retirement obligation 4,006 3,762
Future income tax liability (note 9) 12,130 12,313
Other liabilities (note 10) 30,603 33,286
-------------------
337,400 313,031
Minority interests 2,190 2,190
-------------------
339,590 315,221
-------------------
Shareholders' Equity
Equity accounts (note 11) 163,279 161,776
Retained Earnings (Deficit) 20,240 (3,936)
-------------------
183,519 157,840
-------------------
523,109 473,061
-------------------
-------------------
Commitments and contingencies (note 14)
Approved by the Board of Directors
Robert Watts, Director Stuart Angus, Director
The notes are an integral part of these consolidated financial
statements.
For a copy of the notes visit our website at www.first-quantum.com
Consolidated Statements of Operations and Deficit
For three months ended March 31, 2005 and 2004
(expressed in thousands of US dollars)
(unaudited)
Three months ended
March 31, March 31,
2005 2004
$ $
Revenues
Copper 38,172 22,082
Acid 10 3,170
-------------------
38,182 25,252
-------------------
Costs and expenses
Cost of sales 16,166 12,091
Depletion and amortization 3,905 2,332
Exploration 1,012 377
Foreign exchange (gain) loss (379) 129
General and administrative 2,106 1,145
Interest and financing fees on long-term debt 849 587
Other Income (262) (256)
Gain on disposal of investment (16,127) -
-------------------
7,270 16,405
-------------------
Earnings before income taxes and equity earnings 30,912 8,847
Income Taxes (note 9) 3,736 2,614
Equity earnings - 434
-------------------
Net earnings for the period 27,176 6,667
Deficit - Beginning of period (3,936) (31,946)
Dividends declared (3,000) -
-------------------
Retained earnings (Deficit) - End of period 20,240 (25,279)
-------------------
-------------------
Earnings per common share
Basic $0.44 $0.11
Diluted $0.43 $0.11
Weighted average number of shares
outstanding (000's) 61,267 58,568
The notes are an integral part of these consolidated financial
statements.
For a copy of the notes visit our website at www.first-quantum.com
Consolidated Statements of Cash Flows
For three months ended March 31, 2005 and 2004
(expressed in thousands of US dollars)
(unaudited)
Three months ended
March 31, March 31,
2005 2004
$ $
Cash flows from operating activities
Net earnings for the period 27,176 6,667
Items not affecting cash
Depletion and amortization 3,905 2,332
Accretion 137 346
Provision for deferred stripping 3,903 -
Equity earnings - (434)
Unrealized foreign exchange (gain) loss (126) 390
Future income tax expense (recovery) (186) 2,614
Stock-based compensation expense 654 186
Other 406 44
Gain on disposal of investment (16,127) -
-------------------
19,742 12,145
-------------------
Change in non-cash operating working capital
Decrease (increase) in accounts receivable
and prepaid expenses 8,590 (2,771)
(Increase) decrease in inventory (7,732) 355
Increase (decrease) in accounts payable
and accrued liabilities 2,330 (3,061)
-------------------
22,930 6,668
-------------------
Cash flows from financing activities
Movement in restricted cash 176 -
Proceeds from long-term debt 31,523 17,876
Repayments of principal on long-term debt (5,308) (2,502)
Proceeds from issue of common shares
and warrants 849 43,325
Payments for deferred premium obligation
and finance fees (2,401) (1,330)
-------------------
24,839 57,369
-------------------
Cash flows from investing activities
Net payments to acquire capital assets
and investments (38,865) (34,993)
Payments for deferred exploration
and stripping costs (2,104) (1,164)
Proceeds on disposal of investment 21,944 -
-------------------
(19,025) (36,157)
-------------------
Effect of exchange rate changes on cash (111) (494)
Increase in cash and cash equivalents 28,744 27,880
Cash and cash equivalents - Beginning of period 50,356 25,592
-------------------
Cash and cash equivalents - End of period 78,989 52,978
-------------------
-------------------
Segmented Information
For three months ended March 31, 2005 and 2004
(expressed in thousands of US dollars)
(unaudited)
---------------------------------------------------------------------
For the three months ended March 31, 2005, segmented information is
presented as follows:
---------------------------------------------------------------------
BLO KCO GMP CDA Total
$ $ $ $ $
External Revenues 38,182 - - - 38,182
Cost and Expenses
Cost of Sales 16,166 - - - 16,166
Depletion and
amortization 3,859 - - 46 3,905
Exploration 525 - - 487 1,012
Foreign exchange
loss (gain) (489) - - 110 (379)
General and
administrative - - - 2,106 2,106
Interest and
financing fees 849 - - - 849
Other Income (49) - - (213) (262)
Gain on Disposal - - - (16,127) (16,127)
Total Cost and Expenses 20,861 - - (13,591) 7,270
Segment profit (loss)
before the under
noted items 17,321 - - 13,591 30,912
Equity earnings - - - -
Income Tax 3,736 - - - 3,736
Segment profit (loss) 13,585 - - 13,591 27,176
Property, Plant and
equipment additions 2,047 20,671 3,489 (62) 26,145
---------------------------------------------
Total assets 185,134 348,025 14,793 204,027 751,979
Inter-company balances
included in total
assets (62,131) - - (166,739)(228,870)
---------------------------------------------
Total consolidated
assets 123,003 348,025 14,793 37,288 523,109
---------------------------------------------------------------------
---------------------------------------------------------------------
Definitions:
BLO - Bwana / Lonshi Operation
KCO - Kansanshi Copper / Gold Operation
GMP - Guelb Moghrein Project
CDA - Corporate Development and Administration which includes
Frontier, Connemara and Carlisa
Segmented Information
For three months ended March 31, 2005 and 2004
(expressed in thousands of US dollars)
(unaudited)
---------------------------------------------------------------------
For the three months ended March 31, 2004, segmented information is
presented as follows:
---------------------------------------------------------------------
BLO KCO GMP CDA Total
$ $ $ $ $
External Revenues 25,252 - - - 25,252
Cost and Expenses
Cost of Sales 12,091 - - - 12,091
Depletion and
amortization 2,296 - - 36 2,332
Exploration 179 - - 198 377
Foreign exchange
loss (gain) (231) - - 360 129
General and
administrative - - - 1,145 1,145
Interest and
financing fees 577 - - 10 587
Other income (7) - - (249) (256)
Gain on disposal
of investment - - - -
---------------------------------------------
Total Costs and Expenses 14,905 - - 1,500 16,405
---------------------------------------------
Segment profit (loss)
before the under
noted items 10,347 - - (1,500) 8,847
Equity earnings - - - 434 434
Income Tax 2,614 - - - 2,614
---------------------------------------------
Segment profit (loss) 7,733 - - (1,066) 6,667
---------------------------------------------
Property, Plant and
equipment additions 7,363 34,913 - 2,312 44,588
---------------------------------------------
Total assets 91,450 95,811 - 54,567 241,828
Inter-company balances
included in total
assets 19,656 - - 101,704 121,360
---------------------------------------------
Total consolidated
assets 111,106 95,811 - 156,271 363,188
---------------------------------------------------------------------
---------------------------------------------------------------------
Definitions:
BLO - Bwana / Lonshi Operation
KCO - Kansanshi Copper / Gold Operation
GMP - Guelb Moghrein Project
CDA - Corporate Development and Administration which includes
Connemara
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. First Quantum Minerals Ltd. (TSX:FM) (LSE:FQM) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion