First Quantum Reports Second Quarter 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)--July 30, 2002 First Quantum (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 ): (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. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). Symbol "FM", LSE Symbol "FQM") is pleased to announce financial results for the three and six months ended May 31, 2002. Second Quarter Highlights -- Bwana Mkubwa copper production of 2,258 tonnes (5.0 million pounds) and attributable copper production of 7,044 tonnes (15.5 million pounds). -- Cash flow of $1.52 million or $0.04 per share; Net earnings of $2.11 million or $0.05 per share. -- Bwana Mkubwa contributing an operating profit of $1.88 million. -- Completion of $18 million facility with Standard Chartered Bank for the expansion of Bwana Mkubwa to 30,000 tonnes copper cathode per annum on track for completion in fourth quarter of 2002. -- Engineering Study for Phase One (Years 1-11) development at the Kansanshi copper-gold deposit indicates average annual copper production of 94,000 tonnes (207 million pounds) at a life of mine average cash cost of $0.35 per pound. Financial Results (see attached financial statements) As at November November: see month. 30, 2001 the Company proportionally pro·por·tion·al adj. 1. Forming a relationship with other parts or quantities; being in proportion. 2. Properly related in size, degree, or other measurable characteristics; corresponding: consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: its 49% interest in Carlisa Investment Corp. (Carlisa) which holds a 90% interest in Mopani Mopani or mopane can be:
 flē`rä), city (1990 pop. 152,944), N central Zambia, on the border with the Congo. mines 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. . From December December: see month. 2001, the Company elected to
dilute di·lutev. To reduce a solution or mixture in concentration, quality, strength, or purity, as by adding water. adj. Thinned or weakened by diluting. its interest in Carlisa rather than contribute equity for the purpose of funding Mopani's ongoing operations. As a result the Company has diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. its interest in Carlisa from 49% to 18.8% during the six months to May 31, 2002. As required under Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the Company from March 1, 2002 is cost accounting for this investment. On this basis any comparison between quarters needs to consider the significant impact of the change in accounting treatment. For the second quarter, revenues were $5.08 million (Q2 2001: $36.70 million) and for the six months ended May 31, 2002 revenues were $33.20 (Q2 2001: $69.32 million). Both decreases reflect the change in ownership and accounting treatment at Carlisa. External revenues at the Bwana Mkubwa decreased 10% in the second quarter 2002 to $5.64 million (Q2 2001: $6.39 million) principally as a result of lower copper production. Gross profit from operations was $1.27 million (Q2 2001: $4.99 million) reflecting the reduced copper production and lower contribution from surplus acid sales at Bwana Mkubwa. For the six months ended May 31, 2002 gross profit was $1.40 million (Q2 2001: $10.69 million). At Bwana Mkubwa the gross profit for the second quarter 2002 was $1.83 million (Q2 2001: $3.34 million). For the second quarter, the loss before income taxes, non-controlling interest and equity earnings and minority interests was $0.42 million (Q2 2001: $0.99 million). For the six months ended May 31, 2002 the loss is $3.96 million compared to a profit of $0.40 million in 2001. For the second quarter, net earnings (loss) were $2.11 million (Q2 2001: $[0.79] million) as the result of a $2.5 million tax recovery at Bwana Mkubwa. This resulted when the Zambian Government effectively changed the tax rates for mining companies from 35% to 25%. For the six months ended May 31, 2002 the loss is $2.37 million compared to a profit of $0.55 million in 2001. Cash flow from operating activities in the second quarter 2002, before changes in non-cash operating working capital was $1.52 million ($0.04 per share) compared to $2.28 million ($0.07 per share) in 2001. Operations Review (see attached tables) In the second quarter in 2002, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk copper production was 7,044 tonnes (Q2 2001: 12,755), and attributable 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 was 109 tonnes (Q2 2001: 223). Surplus acid production was 15,006 tonnes (Q2 2001: 13,997). For the first six months, attributable copper production was 15,814 tonnes (Q2 2001: 24,209) attributable cobalt production was 274 tonnes (Q2 2001: 403). Surplus acid production was 36,508 tonnes (Q2 2001: 28,639). The decrease in copper and cobalt production results from the reduction in the Company's effective interest in Mopani. In the second quarter, at Bwana Mkubwa, cash costs net of credits, comprising surplus sulphuric acid sulphuric acid: see sulfuric acid. profits, were $0.25 per pound of copper (Q2 2001: $0.18). Total costs, net of credits were $0.58 per pound (Q2 2001: $0.62). Cash costs increased during the period due to a shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in copper production and reduced acid sales. Processing of Lonshi ore commenced in March and much of the second quarter was spent optimizing the plant to deal with the new ore feed. Some of the principal challenges during the quarter related to 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 issues created by the fine nature of the Lonshi ore. These problems were anticipated and during the third quarter cathode production should return to normal levels. Acid sales were adversely impacted during the quarter as a result of lower requirements from the principal customer, Konkola Copper Mines Konkola Copper Mines is a copper mining and smelting company in Zambia. Konkola is a subsidiary of Vedanta Resources, a mining conglomerate based in Mumbai and London. Konkola's name is abbreviated to KCM. ("KCM KCM Kenneth Copeland Ministries KCM Kercem (postal locality, Malta) KCM Kodály Chapter of Minnesota KCM Kerr Coal Mine KCM Knowledge and Content Management "). Shipments of acid to KCM have returned to normal levels in the third quarter. For the six month period, at Bwana Mkubwa, cash costs net of credits, which include surplus sulphuric acid profits, were $0.18 per pound of copper (Q2 2001: $0.19). Total costs, net of credits were $0.49 per pound (Q2 2001: $0.62). Bwana Mkubwa and Lonshi Copper Mine ("Bwana Mkubwa") (100%) In June June: see month. the Company announced the signing of a $18 million term debt facility with Standard Chartered Bank Standard Chartered Bank (LSE: STAN, HKSE: 2888 ) is a British bank headquartered in London with operations in more than fifty countries. It operates a network of over 1,600 branches (including subsidiaries, associates and joint ventures) and employs almost 60,000 ("SCB ScB abbr. Latin Scientiae Baccalaureus (Bachelor of Science) "). The facility consists of a $15 million facility and a Zambian Kwacha 12.50 billion facility ($3.0 million) provided by Standard Chartered Bank, Zambia. The facility will be used to finance the expansion of the Bwana Mkubwa plant, from an annual production rate of 10,000 tonnes of copper cathode to a minimum of 30,000 tonnes of copper cathode. As at May 31, 2002, $3.5 million had been drawn down on this facility. The SCB loan facility completes all of the financing required to triple copper production at Bwana Mkubwa and demonstrates strong support from the international banking community for this unique cross border operation. Phase Two of the expansion construction is well underway and commissioning will begin early in the fourth quarter of 2002. When Bwana Mkubwa is fully expanded to treat ore from the Lonshi deposit, 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. worldwide in terms of cost of production. For the full year of 2002, Bwana Mkubwa is budgeted to produce 10,000 tonnes of copper cathode and 88,000 tonnes of surplus sulphuric acid. During the second quarter 347,094 tonnes of ore grading 4.23% acid soluble soluble /sol·u·ble/ (sol´u-b'l) susceptible of being dissolved. sol·u·ble adj. Capable of being dissolved, especially easily dissolved. was mined from the Lonshi ore body. An estimated 730,000 tonnes of ore grading 5.43% copper is to be mined during the 2002 fiscal year.
Lonshi Mine Summary
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First Second
Quarter Quarter Total
(Dec-Feb) (Mar-May) (Dec-Feb)
----------------------------------------------------------------------
Ore Mined (tonnes) 29,546 347,094 376,640
Waste Mined (tonnes) 674,334 992,820 1,667,154
Total Copper Grade (%) 6.92 4.78 4.95
Acid Soluble Copper Grade (%) 6.15 4.23 4.38
Contained Total Copper (tonnes) 2,044 16,591 18,635
Contained Acid Soluble Copper
(tonnes) 1,817 14,682 16,499
----------------------------------------------------------------------
At June 30, 2002 approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 649,390 tonnes of ore grading 5.11% acid soluble copper containing 33,184 tonnes of copper had been stockpiled for future processing.
Lonshi Stockpile at June 30, 2002
---------------------------------------------------------
Total
Ore (tonnes) 649,390
Total Copper Grade (%) 5.70
Acid Soluble Copper Grade (%) 5.11
Contained Total Copper (tonnes) 37,015
Contained Acid Soluble Copper (tonnes) 33,184
---------------------------------------------------------
Kansanshi Copper Deposit ("Kansanshi") Subsequent to the end of the second quarter First Quantum announced the results of an Engineering Study ("the Study") for the Phase One development of First Quantum's 80% owned Kansanshi copper-gold project. The Study was conducted and compiled by GRD GRD Guard GRD Grenada (ISO Country code) GRD Greek Drachma (old currency code; replaced by EUR) GRD Gulf Region Division (US Army Corps of Engineers) Minproc Limited of Perth, Western Australia This article is about the metropolitan area of Perth, Western Australia. For the local government area, see City of Perth. Perth is the capital of the Australian state of Western Australia. and will lead to a Definitive 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. , which is scheduled for completion in the fourth quarter of 2002. The Study considers all aspects of the development of a new, large scale open pit mine at Kansanshi. First Quantum's objective is to develop an operation that recognizes the changing physical nature of the Kansanshi orebody with depth, and consequently minimize capital and maximize profitability. The Study envisions that the Kansanshi project will be developed in two phases. Phase One (years 1-11) will focus predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. on shallow copper oxide Noun 1. copper oxide - an oxide of copper oxide - any compound of oxygen with another element or a radical and mixed ores. Annual production will average 94,000 tonnes (207 million pounds) of copper and 42,000 ounces of gold. Phase One's life of mine cash costs have been estimated at $0.35 per pound of copper, net of gold credits. The mineable resource for Phase One is 73 million tonnes grading 1.74% copper and 0.27grams per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. of gold. Phase Two (years 12-26+) will focus on sulfide sulfide, chemical compound containing sulfur and one other element or sulfur and a radical. Sulfides may be salts or esters of hydrogen sulfide, H2S, or may be formed directly, e.g., by heating a metal with sulfur. ores with a mineable resource of 197 million tonnes grading 1.16% copper and 0.12g/t gold. Indicative studies for Phase Two show an average annual production rate of 120,000 tonnes of copper and 40,000 ounces of gold with cash costs of approximately $0.54 per pound of copper, net of gold credits. The Company currently anticipates that initial construction for Phase One including civil engineering and some earthworks earthworks: see land art. could commence late in 2002, with commissioning in November 2003 and commercial production commencing in early 2004. Investments Carlisa Investment Corp. From December 2001 the Company elected to dilute its interest in Carlisa which owns 90% of Mopani Copper Mines. By the end of the quarter this interest had reduced from 49% to 18.8% reducing its effective interest in Mopani to 16.9%. 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 contributions to Carlisa. Mopani is focused on cost cutting activities and improving productivity in an effort to reach a positive cash flow position in 2002. Mopani is forecasting 101,000 tonnes copper and 2,000 tonnes cobalt production for the year ending November, 2002. For the second quarter, total copper production at Mopani was 23,332 tonnes (Q2 2001: 20,764), total cobalt production was 473 tonnes (Q2 2001: 455). For the first six months of 2002, total copper production was 41,414 tonnes (Q2 2001: 39,398), cobalt production was 920 tonnes (Q2 2001: 823). 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. Mining NL First Quantum holds a 17.4% interest in Anvil Mining NL ("Anvil"), a public Company quoted on the Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. and Berlin Exchanges. Anvil is developing the Dikulushi deposit 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) ") which hosts a measured and indicated resource of 1.55 million tonnes grading 8.95% copper and 295 grams per tonnes silver. Stage One development of the Dikulushi deposit, for which the capital cost is $ 5.7 million, comprises an open pit mine and heavy Media Separation plant. Ore will be treated at a rate of 250,000 tonnes per annum Per annum Yearly. to produce 40,000 tonnes of concentrate per year grading approximately 40% copper and 1,230 grams per tonnes silver. The concentrate will be shipped to a smelter where it will be toll treated to produce approximately 14,000 tonnes of LME See London Metal Exchange. LME See London Metal Exchange (LME). grade copper cathode and 1.1 million ounces of silver per year. The forecast operating cost for copper cathode production is $0.36 per pound of copper, net of silver credits. Anvil has made significant progress on the construction works for Stage One. The project is now approximately 70% complete and it is scheduled to produce its first high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. concentrate by August 2002. Outlook At Bwana Mkubwa the valuable experience gained from processing high grade Lonshi ore during the second quarter will result in higher copper production during the remainder of 2002. Mechanical completion of the Phase Two expansion is scheduled for September September: see month. . During the remainder of the Fourth Quarter, fine-tuning In theoretical physics, fine-tuning refers to circumstances when the parameters of a model must be adjusted very precisely in order to agree with observations. Theories requiring fine-tuning are regarded as problematic in the absence of a known mechanism to explain why the and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. 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, and build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of in circuit inventory will take place with the aim of reaching an annual rate of 30,000 tonnes of copper cathode by December 2002. Exploration drilling to test both the strike extension and down dip dip, in agriculture, method of treating animals (chiefly livestock) infested with skin parasites such as mites, ticks, and warbles. The animal is dipped into or forced to swim through a tank filled with an insecticide solution. extension of the Lonshi orebody has proven very encouraging, Geologic 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. interpretation of drilling conducted to date indicates that the host formations for copper 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 Lonshi extend at least 500 metres to the southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
With the completion of the Engineering Study at Kansanshi, the Company has initiated the formal tendering process for project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. . Based on the indicative letters received to date, the Company is confident that it will be able to rapidly secure the financing necessary to move the project to commercial production. 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 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 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 Six Months Ended May 31, 2002
(All figures in United States dollars)
2002 2001
----------------------------------------------------------------------
Second Six Second Six
Quarter Months Quarter Months
----------------------------------------------------------------------
Total
----------------------------------------------------------------------
Copper Production (tonnes) 7,044 15,814 12,755 24,209
C3 (Total) Cost Copper (US$/lb)(a) 0.82 0.82 0.90 0.84
C1 (Cash) Cost Copper (US$/lb)(a) 0.68 0.67 0.63 0.60
Cobalt Production (tonnes) 109 274 223 403
Surplus Sulfuric Acid (tonnes) 15,006 36,508 13,997 28,639
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Bwana Mkubwa Mine, Zambia (100%)
----------------------------------------------------------------------
Copper Production (tonnes) 2,258 4,338 2,582 4,904
Surplus Acid Production (tonnes) 15,006 36,508 13,997 28,639
C3 (Total) Cost Copper (US$/lb)(a) 0.58 0.49 0.60 0.62
C1 (Cash) Cost Copper (US$/lb)(a) 0.25 0.18 0.18 0.19
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Mopani Copper Mines Plc, Zambia (b)
----------------------------------------------------------------------
Copper Production (tonnes) 4,786 11,476 10,174 19,305
Cobalt Production (tonnes) 109 274 223 403
C3 (Total) Cost Copper (US$/lb)(a) 0.92 0.94 0.98 0.90
C1 (Cash) Cost Copper (US$/lb)(a) 0.87 0.85 0.74 0.70
----------------------------------------------------------------------
Note:
(a) First Quantum has adopted Brook Hunt definitions for mine cost
categories: C1 - costs are cash operating costs, including
mining, processing, site administration; net of by product
credits. C3 - costs are total production costs, including
mining, processing, site administration and refining;
depreciation and amortization charges; royalties, related head
office and interest costs; net of by product credits.
(b) represents First Quantum's share of Mopani's production in the
First Quarter (37%) and Second Quarter of 2002 (23%) and 49%
share of Mopani's production in 2001.
Operation Statistics By Quarter - 2002
(All figures in United States dollars)
Bwana Mkubwa Mine, Zambia
Copper & Acid Production
----------------------------------------------------------------------
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
----------------------------------------------------------------------
Tailings Ore Processed -
(tonnes) 431,840 307,900 - - 739,740
Tailings Copper Grade - (%) 0.66 0.68 - - 0.67
Tailings Contained Copper -
(tonnes) 2,850 2,094 - - 4,944
Lonshi Ore Processed -
(tonnes) - 37,300 - - 37,300
Lonshi Copper Grade - (%) - 4.04 - - 4.04
Lonshi Contained Copper -
(tonnes) - 1,507 - - 1,507
Total Ore Processed -
(tonnes) 431,840 345,200 - - 777,040
Average Copper Grade - (%) 0.66 1.04 - - 0.83
Total Contained Copper -
(tonnes) 2,850 3,601 - - 6,451
Finished Copper Production
(tonnes) 2,080 2,258 - - 4,338
C3 (Total) Cost Copper
($/lb)(a) 0.39 0.58 - - 0.49
C1 (Cash) Cost Copper
($/lb)(a) 0.11 0.25 - - 0.18
Sulphuric Acid Produced
(tonnes) 35,289 27,586 - - 62,875
Sulphuric Acid Sold (tonnes) 21,502 15,006 - - 36,508
Sulphuric Acid Consumed 12,812 13,390 - - 26,202
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Mopani Copper Mines Plc, Zambia
Copper & Cobalt Production
(Table represents 100% Mopani production)
----------------------------------------------------------------------
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
----------------------------------------------------------------------
Ore Processed (tonnes) 1,388,000 1,346,000 - - 2,734,000
Copper Grade (%) 1.77 1.85 - - 1.81
Cobalt Grade (%) 0.12 0.12 - - 0.12
Contained Copper
(tonnes)(b) 24,567 24,901 - - 49,468
Contained Cobalt
(tonnes)(b) 932 862 - - 1,794
Finished Copper Production
(tonnes)(b) 18,082 23,332 - - 41,414
Cobalt Production
(tonnes)(b) 447 473 - - 920
C3 (Total) Cost Copper
($/lb)(a) 0.95 0.92 - - 0.93
C1 (Cash) Cost Copper
($/lb)(a) 0.84 0.87 - - 0.86
----------------------------------------------------------------------
Notes:
(a) First Quantum has adopted Brook Hunt definitions for mine cost
categories: C1 - costs are cash operating costs, including
mining, processing, site administration; 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 and interest costs; net of by product credits.
(b) Variance 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
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 May 30, 2002 and November 30, 2001
(expressed in thousands of U.S. dollars)
May 31, November 30,
2002 2001
$000's $
(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents 1,376 9,836
Accounts receivable and prepaid expenses 2,160 13,767
Inventory 7,429 25,904
Deferred financing fees 86 160
------------------------
11,051 49,667
Management fees receivable (note 4) 2,847
Investments 11,481 2,314
Deferred exploration and acquisition costs 466 109
Property, plant and equipment 46,966 99,787
------------------------
58,913 105,057
------------------------
69,964 154,724
------------------------
------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 6,406 29,941
Current portion of Carlisa provision for
retrenchment benefits - 2,551
Current portion of long-term debt (note 5) 12,000 15,596
------------------------
18,406 48,088
Long-term debt 1,505 28,910
Deferred revenue on option contracts - 850
Future income tax liability (note 3) 3,725 5,064
Carlisa's Provisions for retrenchment,
removal and restoration 23,144
------------------------
23,636 106,056
------------------------
Non-controlling interest 2,190 2,323
------------------------
25,826 108,379
------------------------
Shareholders' Equity
Share capital 77,346 77,188
Deficit (33,208) (30,843)
------------------------
44,138 46,345
------------------------
69,964 154,724
------------------------
Commitment (note 5)
Approved by the Board of Directors
Martin R. Rowley Director G. Clive Newall Director
Consolidated Statements of Earnings and Deficit
For three and six months ended May 31, 2002 and 2001
(expressed in thousands of U.S. dollars)
Three months ended Six months ended
May 31, May 31,
2002 2001 2002 2001
Revenues
Owned Operations
Copper 3,269 4,217 6,252 8,334
Acid 2,374 2,022 5,534 4,297
Other 127 122 155 287
Carlisa Related Revenues
(note 4) (694) 30,334 21,254 56,399
---------------------------------------
5,076 36,695 33,195 69,317
---------------------------------------
Costs and expenses
Cost of sales 3,502 31,702 31,798 58,628
Depletion and amortization 1,091 2,761 2,765 5,163
Exploration 119 99 196 172
Foreign exchange loss (gain) (236) 933 (272) 776
General and administrative 753 361 1,290 927
Interest and financing fees
on long-term debt 264 1,824 1,373 3,249
---------------------------------------
5,493 37,680 37,150 68,915
---------------------------------------
Earnings (loss) before income
taxes, non-controlling
interest and equity loss (416) (985) (3,955) 402
Future income tax (Recovery) (2,499) (184) (1,335) (239)
Non-controlling interest (22) (54) (240) 2
Equity Earnings (Loss) 7 (45) 15 (91)
---------------------------------------
Net earnings (loss) for the
period 2,112 (792) (2,365) 548
Deficit - Beginning of period (35,320) (8,528) (30,843) (9,868)
---------------------------------------
Deficit - End of period (33,208) (9,320) (33,208) (9,320)
---------------------------------------
Earnings (loss) per common
share
Basic - $ per share 0.05 (0.02) (0.05) 0.02
Diluted - $ per share 0.05 (0.02) (0.05) 0.02
Consolidated Statements of Cash Flows
For three and six months ended May 31, 2002 and 2001
(expressed in thousands of U.S. dollars)
Three months Six months
ended May 31, ended May 31,
2002 2001 2002 2001
Cash flows from operating
activities
Net earnings (loss)
for the period 2,112 (792) (2,365) 548
Items not affecting
cash Depletion and
amortization 1,091 2,761 2,765 5,163
Amortization of
financing fees 37 317 74 733
Equity loss (earnings) (7) 45 (15) 91
Net recognition of
deferred revenue (44) - (794) (106)
Accrued interest on
ZCCM facility - 184 406 362
Income gain from
equity dilution 856 - - -
Non-controlling interest (22) (54) (240) 2
Recovery of future
income tax (2,503) (184) (1,339) (239)
----------------------------------------------------------------------
1,520 2,277 (1,508) 6,554
----------------------------------------------------------------------
Change in non-cash
operating working capital
Decrease in restricted
cash - 8,157 - -
Decrease (increase) in
accounts receivable
and prepaid expenses (361) 3,435 (4,375) 365
Decrease (increase)
In inventory (2,802) (4,048) (1,549) (6,185)
Increase (decrease) in
accounts payable and
accrued liabilities 373 (2,155) 4,038 3,438
----------------------------------------------------------------------
(2,790) 5,387 (1,886) (2,382)
----------------------------------------------------------------------
(1,270) 7,666 (3,394) 4,172
----------------------------------------------------------------------
Cash flows from financing
activities
Proceeds from long-term
debt 3,504 4,479 7,255 6,929
Repayments of principal
on long-term debt (3,950) (10,107) (9,220) (16,204)
Proceeds from issue of
common shares and
warrants 85 802 159 10,129
----------------------------------------------------------------------
(361) (4,826) (1,806) 855
----------------------------------------------------------------------
Cash flows from investing
activities
Payments to acquire
capital assets (5,092) (1,841) (11,384) (4,870)
Net change in cash
attributable to Carlisa
dilution (327) - 8,481 -
Payments for exploration
on mineral properties (343) (78) (357) (78)
----------------------------------------------------------------------
(5,762) (1,919) (3,260) (4,948)
----------------------------------------------------------------------
(Decrease) Increase in
cash and cash equivalents (7,393) 921 (8,460) 78
Cash and cash equivalents
- Beginning of period 8,769 1,752 9,836 2,595
----------------------------------------------------------------------
Cash and cash equivalents
- End of period 1,376 2,673 1,376 2,673
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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