PROJECT FINANCE

First Quantum lines up US$2.7B in debt

Canadian copper producer First Quantum Minerals (TSX:FM) has refinanced its balance sheet with a US$1.5 billion term loan and a new $1.2 billion revolving credit facility.

First Quantum has refinanced its balance sheet as it nears completion at Cobre Panama

First Quantum has refinanced its balance sheet as it nears completion at Cobre Panama

The company said Thursday the refinancing extended its debt maturity profile out to 2022. A significant portion of the debt funding is earmarked for redemption of $1.12 billion of senior notes due for payment in February 2021.

The new revolver gave it "liquidity headroom" the company said, adding it had an accordion feature able to take total borrowings to $3 billion if exercised this year.

The financing includes revised financial covenants and an extended amortisation schedule for the term loan that starts in June 2020.

As at the end of the September-quarter, First Quantum had $753 million in cash and cash equivalents, and access to $1.12 billion of committed undrawn facilities. It carried net debt of $6.12 billion.

First Quantum is said to have recently made a $700 million bid for the Zambia government's 20% stake in the Kansanshi mine, in Zambia, to consolidate ownership in Africa's biggest copper operation.

The Vancouver-based company is also at the peak development point at its $6.3 billion Cobre Panama mine, which is more than 70% complete. First Quantum in February last year approved a 15% expansion to 85 million metric tonnes per annum by 2020 and other upgrades with a view to achieving throughput of 100,000Mt/y by 2022.

At its peak Cobre Panama is expected to produce 350,000t/y copper.

First Quantum is still trading 20.6% lower than a year ago in Toronto, but gained up to 3.38% in intra-day trading on Thursday before settling at C$14.49, which capitalises the company at $10 billion.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.