First Quantum loss widens on costs, copper output

First Quantum Minerals (TSX: FM) reported a wider first-quarter loss as higher operating costs and weaker copper production weighed on results, despite raising its full-year output guidance.

The company posted a net loss attributable to shareholders of $196 million in this year’s first quarter compared with a $23-million loss a year earlier, while adjusted loss totalled $147 million, or 18¢ per share.

The miss was driven largely by higher-than-expected costs at its Sentinel mine in Zambia, where copper production fell to 45,252 tonnes, down 2,983 tonnes from the previous quarter due to lower grades and recoveries, partially offset by improved throughput. At Kansanshi, also in Zambia, output reached 45,345 tonnes, declining by 2,310 tonnes quarter over quarter for similar reasons.

“2026 has begun against a backdrop of heightened global uncertainty, driven by the conflict in the Middle East and its impact on key supply chains,” CEO Tristan Pascall said in a release. “Our long-standing investments in innovation and electrification continue to structurally reduce fuel intensity, and we expect stronger performance in the second half as we access higher grades.”

Shares in First Quantum Minerals fell 3.1% to C$33.23 apiece in Toronto at mid-Wednesday, valuing the company at C$28.2 billion. They’ve traded in a 52-week range of C$17.66 to C$45.17. 

Fuel costs 

The operational setbacks come as the miner contends with rising input costs, particularly fuel, which are expected to pressure margins in the near term. Pascall said the company has been diversifying fuel sourcing and increasing supply procurement to mitigate volatility, while highlighting the strategic advantage of its smelter capacity, which reduces reliance on external sulphuric acid markets during a period of tight global supply.

Despite the weaker quarterly performance, First Quantum raised its 2026 copper production forecast to between 405,000 and 475,000 tonnes, up from a prior range of 375,000 to 435,000 tonnes. The increase reflects anticipated output from processing stockpiled ore at the Cobre Panamá mine after the Panamanian government approved its removal, processing and export earlier this month.

The company said it expects to produce copper from the site late in the second quarter as it advances preparations to restart operations, including hiring about 1,000 workers.

The Panama development marks a key step in resolving a prolonged dispute over the mine and could materially boost production if operations resume as planned. It also underscores the asset’s importance to First Quantum’s growth profile alongside its Zambian operations, including Kansanshi — Africa’s largest copper and gold mine — and Sentinel.

Higher costs

BMO analyst Matt Murphy said the company flagged a potential increase in cash costs of about 25¢ per lb., or roughly 11%, if current energy prices and currency levels persist.

“Cost concerns may weigh on the near-term outlook, but the volume outlook remains positive,” he said in a note on Wednesday. Improved production in the second half could help offset margin pressure, he added.

The outlook reflects a company balancing near-term operational and cost headwinds with longer-term demand tied to electrification. Pascall said those tailwinds continues to support copper markets and reinforce the strategic importance of First Quantum’s asset base.