First Quantum Minerals (FM) AI Stock Analysis

• Market Cap: $16.05B
• Dividend Yield: N/A
• Average Volume (3M): 3.50M
• Price to Earnings (P/E): 84.4
• Beta (1Y): 1.30
• Revenue Growth: -13.79%
• EPS Growth: N/A
• Country: CA
• Employees: 20,000
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Copper
• EPS (TTM): 0.00
• Shares Outstanding: 834,206,100
• 10 Day Avg. Volume: 3,098,750
• 30 Day Avg. Volume: 3,504,144
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 19.80
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.18
• Price Target Upside: 14.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

First Quantum Minerals scores a 63 overall, reflecting a blend of recovery in financial performance and technical momentum against high valuation and ongoing operational challenges. The strategic financial moves are promising, but high leverage and profitability concerns, alongside specific regional operational issues, necessitate caution.

Positive Factors

Earnings

First Quantum reported EBITDA that beat consensus due to higher than expected copper sales volumes.

Financial Position

A new $500m copper prepayment deal with Jiangxi was announced, which strengthens the company's financial position.

Operational Outlook

The S3 expansion at Kansanshi is on track to be completed, reflecting ongoing improvements in the company's operational capabilities.

Negative Factors

Debt Management

Net debt increased, but the company's hedging program should protect it from risk to the copper price.

Government Relations

The terms of a new agreement with the government are still unknown and could lead to more value capture for the government and less for First Quantum.

Production Guidance

Production guidance has been trimmed for both Zambian mines for future years, indicating a more conservative outlook.

First Quantum Minerals Business Overview & Revenue Model

Company Description

First Quantum Minerals Ltd. (FM) is a Canadian-based mining and metals company primarily engaged in the exploration, development, and production of mineral properties. The company is a major global copper producer, with additional operations in nickel, gold, and zinc. First Quantum Minerals operates mines and development projects in various countries, including Zambia, Panama, Finland, Turkey, Spain, and Australia, focusing on sustainable and responsible mining practices.

How the Company Makes Money

First Quantum Minerals generates revenue primarily through the extraction and sale of copper, which is its largest revenue stream. The company operates several large-scale mining projects, including the Kansanshi mine in Zambia and the Cobre Panama mine in Panama, which contribute significantly to its copper output. In addition to copper, First Quantum also earns revenue from the mining of nickel, gold, and zinc. The company's revenue is influenced by global commodity prices, production volumes, and operational efficiencies. Strategic partnerships and joint ventures, such as collaborations with local governments and other mining companies, play a crucial role in expanding its mining operations and accessing new markets. First Quantum's focus on cost management and technological innovation further enhances its profitability and competitive position in the global mining industry.

First Quantum Minerals Financial Statement Overview

Summary

First Quantum Minerals shows resilience amidst fluctuating performance metrics. Revenue and operating margins are recovering, while leverage remains a concern with moderate profitability. Cash flow management requires attention, especially in enhancing free cash flow. Overall, the company is on a recovery path but must address leverage and profitability challenges to sustain long-term growth.

Income Statement

First Quantum Minerals shows a mixed income statement with signs of recovery. The TTM revenue increased slightly to $4.956 billion from $4.802 billion annually, indicating a modest growth trajectory. Gross profit margin for TTM stands at 30.76%, showing profitability, but net profit margin is low at 2.78%, indicating issues in translating sales to profit. EBIT and EBITDA margins are solid at 20.27% and 37.68% respectively, suggesting effective core operations despite a previous year of significant net loss.

Balance Sheet

The balance sheet presents a stable financial position with total assets at $24.18 billion. Debt-to-equity ratio remains high at 0.58, reflecting significant leverage, which is a potential risk. However, ROE at 1.22% for TTM is low, indicating limited efficiency in using equity to generate profit. The equity ratio of 46.91% shows a balanced capital structure but suggests room for improving equity utilization.

Cash Flow

First Quantum Minerals displays varied cash flow results with a TTM operating cash flow of $1.383 billion. Free cash flow has decreased significantly to $119 million in TTM from $365 million annually, indicating cash management challenges. The operating cash flow to net income ratio is robust at 10.02, reflecting strong cash generation relative to net income, but the free cash flow to net income ratio is low at 0.86, highlighting pressures on liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.80B	6.46B	7.63B	7.21B	5.20B
	Gross Profit
1.35B	1.29B	2.20B	2.56B	1.08B
	EBIT
810.00M	78.00M	2.24B	2.60B	991.00M
	EBITDA
1.59B	1.28B	3.28B	3.73B	1.98B
	Net Income Common Stockholders
2.00M	-954.00M	1.03B	832.00M	-224.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
843.00M	1.16B	1.69B	1.86B	950.00M
	Total Assets
24.11B	23.76B	25.08B	25.27B	24.24B
	Total Debt
6.37B	7.58B	7.38B	7.91B	8.36B
	Net Debt
5.53B	6.42B	5.69B	6.05B	7.41B
	Total Liabilities
12.21B	12.98B	12.84B	13.78B	14.20B
	Stockholders Equity
11.47B	10.25B	10.90B	10.02B	8.87B
Cash Flow		Free Cash Flow
365.00M	127.00M	1.17B	1.89B	1.00B
	Operating Cash Flow
1.65B	1.43B	2.33B	2.88B	1.61B
	Investing Cash Flow
-1.29B	-1.38B	-1.17B	-1.10B	-673.00M
	Financing Cash Flow
-501.00M	-776.00M	-1.33B	-841.00M	-543.00M

First Quantum Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FM, the sentiment is Positive. The current price of 19.39 is above the 20-day moving average (MA) of 17.99, above the 50-day MA of 18.69, and above the 200-day MA of 18.24, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 75.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FM.

First Quantum Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVN	69 Neutral	$18.61B	31.19	9.67%	―	―	137.28%
HBM	67 Neutral	$4.08B	37.00	3.30%	0.19%	19.70%	9.24%
LUN	66 Neutral	$10.33B	25.63	2.66%	3.02%	-8.36%	-200.42%
TECK.B	64 Neutral	$24.29B	67.55	1.32%	1.01%	-22.39%	-77.05%
FM	63 Neutral	$16.05B	84.42	1.22%	―	-13.79%	―
CS	59 Neutral	$5.15B	45.92	2.71%	―	37.30%	―
Sector *	49 Neutral	$1.96B	-1.17	-21.28%	3.71%	1.14%	-30.35%

First Quantum Minerals Corporate Events

First Quantum Minerals Announces Successful Election of Directors

First Quantum Minerals Ltd. announced the successful election of its board of directors during the 2024 Annual Meeting of Shareholders, with 85.72% of issued shares voted. The election results indicate strong shareholder support, with most directors receiving over 85% of votes cast in their favor, reflecting confidence in the company’s leadership and strategic direction.

Spark’s Take on TSE:FM Stock

According to Spark, TipRanks’ AI Analyst, TSE:FM is a Neutral.

First Quantum Minerals’ overall stock score reflects a challenging environment with operational and financial restructuring efforts. While strategic financial actions and operational achievements are evident, high leverage, valuation challenges, and operational setbacks in Panama and Zambia pose risks. The technical indicators suggest caution due to potential overbought conditions. The stock is under pressure, balancing between strategic improvements and significant operational and valuation challenges.

To see Spark’s full report on TSE:FM stock, click here.

First Quantum Minerals Reports Q1 2025 Loss Amid Strategic Expansion Efforts

First Quantum Minerals reported a net loss of $23 million for Q1 2025, with adjusted earnings of $2 million. The company is progressing with the Kansanshi S3 Expansion project, which is expected to boost production in the latter half of 2025. In Panama, First Quantum has suspended arbitration proceedings and is working towards a resolution regarding the Cobre Panamá mine. The company has strengthened its financial position with a $750 million notes offering and additional prepayment agreements, despite facing lower sales volumes and increased cash costs for copper production.

Spark’s Take on TSE:FM Stock

According to Spark, TipRanks’ AI Analyst, TSE:FM is a Neutral.

First Quantum Minerals’ overall stock score reflects a mix of operational achievements and strategic financial management against a backdrop of declining financial performance and valuation challenges. The company’s improved cash flow generation and leverage management are positive, but technical indicators and valuation metrics reveal potential downside risks. The stock remains under pressure, with operational challenges in Panama and Zambia, and a bearish technical outlook further weighing on investor sentiment.

To see Spark’s full report on TSE:FM stock, click here.

First Quantum Minerals Suspends Arbitration Proceedings in Panama

First Quantum Minerals Ltd. has decided to discontinue its arbitration proceedings with the International Chamber of Commerce and suspend the arbitration under the Canada-Panama Free Trade Agreement regarding the Cobre Panamá mine. This decision follows discussions with the Government of Panama, indicating the company’s commitment to resolving disputes through dialogue and cooperation, which could positively impact its operations and relationships in Panama.

First Quantum Minerals Announces Online AGM and Releases 2024 Annual Report

First Quantum Minerals Ltd. has announced that its Annual General Meeting of shareholders will be held online on May 8, 2025. The company has also made available its 2024 Annual Report, which includes audited financial statements and other key documents, through its website. This announcement ensures transparency and accessibility for stakeholders, reinforcing First Quantum’s commitment to maintaining robust investor relations.

First Quantum Minerals to Announce Q1 2025 Results

First Quantum Minerals Ltd. has announced that it will release its first quarter 2025 financial and operating results on April 23, 2025. The company will hold a conference call and webcast on April 24, 2025, to discuss these results, which could provide insights into its operational performance and market strategy, potentially impacting stakeholders’ perspectives.

First Quantum Completes $1 Billion Senior Notes Offering

First Quantum Minerals Ltd. has successfully completed a $1,000 million senior notes offering, with the notes due in 2033 and carrying an interest rate of 8.000%. The proceeds from this offering will be used to repay a portion of its revolving credit facility, fund a partial tender offer for existing notes due in 2027, and cover transaction-related expenses, which could enhance the company’s financial flexibility and reduce its debt burden.

First Quantum Minerals Reports Early Results of $750M Cash Tender Offer

First Quantum Minerals announced the early results of its cash tender offer for its outstanding 6.875% Senior Notes due 2027, with a maximum aggregate principal amount of $750 million. The company received tenders exceeding this amount, leading to a prorated acceptance of the notes. This financial maneuver is likely to impact the company’s debt management strategy and could influence its financial stability and stakeholder confidence.

First Quantum Minerals Upsizes Senior Notes Offering to $1 Billion

First Quantum Minerals Ltd. has announced the successful pricing and upsizing of its senior notes offering, increasing the total from $750 million to $1,000 million with an 8.000% interest rate. The proceeds will be used to repay part of its revolving credit facility, fund a tender offer for existing senior notes, and cover related transaction costs, reflecting strategic financial management to optimize its capital structure.

First Quantum Minerals Upsizes Tender Offer for Senior Notes

First Quantum Minerals Ltd. announced an increase in its cash tender offer for its outstanding 6.875% senior notes due 2027, raising the maximum amount from $500 million to $750 million. This strategic financial maneuver follows the successful pricing and upsizing of a concurrent offering of $1 billion in senior notes due 2033, aimed at enhancing the company’s financial flexibility and addressing existing debt obligations. The move could impact stakeholders by potentially strengthening First Quantum’s financial position and funding its operations, though it remains subject to certain conditions and potential waivers.

First Quantum Minerals Launches $750 Million Senior Notes Offering

First Quantum Minerals Ltd. has announced a $750 million offering of senior unsecured notes, with plans to use the proceeds to repay part of its revolving credit facility and fund a partial tender offer for its existing senior notes. This strategic financial move is expected to strengthen the company’s financial flexibility, potentially impacting its operational capabilities and offering reassurance to stakeholders regarding its debt management strategy.

First Quantum Minerals Launches $500 Million Cash Tender Offer for Senior Notes

First Quantum Minerals Ltd. has initiated a cash tender offer to purchase its outstanding 6.875% Senior Notes due 2027, with a maximum aggregate principal amount of up to $500 million. This move is part of the company’s financial strategy to manage its debt and optimize its capital structure, potentially improving its financial flexibility and reducing interest costs.

First Quantum Minerals Announces Strategic Operational Update

First Quantum Minerals has announced a significant update regarding its operational strategies, which could potentially influence its market position and stakeholder interests. The announcement highlights changes that are expected to impact the company’s overall operations, though specific details and implications are not provided.