First Quantum Minerals unveiled capital restructuring plans on Wednesday to bolster its finances and slash debt, striving to meet its operational aims.
The company’s market value plummeted by over half after Panama unexpectedly ordered the Cobre Panama copper mine to shut down last November.
This mine, among the globe’s largest, is crucial for First Quantum, generating around 40% of its revenue.
In its financial reshaping, First Quantum has extended a $2.2 billion bank loan to April 2027.
First Quantum announces $1B stock offering and $1.6B senior note offering, led by key financial institutions.
CEO Tristan Pascall stated, “These steps forge a capital structure enabling the S3 expansion in Zambia, which will revitalize our ability to produce significant free cash flow.”
Post Panama court ruling, First Quantum seeks $20B arbitration after protests, shaping new strategy.
This amount mirrors the original investment’s market value, with Pascall suggesting the potential for even higher claims.
Yet he stressed that arbitration wasn’t the preferred route, favoring a mutually beneficial agreement with Panama.
Dispute triggers arbitration under Canada-Panama trade deal and separate ICC case due to mine closure’s legal complexities.