UPDATE 1-First Quantum copper stockpiles rise, output up
Thu Apr 23, 2009 12:25pm EDT
reuters.com
TORONTO, April 23 (Reuters) - First Quantum Minerals (FM.TO) said on Thursday its stockpiles of copper concentrate at its African operations have more than doubled due to increased production levels and smelting capacity constraints in Zambia.
The Vancouver, British Columbia-based company said stockpiles as of March 31 were 37,800 tonnes, up from 16,400 tonnes on Dec. 31. The bulk of the stockpiles were at the Kansanshi mine in Zambia.
"With copper prices low during the quarter it was decided to wait until local smelting capacity and copper prices improved rather than export and incur the high export charges," the company said in a statement.
First Quantum will send the stockpiles to Zambian smelters over the next two quarters, at which point it expects levels will be back to normal, it said.
Overall copper production for the first quarter was 88,600 tonnes, a 17 percent increase over the year-before quarter, and in line with the company's expectations, the company said. First Quantum expects to produce 380,000 tonnes of copper for the year.
After bottoming in December and trading fairly flat in January and February, copper is up 27 percent since the beginning of March.
Three-month copper MCU3 was at $2.06 a pound on Thursday.
Shares of First Quantum were up 21 Canadian cents at C$38.81.
($1=$1.23 Canadian) (Reporting by Cameron French; editing by Peter Galloway) |
