First Quantum Minerals (TSX:FM), valued at $10.34 billion by market cap, is engaged in the exploration, development, and production of mineral properties. It explores commodities such as copper, nickel, pyrite, gold, silver, and zinc ores. First Quantum is well diversified, with mines operating in Zambia, Panama, Finland, Turkey, Spain, and Australia.
In the last 10 years, the TSX mining stock has returned less than 5% to shareholders, trailing the broader markets by a wide margin. Down 61% from all-time highs, let’s see if FM stock trades at an attractive multiple in November 2024.
Why is First Quantum stock underperforming?
A key driver of a company’s stock price is its earnings growth. In the last 10 years, First Quantum has increased its adjusted earnings per share at a compounded annual growth rate of 8.8%, which is encouraging for a company in the cyclical mining sector.
However, First Quantum has wrestled with…
