“This arrangement is a reminder of the strategic nature of copper as supply challenges abound across the sector, First Quantum said in a statement. “Constructive discussions with our lenders for an amendment and extension of our loan facilities, which are an important component to our fulsome solution, are well-advanced and there is a high degree of alignment among all parties.”
The company, which was forced to shut down in December its flagship copper mine in Panama, has quickly seen its financial situation deteriorate. Since the order to close the operation, First Quantum has lost over half its market value and its exposure to nickel, of which prices have dropped to two-year lows, has added extra pressure.
Together with reporting a net loss for the fourth quarter, First Quantum recorded an impairment charge of $900 million, which includes $854 million at its Ravensthorpe nickel mine, due to significant margin pressure…
