First Quantum shares touched C$13.27 in Toronto, the highest intraday price since mid-January, before paring some gains. The stock has lost more than half of its value since protests erupted last year against the Cobre Panama mine, which accounted for 78% of First Quantum’s operating profit in the first nine months of last year.
Analysts said the financing plans will lift pressure on the company’s balance sheet for at least the next year, although the shutdown of Cobre Panama means it is only buying time.
“While issuing equity after the share price has already collapsed is obviously not ideal, we believe these deleveraging steps are significant positives for First Quantum,” wrote Christopher LaFemina in a Jefferies Financial Group Inc. analyst note Wednesday.
“The Cobre Panama mine shut down is still a problem, but the balance sheet problem has been addressed for now (we believe these measures provide 18-24 months of…
