First Quantum Risks Covenant Breach, Cost Cuts If Panama Shuts Important Copper Mine
- Company faces more than $2.4 billion in maturities by end-2025
- Scotiabank sees debt breach in Q4 2024 at current prices
First Quantum Minerals Ltd.’s Cobre Panama mine has been the Canadian firm’s top money maker since its 2019 opening and was expected to account for almost half of worldwide sales next year.
Source: Bloomberg
First Quantum Minerals Ltd. could be forced to slow spending next year and face a potential breach of debt covenants if Panama follows through on plans to close a copper mine that generated roughly $1 billion in profit last year.
The Cobre Panama mine has been the Canadian firm’s top money maker since its 2019 opening and was expected to account for almost half of worldwide sales next year. Now, after the government announced plans to shutter the $10 billion operation, First Quantum may have to trim spending elsewhere or sell assets in order to remain in compliance with lender agreements.