First Quantum Minerals Ltd. Has unveiled a series of strategic initiatives

First Quantum Minerals Ltd. (“First Quantum” or the “Company”) has unveiled a series of strategic initiatives aimed at bolstering its balance sheet, as announced on February 21, 2024. These efforts encompass a $500 million copper prepayment agreement, an amendment and extension of its $2.2 billion corporate bank facilities, a $1,000 million bought deal offering of common shares, and a $1,600 million senior secured second lien notes offering. Upon completion, these transactions are poised to fortify the Company’s liquidity, diminish net leverage to 2.3x, augment financial flexibility, provide covenant headroom, and elongate the maturity profile to April 2027.

The Refinancing endeavors are structured to furnish the Company with robust liquidity amounting to $2.0 billion, inclusive of the copper prepayment agreement, while concurrently reducing net leverage and furnishing enhanced financial maneuverability. Notably, the adjusted net leverage test increases from 3.50x to 5.75x for the near term, affording the Company additional flexibility. Furthermore, the extended maturity profile is envisioned to facilitate the completion of the S3 Expansion project and pave the way for a resolution in Panama, underscoring First Quantum’s commitment to operational excellence and responsible corporate stewardship.

Tristan Pascall, Chief Executive Officer of First Quantum, expressed satisfaction with the announced transactions, characterizing them as integral to fortifying the Company’s capital structure and positioning it for sustained free cash flow generation. Pascall reiterated the Company’s dedication to collaborating with the Government of Panama to ensure the prudent management of Cobre Panamá. Additionally, he extended gratitude to lenders, bondholders, and shareholders for their unwavering support and confidence in the Company’s prospects.

Looking ahead, First Quantum remains steadfast in pursuing additional initiatives, including asset and stake sales, with a disciplined approach focused on maximizing shareholder value. The Company’s proactive measures underscore its commitment to adaptability, resilience, and long-term growth amid evolving market dynamics.