Jiangxi Copper Co., Ltd. disclosed that on February 29, 2024, Canada time, Indirect wholly-owned holding company PIM Cupric Holdings Limited (PCH) is involved in First QuantumMinerals, which is listed on the Toronto Stock Exchange in Canada Ltd. (hereinafter referred to as First Quantum) is offering a public placement of common Shares of C $1,553 million in gross size (hereinafter referred to as the Offering). The Company subscribed for 25,863,000 Common Shares in the Offering at a price of CAD 11.10 per share (hereinafter referred to as the Subscription) for an aggregate transaction consideration of CAD 287,079,300 (approximately RMB 151,465 million). Prior to this subscription, PCH held 128,196,171 shares of First Quantum (representing 18.48% of First Quantum's issued shares prior to this offering). Upon completion of the subscription, PCH holds a total of 154,059,171 First Quantum Shares (representing 18.48% of the issued shares after the Offering) with unchanged shareholding.
First Quantum has nine copper mine operations and development projects in eight countries including Zambia, Panama and Peru, among which First Quantum has three world-class mines in production in Zambia and Panama, of which Cobre Panama project in Panama is under protection and safety management, and three pending development projects in Argentina and Peru. As of December 31, 2023, the total controlled resources of the first quantum contained about 66.6 million tons of copper (Canadian NI 43-101 standard), of which the resources belonging to the first quantum interest contained 53.76 million tons of copper. In addition, First Quantum also operates two large nickel mining projects in Australia and Zambia, with a total resource of 2.2 million tons of nickel (Canadian NI 43-101 standard). The first quantum copper production in 2023 will be about 708,000 tons. Based on the production guidance disclosed by First Quantum in the 2023 full-year results announcement released on February 20, 2024, copper production (excluding Cobre Panama) for 2024-2026 is expected to be 370-420,000 tons, 40,000-460,000 tons, and 400,000-460,000 tons, respectively.
Jiangxi Copper has stepped in to support First Quantum after the Vancouver-based company was forced to shut down Cobre Panama in November following orders from the Panamanian government. Cobre Panama, which accounted for 78 percent of First Quantum's operating profit in the first nine months of last year, is now excluded from production guidance.
