TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") regrets to announce that the Company´s founder and former Chairman, Mr. Lukas H. Lundin, passed away on July 26, 2022 at the age of 64, following a two-year battle with brain cancer.
Over the past 40 years, Lukas has been a driving force behind the tremendous successes of companies within the Lundin Group. Lukas started his career in the international energy and mining sectors in the early 1980s working side-by-side with his father, the late Mr. Adolf H. Lundin.
Under the leadership of Lukas and his brother Ian, and in close cooperation with the rest of the Lundin family, the Lundin Group has grown into an internationally recognized portfolio of energy and mining companies with operations spanning the globe. The eleven companies that comprise the Lundin Group today have a combined market capitalization in excess of USD 11 billion , directly employing more than 15,000 people and creating opportunities for tens of thousands more.
Lukas Lundin´s sons Harry, Adam, Jack and William in a joint statement say, "Our father is our biggest inspiration. His passion for the industries to which he devoted his life was unparalleled. Lukas saw people as the key to success and spent decades building some of the strongest management teams in our industries. He always strived to empower those working with him and continuously pushed us to aim higher. We could not have had a better father and mentor.
Our family is deeply saddened about Lukas' passing but takes comfort in the knowledge that his legacy will live on for generations to come. Having worked side-by-side with Lukas for many years, all of us look forward to continuing to build on the successes of the companies within the Lundin Group – with the support of our shareholders and other stakeholders, not least the members of the local communities where we operate. The companies in the Lundin Group stand stronger than ever and the Lundin family is united in our commitment to remain long term shareholders ."
Lukas founded Lundin Mining together with his father in the mid-1990s and was a member of the Board of Directors and Chairman of the Company for more than 25 years until he stepped down in May 2022 . In his role as Chairman, Lukas oversaw Lundin Mining's development from an exploration-stage company into a global mid-tier producer with a strong copper focus and a portfolio of world-class assets.
Lundin Mining's President and CEO, Peter Rockandel , commented "The many successes of Lundin Mining and the Lundin Group owe directly to Lukas' extraordinary strategic foresight, matched only by his relentless drive. His guidance and support for his colleagues will be deeply missed, however, his pursuit and vision of creating a world-class base metals company lives on. Lukas would say, 'Get the right people. Empower the people. And have good assets.' Those of us that worked closest with Lukas share in his approach and will continue to build upon his legacy."
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina , Brazil , Chile , Portugal , Sweden and the United States of America , primarily producing copper, zinc, gold and nickel.
The information was submitted for publication on July 27, 2022 , at 11:30 Eastern Time .
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This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated June 21, 2021, to its short form base shelf prospectus dated July 2, 2020.
Northern Dynasty Minerals Ltd. (TSX:NDM)(NYSE American:NAK) ("Northern Dynasty" or the "Company" or "NDM") announces that it has entered into an agreement (the "Agreement") with an investor (the "Royalty Holder") to receive up to $60 million over the next two years, in return for the right to receive a portion of the future gold and silver production from the Pebble Project for the life of the mine. The Company received an initial payment of $12 million from the Royalty Holder concurrently with execution of the Agreement. All currency figures are U.S. dollars
"It has become clear to us that to develop a world-class mineral deposit like Pebble requires time, patience and sufficient liquidity to successfully navigate the established legal process and continue ongoing efforts to work with the people in the region," said Ron Thiessen, Northern Dynasty President and CEO. "This financing, when completed, also gives us the financial wherewithal to keep fighting against what we consider to be unfounded interference by U.S. Federal Government agencies in an otherwise well-established, legal permitting process, as well as to deal with challenges from well-funded parties from outside the area that lack scientific or other factual studies to support their opposition."
Per the terms of the Agreement, the Royalty Holder made the initial payment of $12 million in exchange for the right to receive 2% of the payable gold production and 6% of the payable silver production from the Pebble Project, in each case after accounting for a notional payment by the Royalty Holder of $1,500 per ounce of gold and $10 per ounce of silver, respectively, for the life of the mine. If, in the future, spot prices exceed $4,000 per ounce of gold or $50 per ounce of silver, then the Company will share in 20% of the excess price for either metal. Additionally, the Company will retain a portion of the metal produced for recovery rates in excess of 60% for gold and 65% for silver, and so is incentivized to continually improve operations over the life of the mine.
The Royalty Holder has the right to invest additional funds, in $12 million increments, to an aggregate total of $60 million, within two years of the date of the Agreement, in return for the right to receive up to 10% of the payable gold and up to 30% of the payable silver (in each case, in the aggregate) on the same terms as the first tranche.
Subject to certain conditions, the Agreement does not restrict the Company's ability to form partnerships to assist in the development of the Proposed Project, for example (but not restricted to) other mining companies or Alaska Native Corporations.
"It was important to us that we improve our liquidity without issuing equity at what we consider depressed prices. We are pleased to reach an agreement that can raise significant capital over the next two years in return for the right to buy a small portion of future, non-core gold and silver production from the Proposed Project, while keeping 100% of the copper production," added Adam Chodos, Executive Vice President of Corporate Development.
"As I have said many times before, a large amount of copper is critical for the generation and transmission of electricity, and we believe the world needs to develop the few world-class copper assets that have been discovered in order to have any chance of meeting its green energy goals," said Mr. Thiessen. "We are also convinced that the Pebble Project has been designed - and can be built and operated - safely, without harming the environment or the fishery, as clearly outlined in the Final Environmental Impact Statement of July 2020. The Pebble Project represents an enormous amount of value, both to Alaskans and to the rest of the U.S., and we believe that value should increase significantly as the expected supply/demand imbalance leads to future copper price increases."
About Northern Dynasty Minerals Ltd.
Northern Dynasty is a mineral exploration and development company based in Vancouver, Canada. Northern Dynasty's principal asset, owned through its wholly owned Alaska-based U.S. subsidiary, Pebble Limited Partnership, is a 100% interest in a contiguous block of 1,840 mineral claims in Southwest Alaska, including the Pebble deposit, located 200 miles from Anchorage and 125 miles from Bristol Bay. The Pebble Partnership is the proponent of the Pebble Project, an initiative to develop one of the world's most important mineral resources.
For further details on Northern Dynasty and the Pebble Project, please visit the Company's website at www.northerndynastyminerals.com or contact Investor services at (604) 684-6365 or within North America at 1-800-667-2114. Review Canadian public filings at www.sedar.com and U.S. public filings at www.sec.gov.
Ronald W. Thiessen President & CEO
U.S. Media Contact: Dan Gagnier, Gagnier Communications (646) 569-5897
Forward Looking Information and other Cautionary Factors
This release includes certain statements that may be deemed "forward-looking statements" under the United States Private Securities Litigation Reform Act of 1995 and under applicable provisions of Canadian provincial securities laws. All statements in this release, other than statements of historical facts, which address permitting, development and production for the Pebble Project and the ability of the Company to successfully complete the full financing transaction discussed above (the "Royalty Financing") are forward-looking statements. These include statements regarding (i) statements on the economic contribution of the Pebble Project to the Alaskan economy, which are based on the Company's 2021 preliminary economic assessment of the Pebble Project (the "2021 PEA") which is preliminary in nature, and the IHS Markit report, identified in NDM's February 28, 2022 news release (the "IHS Markit Report"), (ii) the timing of the appeal process and the ability to successfully appeal the negative Record of Decision and secure the issuance of a positive Record of Decision by the USACE, (iii) the political and public support for the permitting process, (iv) the ability of the Pebble Project to ultimately secure all required federal and state permits, (v) future metals prices, including the price of copper, (vi) the right-sizing and de-risking of the Pebble Project, (vii) the design and operating parameters for the Pebble Project mine plan, including projected capital and operating costs, (viii) exploration potential of the Pebble Project, (ix) future demand for copper and gold, (x) the potential addition of partners in the Pebble Project, (ix) if permitting is ultimately secured, the ability to demonstrate that the Pebble Project is commercially viable, (xi) the EPA's Proposed Determination process under the CWA and the impact of this process on the ability of the Pebble Partnership to develop the Pebble Project, (xii) the ability and timetable of NDM to develop the Pebble Project, and (iv) the future determinations of the Royalty Holder to increase its investment and the successful completion of the full Royalty Financing. Although NDM believes the expectations expressed in these forward-looking statements are based on reasonable assumptions, such statements should not be in any way be construed as guarantees that the Pebble Project will secure all required government permits, establish the commercial feasibility of the Pebble Project, achieve the required financing or develop the Pebble Project.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by NDM as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Assumptions used by NDM to develop forward-looking statements include the following assumptions, all of which are subject to risks (i) the assumptions underlying the 2021 PEA, and the assumptions related to the IHS Markit Report, (ii) the Pebble Project will ultimately obtain all required environmental and other permits and all land use and other licenses, (iii) any feasibility studies prepared for the development of the Pebble Project will be positive, (iv) NDM's estimates of mineral resources will not change, and NDM will be successful in converting mineral resources to mineral reserves, (v) NDM will be able to establish the commercial feasibility of the Pebble Project, (vi) NDM will be able to secure the financing required to develop the Pebble Project, including the full Royalty Financing, and (vii) any action taken by the EPA in connection with the Proposed Determination will ultimately not be successfully in restricting or prohibiting development of the Pebble Project.
The likelihood of future mining at the Pebble Project is subject to a large number of risks and will require achievement of a number of technical, economic and legal objectives, including (i) the 2021 PEA may not reflect the ultimate mine plan for the Pebble Project, (ii) obtaining necessary mining and construction permits, licenses and approvals without undue delay, including without delay due to third party opposition or changes in government policies, (iii) finalization of the mine plan for the Pebble Project, (iv) the completion of feasibility studies demonstrating that any Pebble Project mineral resources that can be economically mined, (v) completion of all necessary engineering for mining and processing facilities, (vi) the ability of NDM to secure a partner for the development of the Pebble Project, and (vii) receipt by NDM of significant additional financing, including the Royalty Financing to fund these objectives as well as funding mine construction, which financing may not be available to NDM on acceptable terms or on any terms at all. NDM is also subject to the specific risks inherent in the mining business as well as general economic and business conditions, such as the current uncertainties with regard to COVID-19. Investors should also consider the risk factors identified in its Annual Information Form for the year ended December 31, 2021, as filed on SEDAR and included in the Company's annual report on Form 40-F filed by the Company with the SEC on EDGAR, and the Company's Management Discussion and Analysis for the year ended December 31, 2021, as filed on SEDAR and EDGAR, for a discussion of the risks that may impact our forward-looking statements and the 2021 PEA.
The National Environment Policy Act Environmental Impact Statement process requires a comprehensive "alternatives assessment" be undertaken to consider a broad range of development alternatives, the final project design and operating parameters for the Pebble Project and associated infrastructure may vary significantly from that currently contemplated.
For more information on the Company, Investors should review the Company's filings with the United States Securities and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedar.com.
SOURCE: Northern Dynasty Minerals Ltd.
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First diamond drill hole intersects broad zone of copper mineralisation over a 59m interval
Cobre Limited (ASX: CBE, Cobre or Company) is pleased to announce the first intersection of significant copper mineralisation from its ongoing drill programme on KML’s NCP licenses. Based on visual estimates, confirmed with pXRF readings, drill hole NCP07 has intersected a broad zone of copper mineralisation starting from 214m and continuing for approximately 59m downhole to 273m. Mineralisation includes vein and fracture fill chrysocolla as well as fine-grained copper sulphides, which increase in abundance between 250 and 260m downhole.
Commenting on initial drilling results, Cobre Executive Chairman and Managing Director, Martin Holland, said:
“This new copper discovery represents a transformational moment for Cobre Shareholders. Cobre has neverbeeninabetterpositionfromaprojectownership,technicalandoperationperspectiveandnow we have a promising copper intersection, on one of the most prospective Copper belts in the world. This result, 1km away from the previous historic hole, shows the current mineralisation thickensover a 1km zone to date. The intersection of significant copper mineralisation in our diamond drilling campaign is testament to the high-calibre technical and operational expertise of our team in Botswana- led by Kalahari Metals Limited (KML’s) newly appointed CEO, Adam Wooldridge. Our African exploration team has done a fantastic job getting the program underway, delivering positive results which have so far exceeded project expectations.
Wehaveprioritisedthisportionofthebeltduetoitsfavourablegeologicalsetting.Theseresults,which confirm the presence of significant copper mineralisation, validate the district scale opportunity of Cobre’s, soon to be 100%-owned, extensive license package within the Kalahari Copper Belt. With diamond drilling ongoing in Botswana, we anticipate ongoing exploration updates to follow and look forward to updating our shareholders in duecourse”.
Click here for the full ASX Release
This article includes content from Cobre Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Don Lindsay announces retirement after fourth consecutive record quarter
Jonathan Price Appointed CEO; Red Conger Appointed President and COO
The Board of Directors of Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") announced today that Don Lindsay has informed them of his intention to retire as President and CEO of Teck effective as of September 30, 2022, following an outstanding 17 years. Teck's Board has unanimously appointed Jonathan Price to succeed Don as Chief Executive Officer and Harry "Red" Conger as President and Chief Operating Officer, also effective September 30, 2022. Mr. Price and Mr. Conger will also be appointed to the Board. Mr. Lindsay has agreed to stay on into the second quarter of 2023 as a resource to management and the Board to support with the transition in the role of Executive Vice Chair. This is the culmination of a multi-year succession process.
"Don and the Board have been focused on succession for a number of years. We are delighted to have been able to recruit Jonathan and Red in 2020 and, under Don's leadership, position them for successful advancement into these roles," said Sheila Murray, Chair of Teck's Board of Directors. "Jonathan is an internationally recognized leader in the mining sector and brings the right background, skills and experience to the role of CEO to further advance Teck's balanced growth strategy."
"On behalf of the Board, I want to thank Don Lindsay for his strong leadership, culminating with four consecutive record-setting quarters. Don has transformed Teck and today the company is well positioned for continued growth and value generation due to the strategy and solid foundation he has built, and the experienced and skilled leadership team he has put in place," said Ms. Murray. "Don's commitment to health and safety and sustainability, and his passion for the value that responsible resource development can deliver to the world are deeply ingrained in Teck's culture, and he leaves an enduring legacy at all levels of the company."
Mr. Price, incoming Chief Executive Officer, is currently Teck's Executive Vice President and Chief Financial Officer and is an experienced executive with a proven track record spanning over 20 years in mining, capital markets, business development and finance. Before joining Teck in October 2020, he worked at BHP for 14 years in a variety of senior roles including Chief Transformation Officer, Vice President Finance and Vice President Investor Relations working in Asia, Australia, and the U.K. He has also worked in the Metals and Mining team at ABN AMRO Bank, and previously held various production and technical roles with former Canadian mining company INCO.
Mr. Conger, incoming President and Chief Operating Officer (COO), has served as Teck's Executive Vice President and COO since September 2020. Prior to joining Teck, Mr. Conger held the role of President and COO – Americas with Freeport-McMoRan and brings a strong background in operations leadership, financial performance and delivering large-scale projects throughout the Americas. Red will focus on operational performance and delivery of Teck's major projects including the final stage of construction at the QB2 copper project in Chile and advancing the QB Mill Expansion (QBME) project and other copper growth pipeline projects.
"Red's extensive global mining experience and track record of operational excellence and successful project delivery is a perfect fit for the role of President and COO as we move through this transformational phase for Teck," said Ms. Murray. "The Board looks forward to working closely with Jonathan, Red and the entire senior management team to execute on Teck's transformation into a major global copper producer to meet growing demand driven by the net-zero transition, while providing long-term, sustainable value for our shareholders and all stakeholders."
"I am excited and energized by the opportunities ahead for Teck to build on our existing strong foundation and position the company for long-term success. We will continue to execute on Teck's strategy of balancing growth in copper with returning capital to shareholders and generating benefits for our people and the communities where we operate," said Mr. Price.
"Teck has industry-leading growth potential with the impending completion of QB2 and advanced copper pipeline projects including QBME, Zafranal, and San Nicolas, which could be in production as early as 2026. I look forward to continuing to work closely with the talented teams across the company to deliver on that incredible potential and responsibly provide essential metals and minerals to the world," said Mr. Conger.
"It has been an honour and a privilege to serve as Teck's President and CEO for the past 17 years, and to have the opportunity to work alongside so many talented and dedicated people," said Mr. Lindsay. "Together we have built Teck into an industry leader in sustainable resource development, with world-class operations, and an unmatched copper growth profile. Every day, our people and our products contribute to making the world a better place. I am extremely proud of what has been achieved during my tenure, and I look forward to supporting Jonathan and Red as they lead Teck into its next phase of growth and success."
Mr. Lindsay has served as Teck's President and CEO since 2005. Under his leadership, the company has delivered record financial and operational results, and returned significant capital to shareholders. During his tenure, Teck significantly expanded its resource base and production capacity and built one of the strongest copper growth pipelines in the industry, including the world-class QB2 copper project currently under construction in northern Chile. The company most recently achieved record annual revenues and earnings in 2021 and four record-setting quarterly results through Q3/Q4 of 2021 and Q1/Q2 of 2022. He has driven Teck's commitment to sustainability, positioning the company as an industry leader in ESG performance, including setting ambitious sustainability targets such as net-zero GHG emissions by 2050 and Nature Positive by 2030.
Crystal Prystai, currently Vice President and Corporate Controller, will serve as interim Chief Financial Officer, effective immediately, while a search to identify a new CFO is undertaken.
Forward Looking Statements This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as "forward-looking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "will", "estimate", "expect", "could" and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
Forward-looking statements include statements regarding our focus and strategy; our expectations regarding the completion of and timing of first production from QB2, QBME, San Nicolas, Zafranal, our advanced copper growth pipeline generally, and the return of capital to shareholders; and our goals to achieve net zero greenhouse gas emissions by 2050 and to become a nature positive company by 2030, including the actions we intend to take to achieve those goals and the expected impact or effect of those actions.
These statements are based on a number of assumptions, including, but not limited to, assumptions regarding the development of our business; commodity prices; our ability to realize value from our copper growth pipeline; the timing of the receipt of regulatory and governmental approvals; positive results from the studies on our expansion and development projects; the development, performance and cost of technologies needed to advance our goals; and general business and economic conditions. Factors that may cause actual results to vary include, but are not limited to, changes in general business or economic conditions or commodity prices; inaccurate geological or metallurgical assumptions related to our projects; and unanticipated difficulties in advancing our projects and sustainability goals, including those related to permitting and technology advancement.
Forward-looking statements are made as of the date of this news release and, except as required by law, Teck undertakes no obligation to update publicly or otherwise revise any forward-looking statements. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our most recent Annual Information Form filed under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.
About Teck As one of Canada's leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck's shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK.
Teck Media Contact Chris Stannell Public Relations Manager 604.699.4368 chris.stannell@teck.com
Teck Investor Contact Fraser Phillips Senior Vice President, Investor Relations and Strategic Analysis 604.699.4621 fraser.phillips@teck.com
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Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") today announced its unaudited second quarter results for 2022.
"This marks Teck's fourth consecutive quarter of record-setting EBITDA and profitability, driven by strong commodity prices in the quarter, which enabled us to complete $572 million in share buybacks and pay down a further US$650 million in outstanding debt," said Don Lindsay, President and CEO. "Our solid operational performance, strong balance sheet and $8.4 billion in liquidity all put Teck on a very strong footing as we manage through inflationary pressures and a slowdown in the global economy."
Executing on our copper growth strategy – QB2 a long-life, low-cost operation with major expansion potential
Click here to view Teck's full second quarter results for 2022.
Teck will host an Investor Conference Call to discuss its Q2/2022 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on July 27, 2022 . A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com . The webcast will be archived at www.teck.com .
Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis: 604.699.4621
Chris Stannell, Public Relations Manager: 604.699.4368
USE OF NON-GAAP FINANCIAL MEASURES AND RATIOS
Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This document refers to a number of non-GAAP financial measures and non-GAAP ratios which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS or by Generally Accepted Accounting Principles (GAAP) in the United States.
The non-GAAP financial measures and non-GAAP ratios described below do not have standardized meanings under IFRS, may differ from those used by other issuers, and may not be comparable to similar financial measures and ratios reported by other issuers. These financial measures and ratios have been derived from our financial statements and applied on a consistent basis as appropriate. We disclose these financial measures and ratios because we believe they assist readers in understanding the results of our operations and financial position and provide further information about our financial results to investors. These measures should not be considered in isolation or used in substitute for other measures of performance prepared in accordance with IFRS.
Adjusted profit attributable to shareholders – For adjusted profit attributable to shareholders, we adjust profit attributable to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect measurement changes on our balance sheet or are not indicative of our normal operating activities.
EBITDA – EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization.
Adjusted EBITDA – Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we make to adjusted profit attributable to shareholders as described above.
Adjusted profit attributable to shareholders, EBITDA, and Adjusted EBITDA highlight items and allow us and readers to analyze the rest of our results more clearly. We believe that disclosing these measures assists readers in understanding the ongoing cash generating potential of our business in order to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends.
Gross profit before depreciation and amortization – Gross profit before depreciation and amortization is gross profit with depreciation and amortization expense added back. We believe this measure assists us and readers to assess our ability to generate cash flow from our business units or operations.
Adjusted site cash cost of sales – Adjusted site cash cost of sales for our steelmaking coal operations is defined as the cost of the product as it leaves the mine excluding depreciation and amortization charges, out-bound transportation costs and any one-time collective agreement charges and inventory write-down provisions.
Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales, as described below, plus the smelter and refining charges added back in determining adjusted revenue. This presentation allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper or zinc in order to assess the margin for the mine on a per unit basis.
Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the margin for the mine on a per unit basis may be presented in a single metric for comparison to other operations.
Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice in the industry to exclude depreciation and amortization as these costs are non-cash and discounted cash flow valuation models used in the industry substitute expectations of future capital spending for these amounts.
Adjusted operating costs – Adjusted operating costs for our energy business unit is defined as the costs of product as it leaves the mine, excluding depreciation and amortization charges, cost of diluent for blending to transport our bitumen by pipeline, cost of non-proprietary product purchased and transportation costs of our product and non-proprietary product and any one-time collective agreement charges or inventory write-down provisions.
Adjusted basic earnings per share – Adjusted basic earnings per share is adjusted profit attributable to shareholders divided by average number of shares outstanding in the period.
Adjusted diluted earnings per share – Adjusted diluted earnings per share is adjusted profit attributable to shareholders divided by average number of fully diluted shares in a period.
Profit Attributable to Shareholders and Adjusted Profit Attributable to Shareholders
Reconciliation of Basic Earnings per share to Adjusted Basic Earnings per share
Reconciliation of Diluted Earnings per share to Adjusted Diluted Earnings per share
Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of Gross Profit Before Depreciation and Amortization
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.
These forward-looking statements include, but are not limited to, statements concerning: our focus and strategy; anticipated global and regional supply, demand and market outlook for our commodities; the potential impact of the COVID-19 on our business and operations, including our ability to continue operations at our sites and progress our projects and strategy; our ability to manage challenges presented by COVID-19, including the effectiveness of our management protocols implemented to protect the health and safety of our employees; expectation of additional Class B subordinate voting share buybacks; our nature positive, carbon reduction and net-zero goals and expected actions and their effectiveness to achieve those goals; expectation that QB2 will be a long-life, low-cost operation with major expansion potential; QB2 capital cost guidance and estimate of QB2 COVID-19 related capital costs; size of estimated contingency for QB2; estimated timing of first production from QB2; expectation of increased molybdenum production in the third quarter of 2022 at Highland Valley Copper; expectation of higher copper production through the second half of 2022 at Quebrada Blanca; expectations regarding our QBME project, including the impact of the project and associated timing expectations; targeted timing of first production at San Nicolás; expectation that the high steelmaking coal price environment will continue to help offset cost pressures and drive high margins; expectation of improved plant performance in our steelmaking coal business unit in the second half of the year; timing of completion of the Fording River North SRF Phase II expansion and related capacity increases, and expectations for total water treatment capacity by the end of 2022; expected Elk Valley water related capital investment; expectation that our steelmaking coal business unit is well positioned to deliver strong financial performance in the third quarter; liquidity and availability of borrowings under our credit facilities; our expectations regarding our effective tax rate; and all guidance appearing in this document including but not limited to the production, sales, cost, unit cost, capital expenditure, cost reduction and other guidance under the heading "Guidance" and discussed in the various business unit sections.
These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, interest rates, commodity and power prices, acts of foreign or domestic governments and the outcome of legal proceedings, the supply and demand for, deliveries of, and the level and volatility of prices of copper, coal, zinc and blended bitumen and our other metals and minerals, as well as oil, natural gas and other petroleum products, the timing of the receipt of regulatory and governmental approvals for our development projects and other operations, including mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate transportation, including rail, pipeline and port services, for our products; our costs of production and our production and productivity levels, as well as those of our competitors; continuing availability of water and power resources for our operations; changes in credit market conditions and conditions in financial markets generally, the availability of funding to refinance our borrowings as they become due or to finance our development projects on reasonable terms; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our development and expansion projects; the benefits of technology for our operations and development projects, including the impact of our RACE21™ program; environmental compliance costs; market competition; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and tax rates; the outcome of our coal price and volume negotiations with customers; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; the resolution of environmental and other proceedings or disputes; our ability to obtain, comply with and renew permits in a timely manner; and our ongoing relations with our employees and with our business and joint venture partners. Our Guidance tables include footnotes with further assumptions relating to our guidance and assumptions for certain other forward-looking statements accompany the statements in the document.
In addition, assumptions regarding the Elk Valley Water Quality Plan include assumptions that additional treatment will be effective at scale, and that the technology and facilities operate as expected, as well as additional assumptions discussed under the heading " Elk Valley Water Management Update ". Assumptions regarding QB2 include current project assumptions and assumptions regarding the final feasibility study, estimates of future construction capital at QB2 (including the range of COVID-19 capital costs) are based on a CLP/USD rate range of 900 to 975, as well as there being no unexpected material and negative impact to the various contractors, suppliers and subcontractors for the QB2 project relating to COVID-19 or otherwise that would impair their ability to provide goods and services as anticipated during the suspension period or ramp-up of construction activities. Statements regarding the availability of our credit facilities and project financing facility are based on assumptions that we will be able to satisfy the conditions for borrowing at the time of a borrowing request and that the facilities are not otherwise terminated or accelerated due to an event of default. Statements concerning future production costs or volumes are based on numerous assumptions regarding operating matters and on assumptions that counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies and may be further impacted by reduced demand for oil and low oil prices. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.
Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices, changes in market demand for our products, changes in interest and currency exchange rates, acts of governments and the outcome of legal proceedings, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, adverse weather conditions and unanticipated events related to health, safety and environmental matters), union labour disputes, impact of COVID-19 mitigation protocols, political risk, social unrest, failure of customers or counterparties (including logistics suppliers) to perform their contractual obligations, changes in our credit ratings, unanticipated increases in costs to construct our development projects, difficulty in obtaining permits, inability to address concerns regarding permits of environmental impact assessments, and changes or further deterioration in general economic conditions. Certain operations and projects are not controlled by us; schedules and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control. Current and new technologies relating to our Elk Valley water treatment efforts may not perform as anticipated, and ongoing monitoring may reveal unexpected environmental conditions requiring additional remedial measures. QB2 costs, construction progress and timing of first production is dependent on, among other matters, our continued ability to successfully manage through the impacts of COVID-19. QB2 costs may also be affected by claims and other proceedings that might be brought against us relating to costs and impacts of the COVID-19 pandemic. Red Dog production may also be impacted by water levels at site. Unit costs in our copper business unit are impacted by higher profitability at Antamina, which can cause higher workers' participation and royalty expenses. Sales to China may be impacted by general and specific port restrictions, Chinese regulation and policies and normal production and operating risks. Share buybacks depend on a number of additional factors that may cause actual results to vary, including, the ability to acquire Class B Shares in the market through the normal course issuer bid and in compliance with regulatory requirements, share price volatility, negative changes to commodity prices, availability of funds to purchase shares, alternative uses for funds. Share repurchases are also subject to conditions under corporate law.
The forward-looking statements in this news release and actual results will also be impacted by the effects of COVID-19 and related matters. The overall effects of COVID-19 related matters on our business and operations and projects will depend on how the ability of our sites to maintain normal operations, and on the duration of impacts on our suppliers, customers and markets for our products, all of which are unknown at this time. Continuing operating activities is highly dependent on the progression of the pandemic and the success of measures taken to prevent transmission, which will influence when health and government authorities remove various restrictions on business activities.
We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2021, filed under our profile on SEDAR ( www.sedar.com ) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.
Scientific and technical information in this quarterly report regarding our coal properties, which for this purpose does not include the discussion under "Elk Valley Water Management Update" was reviewed, approved and verified by Jo-Anna Singleton, P.Geo. and Robin Gold P.Eng., each an employee of Teck Coal Limited and a Qualified Person as defined under National Instrument 43-101. Scientific and technical information in this quarterly report regarding our other properties was reviewed, approved and verified by Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person as defined under National Instrument 43-101.
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Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") announced today that its Board of Directors has declared an eligible dividend of $0.125 per share on its outstanding Class A common shares and Class B subordinate voting shares, to be paid on September 29, 2022 to shareholders of record at the close of business on September 15, 2022.
In addition to the dividend, and in accordance with Teck's Capital Allocation Framework, the Board has directed management to apply up to US$500 million to the repurchase of Class B subordinate voting shares. These proposed share repurchases are in addition to the US$500 million (of which US$436 million has been purchased to date) and C$100 million in share repurchases previously announced in 2022.
All share repurchases are expected to be made in accordance with Teck's previously announced normal course issuer bid program, or any renewal thereof, or by such other means as may be permitted under applicable securities laws. The current program authorizes Teck to purchase up to 40 million Class B subordinate voting shares through the period ending November 1, 2022. Any repurchases following that date may depend on regulatory approval of a renewed normal course issuer bid program. Teck intends to purchase shares opportunistically. The company will determine the timing of any purchases, and may repurchase fewer or a greater number of shares, subject to the requirements of the issuer bid program and applicable securities laws.
Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or achieved. Forward-looking statements include statements regarding concerning Teck's intention to make purchases of Class B subordinated voting shares, and Teck's expectations regarding the amount of funds to be spent to purchase Class B subordinated voting shares.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Factors that may cause actual results to vary include, but are not limited to, the ability to acquire Class B Shares in the market through the normal course issuer bid and in compliance with regulatory requirements, share price volatility, negative changes to commodity prices, availability of funds to purchase shares, alternative uses for funds and other risk factors impacting Teck's business as detailed in Teck's annual information form and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission. Declaration of dividends is at the discretion of the Board and dividends, as well as share repurchases, are subject to conditions under corporate law. Any of the foregoing may have the result of restricting future dividends or share repurchases. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document, except as may be required under applicable securities laws.
About Teck As one of Canada's leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck's shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources .
Investor Contact: Fraser Phillips Senior Vice President, Investor Relations & Strategic Analysis 604.699.4621 fraser.phillips@teck.com
Media Contact: Chris Stannell Public Relations Manager 604.699.4368 chris.stannell@teck.com
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(In United States dollars, except where noted otherwise)
First Quantum Minerals Ltd. ("First Quantum" or "the Company") (TSX: FM) today reports results for the three months ended June 30, 2022 ("Q2 2022") of net earnings attributable to shareholders of the Company of $419 million ($0.61 earnings per share) and adjusted earnings 1 of $337 million ($0.49 adjusted earnings per share 2 ). As at June 30, 2022, First Quantum had achieved its debt reduction target of $2 billion, from the peak in Q2 2020, and, as previously announced, continues to target a further $1 billion reduction in debt in the medium term.
"While the restrictions from the global pandemic have largely eased, the macro environment has become more challenging due to a combination of continued high inflation and the emerging global economic slowdown. Our debt reduction over the last several years has placed our balance sheet in a better position for this turn of events. In order to build further resilience through these uncertain times, our focus will be on driving consistent operational performance, successful execution of our brownfield projects and discipline with our capital investments," commented Tristan Pascall, Chief Executive Officer. "It is the determination and commitment of our workforce that has enabled us to surmount the unprecedented obstacles that we have faced in recent years and means that we can tackle these new challenges with confidence. I thank the team for their continued commitment and efforts."
In Q2 2022, First Quantum reported gross profit of $629 million, EBITDA 1 of $906 million, net earnings attributable to shareholders of $0.61 per share, and adjusted earnings of $0.49 per share 2 . Relative to the first quarter of this year ("Q1 2022"), second quarter financial results were impacted by a declining copper price, inflationary pressures on costs and lower sales volumes of copper, gold and nickel.
Total copper production for the second quarter was 192,668 tonnes, a 6% increase from Q1 2022. The quarter-over-quarter increase in production was entirely attributable to Cobre Panama, which achieved quarterly records in mining volumes, throughput, and production. At both Kansanshi and Sentinel, lower grades continued into Q2 2022, which contributed to lower copper production relative to the preceding quarter for both operations. Total copper production guidance for 2022 remains unchanged at 790,000 to 855,000 tonnes with full year production at Sentinel and Kansanshi expected to be towards the lower end of the guidance range.
Copper C1 cash cost 2 of $1.74 per lb for Q2 2022 was $0.13 per lb higher than Q1 2022. While global inflationary pressures were present in the first quarter of this year, second quarter costs were further impacted by higher energy and commodity prices resulting from the conflict in Ukraine. Costs for fuel, explosives, freight, mill balls, reagents and other consumables represent almost half of the Company's operational production cost base and unit costs in these areas continued to increase throughout the second quarter and rose above levels assumed in current guidance. Copper C1 unit costs were also impacted by lower production in Zambia. Copper C1 cash cost 2 guidance range remains unchanged at $1.45 to $1.60 per lb. Unit costs over the next six months will be dependent on market rates for fuel and other key supplies, the market price of gold and other by-products, as well as production levels.
1 EBITDA and adjusted earnings are non-GAAP financial measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings and EBITDA were previously named comparative earnings and comparative EBITDA, respectively, and the composition remains the same. See "Regulatory Disclosures". 2 Adjusted earnings per share and copper C1 cash cost (copper C1) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See "Regulatory Disclosures". Q2 2022 OPERATIONAL HIGHLIGHTS
Total copper production for Q2 2022 was 192,668 tonnes, up from the 182,210 tonnes reported in Q1 2022, as Cobre Panama achieved record quarterly production while Kansanshi experienced lower production. Global logistical challenges persisted into the second quarter as a result of the flooding in parts of South Africa that affected the Port of Durban, the challenges posed by COVID-19 lockdowns in China, and the continued disruptions in marine traffic flow related to the Ukraine conflict. As a consequence of these constraints, copper sales volumes in Q2 2022 totaled 187,642 tonnes, approximately 5,000 tonnes lower than production during the quarter.
Copper C1 cash cost 1 averaged $1.74 per lb in Q2 2022, up from $1.61 per lb in Q1 2022. Various inputs and operational costs continued to increase further during the second quarter. These include costs for fuel, explosives, sulphur, freight, reagents, liners and steel. Global inflationary pressures have been impacted by the COVID-19 pandemic as well as supply chain disruptions. Second quarter costs were further impacted by the wide-reaching sanctions imposed upon Russia due to the conflict in Ukraine.
1 Copper C1 cash cost (copper C1) and Nickel C1 cash costs (nickel C1) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See "Regulatory Disclosures".
1 Production is presented on a contained basis, and is presented prior to processing through the Kansanshi smelter. 2 Excludes refinery-backed gold credits purchased and delivered under the precious metal streaming arrangement (see "Precious Metal Stream Arrangement" within the Management's Discussion and Analysis). 3 Delivery of non-financial items (refinery-backed gold and silver credits) into the Company's precious metal stream arrangement have been netted within sales revenues rather than included in cost of sales. The quarter ended June 30, 2021 has been revised to reflect this change. Sales revenues and cost of sales for the quarter ended June 30, 2021 have been reduced by $65 million compared to the previously reported values (see "Precious Metal Stream Arrangement" within the Management's Discussion and Analysis). 4 EBITDA and adjusted earnings are non-GAAP financial measures, which do not have a standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings and EBITDA were previously named comparative earnings and comparative EBITDA, respectively, and the composition remains the same. Adjusted earnings have been adjusted to exclude items from the corresponding IFRS measure, net earnings attributable to shareholders of the Company, which are not considered by management to be reflective of underlying performance. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors and may not be comparable to similar financial measures disclosed by other issuers. The use of adjusted earnings and EBITDA represents the Company's adjusted earnings metrics. See "Regulatory Disclosures". 5 Adjustments to EBITDA in 2022 relate principally to foreign exchange revaluations and non-recurring costs relating to previously sold assets (2021 - foreign exchange revaluations). 6 Net debt is a supplementary financial measure, which does not have a standardized meaning under IFRS, and might not be comparable to similar financial measures disclosed by other issuers. See "Regulatory Disclosures". 7 Adjusted earnings per share, realized metal prices, copper all-in sustaining cost (copper AISC), copper C1 cash cost (copper C1), and total cost of copper (copper C3) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See "Regulatory Disclosures". 8 Excludes purchases of copper concentrate from third parties treated through the Kansanshi smelter.
Total copper production guidance of 790,000 to 855,000 tonnes and total gold production guidance of 285,000 to 310,000 ounces remains unchanged.
Copper C1 cash cost 2 guidance range remains unchanged at $1.45 to $1.60 per lb. Copper C1 cash cost 2 recorded for the second quarter and for first six months of the year at $1.74 per lb and $1.67 per lb, respectively, are above the top end of current guidance. Costs for fuel, explosives, freight, mill balls, reagents and other consumables represent almost half of the Company's operational production cost base and unit costs in these areas continued to increase throughout the second quarter and rose above levels assumed in current guidance. Copper C1 unit costs have also been impacted by lower production at both Zambian operations. Unit costs over the next six months will be dependent on market rates for fuel and other key supplies, the market price of gold and other by-products as well as production levels.
1 EBITDA is non-GAAP financial measure and net debt is a supplementary financial measure. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings and EBITDA were previously named comparative earnings and comparative EBITDA, respectively, and the composition remains the same. See "Regulatory Disclosures". 2 Cash flows from operating activities per share and copper C1 cash cost (copper C1) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See "Regulatory Disclosures".
Copper AISC 1 cost guidance range remains unchanged at $2.15 to $2.30 per lb. Copper AISC 1 cost for the second quarter and first six months of the year at $2.37 per lb and $2.32 per lb, respectively, are above the top end of the guidance range. Royalties cost included within AISC 1 is dependent on the market price of copper and has therefore been relatively high for the first six months of the year.
Ravensthorpe nickel production and nickel C1 cash cost 1 and AISC 1 remains unchanged. The spot price for sulphur has fallen sharply in July 2022 compared to levels experienced in the first six months of 2022.
Guidance for total capital expenditure remains unchanged at $1,250 million. In July, the Board approved the expansion of the Kansanshi smelter, which is included in the Company's three-year capital expenditure guidance issued in January 2022.
CASH COST 1 AND ALL-IN SUSTAINING COST 1
At this stage, guidance assumes no change in royalties in Panama.
1 C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios, and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See "Regulatory Disclosures". 2 Production is stated on a 100% basis as the Company consolidates all operations.
PURCHASE AND DEPOSITS ON PROPERTY, PLANT & EQUIPMENT
1 Capitalized stripping, sustaining capital and project capital are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See "Regulatory Disclosures".
During the second quarter, the Company reached an agreement with the Government of Zambia for repayment of the outstanding VAT claims based on offsets against future corporate income tax and mineral royalty tax payments, which commenced July 1, 2022.
In recent days, Panama has experienced civil unrest, largely focused on temporary blockades to transport routes in the main cities. Production at Cobre Panama has been undisrupted and the Company continues to monitor the situation closely. The Company remains in contact with the Government of Panama regarding Law 9, but recognize that their attention is, quite properly, focused on resolving the civil disturbances. First Quantum and the Government of Panama remain committed to a swift conclusion of the Law 9 discussions on the basis of the agreed principles and on ensuring that the new contract and legislation are both durable and sustainable with downside copper price and production scenarios.
Once an agreement is concluded and the full contract is documented, it is expected that the newly drafted legislation would be put to the Panamanian National Assembly. The Company welcomes the transparency of the robust ministerial commission process and is hopeful that this matter can be concluded shortly.
At the Company's Annual General Meeting on May 5, 2022, Clive Newall, co-founder of the Company, retired from the Board of Directors and Philip Pascall, co-founder and Chief Executive Officer ("CEO") since 1996, retired from the CEO role. Philip Pascall will continue to serve as Chairman of the Board.
On May 6, 2022, the Board of Directors appointed Tristan Pascall to the role of CEO. Tristan Pascall has also joined the Board. In addition, the Board announced the appointment of Alison Beckett as an independent director of the Board of Directors.
In May 2022, the Company published its principal annual Environment, Social and Governance ("ESG") report, the 2021 ESG Report, setting out the Company's performance in a range of environmental, health and safety, social and governance metrics against the Global Reporting Initiative and Sustainability Accounting Standards Board frameworks.
The Company's approach to sustainability in host communities is consistent with the United Nations Sustainable Development Goals and these are mapped against disclosures provided. The 2021 ESG Report provides further information on the range of social infrastructure and community development initiatives undertaken in the Company's host communities.
During the second quarter of 2022, the Company published the 2021 Tax Transparency and Contributions to Government Report. In 2021, the Company contributed $1.6 billion to host governments through taxes, royalties and other payments, an increase of 44% from 2020.
The Company strongly supports the various transparency initiatives which provide all stakeholders with clear information of the contributions which are made to host governments by the Company. The report is intended to meet Canada's Extractive Sector Transparency Measures Act reporting obligations as well as Chapter 10 of the EU Accounting Directive.
The 2021 ESG Report, the 2021 Tax Transparency and Contributions to Government Report, policies and related programs, including the Taskforce on Climate-related Financial Disclosure-aligned Climate Change Report, can be found at: https://www.first-quantum.com/English/sustainability/default.aspx
COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS
The complete Consolidated Financial Statements and Management's Discussion and Analysis for the three months and six months ended June 30, 2022 are available at www.first-quantum.com and at www.sedar.com and should be read in conjunction with this news release.
The Company will host a conference call and webcast to discuss the results on Wednesday, July 27, 2022 at 9:00 am (EDT).
Conference call and webcast details: Toll-free North America: 1-800-319-4610 Toll-free International: +1-604-638-5340 Webcast: www.first-quantum.com
A replay of the webcast will be available on the First Quantum website.
For further information, visit our website at www.first-quantum.com or contact:
Bonita To, Director, Investor Relations (416) 361-6400 Toll-free: 1 (888) 688-6577 E-Mail: info@fqml.com
Non-GAAP and Other Financial Measures
EBITDA, ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE
EBITDA, adjusted earnings and adjusted earnings per share exclude certain impacts which the Company believes are not reflective of the Company's underlying performance for the reporting period. These include impairment and related charges, foreign exchange revaluation gains and losses, gains and losses on disposal of assets and liabilities, one-time costs related to acquisitions, dispositions, restructuring and other transactions, revisions in estimates of restoration provisions at closed sites, debt extinguishment and modification gains and losses, the tax effect on unrealized movements in the fair value of derivatives designated as hedged instruments, and adjustments for expected phasing of Zambian VAT receipts.
1 Other expenses includes a charge of $40 million for non-recurring costs in connection with previously sold assets
Realized metal prices are used by the Company to enable management to better evaluate sales revenues in each reporting period. Realized metal prices are calculated as gross metal sales revenues divided by the volume of metal sold in lbs. Net realized metal price is inclusive of the treatment and refining charges (TC/RC) and freight charges per lb.
In calculating the operating cash flow per share, the operating cash flow calculated for IFRS purposes is divided by the basic weighted average common shares outstanding for the respective period.
Net debt comprises unrestricted cash and cash equivalents, bank overdrafts and total debt.
CASH COST, ALL-IN SUSTAINING COST, TOTAL COST
The consolidated cash cost (C1), all-in sustaining cost (AISC) and total cost (C3) presented by the Company are measures that are prepared on a basis consistent with the industry standard definitions by the World Gold Council and Brook Hunt cost guidelines but are not measures recognized under IFRS. In calculating the C1 cash cost, AISC and C3, total cost for each segment, the costs are measured on the same basis as the segmented financial information that is contained in the financial statements.
C1 cash cost includes all mining and processing costs less any profits from by-products such as gold, silver, zinc, pyrite, cobalt, sulphuric acid, or iron magnetite and is used by management to evaluate operating performance. TC/RC and freight deductions on metal sales, which are typically recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of finished metal.
AISC is defined as cash cost (C1) plus general and administrative expenses, sustaining capital expenditure, deferred stripping, royalties and lease payments and is used by management to evaluate performance inclusive of sustaining expenditure required to maintain current production levels.
C3 total cost is defined as AISC less sustaining capital expenditure, deferred stripping and general and administrative expenses net of insurance, plus depreciation and exploration. This metric is used by management to evaluate the operating performance inclusive of costs not classified as sustaining in nature such as exploration and depreciation.
1 Excludes purchases of copper concentrate from third parties treated through the Kansanshi Smelter
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The forward-looking statements include estimates, forecasts and statements as to the Company's expectations of production and sales volumes, and expected timing of completion of project development at Enterprise and post-completion construction activity at Cobre Panama and are subject to the impact of ore grades on future production, the potential of production disruptions, potential production, operational, labour or marketing disruptions as a result of the COVID-19 global pandemic, capital expenditure and mine production costs, the outcome of mine permitting, other required permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, nickel, silver, iron, cobalt, pyrite, zinc and sulphuric acid, estimated mineral reserves and mineral resources, First Quantum's exploration and development program, estimated future expenses, exploration and development capital requirements, the Company's hedging policy, and goals and strategies; plans, targets and commitments regarding climate change-related physical and transition risks and opportunities (including intended actions to address such risks and opportunities), greenhouse gas emissions, energy efficiency and carbon intensity, use of renewable energy sources, design, development and operation of the Company's projects and future reporting regarding climate change and environmental matters; the Company's expectations regarding increased demand for copper; the Company's project pipeline and development and growth plans. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about continuing production at all operating facilities, the price of copper, gold, nickel, silver, iron, cobalt, pyrite, zinc and sulphuric acid, anticipated costs and expenditures, the success of Company's actions and plans to reduce greenhouse gas emissions and carbon intensity of its operations, and the ability to achieve the Company's goals. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to, future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Panama, Zambia, Peru, Mauritania, Finland, Spain, Turkey, Argentina and Australia, adverse weather conditions in Panama, Zambia, Finland, Spain, Turkey, Mauritania, and Australia, labour disruptions, potential social and environmental challenges (including the impact of climate change), power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, the production of off-spec material and events generally impacting global economic, political and social stability. For mineral resource and mineral reserve figures appearing or referred to herein, varying cut-off grades have been used depending on the mine, method of extraction and type of ore contained in the orebody.
See the Company's Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not as anticipated, estimated or intended. Also, many of these factors are beyond First Quantum's control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements made and information contained herein are qualified by this cautionary statement.
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