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- First Quantum Minerals (OTCPK:FQVLF -0.1%) says it agrees to pay $375M/year in royalty payments to Panama's government from its Cobre Panama copper mine.
- The miner says it considered the government's request "reasonable," and in return, it asked for a guarantee of the continuity of operations during the mine's productive life.
- The mine can produce more than 300K metric tons/year of copper at full capacity and contributes 3.5% of Panama's gross domestic product.
- Separately, First Quantum says it achieved its highest ever annual copper production of 816K mt in 2021, up 5% Y/Y, due primarily to record production of 331K mt at Cobre Panama.
- Over three years, First Quantum forecasts copper output will increase to 810K-880K mt this year and 850K-910K mt by 2024.
- The miner's capex guidance for 2022 jumps to $1.25B, ~30% more than guidance provided a year earlier.
- First Quantum shares traded at decade highs last week as copper prices spiked near all-time highs.