© Reuters. FILE PHOTO: A view of Cobre Panama mine of Canadian First Quantum Minerals, one of many world’s largest open-pit copper mines, throughout a media tour, in Donoso, Panama, January 11, 2024. REUTERS/Tarina Rodriguez/File Picture
By Divya Rajagopal
TORONTO (Reuters) – Shares in Canadian miner First Quantum Minerals (OTC:) Ltd rose as a lot as 9% on Thursday as traders heaved a sigh of aid after the corporate introduced measures to spice up its stability sheet.
Late on Wednesday, the Vancouver-based firm introduced 4 monetary restructuring measures, together with $1 billion in capital elevating by promoting new shares underwritten by RBC Capital Markets, Goldman Sachs and BMO Capital Markets; extending its debt amenities until 2027; and signing a $500 million offtake settlement with one in all its largest shareholder Jiangxi Co Ltd.
The brand new measures will enhance the corporate’s liquidity by $2 billion and reduces the web leverage to 2.3 occasions its earnings earlier than curiosity, tax, depreciation and amortization (EBITDA).
It’s going to proceed to pursue extra initiatives, together with asset and stake gross sales, “in a disciplined method” together with in its Zambia mines, the corporate mentioned.
First Quantum (NASDAQ:) is reeling from a shock resolution by Panama’s prime courtroom that closed its flagship mine within the Central American nation, following protests. The suspension of the mine, which accounted for about 40% of First Quantum’s revenues, has roiled the corporate, wiping out about half of its market worth since November.
On Wednesday, the corporate additionally reported a internet lack of $1.45 billion, or $2.09 per share, for the quarter ended Dec. 31, in contrast with a revenue of $117 million, or 17 cents per share, a yr earlier.
Tristan Pascall, CEO of First Quantum, informed analysts on Wednesday the corporate was searching for $20 billion in damages from Panama on the Worldwide Chamber of Commerce arbitration course of.
At 11:06 a.m. ET (1607 GMT) the shares of First Quantum have been buying and selling at $12.70, up by 8%.