First Quantum Minerals (FQM) says it recorded US$115 million loss during the first quarter of 2017 despite strong operational results.
FQM Minerals Chief Executive Officer Philip Piscall said the company recorded a net loss from continuing operations for the quarter of US$115 million, due in part to a US$188 million loss realized under the copper sales hedge programme.
Mr. Piscall however, noted that the company made significant progress on its cope growth objectives.
He also disclosed that the continued strong performances at the Kansashi Complex and Las Cruses in Spain also contributed to the progress.
The FQM CEO further stated that 2017, marked sixth, successive times that the company had increased its copper production.
Mr. Piscall said the company will this year start the critical phased commission of its largest project.
He also disclosed that the company is committed to deleveraging the balance sheet and providing some return to its shareholders who have been supportive of its vision and strategy.
This is according to a statement released to ZANIS in Lusaka today.
Lungu stole all that money..ubomba mwibala alya mwibala
Is this loss as a global group or in Zambia…
These are clarification that an intelligent person requires to ask before commenting on anything.
If it is global what is Zambia’s share in that Loss? If Zambia made gains what contributions did it post towards the global reducing the global loss?
Finally and most importantly, what has FQM contribution to corporation tax been like over the years in Zambia?
Is there a projection of the financial statements to look at? When is it available?
Such is how competent people and investigative journalism help answer and put pressure on cow boy organisations wanting to scum people.
Unfortunately the journalists of today are too lazy for such investigative questions and research. Even when someone is lying they sit with straight faces nodding to the lies!
Under the copper sales hedge programme, they sell our copper at lower than LME prices to their own subsidiaries registered in tax havens (e.g. Mauritius, Switzerland) thereby avoiding paying tax in Zambia.
They are shifting millions of dollars of profits out of Zambia into low-tax havens, in order to avoid tax.
Zambia Sugar, Zambian Breweries, Lafarge, Glencore are all doing it whilst sloppy ZRA & VISION-LESS lazy Lungu is too busy taking Chinese bribes to correct this serious anomaly.
Hedging losses are their problem. For any metal price movement they are supposed to make counter measures to protect their positions. We are not stupid.
Or are we?
Their report is available on their website including full income statements for each site. Regarding their hedge programme, these are at a group level and do not affect the income to Zambian sites.
The level of journalism here is of such a level that they have even spelt the name of the CEO incorrectly
what is $115 million dollars compare to the money you make? ZRA has been kind to you people i guess our polices are weak and please develop the areas you mine these minerals from.
Check the Futures and Option performance on ipath Bloomberg copper-sub index or alternatively Barclays Bank Ipath pure beta copper and see the Long-term performance of the Futures and Options implied Derivatives
Relate with Positions and Volumes for kansanshi Quarterly, YOY and see the USD 118 Million loss Its simple to see, its not like over the counter These are firm contracts and trading Try to see the USD 118 Million by doing a small technical Analysis The figure might be lower
@NSCS, hedging applies to all copper sales regardless of source. why do you want to know if the loss was made in zambia or global operations? its simple, agree to sell copper at $5000/ton for a period of 12 months. if the copper price booms within 6 months, you make a loss coz you agreed that you will sell for $5000/tons come what may atleast for the contract period.
@Morinho… very true what you say. Have you thought about policy? I personally and speaking for myself would want to know copper tonnages from FQM going out of Zambia and from there would determine a rough estimate of the reason such hedging deals are costing us as a country.
I believe understand this occurrence should not be simplistic like you put it and Zambia should take this lying down? NO, I disagree, we need to research further into this to understand the repercussions.
We cannot take everything like down, this is the mentality that needs to go;
Fire trucks – Zambia has taken it lying down
Auditors Report – Zambia has taken it lying down
Ambulances – Zambia has taken it lying down
Road Contracts – Zambia has taken it lying down
There is no end to this
The important thing is the margin variations a, the volumes in those contract size, the prices whether in the money or out of the money depending on which side whether you have long positions or short In this case in price variation Kansanshi is on the side of ………and if prices of copper on future or options are exhibiting a contagion or backward on the loss for Kansashi is marked to market daily
With those contracts the variation is between 40 to 50 % yoy in favour of ……………….??? Accounting application and recognition follows also
Lying [email protected]!
Its matter of forecasting to bit the market Copper has been a major indicator of global manufacturing performance especially as it used in power electronics and others So you expect a good technical forecasting within the low average high analyst consensus long-term but If you consistently miss the market then your risk management must be questionable
We will watch the actual this quarter price compare with the average prices as best forecast and see the true movement in basis points
The prospects for Copper prices are marginally looks good We expect the gains to composite Its more optimistic to perform better this period 2018 to 2020
Rather the prospects for copper prices looks marginally good We expect the composite also in GAINS from precious metals such as Gold ,Silver and traces of platinum to erode the losses The metals are more optimistic to perform better for this period 2018 to 2020 We expect a better forecast than Bank of China or Indeed Natixis in London
The usual tricks at work.
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