05:28 PM EDT, 07/23/2024 (MT Newswires) -- First Quantum Minerals ( FQVLF ) on Tuesday said it swung to a second-quarter adjusted loss, missing expectations, as its financial results continue to be impacted by the shutdown of Cobre Panama even as it benefitted from strong copper and gold prices.

The company said its adjusted loss in the quarter, excluding most one-time items, was US$13 million, or US$0.02 per share, compared with a profit of US$85 million, or US$0.12 in the year-prior period, and missing the consensus estimate for a per-share loss of US$0.01, according to Capital IQ

Revenue fell 25% to US$1.23 billion from US$1.65 billion a year earlier.

Net debt increased by $160 million during the quarter, attributable mainly to planned higher capital expenditures at Kansanshi, bringing the net debt level to $5.44 billion, with total debt at $6.31 billion on June 30.

In a Cobra Panama update the company said it has launched two arbitration proceedings against the government of Panama following the forced closure of the mine, but reiterated that "arbitration is not the preferred outcome for the situation in Panama", and said it remains committed to dialogue with the new government of Panama.

Tristan Pascall, Chief Executive Officer of First Quantum, provided commentary on the company's other operations.

"We had another solid quarter in Zambia and with the work achieved to date, both Kansanshi and Sentinel are set up well for the remainder of the year. At Enterprise, the continued successful commissioning and ramp up has enabled the declaration of commercial production on June 1, 2024 while the S3 Expansion is progressing well and on track for completion in mid-2025. We also initiated a copper hedge program as we continue efforts to maintain the strength of the balance sheet," Pascall said.

"Finally, it was pleasing to reach a Shareholder Rights Agreement with Jiangxi Copper, which formalizes a clear basis for the relationship between us. The relationship with Jiangxi Copper, who have been a long standing customer, has solidified since their purchase of First Quantum shares in 2019. We look forward to Jiangxi Copper's continued strong support on the strategic direction of the company."

The company's shares closed down $0.14 to $16.34 on the Toronto Stock Exchange.