First Quantum Minerals is evaluating a gold pre-payment, or streaming, deal from its Zambian operations as a potential strategy to strengthen its financial position. This approach would allow the company to receive upfront capital in exchange for future gold deliveries at a fixed price a model gaining popularity amid high gold prices and strong investor interest.
Potential deals
According to CFO Ryan MacWilliam, the company sees the current gold market as conducive to streaming deals, offering various financing options. The potential arrangement would likely involve output from its Kansanshi mine, where the S3 Expansion project is nearing commissioning and is expected to begin production in the second half of 2025.
Previously, First Quantum had considered selling a minority stake in its two Zambian mines but now appears more focused on streaming options. These assets have gained importance following the 2023 closure of the company’s flagship Cobre Panama copper mine. The Panamanian Supreme Court ordered the shutdown after widespread protests, though the new government has allowed the export of pre-mined copper concentrate.
The ongoing suspension of Cobre Panama continues to weigh heavily on First Quantum, which is spending approximately $15 million per month on care and maintenance, with costs expected to rise to $17–18 million by year-end. Talks with Panamanian authorities are ongoing as the company seeks a resolution.
