First Quantum stock rating upgraded by JPMorgan on Zambia operations

Published 10/10/2025, 08:58
First Quantum stock rating upgraded by JPMorgan on Zambia operations

Investing.com - JPMorgan has upgraded First Quantum Minerals Ltd. (TSX:FM) (OTC:FQVLF) from Neutral to Overweight, more than doubling its price target to C$42.00 from C$20.00.

The upgrade follows a recent investor trip to First Quantum’s Zambia operations, where management highlighted that the Kansanshi S3 expansion is ramping up on schedule. JPMorgan forecasts First Quantum’s Q3 2025 EBITDA at $526 million, 5% above Bloomberg consensus, with net debt of approximately $4.4 billion, 8% below consensus estimates.

The Panamanian government has commenced an environmental audit of the Cobre Panama mine site, with findings expected by year-end that could lead to a definitive agreement about restarting the mine in early 2026. JPMorgan estimates the market is currently pricing in approximately 60% of Cobre Panama’s net present value of about $13 billion.

First Quantum has managed reduced power availability in Zambia through imported power, though this remains a key factor for its 2025 copper production guidance of 380-440 kilotonnes and C1 cash costs of $1.85-2.10 per pound.

Following the Royal Gold transaction, JPMorgan expects management is unlikely to consider a minority stake sale in the Zambian operations and faces less pressure to divest other operations such as Las Cruces.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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