Franco-Nevada cuts guidance on Cobre Panama mine woes
Royalty and streaming company Franco-Nevada (TSX, NYSE: FNV) has cut production targets for the year as operations at the Cobre Panama copper mine, in which has a streaming deal, have slowed down to a minimum due to a port blockage.
The Canadian company said Monday that reduced operations at First Quantum’s (TSX: FM) Cobre Panama means it now expects to produce between 480,000 and 500,000 precious metal gold-equivalent ounces and 620,000 to 640,000 total gold-equivalent ounces in 2023.
The previous guidance was of 490,000 to 530,000 and 640,000 to 700,000 ounces respectively.
The Toronto-based firm said earlier this year it had contributed a total of $1.36 billion to the construction of the giant copper mine in Panama. The operation accounted for 18% of the company’s revenue in 2021.
Shares in the royalty and streaming firm fell 1.7% in early trading in Toronto and it was last changing hands at C$162.45.
The future of First Quantum’s mine is currently in hands of the country’s Supreme Court, after widespread protests erupted last month over a deal to extend the Canadian company’s operating contract.
Franco-Nevada said plenary sessions of the court will sit from Friday and remain in session until a ruling is delivered, which could come as soon as mid-December.