First Quantum Minerals Ltd T.FM

Trevor Rose's Insights -DON"T BUY

[Possibleidiot01]

DON'T BUY

First Quantum Minerals(FM-T)

11/12/2023

 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research We think the market has effectively now written off the mine, so any good news at all would have an amplified positive effect on the stock. But we doubt an agreement is going to be reached. FM is likely going to breach some debt covenants, but it is not in creditors' interest to force anything on the company. It has other assets, and has lots of short term liquidity. We would not expect bankruptcy here, though financial risks have indeed increased, and creditors can be difficult at times. There is still a question of environmental costs in Panama, and whether FM can capture any damages from the government. Fair value is likely $8 to $12, assuming no other negative news. That being said, the mine accounted for about 5% of world copper production. Copper potential goes into a global supply deficit, from a surplus, with any economic strength. Thus, FM's other assets might see some benefit even from its disaster in Panama.

[Subtumbo]

Im confused.... dont buy fm but because the mine wis closed its other mines will make more money?? 

[Singoa58]

The other mines produce little cash flow... FM has huge debt they will not be able to pay plus on the hook to clean up the huge environmental damage in Panama that will cost billions.., bankrupt most likely awaits them 

[clamlinguine]

You sound like a boiler room short to me, not a Panamanian greenie.

[Runandcoke]

I agree  with you man 

[Runandcoke]

they are not on the hook muppet ! what are they going to lose ? they all ready appropriated the mine