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The Globe and Mail reports in its Tuesday, Dec. 12, edition that Scotia Capital analyst Orest Wowkodaw continues to rank First Quantum Minerals "sector perform." The Globe's David Leeder writes that Mr. Wowkodaw slashed his share target by $6 to $14. Analysts on average target the shares at $20.30. The Globe says Mr. Wowkodaw remains "highly concerned" about First Quantum's balance sheet and liquidity outlook, seeing no visibility on a potential restart of its Cobre Panama mine. Mr. Wowkodaw says in a note: "Although it remains unclear when Cobre Panama will be able to restart (if at all given the current risks to its social license), the company anticipates negotiating a new operating and fiscal stability agreement with the next government (presidential elections are scheduled in May 2024). Fist Quantum has formally initiated two parallel routes of international arbitration (under the Canada–Panama free trade agreement and via ICC arbitration) to protect its asset rights. ... . Assuming Cobre Panama remains closed in 2024 and corporate capex is cut to $1.1-billion (vs. guidance of $1.8-billion), we anticipate that First Quantum's liquidity could be exhausted by mid-2025 with a likely debt covenant breach at Q4/24."
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