TSX:FM

Stock Analysis Report

First Quantum Minerals

Executive Summary

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Risks

  • First Quantum Minerals has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has First Quantum Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.0%

FM

3.4%

CA Metals and Mining

1.3%

CA Market


1 Year Return

-28.9%

FM

22.0%

CA Metals and Mining

-0.1%

CA Market

FM underperformed the Metals and Mining industry which returned 20.3% over the past year.

FM underperformed the Market in Canada which returned -0.4% over the past year.


Share holder returns

FMIndustryMarket
7 Day11.0%3.4%1.3%
30 Day36.4%1.6%4.2%
90 Day2.2%9.1%1.6%
1 Year-28.9%-28.9%22.9%22.0%3.4%-0.1%
3 Year12.3%12.0%-10.0%-11.7%19.1%8.4%
5 Year-43.8%-44.5%4.1%0.3%23.2%5.7%

Price Volatility Vs. Market

How volatile is First Quantum Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

First Quantum Minerals Ltd. (TSE:FM): Commentary On Fundamentals

Valuation

Is First Quantum Minerals undervalued based on future cash flows and its price relative to the stock market?

34%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

First Quantum Minerals's share price is below the future cash flow value, and at a moderate discount (> 20%).

First Quantum Minerals's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

First Quantum Minerals is overvalued based on earnings compared to the CA Metals and Mining industry average.

First Quantum Minerals is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

First Quantum Minerals is good value based on expected growth next year.


Price Based on Value of Assets

First Quantum Minerals is good value based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

How is First Quantum Minerals expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

First Quantum Minerals's revenue is expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

First Quantum Minerals's earnings are expected to grow significantly at over 20% yearly.

First Quantum Minerals's revenue growth is expected to exceed the Canada market average.

First Quantum Minerals's earnings growth is expected to exceed the Canada market average.

First Quantum Minerals's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

First Quantum Minerals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has First Quantum Minerals performed over the past 5 years?

-15.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

First Quantum Minerals's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

First Quantum Minerals's 1-year earnings growth exceeds its 5-year average (2500% vs -15.6%)

First Quantum Minerals's earnings growth has exceeded the CA Metals and Mining industry average in the past year (2500% vs -30.5%).


Return on Equity

First Quantum Minerals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

First Quantum Minerals used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

First Quantum Minerals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is First Quantum Minerals's financial position?


Financial Position Analysis

First Quantum Minerals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

First Quantum Minerals's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

First Quantum Minerals's level of debt (90.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (55.4% vs 90.4% today).

Debt is not well covered by operating cash flow (11.3%, less than 20% of total debt).

Unable to confirm if the interest payments on First Quantum Minerals's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is First Quantum Minerals's current dividend yield, its reliability and sustainability?

0.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

First Quantum Minerals's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

First Quantum Minerals's dividend is below the markets top 25% of dividend payers in Canada (5.78%).

First Quantum Minerals is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.

First Quantum Minerals is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of First Quantum Minerals's dividends as it is not paying a notable one for Canada.


Future Payout to Shareholders

No need to calculate the sustainability of First Quantum Minerals's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

What is the CEO of First Quantum Minerals's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Philip Kelvin Pascall (71yo)

22.8yrs

Tenure

US$4,602,602

Compensation

Mr. Philip Kelvin Rodda Pascall has been Chairman and Chief Executive Officer of First Quantum Minerals Limited since 1996. Mr. Pascall is a Co-Founder of First Quantum Minerals Limited. He worked in gener ...


CEO Compensation Analysis

Philip Kelvin's remuneration is about average for companies of similar size in Canada.

Philip Kelvin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.2yrs

Average Tenure

69yo

Average Age

The average tenure for the First Quantum Minerals management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.4yrs

Average Tenure

65yo

Average Age

The average tenure for the First Quantum Minerals board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Philip Kelvin Pascall (71yo)

    Chairman & CEO

    • Tenure: 22.8yrs
    • Compensation: US$4.60m
  • Geoffrey Newall (69yo)

    President & Director

    • Tenure: 23.3yrs
    • Compensation: US$1.25m
  • Sharon Loung

    Director of Investor Relations

    • Tenure: 11.3yrs
  • Wyatt Buck

    Director of Opeerations

    • Tenure: 8.7yrs
    • Compensation: US$906.60k
  • Hannes Meyer (49yo)

    Chief Financial Officer

    • Tenure: 7.5yrs
    • Compensation: US$1.37m
  • Juliet Wall

    General Manager of Finance

    • Tenure: 7.7yrs
  • Sarah E. Robertson

    Corporate Secretary

    • Tenure: 2.3yrs
  • Zenon Wozniak

    Director of Projects

    • Tenure: 6.7yrs
    • Compensation: US$5.26m
  • David deVries

    General Manager of Kansanshi Mining Plc

    • Tenure: 0yrs
  • Tristan Pascall

    Managing Director of Cobre Panama

    • Tenure: 0yrs

Board Members

  • Andrew Adams (62yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$200.00k
  • Bob Harding (61yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$240.00k
  • Philip Kelvin Pascall (71yo)

    Chairman & CEO

    • Tenure: 22.8yrs
    • Compensation: US$4.60m
  • Kathy Hogenson (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$185.00k
  • Simon Scott (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$125.70k
  • Geoffrey Newall (69yo)

    President & Director

    • Tenure: 23.3yrs
    • Compensation: US$1.25m
  • Peter St George (72yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$200.00k
  • Paul Brunner (68yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$200.00k
  • Jo Warner

    Independent Director

    • Tenure: 0.3yrs

Company Information

First Quantum Minerals Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Quantum Minerals Ltd.
  • Ticker: FM
  • Exchange: TSX
  • Founded: 1983
  • Industry: Copper
  • Sector: Materials
  • Market Cap: CA$8.367b
  • Shares outstanding: 685.24m
  • Website: https://www.first-quantum.com

Number of Employees


Location

  • First Quantum Minerals Ltd.
  • 330 Bay Street
  • Suite 1101
  • Toronto
  • Ontario
  • M5H 2S8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
IZ1DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
FQVL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988
FQMZLUSE (Lusaka Stock Exchange)ZAMBIAN DEPOSITARY RECEIPTS 1/28 ORD SHSZMZMWDec 2011

Biography

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, gold, and zinc ores, as well as produces acid. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:37
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.