Copper miner First Quantum Minerals Ltd reported a 171% jump in first-quarter profit on Tuesday, powered by higher prices for the red metal from supply worries.
Realized price of copper, a key metal used in wiring, electric vehicles and other electronics, rose nearly 37% to $4.45 per pound in the quarter, the company said, on fears that Russia’s invasion of Ukraine would disrupt supply chains.
Total copper production fell 11% to 182,210 tonnes in the reported quarter.
“Given the current events with the Ukraine conflict and covid-19 restrictions in China, and most recently the flooding in Durban, the shipping environment and inland logistics remain challenging and continue to impact sales volumes,” the company said.
Miners around the world are still struggling with labor shortage caused by the pandemic, supply-chain disruptions and a rise in per unit cost of production.
Net earnings attributable to the company’s shareholders rose to $385 million, or 56 cents per share, in the quarter ended March 31, from $142 million, or 21 cents per share, a year earlier.