HomeMarket NewsMiningFirst Quantum Soars as Panama Maintains Mining Agreement

First Quantum Soars as Panama Maintains Mining Agreement

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Following a decision by Panama’s National Assembly to preserve First Quantum’s mining contract, shares of the Canadian copper producer surged by over 12% in early morning trading in Toronto. The stock price has now recovered half of its value from a week ago, reducing the weekly loss to 27% compared to 50% on Wednesday.

Despite the recent turmoil and violent protests that brought Panama’s capital city to a standstill, First Quantum’s Cobre Panama copper mine continues to operate. However, like many businesses across the country, the mine has experienced disruptions and shortages due to the ongoing demonstrations, including road blockades.

Given the current political climate and the potential implications of a ruling on Law 406, BMO Capital Markets analysts predict that a new mining code is unlikely to be passed before the national election in May. Nevertheless, they believe that the mine will continue to operate throughout this period of uncertainty, with any revisions to the mining code in 2024 expected to be manageable and not severe enough to warrant closure.

First Quantum’s Cobre Panama mine, which has been in production since 2019, is a significant contributor to Panama’s economy, accounting for almost 5% of its GDP. Additionally, the mine represents 75% of the country’s export of goods and has generated approximately 40,000 jobs directly and indirectly.

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**Keywords:**
– First Quantum
– Panama
– mining contract
– Cobre Panama
– copper mine
– protests
– disruptions
– mining code
– GDP
– export of goods
– jobs
– national election

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