[miningmx.com] – SHARES in First Quantum Minerals fell under pressure owing to concerns about the Toronto-listed firm’s debt pile and amid weakness in the price of copper, said Bloomberg News.
Shares in the company, which operates the Kansanshi and Sentintal copper mines in Zambia, fell as much as 25% on January 20. The stock recovered most of its ground, but its yearly loss increased to 47% against the 17% fall in the 80-company Bloomberg World Mining Index this month.
“The company has high financial leverage relative to our short-term cash flow expectations,’ said TD Securities analyst Greg Barnes. “We believe that the company may breach its maximum net debt-to-EBITDA covenant.”
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