First Quantum Minerals recovers as copper prices climb

First Quantum Minerals (TSX:FM) shares rose on Monday, recovering some ground after last week’s steep drop. The stock gained $1.59 on the Toronto Stock Exchange, pushing it toward a close of roughly $40.85, based on Friday’s $39.26 finish. The move came as copper prices climbed to about US$6.59 a pound, supported by weaker-than-expected U.S. jobs data and supply concerns, including a potential strike at a large Chilean mine.

The rebound follows a sharp sell-off on September 30, when a Panamanian commission recommended negotiating the restart of the Cobre Panama copper mine primarily to plan an orderly closure. Investors initially reacted negatively, but Scotia Capital analyst Orest Wowkodaw called the sell-off a “buying opportunity,” arguing the market overfocused on the closure language. First Quantum has pledged to engage in constructive talks with Panama and settle pending arbitration claims.

The stock’s recent gains, now three straight days of recovery, partially offset last week’s losses. However, significant uncertainty remains about the mine’s future, including its operating period, economic terms, and potential cash flow. First Quantum’s financial outlook also depends heavily on its Zambian operations, particularly the Kansanshi mine.

Investors will watch for updates when the company reports third-quarter results on October 28, followed by a conference call on October 29. Any progress in negotiations with Panama or shifts in copper prices could influence the stock’s direction.