First Quantum Sells Kevitsa Mine for $712 Million; Shares Rise in London

By Ian Walker

LONDON--Shares of First Quantum Minerals Ltd. (FM.T) rose 13% in early London trade Thursday after the Canadian and London-listed miner announced the sale of its Kevitsa mine in Finland for US$712 million.

The company, which produces copper, nickel, gold, zinc and platinum group and has assets in a wide range of countries, is selling the mine to Boliden AB (BOL.SK). The deal is expected to complete in May.

Shares in London at 1020 GMT are up 41 pence, or 13%, at 361 pence. However, they are currently down 55% over the past 12 months.

Chairman and Chief Executive Philip Pascal said the deal is one of the company's many initiatives announced in October to maximize profit and cash-flow during a period of low commodity prices and market volatility. He said other strategic measures will continue to be implemented in the coming months.

Citi said the sale price is below its $1.47 billion valuation but believes it is a win-win deal for both parties given that Boliden was the only logical buyer and therefore expected by the market to put in a lower price. "It's the right thing to do in a buyer's market," Citi says, adding that it's a reasonable price for a long-life asset.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

March 10, 2016 05:56 ET (10:56 GMT)

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