FQM GETS $1BILLION FROM COPPER&GOLD IN ZAMBIA
First Quantum Gets $1B Upfront in Gold Deal
On August 5, 2025, First Quantum Minerals. announced a major $1 billion agreement with RGLD Gold AG, a company owned by Royal Gold. This new deal is tied to the Kansanshi Mine in Zambia, which is one of First Quantum’s biggest copper and gold mines. CEO Tristan Pascall (on photo) said this makes the company stronger financially while still keeping most of its copper and gold profits.
What’s the Deal About?
This is a “gold streaming” agreement, a type of deal where one company gives cash upfront in exchange for a share of future gold production.
In this case, First Quantum gets $1 billion in cash right away. This money will help the company:
• Pay off loans
• Invest in new equipment and improvements at the mine
• Cover daily operating costs
This upfront payment helps First Quantum stay strong financially without having to borrow more money.
What Does RGLD Gold Get in Return?
In return for the $1 billion, RGLD Gold will receive some of the gold produced at the Kansanshi Mine. But here’s the important part, the amount of gold they receive depends on how much copper the mine produces.
Here’s how it works:
• For every 1 million pounds of copper produced, First Quantum will deliver 75 ounces of gold to RGLD Gold.
• This rate could go down over time if certain production or financial targets are met.
Even with this deal, First Quantum will keep 84% of its gold production during 2026 and 2027 and will sell that gold at full market prices.
Ongoing Payments and Bonuses?
RGLD Gold will also pay First Quantum extra money for the gold it receives based on the current gold market price:
• These payments start at 20% of the gold price.
• They can increase up to 35% if First Quantum improves its credit rating or financial performance.
Option to Deliver Less Gold?
There’s also a special clause: If First Quantum meets certain financial or operational goals, it can reduce the amount of gold it must deliver by up to 30%. This gives the company more flexibility and potential for higher future earnings.
What This Means for Zambia?
This agreement shows that big investors still have strong confidence in the Kansanshi Mine’s long term value and in Zambia’s position as one of Africa’s top mining countries. It brings in major funding for First Quantum while supporting continued investment and operations in Zambia.
🔗 More info: www.first-quantum.com
And the country remains poor and continues borrowing from IMF due to tax holidays. And someone encourages councils to increase taxes on rates. What a country.
And the country with all these mines
Is asking for debt restructuring and
Loans from world bank.
It seems we have a financial literacy problem in this country. Surely, this is a straight forward issue and I don’t know why it should raise eyebrows. This deal just mean FQM will get advance payment for the gold they will have supply to the offtaker at later date. The country will still get it’s share in terms of taxes and other obligations from FQM in accordance with the tax accessment for the applicable period. The whole idea of this arrangement is for the offtaker to sure gold supply while for FQM it gets financial boost to undertake projects without opting for loans which might be costly.
More importantly, How does this deal help the country – this ensures that company is able to EMPLOY more Zambians by creating jobs. Without getting into/knowing deeper details of the deal, suffice to note its a win-win situation