First Quantum Mine (FQVLF, ticker symbol) in Panama expected to extract 400,000 tons of Copper per year and the mine had a life expectancy of 34 years. The company spent over $10 billion on the mine. The country shut the mine down and the fear is now the Panama Govt will be sued by First Quantum, a Canadian Mining Company. If that is the case, it could go to arbitration and that can take years to settle. If it is declared that First Quantum should receive a financial settlement, how can Panama, which is not a rich country, pay them?

There is a new President in Panama and he is thought to be pro-business, but protests and mindsets in the country against mines will have an effect on all decisions going forward.

Ultimately, the overall Copper Mining Industry globally is thought to be possibly poised for a lack of Copper to meet demand due to the mine closing as well as reduced Cap Ex of companies. (Cap Ex is Capital Expenditures; investments companies make in itself by maintaining, upgrading and acquiring https://www.investopedia.com/terms/c/capitalexpenditure.asp#:~:text=Capital%20expenditures%20(CapEx)%20are%20funds,or%20investments%20by%20a%20company.

Thoughts are it may translate into lowering of mining output by 2027 and 2028 and may proceed into 2030. Recently, First Quantum was able to receive funding on some bonds that had come due and it does not expect other bonds to have to be paid back by the company for 24 months, which probably caused the company stock price to pop up today June 24, 2024.

It also has other mines throughout the world. Click the link below to get more info on the company, First Quantum. symbol is FQVLF; https://www.first-quantum.com/English/our-operations/default.aspx

Mine in The Colon Province of Panama
Employs 4500 workers, mostly Panamanian
Open Pit
Ultraclass Electric Shovels and haul trucks

Contributed 5% of GDP to Panamanian Economy annually when open.

Reasons for Protests:

Environmental Damage

Too much Water use, already in short supply due to lower water in Panama Canal which does not allow ships through fully loaded any longer.

Public opinion that Mines have Unkept Promises to Population

Photo by Viacheslav bublyk.

. (photo by Viacheslav Bublyk Unsplash-jpg