Vancouver’s First Quantum Minerals Ltd. (TSX:FM) saw investor confidence slide Tuesday after the Democratic Republic of Congo’s Supreme Court annulled the miner’s rights to two mines and awarded them to state-owned Sodimico.
CEO Philip Pascall spoke to analysts on a conference call Monday. He said the court ruling has so far had no impact on other operations at First Quantum’s Frontier mine or on its nearby development site known as Lonshi. According to Pascall, those sites are operating “steadily and normally."
First Quantum’s stock sunk 12% to $55.36 per share Tuesday amid speculation First Quantum could lose control over more of its Congolese operations.
First Quantum landed at No. 9 on Business in Vancouver’s list of biggest stock and debt deals of 2009 (“Top 100 biggest corporate finance deals of 2009” –issue 1067; April 6-12). In April 2009, it closed a US$500 million offering of convertible bonds due 2014.
First Quantum’ stock price range during the past week: between $55.36 and $67; 52-week high: $100.32; 52-week low $51.80.