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TEXT-Fitch assigns First Quantum Minerals final 'BB' rating
2012年10月18日 / 下午2点25分 / 5 年前

TEXT-Fitch assigns First Quantum Minerals final 'BB' rating

Oct 18 - Fitch Ratings has assigned Canadian-based First Quantum Minerals
Ltd's (FQM; 'BB'/Stable) USD350m 7.25% 2019 senior notes a final 'BB'

The assignment of the final rating follows the receipt of documents conforming
to information already received. The final rating is in line with the expected
rating assigned on 28 September 2012.

The notes will be used for future mine development and will benefit from
subordinated guarantees from two operating subsidiaries: FQM Australia Nickel
Pty Ltd, owner of the Ravensthorpe nickel mine (Ravensthorpe guarantee) and FQM
Kevitsa Mining Oy, owner of the Kevitsa nickel/copper project (Kevitsa
guarantee). No guarantee is provided by FQM's main operating subsidiary,
Kansanshi Mining PLC, whose assets and off-take agreements are pledged in favour
of lenders to the USD1.0bn facility provided to that company.

The Ravensthorpe guarantee is subordinated to a AUD20m performance bond
facility, whilst the Kevitsa guarantee is subordinated to the undrawn Kevitsa
project finance loan. Both guarantees are additionally subordinated to the
Kansanshi facility under deeds of subordination. As at 30 June 2012, the
guarantors represented 29% of FQM's consolidated group assets, and 8% of
consolidated revenues and 5% of consolidated adjusted EBITDA over the 12 months
to 30 June 2012. The lower revenue and EBITDA contribution reflects that both
Ravensthorpe and Kevitsa were not operating at full capacity during this period.

FQM is currently a mid-sized copper producer with additional producing assets in
nickel. Fitch's ratings factor in an increase in scale and geographic commodity
diversification in coming years. Initially this will come from the full ramp-up
of production at the Ravensthorpe (nickel, Australia) and Kevitsa
(nickel/copper, Finland) mines. The ratings also incorporate the planned
development of the Sentinel and Enterprise mines in Zambia, as well as the
Kansanshi smelter.

Additional information is available on The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable criteria, 'Corporate Rating Methodology', dated 8 August 2012, are
available on

Applicable Criteria and Related Research:
Corporate Rating Methodology

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