First Quantum Minerals Ltd. has entered into a gold streaming agreement with Royal Gold, Inc., receiving a $1.0 billion upfront cash payment in exchange for gold deliveries based on copper production from the Kansanshi Mine in Zambia. The agreement strengthens the company’s balance sheet, maintains the majority of gold production exposure, and provides competitive terms for increasing gold exposure over time. First Quantum will also receive ongoing production payments based on the spot gold price and has options to accelerate deliveries. The stream is unsecured and has guarantees from the company and its subsidiaries.

The transaction with Royal Gold is expected to significantly bolster First Quantum’s liquidity and reduce its net debt to EBITDA ratio. The upfront payment of $1.0 billion will be received on August 6, 2025, and gold deliveries will be based on copper production at the Kansanshi Mine. First Quantum will receive ongoing production payments equivalent to a percentage of the prevailing spot gold price and has options to reduce the stream rate and delivery thresholds under certain conditions. This deal further enhances the company’s financial resilience and maintains exposure to copper and gold production at Kansanshi.

Read more at GlobeNewswire: First Quantum Announces $1.0 Billion Gold Stream