Global copper company First Quantum Minerals has entered into a gold streaming agreement where it will receive a $1.0 billion upfront cash payment in exchange for gold deliveries referenced to copper production from the Kansanshi mine in Zambia. The transaction preserves exposure to all of the copper production at Kansanshi while still maintaining exposure to the majority of the company’s gold production.

The transaction sees First Quantum entering into a gold streaming agreement with RGLD Gold AG, a wholly owned subsidiary of Royal Gold. It provides long-term, unsecured, non-debt capital which will significantly bolster liquidity. Proceeds will be used towards the payment of capital expenditure, general working capital requirements and bank loan repayment while the company continues to monitor debt capital markets for opportunities to manage its maturities. Upon closing of the transaction, First Quantum’s net debt to EBITDA ratio is expected to reduce markedly.

Based on its copper and gold production guidance for 2026 and 2027, on average 84% of First Quantum’s total gold production will continue to have exposure to spot gold prices. The company retains full exposure to the identified near-surface gold zone occurrences at Kansanshi.

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The transaction provides the company with the ability to increase gold exposure over time, depending on financial performance, with provisions for higher ongoing production payments and acceleration options upon achieving certain leverage thresholds.

“It is pleasing to form a new partnership with Royal Gold which is a strong endorsement of the operations at Kansanshi and its multi-generational ore body as well as Zambia as a leading African mining jurisdiction. This announcement further enhances First Quantum’s financial resilience, while the ramp-up of the S3 expansion at Kansanshi will continue to strengthen our financial position,” Tristan Pascall, CEO of First Quantum, comments.