Canadian copper producer, First Quantum Minerals Ltd. will pay around US$1-billion to settle its tax dispute with the government of Zambia, Global Mail reported, quoting a Wall Street analyst.
According to Global Mail, First Quantum’s chief executive officer Philip Pascall declined to speculate how much the company may end up paying, saying it was premature to comment.
“We expect the company to have to pay something significant to resolve this issue,“ wrote Jefferies analyst, Christopher LaFemina, in a note to clients on Tuesday. “We assume for now that the total cost will be US$1-billion.”
LaFemina also predicts First Quantum’s cost of capital will rise due to higher operating risks in Zambia and the possibility of additional tax penalties.
Source: Global Mail