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First Quantum Minerals shares soar after reporting cost-cut measures

Last updated: 14:37 06 Oct 2015 EDT, First published: 12:37 06 Oct 2015 EDT

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Copper future contracts are currently pricing the industrial metal at about US$2.34 a pound, down from about $3 at year ago

Mining major First Quantum Minerals (TSE:FM) saw shares race up in Toronto after it announced a big cost-cutting exercise in the wake of the fall in copper prices.

The firm wants to slash outstanding debt by at least US$1 billion within six months.

It says it will also cut 644 jobs, reduce salaries by up to 20% and lowered the cost target for its flagship Cobre Panama project by 7% to US$5.95bn.

Copper future contracts are currently pricing the industrial metal at about US$2.34 a pound, down from about $3 at year ago.

The firm made the announcement after market close yesterday, where they finished at C$6.19.

Today, shares are up in Toronto 18.42% to C$7.33.

As well as reduced spending on the Panama project, it is aiming to reschedule about $700 million in other capital programmes.

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