First Quantum Sels Turkish Mine for $340M in Strategic Pivot

TORONTO, ON & ANKARA, TÜRKIYE – March 12, 2026 – In a significant move to reshape its global portfolio and fortify its balance sheet, Canadian-based First Quantum Minerals Ltd. announced today it has agreed to sell its Çayeli copper-zinc mine in Türkiye. The buyer is Cengiz Insaat, a subsidiary of the powerful Turkish conglomerate Cengiz Holding, which will acquire the asset for a cash consideration of $340 million.

The deal, which includes a $50 million advance payment, marks a critical step in First Quantum's strategy to navigate a period of intense operational and financial pressure. The company has framed the divestment as a deliberate choice to focus on its core priorities.

“For more than a decade, the performance of Çayeli within First Quantum has been underpinned by the dedication of its employees and a strong safety and operating culture,” said Tristan Pascall, Chief Executive Officer of First Quantum. “The sale reflects the Company’s disciplined approach to portfolio management as we focus on our core strategic priorities.”

A Strategic Retreat Amidst Headwinds

The sale of the long-operating Turkish mine is far more than a simple portfolio adjustment for First Quantum. It represents a crucial cash injection for a company grappling with significant financial headwinds. The $340 million in proceeds is expected to improve the company's liquidity and help manage a net debt load that stood at $5.2 billion at the end of 2025.

First Quantum's recent financial performance highlights the urgency behind such divestments. While reporting revenues of $5.237 billion for 2025, the company has faced profitability challenges, posting a negative earnings per share of -0.04 for the year. An Altman Z-Score of 1.54, a predictor of bankruptcy risk, suggests underlying financial vulnerabilities that the company is now aggressively addressing.

These financial strains have been exacerbated by major operational disruptions at two of its flagship sites. The company's Cobre Panamá mine, a massive copper operation, was forced into a state of preservation and safe management in November 2023 following a dispute with the Panamanian government. This shutdown has been costly, incurring preservation expenses of $15 million to $20 million per month. While recent government approval to process stockpiled ore has sparked optimism for a potential restart in 2026 and led S&P to upgrade its outlook, the situation has drained significant capital. Compounding these issues, the Ravensthorpe nickel mine in Australia was placed on care and maintenance in May 2024 due to persistently low nickel prices and high costs.

Against this backdrop, the Çayeli sale is part of a broader capital-raising strategy. It follows a $1 billion gold streaming agreement for its Kansanshi mine finalized in August 2025 and a $1.5 billion senior notes offering in February 2026 designed to refinance more expensive debt.

Turkish Conglomerate Deepens Mining Foothold

For the buyer, Cengiz Holding, the acquisition of the Çayeli mine is a calculated move to deepen its already substantial footprint in Türkiye's natural resources sector. As one of the country's largest and most diversified conglomerates, with interests spanning construction, energy, and tourism, Cengiz has been aggressively expanding its mining portfolio.

The group already operates Eti Bakır and Eti Aluminum, which it acquired through privatization in the mid-2000s. These assets make it Türkiye's sole producer of cathode copper from ore and the only integrated aluminum producer, managing the process from mine to finished product. The addition of Çayeli further consolidates its control over the nation's strategic mineral wealth.

This transaction is not an isolated event. It follows a much larger deal in which Cengiz Holding acquired an 80% stake in the Çöpler gold mine from SSR Mining for a reported $1.5 billion. This pattern of high-value acquisitions signals a clear strategy to become the dominant domestic player in Turkish mining, acquiring valuable assets from international operators. As a domestic entity with deep connections to local markets and regulatory bodies, Cengiz Holding is well-positioned to operate and expand these assets in alignment with national industrial priorities.

The Prize: Çayeli's Extended Future

The Çayeli mine is a valuable prize, not an asset at the end of its life. In operation since 1994, the underground mine on Türkiye's Black Sea coast has been a consistent producer of copper and zinc concentrates. In 2024, it produced 11,491 metric tons of copper and was forecast to produce 10,000 tonnes of copper and 4,000 tonnes of zinc in 2026.

The mine's attractiveness was dramatically enhanced in 2025 with the discovery and definition of a new deposit known as the South Orebody. This crucial find extended the mine's projected operational life by a decade, to 2036, transforming it from a mature operation into a long-term strategic asset. The updated mineral resource, detailed in a technical report in October 2025, confirmed a substantial combined resource of 9.33 million tonnes, making it a highly compelling acquisition target.

Its coastal location provides significant logistical advantages for exporting concentrates to European and global markets, further bolstering its economic viability. For Cengiz Holding, the mine represents a source of stable, long-term production that can be integrated into its sprawling industrial network.

Market Reaction and the Path Forward

Market and analyst reactions to the sale have been largely positive for First Quantum, viewing it as a necessary and disciplined step. UBS recently upgraded the company's stock from "Neutral" to "Buy," citing the improving outlook at Cobre Panamá, a sentiment bolstered by balance sheet-strengthening moves like the Çayeli sale. The consensus among many analysts leans toward a "Moderate Buy," acknowledging that while profitability remains a concern, the company is taking the right steps to stabilize its finances.

The transaction is now subject to customary conditions and a multi-layered regulatory approval process in Türkiye. Approvals will be required from several governmental bodies, including the Ministry of Energy and Natural Resources (MENR) and the Turkish Competition Authority (TCA). A recent and significant development in the country's regulatory landscape is the November 2025 establishment of a new Mining Permits Board at the presidency. This body holds the authority to grant approvals for strategic mining projects deemed to be in the "superior public interest," potentially streamlining the path for acquisitions by politically connected domestic firms.

Pending the successful navigation of this regulatory landscape, both parties expect the transaction to close during the second or third quarter of 2026, officially transferring a key Turkish mining asset into domestic hands.