First Quantum profit surges on copper output while Intact absorbs catastrophe losses

Panama's Cobre mine hit 99,800 tonnes of copper in Q2, a 47% jump from the prior quarter and the sharpest single-quarter expansion First Quantum has reported since its Zambian operations scaled in 2021. That volume pushed revenue to $2.1 billion and swung the company from a $140 million loss a year earlier to a $380 million profit this quarter.

The turnaround tracks with global copper inventories, which dropped below 200,000 tonnes in June as electrification demand from Asia absorbed fresh supply faster than mines could ramp. First Quantum had signalled Cobre's expansion timeline in March, but output landed 12% above the company's own guidance. Management credited accelerated ore-grade sequencing and faster ramp-up at the processing facility, both risks flagged by analysts six months ago.

When the catastrophe line shifts the whole picture

Intact Financial reported $980 million in net income, down from $1.15 billion a year earlier. The drop wasn't underwriting, it was claims. Catastrophe losses hit $620 million this quarter, double the year-ago figure and well above the $450 million the company had budgeted for the full six-month period.

Alberta hailstorms in June accounted for $280 million alone. Quebec flooding added another $150 million. Both events ran into property concentrations Intact had flagged as elevated-risk zones in prior disclosures, but the company had not repriced those exposures before renewal season. The combined ratio, claims plus expenses divided by premiums, rose to 96.4% from 92.1%, still profitable but with margin compression visible across personal and commercial lines.

Intact's CEO noted that reinsurance costs are climbing faster than premium growth in catastrophe-prone regions, a gap the company expects to address through rate increases in Q4 renewals. The stock dropped 4% on the news, then recovered half that by close as investors absorbed the guidance.