First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q4 2017 Earnings Presentation
24 slides from First Quantum Minerals's earnings presentation, Feb 12, 2018
Slide 1: First Quantum Minerals Fourth Quarter & Year 2017 Conference Call
FIRST QUANTUM MINERALS FOURTH QUARTER & YEAR 2017 CONFERENCE CALL & WEBCAST TSX: FM February 12, 2018 1
Slide 2: Cautionary Note Regarding Forward-Looking Statement
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENT Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The forward-looking statements i
Slide 3: Sentinel Mine – Terrace Mining
SENTINEL MINE – TERRACE MINING TSX: FM 3
Slide 4: Sentinel Mine – In-Pit Crushing
SENTINEL MINE – IN-PIT CRUSHING TSX: FM 4
Slide 5: Sentinel Mine – Trolley Assist Haulage
SENTINEL MINE – TROLLEY ASSIST HAULAGE TSX: FM 5
Slide 6: Cobre Panama Progress – Power Station Overview
COBRE PANAMA PROGRESS – POWER STATION OVERVIEW TSX: FM 6
Slide 7: Cobre Panama Progress – Power Station – Duct Lifting
COBRE PANAMA PROGRESS – POWER STATION – DUCT LIFTING TSX: FM 7
Slide 8: Cobre Panama Progress – Jetty Platform & Breakwater
COBRE PANAMA PROGRESS – JETTY PLATFORM & BREAKWATER TSX: FM 8
Slide 9: Cobre Panama Progress – Milling Area
COBRE PANAMA PROGRESS – MILLING AREA Set 1 Set 2 TSX: FM 9
Slide 10: Cobre Panama Progress – Flotation Area
COBRE PANAMA PROGRESS – FLOTATION AREA TSX: FM 10
Slide 11: Cobre Panama Progress – Secondary Crushing
COBRE PANAMA PROGRESS – SECONDARY CRUSHING TSX: FM 11
Slide 12: Financial Review
FINANCIAL REVIEW
Slide 13: Quarterly and Full Year Production
QUARTERLY AND FULL YEAR PRODUCTION Q4 2017 Copper production a new record Copper production up 6% on FY 2016 • Record quarterly production due to strong Sentinel production • Kansanshi smelter running at above design throughput capacity • Las Cruces full year production of 73.7kt was a new record fo
Slide 14: Continued Optimization
CONTINUED OPTIMIZATION Sentinel recovery and throughput reaching new heights Recovery up 13% - focus on optimization and reagents Throughput up 46% - transition to terrace mining and plant stability Kansanshi smelter above design capacity Performing above design capacity due to operating efficiencie
Slide 15: Q4 2017 Overview
Q4 2017 OVERVIEW Comparative EBITDA up 46% and Gross profit up 125% on Q4 2016 46% Comparative EBITDA $ million $ million (except earning loss per share) Q4 2016 Q3 2017 Q4 2017 Revenue 689 877 885 Gross Profit 52 83 117 Comparative EBITDA1 218 304 318 Comparative earnings (loss)1 27 (28) (36) Compa
Slide 16: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS 2017 C1 and AISC at lower end of guidance • Full year C1 of $1.23/lb is within guidance • Full year AISC of $1.65/lb at lower end of guidance • Full year excluding Sentinel of $1.01/lb lower than 2016 • Full year AISC excluding Sentinel of $1.40/lb lower than 2016 TSX: FM 1
Slide 17: Strengthening the Balance Sheet
STRENGTHENING THE BALANCE SHEET Debt maturity as at February 2018 Undrawn RCF $390m Net debt/EBITDA covenant Liquidity $1.1bn Covenant Ratio ratio of 4.8x which is below December 31, covenant requirements 2017 Net unrestricted cash $702m TSX: FM 17
Slide 18: Hedging Program Outlook
HEDGING PROGRAM OUTLOOK Increase in hedge prices going forward • Copper price protection program for 2018 • Increased use of zero cost collars in 2018 providing protection and potential upside • 49.5 kt of put option contracts entered into at strike price of $3.10/lb Hedging profile as at February 1
Slide 19: Cobre Panama Capital Expenditure and Guidance
COBRE PANAMA CAPITAL EXPENDITURE AND GUIDANCE Capex revised to include 8th mill and upgrades to allow future throughput of 100 mtpa 2021 2018 2019 2020 First full year of ramped up Power plant operational Existing mills ramped up Ramp-up completed production First throughput in the 8th mill completi
Slide 20: Market Guidance 2018 - 2020
MARKET GUIDANCE 2018 - 2020 Production and unit cost guidance 1 As a result of the increase in Production (000's) 2018 Guidance 2019 Guidance 2020 Guidance copper price, there is an Copper – tonnes 590 595 610 increase in the royalty charge in Gold – ounces 200 200 195 the AISC calculation. This, Zi
Slide 21: Appendix
APPENDIX FIRST QUANTUM MINER ALS LTD
Slide 22: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at September 30, 2017 ($ million) (5,059) Adjusted EBITDA1 297 Working Capital (134) Capital expenditure (498) Net Interest (61) Franco-Nevada precious metal stream 89 50% KPMC acquisition (LS-Nikko) (179) Investment in Pebble project early option price i
Slide 23: Annual Net Debt Movement
ANNUAL NET DEBT MOVEMENT Operational assets generated $854 million inflow in 2017, with cash outflow of $2,048 million relating to Cobre Panama (interest, capex and acquisition costs), Pebble option agreement and hedging. Opening Net Debt at 1 January 2017 ($ million) (4,381) Adjusted EBITDA1 1,677
Slide 24: First Quantum Minerals Fourth Quarter & Year 2017 Conference Call
FIRST QUANTUM MINERALS FOURTH QUARTER & YEAR 2017 CONFERENCE CALL & WEBCAST TSX: FM February 12, 2018 24
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