First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q1 2015 Earnings Presentation
17 slides from First Quantum Minerals's earnings presentation, May 1, 2015
Slide 1: Turning Vision into Reality – First Quarter 2015
TURNING VISION INTO REALITY First Quarter 2015 Conference Call & Webcast May 1, 2015 TSX: FM; LSE: FQM
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements 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 statement
Slide 3: Kansanshi Smelter
Kansanshi Smelter FIRST QUANTUM MINERALS LTD. 3
Slide 4: Kansanshi Smelter
Kansanshi Smelter & FIRST QUANTUM. 4
Slide 5: Kansanshi Smelter - Casting
Kansanshi Smelter - Casting 5
Slide 6: Cobre Panama – Mill Area
Cobre Panama — Mill Area & FIRST QUANTUM MINERALS LTD 6
Slide 7: Cobre Panama – Port and Powerstation Foundations
Cobre Panama – Port and Powerstation Foundations 7
Slide 8: Cobre Panama – Port Area Wharf and Material Offloading Facility
Cobre Panama – Port Area Wharf and Material Offloading Facility 8
Slide 9: Q1 2015 Highlights
Q1 2015 Highlights Cu production lower, as expected, to limit Production Q1 2015 vs Q1 2014 acid consumption prior to smelter ramp up Copper ('000 tonnes) 96 (17) Ni production in line with expectations Nickel ('000 tonnes) 6 (6) with Ravensthorpe at reduced capacity Gold ('000 ounces) 53 (7) Copper
Slide 10: Production
Production Copper production reflects Kansanshi planned reduction • Primarily reflects lower production at Kansanshi with production intentionally reduced to limit consumption of external acid prior to smelter commissioning. • The smelter produced 16,858 tonnes of acid in the quarter. • First concen
Slide 11: C1 Cost
C1 Cost Copper C1 cost ($/lb) Nickel C1 cost ($/lb) Q1 2015 copper C1 cost broadly in line with Q1 2014 Q1 2015 nickel C1 cost broadly in line with Q1 2014 A focus on cost reduction and efficiencies helped to lower Kevitsa lower due to decreased mining costs and processing mining and processing cost
Slide 12: Financial Overview
Financial Overview Comparative EBITDA impacted by lower metal prices and sales volumes $ million Gross profit impacted by lower copper Q1 2015 Q4 2014 Q1 2014 prices and sales volumes, primarily at Kansanshi, and impact of higher Revenue 650 821 891 Zambian royalty rate ($48m). Gross Profit 26 183 2
Slide 13: Q1 Gross Profit
Q1 Gross Profit Gross profit impacted by lower metal prices and sales volumes $ million Reduced copper sales at Kansanshi and Kevitsa plus lower nickel sales with Ravensthorpe at reduced capacity Impact of higher royalty rate at Kansanshi 13
Slide 14: Quarterly Net Debt Movement
Quarterly Net Debt Movement Opening Net Debt at January 1, 2015 ($ million) (5,546) Comparative EBITDA 120 Working capital 41 Tax (20) Capital expenditure (398) Net interest paid(1) (102) Other (24) Net debt movement (383) Closing Net Debt at March 31, 2015 ($ million) (5,929) Net Debt comprised of:
Slide 15: Zambian Developments
Zambian Developments • On 20th April 2015 the Zambian government announced proposed amendments to the current Zambian tax and royalty regime, to be effective from July 1, 2015. • Mineral royalties reduced to 9% and corporate tax reinstated to 30% with variable profits tax of up to 15%. • Q1 2015 min
Slide 16: 2015 Market Guidance
2015 Market Guidance Production guidance for current operations remains unchanged Copper production(1) Nickel production Gold production 410 – 440k tonnes 32 – 40k contained tonnes 218 – 247k ounces Zinc production Palladium production Platinum production 40 – 45k tonnes 26 – 29k ounces 25 – 35k oun
Slide 17: Turning Vision into Reality – First Quarter 2015
TURNING VISION INTO REALITY First Quarter 2015 Conference Call & Webcast May 1, 2015 TSX: FM; LSE: FQM
First Quantum Minerals — Q1 2015 Earnings Presentation on 6ix