Slide 1: First Quarter 2016 Conference Call & Webcast
FIRST QUARTER 2016 CONFERENCE CALL & WEBCAST TSX: FM; LSE: FQM APRIL 29, 2016
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
Slide 3: Cobre Panama – Power Plant Overview
COBRE PANAMA – POWER PLANT OVERVIEW COBRE PANAMA – POWER PLANT & PORT OVERVIEW 3
Slide 4: Cobre Panama – Mill Area
Ww x <x = =! = I <x = te a a Ww ox a O O MINERALS LTD. FIRST QUANTUM
Slide 5: Cobre Panama – Mill
COBRE PANAMA –– MILL COBRE PANAMA PORTINSTALLATION FACILITY AND JETTY CONSTRUCTION 5
Slide 6: Financial Review
& FIRST QUANTUM Maen 4
Slide 7: Q1 2016 Highlights – Continuing operations
Q1 2016 Highlights – Continuing operations1 Record quarterly copper production for continuing operations with pre-commercial Sentinel Production - Continuing Q1 2016 vs Q4 2015 vs Q1 2015 production and higher production at majority of Copper ('000 tonnes) 119.3 +3.4 +27.4 operations Nickel ('000 to
Slide 8: Production – Continuing operations
Production – Continuing operations Copper production1 30% above Q1 2015 • Primarily reflects continued ramp up of Sentinel to commercial production volumes and strong performance across continuing operations • Sentinel production of 21kt • Kansanshi production of 58kt was 8% higher than Q1 2015 • Ka
Slide 9: Financial Overview – Continuing operations
Financial Overview – Continuing operations Impact of lower market metal prices more than offset by cost savings, higher sales volumes, lower royalties and sales hedges Gross profit $82m above Q1 2015 as $ million Q1 2016 Q4 2015 Q1 2015 the impact of lower market prices Revenue 720 719 602 prices wa
Slide 10: Cash Costs – Continuing operations
Cash Costs – Continuing operations Copper C1 cost ($/lb) Copper AISC ($/lb) Q1 2016 copper C1 cost 27% lower than Q1 2015 Q1 2016 AISC 39% lower than Q1 2015 Continued focus on cost reductions and efficiencies Lower C1 cost Lower mining and processing costs Lower royalty costs - 20% Zambian
Slide 11: Q1 2016 Gross Profit versus Q1 2015 – Continuing operations
Q1 2016 Gross Profit versus Q1 2015 – Continuing operations Gross profit $82m above Q1 2015 as lower realized metal prices are more than offset by cost savings, higher sales volumes, favorable FX and reduced royalties 106 38 105 (58) $ million 23 71 26 (101) Gross Sales Q1 2015 realized FX Costs Dep
Slide 12: Q1 2016 vs. Q1 2015 Cost Savings
Q1 2016 vs. Q1 2015 Cost Savings1 Net acid costs $28m lower driven by Kansanshi smelter 2% production of sulphuric acid 28 Lower employee, contractor Employee/Contractors/ Maintenance costs and maintenance costs $116m Q1 on Fuel/Power/Freight/ Lower consumable, fuel, Q1 savings 57 Consumables
Slide 13: Capital Expenditure - Total capital spend within guidance
Capital Expenditure - Total capital spend within guidance Q1 2016 Cobre Panama capex on US$ million track with full year Cobre Panama 155 guidance Net to First Quantum 93 Cobre Panama Funding ($bn) Trident project 28 Stripping costs 16 Other sustaining capex and other projects 23 Total net capex1 16
Slide 14: Long Term Debt Profile
Long Term Debt Profile Debt Maturity Profile ($m) Covenant Ratio Q1 2016 Liquidity No bond principle due Net debt/EBITDA covenant Q1 2016 liquidity: until 2019 ratio of 5.1x - within bank $269m unrestricted cash covenant of 5.5x $1.80bn undrawn RCF (expires 2019) 1,163 1,122 850 619 537 537 1,152 1,
Slide 15: Zambian Developments
Zambian Developments • The Zambian government have introduced into Parliament a bill, with a proposed effective date of April 1, 2016 for the approval of changes to the mining tax regime • Copper mineral royalties proposed reduction to 4-6% sliding scale based on monthly average LME price • Corporat
Slide 16: Market Guidance 2016
Market Guidance 2016 2016 Production guidance from continuing operations • Production guidance is shown for continuing operations and therefore excludes Kevitsa • Copper and zinc production guidance on a continuing basis is unchanged • Gold production guidance has been increased from guidance issued
Slide 17: Appendix
APPENDIX 17
Slide 18: Quarterly Net Debt Movement
Quarterly Net Debt Movement Opening Net Debt at December 31, 2015 ($ million) (4,696) Comparative EBITDA 269 Working capital and tax (38) Gross capital expenditure including pre-commercial (259) Net interest paid1 (111) Part repayment of ENRC promissory note 32 Other 8 Net debt movement (99) Closing
Slide 19: First Quarter 2016 Conference Call & Webcast
FIRST QUARTER 2016 CONFERENCE CALL & WEBCAST TSX: FM; LSE: FQM APRIL 29, 2016