First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q1 2024 Earnings Presentation
43 slides from First Quantum Minerals's earnings presentation, Apr 24, 2024
Slide 1: First Quarter 2024 Financial & Operating Results
First Quarter 2024 Financial & Operating Results RESPONSIBLE GROWTH TSX FM
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION 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: Opening Remarks
Cobre Panamá OPENING REMARKS Tristan Pascall, CEO RESPONSIBLE GROWTH TSX FM
Slide 4: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS TOTAL COPPER PRODUCTION Recent Developments • Completion of a comprehensive refinancing plan including: 100,605t 37% decrease from Q4 2023 due to no • • $500 million prepay agreement with Jiangxi Copper Amendments and extension to the term loan and revolving credit facility produc
Slide 5: Cobre Panamá Update
COBRE PANAMÁ UPDATE • Remains in a phase of Preservation and Safe Management (“P&SM”) with production guidance suspended • ~121 thousand DMT of copper concentrate remains on site • Request sent to authorities to put power plant into operation, which is critical for ongoing implementation of P&SM pla
Slide 6: Zambian Power Supply
ZAMBIAN POWER SUPPLY • Company anticipates it will be able to substitute power curtailed by ZESCO with imports, avoiding any major interruption to its Zambian operations Background Immediate Action Long-term solutions • Q1 2024, ZESCO revealed plan to • Engaged with licensed power • Signed letter of
Slide 7: 2024 Guidance Unchanged
2024 GUIDANCE UNCHANGED PRODUCTION GUIDANCE COST AND CAPEX GUIDANCE 2024E Copper Cost Guidance ($/lb) 2024E Kansanshi 130 – 150 C11 1.80 – 2.05 Sentinel 220 – 250 AISC1 2.70 – 3.00 Other sites 20 Copper production (K tonnes) 370 – 420 Nickel Cost Guidance ($/lb) 2024E C11 7.00 – 8.50 Kansanshi 65
Slide 8: ESG Highlights
ESG HIGHLIGHTS International Women’s Day Seed Projects at Cobre Las Doubling down on tree planting Çayeli's Women’s cooperative Cruces Trident celebrated International Women’s Our team at Kansanshi aims to plant Day by hosting 30 female entrepreneurs The Cobre Las Cruces Foundation The Women’s Coope
Slide 9: Operational Overview
Sentinel OPERATIONAL OVERVIEW Rudi Badenhorst, COO RESPONSIBLE GROWTH TSX FM
Slide 10: Kansanshi
KANSANSHI Q1 2024 COPPER PRODUCTION 2024 Outlook 31,473t 1% lower than Q4 2023; Unplanned smelter • Copper grades expected to improve over 2024 with higher-grade material from higher elevation areas at M15 and M17 cutbacks shutdown resulted in low acid stock availability to treat higher-grade materi
Slide 11: Trident (Sentinel & Enterprise)
TRIDENT (SENTINEL & ENTERPRISE) Q1 2024 COPPER PRODUCTION 2024 Outlook 62,225t 4% higher than Q4 2023 due to higher grades • Copper grades to normalize for remainder of 2024 while throughput expected to increase due to Stage 3 (Western Cut-back) development enabling increased access to softer materi
Slide 12: Other Mines
OTHER MINES Las Cruces Çayeli NI 43-101 published February 2024 Q1 2024 PRODUCTION: 3,033t Cu, and 1,187t Zn Continue to pursue sales process Q1 2024 C1 CASH COST1: $1.96 per lb Cu 2024 PRODUCTION GUIDANCE: 9Kt Cu, 3.5kt Zn Guelb Moghrein Q1 2024 PRODUCTION: 3,874t Cu Q1 2024 C1 CASH COST1: $2.19 pe
Slide 13: Financial Overview
Kansanshi Smelter FINANCIAL OVERVIEW Ryan MacWilliam, CFO RESPONSIBLE GROWTH TSX FM
Slide 14: Q1 2024 Revenues and Costs
Q1 2024 REVENUES AND COSTS REALIZED COPPER PRICE1 (per lb) Increased revenue (excl. Cobre Panamá) quarter-over-quarter, driven by higher $3.78 realized metal prices and improved Zambian sales volumes ~400kt Up 4% quarter-over-quarter 5.00 100 Copper concentrates treatment charges (TC), $/t 90 REVENU
Slide 15: Q1 2024 Net Loss and EBITDA
Q1 2024 NET LOSS AND EBITDA¹ EBITDA¹ EBITDA¹ excluding Cobre Panama, higher quarter-over-quarter driven by improved sales volumes at Sentinel. $180 million Net Loss reduced quarter-over-quarter due to a previous quarter impairment charge³ of ~$900 million. Down 34% quarter-over-quarter Up 70% exclud
Slide 16: EBITDA Waterfall (excl. Cobre Panamá & Share of JV)
EBITDA¹ WATERFALL (EXCL. COBRE PANAMÁ & SHARE OF JV) 3 EBITDA1,3 (excl. Cobre Panamá and share of JV) is $116 million higher than Q4 2023, main driver being higher Sentinel sales volumes, favourable realized metal prices and lower operating costs across the Zambian operations. External Factors (+$44
Slide 17: Copper C1 Cash Cost
COPPER C1 CASH COST¹ Lower unit cash costs driven by improved production. Higher other cash costs driven by Kansanshi acid purchases due to smelter breakdown, coupled with higher freight costs due to higher volumes of Sentinel concentrate sold, but offset by lower electricity charges due to a one ti
Slide 18: Quarterly Net Debt Movement
QUARTERLY NET DEBT1 MOVEMENT Net debt1 decreased by $1,143 million during the quarter primarily attributable to proceeds of the share issuance of $1,103 million and receipt of $500 million under the prepayment from Jiangxi Copper. $1.8bn Liquidity 31 March 2024 $711m $1,050m Unrestricted Undrawn Cas
Slide 19: Debt Maturity Profile
DEBT MATURITY PROFILE Materially de-risked liquidity and debt maturity profile following the balance sheet initiatives As at December 31, 2023 As at March 31, 2024 2,843 1,050 1,930 $ million $ million 250 1,600 255 1,500 180 - - 1,300 1,300 488 - - 1,000 807 625 1,500 1,500 1,600 1,300 425 1,300 17
Slide 20: Balance Sheet Initiatives
BALANCE SHEET INITIATIVES REFINANCING AND ONGOING ACTIONS COMPLETED INITIATIVES ONGOING INTIATIVES RECAPITALISATION WHY? WHAT HAS BEEN DONE? WHAT IS UNDERWAY? REDUCE LEVERAGE DIVIDEND SUSPENSION ASSET SALES OF SMALL MINES $500m JIANGXI COPPER PREPAY STAKE SALES IN LARGER MINES ENHANCE LIQUID
Slide 21: Closing Remarks
Reforestation Initiatives Cobre Panamá CLOSING REMARKS Tristan Pascall, CEO RESPONSIBLE GROWTH TSX FM
Slide 22: S3 Expansion
S3 EXPANSION S3 Expansion Works Progress-To-Date Outlook • Additional concentrator capacity • Detailed design and engineering largely complete • Majority of capital spend expected in 2024 • Additional SAG and ball mill • Major long-lead equipment deliveries to continue through Q2 2024. • Production
Slide 23: Enterprise
ENTERPRISE Enterprise Works Progress-To-Date Outlook • Main workstream is pre-strip • First ore Q1 2023; First concentrate in Q2 2023; • Second column expected to be First concentrate sale in Q3 2023 commissioned in Q2 2024 • 4 Mtpa processing circuit mainly constructed in 2014 as part of • All majo
Slide 24: Capital Allocation - 2024 and Beyond
CAPITAL ALLOCATION - 2024 AND BEYOND Focus on debt reduction, consistent operational performance in Zambia, execution of brownfield expansions and Cobre Panamá resolution 1. Balance Sheet Initiatives 2. Brownfield 3. Greenfield With Cobre Panamá in a phase of P&SM, Balance sheet management currently
Slide 25: Upcoming Events
UPCOMING EVENTS May 9, 2024 • ANALYST/INVESTOR DINNER (Toronto) June 20, 2024 • ANALYST/INVESTOR DINNER (London) Q2 2024 • PUBLICATION OF ESG, CLIMATE AND TAX TRANSPARENCY REPORTS July 23, 2024 • Q2 2024 FINANCIAL AND OPERATING RESULTS (Conference call July 24, 2024) October 22, 2024 • Q3 2024 FINAN
Slide 26: Appendix
APPENDIX RESPONSIBLE GROWTH TSX FM
Slide 27: Copper Cash Cost and AISC
COPPER CASH COST¹ AND AISC¹ Lower quarterly copper C1 cash cost¹ and AISC¹ (excluding Cobre Panamá) of $2.01/lb and $2.77/lb, respectively, driven by The First Quantum Financial Policy lower production. COPPER C1¹ ($/lb) COPPER AISC¹ ($/lb) 3.00 2.70 2.05 2.78 3.57 1.80 3.08 2.97 2.77 2.85 2.23 2.54
Slide 28: Financial Summary
FINANCIAL SUMMARY EBITDA¹ andQuantum The First cash flows were impacted Financial Policy by no sales volumes from Cobre Panamá, but benefitted from higher realized metal prices and improved performance from Zambian operations. $ millions (except per share numbers) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1
Slide 29: Net Leverage Covenant
NET LEVERAGE COVENANT Increase in net leverage covenant from 3.50x to 5.75x until June 30,2025. 5.75x 5.75x 5.00x 5.00x 4.25x 4.25x 3.75x 3.75x Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Q4 26 29
Slide 30: Non-GAAP EBITDA and Adjusted Earnings (Loss) Reconciliation
NON-GAAP EBITDA1 AND ADJUSTED EARNINGS (LOSS)1 RECONCILIATION $ millions (except per share numbers) Q1 2024 Q4 2023 Q1 2023 Operating profit (loss) 20 (984) 225 Depreciation 157 226 271 Foreign exchange loss (gain) (20) 43 16 Impairment expense 10 900 - Share of results of joint venture 1 35 - Royal
Slide 31: EBITDA (Excluding Cobre Panamá and Share of JV)
EBITDA (EXCLUDING COBRE PANAMÁ AND SHARE OF JV) The First Quantum Financial Policy $ millions Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Group EBITDA¹ 180 273 969 568 518 Less Cobre Panamá EBITDA¹ (70) 131 600 373 314 Less share of joint venture profit (loss) included in Group results (31) ² (23) 29 8
Slide 32: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C12 AND AISC2 $ millions Q1 2024 Q4 2023 Q1 2023 Cost of sales¹ (880) (1,131) (1,278) Depreciation 157 226 271 By-product credits 73 92 119 Royalties 62 85 65 Treatment and refining charges (25) (42) (53) Freight costs (15) (12) (3) Finished goods 72 (61) (8) Other4
Slide 33: EBITDA Sensitivity
EBITDA¹ SENSITIVITY The First Quantum Financial Policy Impact on March 2024 Actual price/rate Assumption QTD EBITDA¹ of a 10% QTD March 2024 change in price/rate Copper $3.83/lb $87 million Gold $2,070/oz $5 million Nickel $7.52/lb $7 million Zambian kwacha 25.57 ZMW/USD $4 million 1 EBITDA is a non
Slide 34: Kansanshi, Including S3 Expansion
KANSANSHI, INCLUDING S3 EXPANSION Ownership Mine Type Processing Rate S3 Expansion 80% First Quantum Open Pit Adjacent 1.38 Mtpa S3 25 Mtpa Expansion smelter 20% ZCCM-IH Vein deposit, mixed (First production 2025) 27 Mtpa circuit (oxide, supergene and oxide Smelter expansion to 1.6 Mtpa mixed, sulph
Slide 35: Kansanshi Pit Development
KANSANSHI PIT DEVELOPMENT M18 M16 M17 Source: Kansanshi 43-101 Technical Report June 2020 35
Slide 36: Trident (Sentinel & Enterprise)
TRIDENT (SENTINEL & ENTERPRISE) Ownership Mine Type Sentinel Processing Enterprise Processing 100% First Quantum Open Pit 62 Mtpa Sulphide circuit 4 Mtpa Sulphide circuit Sentinel: Copper First ore Q1 2023 Enterprise: Nickel First nickel concentrate Q2 SENTINEL & 2023 ENTERPRISE First sale Q3 2023 P
Slide 37: Sentinel Pit Development
SENTINEL PIT DEVELOPMENT Source: Trident 43-101 Technical Report March 2020 37
Slide 38: Cobre Panamá, Including CP100 Expansion
COBRE PANAMÁ1, INCLUDING CP100 EXPANSION Ownership Mine Type Processing Rate CP100 Expansion 90% First Quantum Open Pit 85 Mtpa Sulphide circuit Expansion to 100 Mtpa 10% KOMIR Cu-Au-Ag-Mo Porphyry P&P Reserves M&I Resources Inferred Resources 2,767.7 Mt 3,313.0 Mt 1,084.5 Mt 0.37% Cu 0.37% Cu 0.26%
Slide 39: Las Cruces Underground Project
LAS CRUCES UNDERGROUND PROJECT • Benefits from existing team, workforce and Las Cruces Underground Resource Classification infrastructure MINERAL RESOURCE STATEMENT AS OF SEPTEMBER 30, 2023 • Environmental permits received in 2020; Mine Tonnes CuEq Cu Zn Pb Ag exploitation permit received in 2021; W
Slide 40: Taca Taca
TACA TACA 275,000 Low 32 Years US$3.6 Billion Tonnes of Cu C1 Cash Costs Mine Life Capital Per Year (Peak) Investment • 50 - 200 Megawatts of Renewable Energy • Primary ESIA for the project continues to be under evaluation by the Secretariat of Mining of Salta Province with approval still expected i
Slide 41: La Granja
LA GRANJA La Granja is one of the largest undeveloped copper resources in the world, with potential to support a multi-decade open-pit operation • First Quantum is the operator with a 55% interest • Large copper project in northern Peru • Partnership with Rio Tinto, acquired in August • Located in t
Slide 42: Haquira Overview
HAQUIRA OVERVIEW • Large scale porphyry copper project in Apurímac, Southern Peru • Acquired in December 2010 • One of the world’s major undeveloped copper deposits • 703.7 million tonnes at 0.51% Cu M&I and 683.9 million tonnes at 0.40% Cu Inferred (cut-off grade 0.2%Cu) • Focus on community, envir
Slide 43: First Quantum Minerals Ltd. contact details
First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577 RESPONSIBLE GROWTH TSX FM
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