First Quantum Minerals Ltd. · TSX:FM

First Quantum Minerals — Investor Presentation (April 2011)

30 slides from First Quantum Minerals's investor presentation, April 2011

  1. Slide 1: Global Diversified

    Global Diversified TSX: FM LSE: FQM www.first-quantum.com April 2011

  2. Slide 2: Cautionary Note Concerning Forward-Looking Statements

    Cautionary Note Concerning Forward-Looking Statements Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently

  3. Slide 3: A Growing Diversified Metals and Mining Company

    A Growing Diversified Metals and Mining Company Profile: Copper Production Objectives  A mid-tier mining and metals company 000’s tonnes currently producing LME grade "A" 1,000 copper cathode, copper in concentrate, gold and sulphuric acid 800 Core strength: 600  Discovering, developing and operat

  4. Slide 4: A Solid Track Record

    A Solid Track Record Revenue Earnings* Operating Cash Flow ($ millions) ($ millions) ($ millions) $2,378 $557 $900 $520 $772 $1,864 $419 $678 $1,740 $399 $637 $1,539 $564 $300 $1,095 $155 $237 $445 $114 $28 $46 *Before impairments and other adjustments 4

  5. Slide 5: A Strong Operating Base

    A Strong Operating Base Unit Cash Margin Debt to Capitalization Cash & Equivalents (US$/lb copper) (US$ millions) Ratio $2.80 1.60 $1,400 $2.10 1.20 $1,050 $1.40 0.80 $700 $0.70 0.40 $350 $- 0.00 $- 5

  6. Slide 6: Strong Operating Base & Development Pipeline

    Strong Operating Base & Development Pipeline  Operations  Projects  Exploration — Kansanshi, Zambia — Ravensthorpe, Australia — Enterprise, Zambia — Guelb Moghrein, Mauritania — Kevitsa, Finland — Fishtie, Zambia — Sentinel, Zambia — Haquira, Peru  Other Investment — Mopani (16.9%), Zambia 6

  7. Slide 7: Advancing Growth & Diversification Strategy

    ADVANCING GROWTH & DIVERSIFICATION STRATEGY 7

  8. Slide 8: Growth and Diversification

    Growth and Diversification Copper Production Objectives 000’s tonnes  Copper production objective: 1,000 — 46% growth to 470,000 tonnes in 2015 – 800 excluding potential from Sentinel and 600 Haquira which could add a further 500,000 tonnes 400  Nickel production objective: 200 — Beginning in 2011

  9. Slide 9: Expanding the Kansanshi Mine (80%), Zambia

    Expanding the Kansanshi Mine (80%), Zambia  Located near Solwezi, Zambia  Copper-gold operation  Production began in 2005  2010 production  231,124 tonnes of copper  109,629 ounces of gold 9

  10. Slide 10: Expanding the Kansanshi Mine (80%), Zambia

    Expanding the Kansanshi Mine (80%), Zambia  Stepped up exploration program  Primary focus on the Southeast Dome prospect  Updated reserves & resources estimate by end of 2011  Will provide design details for Phase 2 expansion  60% expansion to the production capacity over the 2011 – 2015 timefr

  11. Slide 11: Optimizing Guelb Moghrein (100%), Mauritania

    Optimizing Guelb Moghrein (100%), Mauritania  Located near Akjoujt, Mauritania  Copper-gold operation  Production began in 2006  2010 production  36,969 tonnes of copper  81,766 ounces of gold  Estimated 8-year remaining mine life; ongoing exploration 11

  12. Slide 12: Optimizing Guelb Moghrein (100%), Mauritania

    Optimizing Guelb Moghrein (100%), Mauritania  Optimizing recent expansion — Throughput capacity expansion to 3.8 million tonnes per year  Combination of increased production and enhanced recoveries will allow annual copper production to rise to approximately 50,000 tonnes  Ongoing exploration at

  13. Slide 13: Ravensthorpe Nickel Project (100%), Australia

    Ravensthorpe Nickel Project (100%), Australia  Located in Western Australia  Three lateritic deposits — Halleys, Hale-Bopp and Shoemaker-Levy — Resource comprises 385Mt @ 0.62% Ni and the reserve comprises 235Mt @ 0.67% Ni  Open pit using conventional drill and blast, load and haul system  Proce

  14. Slide 14: Ravensthorpe on Schedule for Commissioning

    Ravensthorpe on Schedule for Commissioning  85% of nameplate capacity  Average annual production of nickel metal: — 39,000 tonnes for the first five years; 28,000 tonnes over the life of mine  C1 cost estimate: — $5.00/lb nickel — $3.00/lb without realization  Expected mine life >30 years  Capi

  15. Slide 15: Kevitsa Nickel-Copper Project (100%), Finland

    Kevitsa Nickel-Copper Project (100%), Finland  Located in northern Finland  Open pit mine — Estimated measured and indicated resources of 240 million tonnes grading 0.30% nickel; 0.28 nickel sulphide; 0.41% copper; using a nickel cut-off grade of 0.1%  Conventional processing to produce two conce

  16. Slide 16: Kevitsa on Schedule for Completion

    Kevitsa on Schedule for Completion  At initial capacity average annual production — 10,000 tonnes of nickel — 20,000 tonnes of copper  LOM C1 cost estimate of $2.50/lb nickel, net of by product credits  Capital cost estimate of $400 million  Estimated mine life >20 years  Assumptions: — nickel

  17. Slide 17: Trident Project (100%), Zambia

    Trident Project (100%), Zambia  Located in Northwestern Province – approx.150 kilometres from Kansanshi mine  Acquired in January 2010  Trident project comprises five prospecting licences totaling 2,300 square kilometres that includes: — Sentinel copper deposit — Enterprise nickel target 17

  18. Slide 18: Trident Project - Sentinel Deposit, Zambia

    Trident Project - Sentinel Deposit, Zambia  Significant drill program underway with 16 drills onsite  Excellent continuity of mineralization  Mining and processing conditions appear relatively straightforward  Mining licence application about to be filed  Extensive CSR program already underway

  19. Slide 19: Sentinel Deposit Drill Pattern – February 2011

    Sentinel Deposit Drill Pattern – February 2011 Completed >260 holes for 90,000m 19

  20. Slide 20: Sentinel's Estimated Potential

    Sentinel’s Estimated Potential  Internal evaluation assumptions: — Resource in the range of at least 700 million tonnes at a headgrade in the range of 0.65% to 0.80% copper — Annual throughput rate of 40 million tonnes — Annual production of ~250,000 tonnes of copper — Capital cost in the range of

  21. Slide 21: Potential New Copper Smelter, Zambia

    Potential New Copper Smelter, Zambia  Bulk of Kansanshi concentrate treated at smelters ~ 250 kilometers from mine site  Limited smelter capacity  Substantial production increase expected from Kansanshi mine and Sentinel deposit  Evaluation underway to determine the economics and options for bui

  22. Slide 22: Haquira Copper Deposit (100%), Peru

    Haquira Copper Deposit (100%), Peru  Acquired in December 2010  Large scale copper project located in southern Peru — M&I resource of 3.7 million tonnes of copper equivalent and an inferred resource of 2.4 million tonnes of copper equivalent  Current priorities: — Expand infill and condemnation d

  23. Slide 23: A Significant and Growing Copper Producer

    A Significant and Growing Copper Producer Total Copper Production Copper Production 000’s tonnes Lbs per common share 1,000 Base Further potential 800 2010F 8.26 - 2012F 9.21 - 600 2013F 9.46 - 2014F 10.49 6.39 400 2015F 12.02 12.79 200 - 04 05 06 07 08 09 10 12F13F14F15F Actual Further potential As

  24. Slide 24: An Emerging Nickel Producer

    An Emerging Nickel Producer Total Nickel Production Nickel Production 000’s tonnes Lbs per common share 2011F 0.38 2012F 1.28 2013F 1.33 2014F 1.41 24

  25. Slide 25: Lowering Political Risk Profile

    Lowering Political Risk Profile Country Ease of Doing Business Australia 10 Finland 13 Peru 36 Zambia 76 Mauritania 165 Source: World Bank Survey – Doing Business 2011  The Doing Business project provides objective measures of business regulations and their enforcement across 183 economies and sele

  26. Slide 26: Goal: A Globally Diversified Mining Company

    Goal: A Globally Diversified Mining Company  Technical strength at the core of growth strategy  Existing operations provide a solid platform to support growth  Strong financial position and cash flow  2011 milestones in execution of growth strategy: — Emergence as a nickel producer — Establishin

  27. Slide 27: Global Diversified

    Global Diversified TSX: FM LSE: FQM www.first-quantum.com April 2011

  28. Slide 28: Corporate Profile

    Corporate Profile Stock exchange listings & symbols – (S&P/TSX 60 Index) TSX: FM LSE: FQM Shares issued and outstanding 86.2 million Fully diluted 95.1 million 52-week share price range C$138.25-C$48.20 Recent share price – March 28, 2011 C$120.60 Market capitalization – $ millions C$10.4 billion Av

  29. Slide 29: Financial Summary

    Financial Summary Year ended December 31, 2010 Total revenues $2,378.2M Cost of sales $1,050.7M Net earnings, before impairment and acquisition costs $557.4M Earnings per share, before impairment and acquisition costs $6.94 Cash flow before working capital movements $899.8M Financing activities $(11

  30. Slide 30: Operating Summary

    Operating Summary Year ended December 31, 2010 Copper produced – (tonnes) 323,017 Copper sold – (tonnes) 311,560 Gold sold – (ozs) 188,368 Copper in concentrate inventory – (tonnes) 36,753 Cash cost – (per lb) $1.18 Total cost – (per lb) $1.47 Realized copper price – (per lb) $2.98 Realized gold pri

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