Slide 1: Responsible Growth: Q4 and Full Year 2022 Results
TSX FM RESPONSIBLE GROWTH Q4 and Full Year 2022 Financial and Operating Results
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, Chief Executive Officer
Slide 4: Q4 2022 Highlights
Q4 2022 HIGHLIGHTS Recent Developments TOTAL COPPER PRODUCTION • An agreement with ZCCM-IH whereby the dividend rights in KMP have been converted 206,007t Higher than Q3 2022 due to higher to royalty rights • Declared final dividend of CDN$0.13 per share, for a total of CDN$0.29 per share for produc
Slide 5: Full Year 2022 Highlights
FULL YEAR 2022 HIGHLIGHTS Highlights TOTAL COPPER PRODUCTION • January 2022 – Inaugural Climate Change Report 775,859t • March 2022 - $500 million partial redemption of 2023 Notes • May 2022 - Board approval of the S3 Expansion and Enterprise nickel project Lower than 2021 due to Kansanshi. Continue
Slide 6: Cobre Panamá Contract Discussions
COBRE PANAMÁ CONTRACT DISCUSSIONS First Quantum remains ready to reach an agreement that is fair and equitable to both parties Engagement with the Government of Panamá has been ongoing for more than a year on a refreshed concession contract to secure the long-term future of Cobre Panamá Engagement c
Slide 7: Three-Year Guidance
THREE-YEAR GUIDANCE PRODUCTION GUIDANCE COST AND CAPEX GUIDANCE 2023E 2024E 2025E Copper Cost Guidance ($/lb) 2023E 2024E 2025E Cobre Panamá 350 – 380 370 - 400 370 - 400 C11 1.65 - 1.85 1.65 - 1.85 1.60 - 1.85 Kansanshi 130 – 150 130 - 150 140 - 180 AISC1 2.25 - 2.45 2.25 - 2.45 2.20 - 2.45 Sentine
Slide 8: Three-Year Guidance
THREE-YEAR GUIDANCE Production Project Capital in three-year guidance includes: Cobre Panamá: Includes the CP100 Expansion; first ore in Q1 2023 $900 million expenditures for the S3 Expansion (majority of spend to with ramp-up to 100 Mtpa by the end of the year occur over 2023 and 2024) Kansanshi: L
Slide 9: Q4 2022 ESG Highlights
Q4 2022 ESG HIGHLIGHTS Biodiversity Biodiversity Health and Safety Award-winning Teams Trident hosted the National Launch of Cobre Panamá inaugurated the first in 150 Çayeli employees completed North-Western Chamber of Commerce and Industry the 2022/2023 Tree Planting Season vitro culture laboratory
Slide 10: Operational Overview
Sentinel OPERATIONAL OVERVIEW Rudi Badenhorst, Chief Operating Officer
Slide 11: Cobre Panamá
COBRE PANAMÁ Q4 2022 COPPER PRODUCTION 2023 Outlook 89,652t Marginally lower than Q3 2022 on lower • CP100: Pre-commissioning testing has commenced with introduction of first ore in Q1 2023. Ramp up to achieve 100 Mtpa by the end of 2023 throughput. Record volume of ore processed in • 2023 full year
Slide 12: Kansanshi
KANSANSHI Q4 2022 COPPER PRODUCTION 2023 Outlook 34,802t Higher than Q3 2022 due to grade improvement • Copper production to be similar to 2022 levels with lower oxide and sulphide grades • Continued work on reconciliations to incorporate in near-term mine plans to further improve and optimize seque
Slide 13: Sentinel
SENTINEL Q4 2022 COPPER PRODUCTION 2023 Outlook 73,409t Higher than Q3 2022 on record quarterly • Operation has experienced heavy rains in January, impacting mining sequence and operations for Q1 2023 throughput, higher grades and recoveries • Continued focus on mining fleet availability and product
Slide 14: Other Mines
OTHER MINES Pyhäsalmi Q4 2022 PRODUCTION: nil Q4 2022 C1 CASH COST1: nil Las Cruces 2023 PRODUCTION: 350kt of pyrite Underground production ended in August; Last shipment in Q4 Q4 2022 PRODUCTION: 2,229t Cu cathode 2022 Q4 2022 C1 CASH COST1: $4.02 per lb Cu 2023 PRODUCTION GUIDANCE: 9.5kt Cu Reproc
Slide 15: Financial Overview
Kansanshi Smelter FINANCIAL OVERVIEW Ryan MacWilliam, Chief Financial Officer
Slide 16: Q4 2022 Revenues and Costs
Q4 2022 REVENUES AND COSTS • Copper price has risen since start of Q4 due to supply disruptions and relaxing of REALIZED COPPER PRICE1 (per lb) COVID-19 policies in China $3.56 • Revenues increased due to higher realized metal prices1 for copper, gold and nickel. Copper sales flat from Q3 Up 4% quar
Slide 17: Copper C1 Cash Cost Waterfall
COPPER C1 CASH COST¹ WATERFALL • Positive impact of higher grades was offset by higher maintenance activities coupled with lower by product credits ¹ C1 cash cost (C1) is a non-GAAP ratio which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial m
Slide 18: Q4 2022 Earnings and EBITDA
Q4 2022 EARNINGS AND EBITDA1 Q4 2022 Financial Highlights EBITDA¹ • Q4 2022 financial results benefitted from higher copper prices, but was impacted by $647 million • lower gold sales and timing of maintenance spend EBITDA1 increased 11% as higher prices more than offset increased costs Up 11% quart
Slide 19: EBITDA Waterfall
EBITDA¹ WATERFALL • EBITDA¹ $64 million higher than Q3 2022, reflecting increases in copper and nickel prices External Factors External Factors Internal Factors (-$30 million) Internal Factors (-$34 million) (-$353 million) (+$98 million) -$4 million Fuel -$4 million Explosives -$2 million Grinding
Slide 20: Net Debt Evolution
NET DEBT¹ EVOLUTION • Net debt¹ decreased by $361 million in 2022 and by $2 billion since Q2 2020 • The $363 million increase in Q4 2022 was driven by the timing of working capital cash flows and $195 million dividend paid to non-controlling interests • $1 billion in 2023 senior notes redeemed in 20
Slide 21: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES PRIORITIES EXCESS CASH DEBT REPAYMENT Further debt reduction likely post debt reduction targets achieved RE-INVESTING IN THE BUSINESS Sustaining and stripping capital INORGANIC PROJECTS BALANCE SHEET PRESERVATION Target opportunities where First Quantum can unlock Net d
Slide 22: Closing Remarks
CP100 Expansion Feed Conveyors to new Screening Facility CLOSING REMARKS Tristan Pascall, Chief Executive Officer
Slide 23: CP100 Expansion
CP100 EXPANSION CP100 Expansion Works Progress to date Outlook • Process water upgrades • 8 additional ultra-class haul trucks • CP100 ore commissioning in Q1 2023 commissioned ; Rope shovel operational • 100 Mtpa rate by the end of 2023 • Additional ball mill (Ball Mill 6) • PPA signed for CP100 (6
Slide 24: S3 Expansion
S3 EXPANSION S3 Expansion Works Progress To Date Outlook • Additional concentrator capacity • Board approval in May 2022 • Mining fleet deliveries commencing H2 2023 • Additional SAG and ball mill • Long-lead items procured (primary crusher, mills and fleet) • Limited production, expected to • Const
Slide 25: Enterprise
ENTERPRISE Enterprise Works Progress To Date Outlook • Main workstream is pre-strip • Board approval in May 2022; pre-stripping • Plant refurbishment, completion and commenced commissioning activities on schedule • 4 Mtpa processing circuit mainly constructed in 2014 as part of • Mine facilities (sa
Slide 26: Capital Allocation - 2023 and Beyond
CAPITAL ALLOCATION - 2023 AND BEYOND Focus on debt reduction, consistent operational performance and execution of brownfield expansions 1. Balance Sheet 2. Brownfield 3. Greenfield Debt Reduction Cobre Panamá CP100 Expansion Cautious approach to greenfield projects until • Remains a priority • On tr
Slide 27: Upcoming Events
UPCOMING EVENTS April 25, 2023 • Q1 2023 FINANCIAL AND OPERATING RESULTS (Conference call April 26, 2023) May 4, 2023 • ANNUAL GENERAL MEETING May 4, 2023 • ANALYST/INVESTOR DINNER (In-Person, Toronto) June 13, 2023 • INAUGURAL ESG DAY (Virtual) June 28, 2023 • ANALYST/INVESTOR DINNER* (In-Person, L
Slide 28: Appendix
Cobre Panamá Appendix
Slide 29: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT • Net debt increased by $363 million this quarter, driven by an increase in working capital and the payment⁴ of $195 million in dividends to non controlling interest shareholders at Kansanshi operations ¹ EBITDA is a non-GAAP financial measure that does not have a standar
Slide 30: Debt Maturity Profile as at December 31, 2022
DEBT MATURITY PROFILE AS AT DECEMBER 31, 2022 2,093 255 1,475 488 1,500 - 170 $ Millions 455 1,000 - 1,350 455 850 - 2023 2024 2025 2026 2027 Senior Notes Term Loan Trident Term Loan Funding includes $1.3 billion in Revolving Credit Facility expiring 2025, with $770 million drawn as of December 31,
Slide 31: Copper Cash Cost and AISC
COPPER CASH COST¹ AND AISC¹ The First Quantum Financial Policy • Year-to-date copper C1 cash cost¹ and AISC¹ of $1.76/lb and $2.35/lb, impacted by inflationary pressures and lower production COPPER C1 CASH COST¹ ($/lb) COPPER AISC¹ ($/lb) 2.45 2.35 1.80 1.70 2.42 1.86 2.37 2.34 2.35 1.82 2.27 1.74 1
Slide 32: Financial Summary
FINANCIAL SUMMARY • Financials benefitted from higher realized metal prices except cash flow from operations was impacted by increase in receivables held at The First Quantum Financial Policy year end $ Million (except per share numbers) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Sales revenues 1,832 1
Slide 33: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Quarterly Full Year movement movement Closing Net debt¹ at September 30, 2022/ December 31, 2021 (5,329) (6,053) ($ million) EBITDA¹ 647 3,316 Working capital² (340) (345) Capital expenditure (317) (1,167) Interest paid³ (90) (472) Taxes paid (42) (548) Dividends paid - (
Slide 34: Precious Metal Stream Arrangement
PRECIOUS METAL STREAM ARRANGEMENT • Cobre Panamá gold and silver revenues consist of revenues derived from the sale of metals produced by the mine, as well as revenues recognized from the amortization of the precious metal stream arrangement • Stream gold and silver revenues are indexed to copper so
Slide 35: Non-GAAP EBITDA and Adjusted Earnings Reconciliation
NON-GAAP EBITDA¹ AND ADJUSTED EARNINGS¹ RECONCILIATION $ Million (except per share numbers) Q4 2022 Q4 2021 FY 2022 FY 2021 Operating profit 314 722 2,241 2,598 Depreciation 327 314 1,230 1,174 Foreign exchange (gain) loss 25 (13) (184) (159) Impairment expense - 44 - 44 Other expense (income) (5) 1
Slide 36: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C1 AND AISC Guidance$for million Q4 2022 reporting. the upcoming three years is provided annually as part of year-end Q4 2021 FY 2022 On a quarterly FY 2021 for the basis, guidance The First Quantum current year will Financial Policy b updated as necessary or re-affi
Slide 37: EBITDA Sensitivity
EBITDA¹ SENSITIVITY Guidance for the upcoming three years is provided annually as part of year-end reporting. On a quarterly basis, guidance for the The First current Quantum year Financial will b updated Policyor re-affirmed. as necessary Impact on FY EBITDA¹ Actual price/rate FY Assumption of a 10
Slide 38: Cobre Panamá, Including CP100 Expansion
COBRE PANAMÁ, INCLUDING CP100 EXPANSION Ownership Mine Type Processing Rate CP100 Expansion 90% First Quantum Open Pit 85-90 Mtpa Sulphide circuit Expansion to 100 Mtpa (end of 2023) 10% KOMIR Cu-Au-Ag-Mo Porphyry Strip Ratio P&P Reserves M&I Resources Inferred Resources LOM 1:1 2,935.9 Mt 3,471.8 M
Slide 39: Kansanshi, Including S3 Expansion
KANSANSHI, INCLUDING S3 EXPANSION Ownership Mine Type Processing Rate S3 Expansion 80% First Quantum Open Pit 7 Mtpa Oxide circuit S3 25 Mtpa Expansion (First production H2 2025) 20% ZCCM-IH Vein deposit; Primary sulphide, 8 Mtpa Mixed circuit Smelter expansion to 1.6 Mtpa mixed supergene and oxide
Slide 40: Sentinel and Enterprise
SENTINEL AND ENTERPRISE Ownership Mine Type Processing Rate Enterprise 100% First Quantum Open Pit Sentinel: 62 Mtpa Sulphide 4 Mtpa Sulphide circuit (first ore circuit H1 2023) Sentinel: primary sulphide copper SENTINEL & ENTERPRISE Enterprise: hydrothermal sulphide nickel Strip Ratio P&P Reserves
Slide 41: Las Cruces Underground Project
LAS CRUCES UNDERGROUND PROJECT Las Cruces Underground Resource Classification • Benefits from existing team, workforce and infrastructure • Indicative details (not included in 3-year guidance) • 3-4 year development • Mine life >15 years • Annual production ~45 kt CuEq • Environmental permits receiv
Slide 42: Summary of Brownfield Projects
SUMMARY OF BROWNFIELD PROJECTS COBRE PANAMÁ plus CP100 KANSANSHI plus S3 ENTERPRISE LAS CRUCES UNDERGROUND Commodity Cu, Au, Ag, Mo Cu, Au Ni Cu, Zn, Pb, Ag Mine Type Open Pit Open Pit Open Pit Underground Total Production 400 ktpa Cu 250 ktpa Cu 30 ktpa Ni 45 ktpa CuEq • Strong team in place • Stro
Slide 43: 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 Sanction decision not expected before 2024, conditional on market conditions Copper (ktpa) Gold (kozpa) Molybdenum (ktpa) 300 K Tonnes (Cu, Mo)
Slide 44: 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 • M&I resource of 3.7 million tonnes of contained copper equivalent plus an inferred resource of 2.4 million tonnes of copper equivalen
Slide 45: First Quantum Minerals Ltd. Contact
TSX FM First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577