First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Investor Presentation (September 2006)
30 slides from First Quantum Minerals's investor presentation, September 2006
Slide 1: Building an international, low cost mining company
Building an international, low cost mining company September, 2006 (all figures in US dollars where applicable, except where indicated) A copy of this presentation can be downloaded at www.first-quantum.com Disclaimer Disclaimer Some of the statements contained in the following material are forward-
Slide 2: What is First Quantum Minerals? / Share Structure
What What is is First First Quantum Quantum Minerals? Minerals? A track record of growth … Project 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Bw ana Tails Lonshi Mopani Kansanshi Frontier Guelb Moghrein Kashime ? Success Record Generate Discovery Acquisition Evaluation / Feasib
Slide 3: Operations / Corporate Structure
Operations Operations AFRICA Mauritania Democratic Republic of Congo Zambia 5 Corporate Corporate Structure Structure Operating Assets Investment 80% 100% 100% 80% 16.9% 100% MCM COMISA Bwana Mkubwa Mining Kansanshi Mines Mopani Adastra MCM COMISA Bwana Mkubwa Mining Kansanshi Mines Mopani Adastra 1
Slide 4: Financial Snapshot (US$ million) / 2006 Six Month Snapshot
Financial Financial Snapshot Snapshot (US$ (US$ million) million) Operating Cash Flow Net Earnings (loss) (before non-cash working capital changes) 555 702 231 561 319 236 205 153 18 46 5 28 5 -1 -4 -21 2001 2002 2003 2004 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007 = Six month results = First
Slide 5: Zambia & The DRC Copperbelt
Zambia & The DRC Copperbelt 9 The The Copperbelt Copperbelt -- Animation Animation Lusaka 10
Slide 6: Bwana/Lonshi Highlights
Bwana\Lonshi Bwana\Lonshi 11 Bwana Bwana/Lonshi /Lonshi Highlights Lonshi oxide reserve (12/05) – 1.8 million tonnes @ 7.2% Cu (127,163, tonnes of copper) 45,000 - 50,000 tonnes of copper per year Cash costs estimated at $0.76/ lb - $0.83/lb 12
Slide 7: Lonshi Mine (August 2006) / Bwana Mkubwa SX/EW Plant
Lonshi Lonshi Mine Mine (August (August 2006) 2006) 13 Bwana Bwana Mkubwa Mkubwa SX/EW SX/EW Plant Plant 14
Slide 8: Bwana – The future
Bwana Bwana –– The The future future HPL facility at Bwana • Lonshi sulphide Oxide Sources • Lonshi dolomitic ore • External ore • Combination of the above 15 Kansanshi Kansanshi Mine Mine 16
Slide 9: Kansanshi Mine Highlights
Kansanshi Kansanshi Mine Mine 17 Kansanshi Kansanshi Mine Mine Highlights: Commercial production began in April, 2005 Phase one mine plan 16 years Annual Copper Production - 70,000 tonnes in 2005 - 140,000-145,000 tonnes in 2006 2006 cash costs $0.80-$0.85 (excluding smelter price participation) 18
Slide 10: Kansanshi Mine (November 2003 / September 2004)
Kansanshi Kansanshi Mine Mine (November (November 2003) 2003) 19 Kansanshi Kansanshi Mine Mine (September (September 2004) 2004) 20
Slide 11: Kansanshi Mine (January 2005 / March 2005)
Kansanshi Kansanshi Mine Mine (January (January 2005) 2005) 21 Kansanshi Kansanshi Mine Mine (March (March 2005) 2005) Final products: copper in concentrate copper cathode 22
Slide 12: Kansanshi Mine – HPL Facility
Kansanshi Kansanshi Mine Mine –– HPL HPL Facility Facility To treat sulphide concentrate to make product suitable for SX/EW treatment 2 pressure leach vessels Operate at 28 bar and 210° C Oxygen plant, slurry cooling towers, SX/EW plant expansion All under construction with commissioning 4Q 2006 23
Slide 13: Kansanshi Mine – HPL Facility
Kansanshi Kansanshi Mine Mine –– HPL HPL Facility Facility Economics: Capital cost $100 million Initial capacity of 105,000 tonnes of concentrate per annum Additional revenue over 5 years of $195.5 million Cost savings over 5 years of $77.1 million 25 Kansanshi Kansanshi Mine Mine –– HPL HPL Facilit
Slide 14: Kansanshi Mine – HPL Facility
Kansanshi Kansanshi Mine Mine –– HPL HPL Facility Facility cooling towers 27 Kansanshi Kansanshi Mine Mine –– HPL HPL Facility Facility electrowinning tank house 28
Slide 15: Kansanshi HPL Facility / Guelb Moghrein Deposit
Kansanshi Kansanshi Mine Mine –– HPL HPL Facility Facility new electrowinning tank house production 29 Guelb Guelb Moghrein Moghrein Deposit Deposit 30
Slide 16: Guelb Moghrein Deposit Highlights
Guelb Guelb Moghrein Moghrein Deposit Deposit 31 Guelb Guelb Moghrein Moghrein Deposit Deposit Highlights: *Resource (12/03) – 23.7 million tonnes @ 1.88% Cu & 1.41 g/t Au (446,000 tonnes of copper and 1 million ounces of gold) Open pit accessible sulphide ore body Process plan: mill + float + CIL=
Slide 17: Guelb Moghrein Deposit (March 2006)
Guelb Guelb Moghrein Moghrein Deposit Deposit (section) (section) 33 Guelb Guelb Moghrein Moghrein Deposit Deposit (Mar, (Mar, 2006) 2006) 34
Slide 18: Guelb Moghrein Deposit
Guelb Guelb Moghrein Moghrein Deposit Deposit April, 2005 May, 2006 35 Guelb Guelb Moghrein Moghrein Deposit Deposit First Concentrate - July, 2006 36
Slide 19: Frontier Deposit
Frontier Frontier Deposit Deposit 37 Frontier Frontier Deposit Deposit 38
Slide 20: Frontier Deposit Highlights
Frontier Frontier Deposit Deposit Highlights Measured and Indicated Resource (5/05) 167 million tonnes @ 1.17% copper (1,881,700 tonnes of copper) Deposit remains open Process plan: mill + float = copper in concentrate All permits in place Civil construction underway, (full project funding subject t
Slide 21: Frontier Deposit (June 2006)
Frontier Frontier Deposit Deposit (June, (June, 2006) 2006) 41 Frontier Frontier Deposit Deposit (Sept, (Sept, 2006) 2006) pre-stripping of the ore body 42
Slide 22: Frontier Deposit (Sept 2006)
Frontier Frontier Deposit Deposit (Sept, (Sept, 2006) 2006) civil construction 43 Kolwezi Kolwezi Tailings Tailings Project Project 44
Slide 23: Kolwezi Tailings Project
Kolwezi Kolwezi Tailings Tailings Project Project Kolwezi 45 Kolwezi Kolwezi Tailings Tailings Project Project 46
Slide 24: Kolwezi Tailings Project
Kolwezi Kolwezi Tailings Tailings Project Project Tailings resource of 112.8 MT grading 1.49% Cu and 0.32% Co (97% measured under JORC) FM will re-engineer the development plan for Kolwezi incorporating operational expertise gained from the highly successful Bwana Mkubwa tailings re-treatment operat
Slide 25: Exploration – Copperbelt Portfolio
Exploration Exploration What are we looking for? 49 Exploration Exploration –– Copperbelt Copperbelt Portfolio Portfolio 50
Slide 26: Kibamba Prospect, DRC / Kashime Prospect, Zambia
Kibamba Kibamba Prospect, Prospect, DRC DRC Highlights Discovered during 2005 exploration season 10 kilometre long structural zone Initial drill program results: RSF01 - 80 metres grading 2.02% Cu & 0.25% Co RSF13 - 75 metres grading 1.12% Cu & 0.03% Co RSF16 - 82 metres grading 1.88% Cu & 0.12% Co
Slide 27: Outlook – Development Projects
Outlook Outlook 53 Development Development Projects Projects 2004 2005 2006 2007 2008 Kansanshi GM Frontier Kolwezi = Financing & feasibility = Construction (subject to positive feasibility and project finance) = Commercial production 54
Slide 28: Potential Copper Production Profile / EPS & CFPS Estimates
Potential Potential Copper Copper Production Production Profile Profile includes includes Guelb Guelb Moghrein, Moghrein, Frontier Frontier and and Kolwezi Kolwezi (thousand tonnes) ?? 250 80 200 30 30 30 15 119 140 145 165 70 29 41 49 45 45 30 12 2002 2003 2004 2005 2006(e) 2007(e) 2008(e) Bwana Mk
Slide 29: Investment Highlights
Investment Investment Highlights Highlights Pure Copper Play - Earnings and cash flow highly leveraged to copper Unmatched Growth Profile - Copper production to grow from 40K tonnes in 2004 to 270K tonnes in 2007 Blue Sky - On going exploration may lead to new mines 57 58
Slide 30: Building an international, low cost mining company
Building an international, low cost mining company September, 2006 (all figures in US dollars where applicable, except where indicated) A copy of this presentation can be downloaded at www.first-quantum.com
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