First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q2 2014 Earnings Presentation
22 slides from First Quantum Minerals's earnings presentation, Jul 31, 2014
Slide 1: Turning Vision into Reality – Second Quarter 2014
TURNING VISION INTO REALITY Second Quarter 2014 Conference Call & Webcast July 31, 2014 TSX: FM; LSE: FQM
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements 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 statement
Slide 3: Phase 1 Smelter – Aerial View
Phase 1 Smelter – Aerial View 3
Slide 4: Phase 1 Smelter – Cooling Tower
Phase 1 Smelter – Cooling Tower 4
Slide 5: Phase 1 Smelter – Oxygen Plant
Phase 1 Smelter – Oxygen Plant 5
Slide 6: Phase 1 Smelter – Acid Storage
Phase 1 Smelter – Acid Storage 6
Slide 7: Phase 1 Smelter – Substation
Phase 1 Smelter – Substation 7
Slide 8: Phase 1 Smelter – Strong Acid and Converter Area
Phase 1 Smelter – Strong Acid and Converter Area 8
Slide 9: Sentinel – Rougher Flotation
Sentinel – Rougher Flotation 9
Slide 10: Sentinel – Cleaner Flotation
Sentinel – Cleaner Flotation 10
Slide 11: Sentinel – Tails Thickener
Sentinel – Tails Thickener 11
Slide 12: Sentinel – Filtration Building
Sentinel – Filtration Building 12
Slide 13: Sentinel – Concentrate Storage
Sentinel – Concentrate Storage 13
Slide 14: Q2 2014 Highlights
Q2 2014 Highlights Production Q2 2014 vs Q2 2013 Higher copper and nickel production Copper ('000 tonnes) 108k + 4k Nickel ('000 tonnes) 12.2k + 1.3k Gold ('000 ounces) 61k - 3k Copper C1 Cost 8% higher Nickel C1 Cost 24% lower 5.45 1.45 Reduction in nickel C1 cost whilst 1.34 4.16 copper C1 cost 8%
Slide 15: Production
Production 116 114 115 114 113 112 110 Copper production +4% vs Q2 2013 '000 Tonnes 108 108 106 • Kansanshi 4% higher on higher oxide ore processed 104 104 102 • Las Cruces and Kevitsa both higher than Q2 2013 production, with Guelb 100 Moghrein lower with grades and recoveries impacted by processin
Slide 16: Copper C1 Cost
Copper C1 Cost Higher Group copper C1 cost impacted by Kansanshi and Guelb Moghrein 1.60 Group copper $0.11/lb higher than Q2 2013 1.45 1.38 1.40 1.34 • Kansanshi higher mining costs associated with 1.23 exposing oxide ore, plus higher treatment charges 1.20 1.16 • Guelb Moghrein higher mainly due t
Slide 17: Nickel C1 Cost
Nickel C1 Cost Processing efficiencies at Ravensthorpe and Kevitsa driving nickel C1 cost significantly lower Nickel C1 cost 24% lower vs Q2 2013 6.00 Ravensthorpe $1.39/lb lower vs Q2 2013 5.45 • Processing costs $1.01/lb lower mainly from 5.00 4.90 workforce efficiencies, lower cost of sulphur 4.5
Slide 18: Financial Overview
Financial Overview Comparative EBITDA increased $50m on Q2 2013 from higher copper sales & lower costs $ million Q2 2014 Q2 2013(1) Q1 2014 Gross profit 45% higher vs Q2 2013 and 4% higher than prior quarter Revenue 945 869 891 • Higher copper sales volumes Gross Profit 293 201 282 • Lower costs ove
Slide 19: Gross Profit
Gross Profit Higher copper sales volumes combined with lower costs at Ravensthorpe and Kevitsa Higher copper sales at Kansanshi, Las Las Cruces +$9m Cruces and Kevitsa, Çayeli +$24m lower nickel sales at Pyhäsalmi +$3m 350 Ravensthorpe Nickel +$30m Copper ($27m) 36 293 300 Gold ($5m) 19 257 47 250 (
Slide 20: Quarterly Net Debt Movement
Quarterly Net Debt Movement Opening Net Debt at start of Quarter ($m) (3,728) EBITDA 382 Working capital (139) Taxes paid (65) Capital expenditure (619) Net interest paid(1) (26) Dividends paid(2) (150) Other (1) Net debt movement (618) Closing Net Debt at end of Quarter ($m) (4,346) Net Debt compri
Slide 21: 2014 Market Guidance
2014 Market Guidance Q2 Production guidance higher nickel and platinum, lower zinc Copper production(1) Nickel production Gold production 418 – 444k tonnes 45 – 48k contained tonnes 221 – 242k ounces Q1 guidance: 42 – 47k tonnes Zinc production Palladium Platinum 55 - 60k tonnes 22 – 24k ounces 26 –
Slide 22: Turning Vision into Reality – Second Quarter 2014
TURNING VISION INTO REALITY Second Quarter 2014 Conference Call & Webcast July 31, 2014 TSX: FM; LSE: FQM
First Quantum Minerals — Q2 2014 Earnings Presentation on 6ix