First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Investor Presentation (December 2013)
24 slides from First Quantum Minerals's investor presentation, December 2013
Slide 1: The New Leader in Global Copper
The New Leader in Global Copper December 2013 TSX: FM; LSE: FQM
Slide 2: Cautionary Note Regarding Forward-Looking Statement
Cautionary Note Regarding Forward-Looking Statement 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 a
Slide 3: First Quantum Minerals - The New Leader in Global Copper
First Quantum Minerals - The New Leader in Global Copper • Geographically diversified asset base • 6 major projects with completion targeted from mid-2014 to 2017 • 7 high-quality, stable operations; current total copper and nickel production • Total production capacities for copper and capacities o
Slide 4: Strong Q3 2013 Results
Strong Q3 2013 Results • Copper production 36% higher to 114,488 tonnes • Nickel production up 26% to 12,485 tonnes • Gold production 29% higher to 65,368 ounces • Copper production cash costs lower by 19% to $1.16 per pound • Comparative net earnings of $143.6 million or $0.24 per share • inclusive
Slide 5: High-Quality, Stable Operations
High-Quality, Stable Operations 5
Slide 6: Kansanshi Cu-Au mine, Zambia
High-Quality, Stable Operations Kansanshi Cu-Au mine, Zambia • Located near Solwezi in the north western Province of Zambia • First production in 2005 • Open pit mining • Flexible ore treatment to allow for variation in ore type : – sulphide circuit; oxide circuit; gold facility • As at December 31,
Slide 7: Kansanshi Cu-Au mine, Zambia
High-Quality, Stable Operations Kansanshi Cu-Au mine, Zambia • Higher year-over-year production reflecting capacity expansion Expansion Estimate Production • Q3 ‘13 performance Project Capacity Completion Cost Impact – 71,037 tonnes of copper; (US$M) 43,904 ounces of gold Oxide 7.2 mtpa Complete 34
Slide 8: Guelb Moghrein Cu-Au mine, Mauritania
High-Quality, Stable Operations Guelb Moghrein Cu-Au mine, Mauritania • 100% ownership • Located 250 kilometres northeast of the nation’s capital, Nouakchott • As at December 31, 2012, the estimated mine life was ~ 9 years (including stockpiles) based on current operations • First production in 2006
Slide 9: Guelb Moghrein Cu-Au mine, Mauritania
High-Quality, Stable Operations Guelb Moghrein Cu-Au mine, Mauritania • Stronger, more sustained performance over the past 12 months • Focused on improving plant availability • IOCG type deposit - structure and mineralogy has common features with other IOCG deposits elsewhere in the world • Magnetit
Slide 10: Ravensthorpe Ni mine, Australia
High-Quality, Stable Operations Ravensthorpe Ni mine, Australia • Acquired as a decommissioned plant in 2010 • First production within 20 months of purchase • Estimated mine life of 32 years • Commercial production declared Dec 28 2011 • Workforce = ~405 • Q3 ‘13 performance – 9.917 tonnes of contai
Slide 11: Kevitsa Ni-Cu-PGE mine, Finland
High-Quality, Stable Operations Kevitsa Ni-Cu-PGE mine, Finland • Built, commissioned and started commercial operations within 36 months of board approval • Estimated mine life of 29 years • Commercial production declared August 2012 • Workforce = ~290 • Further potential – Process optimization – Ap
Slide 12: Las Cruces Cu mine, Spain
High-Quality, Stable Operations Las Cruces Cu mine, Spain • Acquired in March 2013 • Estimated mine life of 9 years; potential for extension • Current average reserve grade of 5.4% copper • Workforce = 250 direct employees; 650 contractors • Annual production capacity – 72,000 tonnes of copper catho
Slide 13: Çayeli Cu-Zn mine, Turkey
High-Quality, Stable Operations Çayeli Cu-Zn mine, Turkey • Acquired in March 2013 • Estimated mine life of 6 years with potential for an additional 3 years • Average grade of 3.1% copper and 3.6% zinc • Workforce = 493 employees • Q3 2013 C1 cash cost of US$0.98/lb. copper • 2013 Estimates: – 23,00
Slide 14: Pyhäsalmi Cu-Zn mine, Finland
High-Quality, Stable Operations Pyhäsalmi Cu-Zn mine, Finland • Acquired in March 2013 • One of the most efficient underground mines in the world • Estimated mine life of 6 years • Average grade of 1.1% copper and 1.9% zinc • Workforce = 210 employees • Q3 C1 cash cost of US$0.65/lb. copper • 2013 E
Slide 15: Outlook for 2013
Outlook for 2013 Production Copper Nickel Gold Zinc (000’s tonnes) (000’s contained tonnes) (000’s ounces) (000’s tonnes) Group 397 - 416 44 - 47 232 – 250 46 - 50 Kansanshi 260 - 267 - 155 – 165 - Guelb Moghrein 37 - 41 - 56 – 61 - Ravensthorpe - 35 – 37 - - Kevitsa 15 - 16 9 - 10 11 - 12 - Çayeli1
Slide 16: Our Development Project Pipeline
Our Development Project Pipeline 16
Slide 17: Copper Smelter, Zambia
Our Project Pipeline Copper Smelter, Zambia • Processing capacity of 1.2 Mtpa —Combination of concentrate from Kansanshi & Sentinel —Average copper grade 26% • Copper production 300,000 tpa; acid production 1.0 Mtpa • Estimates: − Capital cost of US$690M − Commissioning from mid 2014 • Estimated sav
Slide 18: Sentinel Cu project, Zambia
Our Project Pipeline Sentinel Cu project, Zambia • Located ~ 140 km northwest of Solwezi, northern Zambia • M&I resource of 1,027 Mt at 0.51% Cu grade, containing 5.2 Mt Cu • Estimates: – 2.2:1 LOM strip ratio – >15 years mine life – Annual production up to 300,000 tonnes – US$2.0 billion capex (inc
Slide 19: Cobre Panama Cu project, Panama
Our Project Pipeline Cobre Panama Cu project, Panama • Acquired March 2013 • Large open pit copper project; Larger project than the Panama Canal • Est. mine life of 40 years • Est. average annual production of 260,000 tonnes copper • Progress since acquisition: – Several contracts modified or cancel
Slide 20: Haquira Cu project, Peru
Our Project Pipeline Haquira Cu project, Peru • Focused on community & environmental aspects • Potential: - 20 year mine life – Avg 190k tonnes of copper production per year 20
Slide 21: One of the Few Mining Companies Investing in Building Capacity
One of the Few Mining Companies Investing in Building Capacity
Slide 22: Forces at work in copper market suggest prices driven by greenfield incentive pricing
Forces at work in copper market suggest medium- to long-term prices driven by greenfield incentive pricing as market tightens Design $3.75 - 4.00/lb adjustments and Short- and medium-term substitution corrections to demand Medium- to especially if deficit is expected to be prolonged Slowing growth l
Slide 23: The New Global Copper Leader
The New Global Copper Leader • The New Go-To Copper Producer • Attractive Diverse Geographic Exposure • A Long-Standing Commitment to Social and Environmental Excellence • Creating Value with Our Project Development Expertise 1.8 2018E Copper Production, Mt 1.5 1.5 1.3 1.2 0.9 0.8 0.8 0.6 0.5 0.5 0.
Slide 24: The New Leader in Global Copper
The New Leader in Global Copper December 2013
First Quantum Minerals — Investor Presentation (December 2013) on 6ix