Slide 1: First Quantum Minerals Third Quarter 2018 Conference Call & Webcast
FIRST QUANTUM MINERALS THIRD QUARTER 2018 CONFERENCE CALL & WEBCAST OCTOBER 30, 2018 TSX: FM OCTOBER 30, 2018 1
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 statements
Slide 3: Cobre Panama – Power Generating Station
COBRE PANAMA – POWER GENERATING STATION TSX: FM OCTOBER 30, 2018 3
Slide 4: Cobre Panama – 'Steam Blowing' – Set 2
COBRE PANAMA – ‘STEAM BLOWING’ – SET 2 TSX: FM OCTOBER 30, 2018 4
Slide 5: Cobre Panama – Overall Mine & Plant
COBRE PANAMA – OVERALL MINE & PLANT TSX: FM OCTOBER 30, 2018 5
Slide 6: Cobre Panama – Milling
COBRE PANAMA – MILLING TSX: FM OCTOBER 30, 2018 6
Slide 7: Cobre Panama – Regrind & Flotation
COBRE PANAMA – REGRIND & FLOTATION TSX: FM OCTOBER 30, 2018 7
Slide 8: Cobre Panama – Primary Crusher & Conveyor
COBRE PANAMA – PRIMARY CRUSHER & CONVEYOR TSX: FM OCTOBER 30, 2018 8
Slide 9: Cobre Panama – Port Facility
COBRE PANAMA – PORT FACILITY TSX: FM OCTOBER 30, 2018 9
Slide 10: Cobre Panama – Mine Pre-Stripping
COBRE PANAMA – MINE PRE-STRIPPING TSX: FM OCTOBER 30, 2018 10
Slide 11: Cobre Panama – Tailings Management Facility
COBRE PANAMA – TAILINGS MANAGEMENT FACILITY TSX: FM OCTOBER 30, 2018 11
Slide 12: Financial Review
FINANCIAL REVIEW
Slide 13: Quarterly Production
QUARTERLY PRODUCTION Group copper production up 4% on Q3 2017 Kansanshi anode production 13% higher than Q2 2018 • Copper production at Kansanshi has shown strong consistent performance over the last four quarters driven by higher milling volumes and improved recoveries across all circuits. • The Ka
Slide 14: Q3 2018 Overview
Q3 2018 OVERVIEW Comparative EBITDA up 40% on Q3 2017 $ Million 40% $ million (except per share numbers) Q3 2017 Q2 2018 Q3 2018 Revenue 877 1,049 978 Gross Profit 83 271 246 Comparative EBITDA1 304 466 427 Comparative Earnings (Loss)1 (28) 128 128 Comparative Earnings (Loss) per share $ (0.04) 0.19
Slide 15: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS Q3 2018 C1 and AISC within full year guidance C1 AISC • Q3 2018 C1 is $0.06/lb above Q2 2018 and $0.13/lb • AISC in Q3 2018 is $0.07/lb higher than Q2 2018 higher than Q3 2017. and $0.08/lb higher than Q3 2017, underlying AISC was $0.02/lb higher than Q3 2017. • Q3 2017 C1
Slide 16: Strengthening the Balance Sheet
STRENGTHENING THE BALANCE SHEET Debt maturity and liquidity profile improved Liquidity at September 30, 2018 $1.9bn Covenant Ratio Net debt/EBITDA covenant ratio of 3.81x which is well below covenant requirement of 4.75x. (1) Note that the Kalumbila term loan is repayable in December 2020 but may be
Slide 17: Hedging Program Outlook
HEDGING PROGRAM OUTLOOK Increasing hedge prices going forward at lower hedge volumes Hedging outlook as at September 30, 2018. TSX: FM OCTOBER 30, 2018 17
Slide 18: Capital Expenditure
CAPITAL EXPENDITURE YTD 2018 2018 2019 2020 $ million Capital Expenditure Actual Guidance Guidance Guidance Cobre Panama Total Cobre Panama Project 1,120 1,330 232 - Funding ($bn) First Quantum share of Cobre Panama Project 784 931 188 - Capitalized stripping costs 145 200 200 200 Sustaining capital
Slide 19: Zambian Proposed Tax Changes
ZAMBIAN PROPOSED TAX CHANGES Changes to mining tax regime • Copper royalties • Import duties • 1.5% increase • 5% on copper concentrates • Introduction of 10% rate above • Effective January 2019 $7,500/t • No longer tax deductible • Effective January 2019 • Sales tax • VAT abolished • Non-refundable
Slide 20: Appendix
APPENDIX TSX: FM OCTOBER 30, 2018 20
Slide 21: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at June 30, 2018 ($ million) (5,865) Comparative EBITDA 427 Working Capital (44) Capital expenditure (including capitalized losses) (523) Net Interest (204) Franco-Nevada tranches streaming receipts 89 Related-party debt movements 89 Net payments to joint
Slide 22: Production and C1/AISC Guidance
PRODUCTION AND C1/AISC GUIDANCE PRODUCTION GUIDANCE (000s’) 2018 2019 2020 Copper (tonnes) – excluding Cobre Panama 595 595 610 Gold (ounces) – excluding Cobre Panama 180 200 195 Zinc (tonnes) 25 17 5 Cobre Panama – copper (tonnes) - 150+ 270 - 300 CASH COSTS1 2018 2019 2020 C1 (per lb) $1.20 - $1.4
Slide 23: First Quantum Minerals
FIRST QUANTUM MINERALS THIRD QUARTER 2018 CONFERENCE CALL & WEBCAST OCTOBER 30, 2018 TSX: FM OCTOBER 30, 2018 23