First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q3 2020 Earnings Presentation
25 slides from First Quantum Minerals's earnings presentation, 2020
Slide 1: First Quantum Minerals Q3 2020 Results
FIRST QUANTUM MINERALS
Slide 2: 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 include estimates, forecasts and statements as to the
Slide 3: President and Director
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Slide 4: Tristan Pascall, Director, Strategy
Tristan Pascall Director, Strategy
Slide 5: Normal Operations Resumed – Full Production Levels Attained in early August
Normal Operations Resumed – Full Production Levels Attained in early August ▸ ▸ ▸ ▸ ▸ ▸ ▸ 7
Slide 6: Financial Review
Financial Review
Slide 7: Hannes Meyer, Chief Financial Officer
Hannes Meyer Chief Financial Officer
Slide 8: Overview
OVERVIEW FIRST cuantum MINERALS L Record copper production at Cobre Panama and Sentinel drove the strong operational performance in the quarter, which, coupled with increased metal prices and favorable operating costs meant that the Company achieved a significant increase in comparative EBITDA and a
Slide 9: Q3 Summary - Production
Q3 SUMMARY - PRODUCTION! 2 rans QUANTUM 10% higher > Sentinel continued it’s exceptional performance in the quarter, achieving 71kt, 25% higher than the same period in 2019 and > Total gold production of 73k ounces, 4% higher than surpassing the previous record in Q4 2018 by 16%. the same quarter of
Slide 10: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS riRstOuaNTuM MINERALS V4 j Lowest cash costs in four years / YTD C1 and AISC below guidance TOTAL C1 COST AISC 1.94 32mm’ 3° 1.30 mimiw Ee =. ee ‘7ST call 62 1 aa Guidance Q12019 Q22019 Q32019 Q42019 Q12020 @22020 Q3 2020 Q12019 Q22019 Q32019 Q42019 Q12020 Q22020 Q32020 > T
Slide 11: 2020 Guidance Update
2020 GUIDANCE UPDATE FIRST OtANTUM MINERALS > Total copper production range has increased to 750,000 — 785,000 tonnes with increased guidance at Cobre Panama, Sentinel, Guelb Moghrein and Las Production Guidance! ee iis Cruces. > Gold production has increased to 245,000 - 260,000 Copper (‘000 tonnes
Slide 12: Q3 Summary Financial Overview
Q3 SUMMARY FINANCIAL OVERVIEW Wa & FIRST QUANTUM MINERALS Positive earnings per share of $0.09, 80% higher than Q3 2019 Revenue 1,014 Gross Profit 141 Comparative EBITDA" 352 Comparative Earnings’ (84) Comparative EPS $ (0.12) Net Debt (7,658) $ Million (except per share numbers) Q3 2020 Q22020 Q120
Slide 13: Changes to Comparative EBITDA
& CHANGES TO COMPARATIVE EBITDA 12 FIRST QUANTUM L~ MINERALS 1% increase in comparative EBITDA from higher revenues and lower cash costs 106 (4) | ° (68) 3.2019 Metal prices FX Q3 2019 Hedges Cash costs Sales Other Comparative EBITDA underlying EBITDA 2 volumes 1 Comparative EBITDA is not a GAAP mea
Slide 14: October 2020 Re-financing
October 2020 Re-financing 14
Slide 15: Copper Hedging Program Outlook
COPPER HEDGING PROGRAM OUTLOOK! Wa Approximately half of expected copper sales for the next 12 months hedged g 175.0 150.0 125.0 100.0 75.0 50.0 25.0 Q1 2020 Q22020 Q32020 Q42020 Q12021 Q22021 Q32021 M@@mSwaps Ml@—Collars ——Pricefloor ----Price upside 1 Hedging outlook as at October 28, 2020. Q4 202
Slide 16: Appendix
APPENDIX
Slide 17: Quarterly Net Debt Movement
& QUARTERLY NET DEBT MOVEMENT FIRST QUANTUM Comparative EBITDA 641 Working capital (131) Capital expenditure (138) Net interest paid (197) Taxes paid (46) Other (16) Closing Net Debt at September 30, 2020 ($ million) | (7,545) Cash & cash equivalents" 942 Total debt and overdraft (8,487) ‘Excludes $
Slide 18: 2020 Copper and Gold Production Guidance Update by Site
2020 COPPER AND GOLD PRODUCTION GUIDANCE & UPDATE BY SITE SO Copper production Guidance! are ins Cobre Panama 190-205 180-200 Kansanshi 220-230 220-235 Sentinel 240-250 230-240 Las Cruces 55 52 Other sites 45 43 Gold production Guidance ore iis Cobre Panama 75-85 70-80 Kansanshi 125-130 120-130 Othe
Slide 19: Interest, Tax and Depreciation
Interest Net interest expense for the quarter ended September 30, 2020, was $179 million. A significant proportion of the Company’s interest expense is incurred in jurisdictions where no tax credit is recognized. Interest expense for the full year 2020 remains unchanged and is expected to range betw
Slide 20: Precious Metal Stream Arrangement
& PRECIOUS METAL STREAM ARRANGEMENT FIRST QUANTUM MINERALS Cobre Panama gold and silver revenues consist of revenues derived from the sale of metals produced by the mine, and also revenues recognized from the amortization of the precious metal stream arrangement. Stream gold and silver revenues are
Slide 21: 2021 Zambian Budget
On September 25, 2020, the Minister of Finance announced the 2021 Zambian Budget. There were no material changes to the mining tax and royalty regimes announced. Mineral royalties continue to be non-deductible for tax, and tax rates remain unchanged. The announcement has had no impact on the Company
Slide 22: Non-GAAP Measures Reconciliation: Comparative EBITDA and Earnings
NON-GAAP MEASURES RECONCILIATION & COMPARATIVE EBITDA AND COMPARATIVE EARNINGS LTRS INQ TG Q3 2020 Q3 2019 Operating profit 257 108 Depreciation 323 225 Foreign exchange loss 60 12 Revisions in estimates of restoration provisions at closed sites - 1 Other expense 1 8 Comparative EBITDA ($ million) |
Slide 23: Non-GAAP Measures Reconciliation: C1 and AISC
NON-GAAP MEASURES RECONCILIATION: C1 and AISC ($ million) Q3 2020 Q3 2019 Cost of sales (1,056) (837) Depreciation 323 225 By-product credits 191 109 Royalties 75 48 Treatment and refining charges (46) (43) Freight costs (12) (13) Finished goods (27) 40 Other 15 19 C1 Cost! (537) (452) General and a
Slide 24: EBITDA Sensitivity
EBITDA SENSITIVITY FIRST otatum MINERALS Impact on YTD EBITDA of a 10% Actual price/rate Assumption YTD September : : change in price/ 2020 rate Copper (includes hedge impact) $2.65/Ib $135 million Gold $1,736/oz $30 million Zambian kwacha 17.47 ZMW/USD $15 million Oil (Brent) (includes hedge impact
Slide 25: info@fqml.com
info@fqml.com 416-361-6400 | 1-888-688-6577 TSX FM
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