Slide 1: Turning Vision into Reality: Fourth Quarter and Year 2014
TURNING VISION INTO REALITY Fourth Quarter and Year 2014 Conference Call & Webcast February 20, 2015 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: Guelb: First Magnetite – December 2014
GUELB: FIRST MAGNETITE – DECEMBER 2014
Slide 4: Ravensthorpe: Tank Removed from Leach Area
R AV E N S T H O R P E : TA N K 9 R E M O V E D F R O M L E A C H A R E A
Slide 5: Sentinel: Concentrate in Production
S E N T I N E L : C O N C E N T R AT E I N P R O D U C T I O N
Slide 6: Smelter: First Anodes Dec
S M E LT E R : F I R S T A N O D E S D E C 2 8 , 2 0 1 4
Slide 7: Smelter: First Anodes Dec
S M E LT E R : F I R S T A N O D E S D E C 2 8 , 2 0 1 4
Slide 8: Smelter: First Anodes Dec
S M E LT E R : F I R S T A N O D E S D E C 2 8 , 2 0 1 4
Slide 9: Smelter: First Anodes Dec
S M E LT E R : F I R S T A N O D E S D E C 2 8 , 2 0 1 4
Slide 10: Smelter: First Anodes Dec
S M E LT E R : F I R S T A N O D E S D E C 2 8 , 2 0 1 4
Slide 11: Smelter: First Anodes Dec
S M E LT E R : F I R S T A N O D E S D E C 2 8 , 2 0 1 4
Slide 12: Cobre Panama: Port Area Material Offloading Facility Wharf
C O B R E PA N A M A P O R T A R E A M AT E R I A L O F F L O A D I N G FA C I L I T Y W H A R F
Slide 13: Cobre Panama: 300 MW Power Station
C O B R E PA N A M A : 3 0 0 M W P O W E R S TAT I O N B O I L E R I S L A N D A N D P U LV E R I Z E R F O U N D AT I O N S
Slide 14: Cobre Panama: General View
C O B R E PA N A M A : G E N E R A L V I E W PROCESS PLANT AREA
Slide 15: Cobre Panama: Milling Area
C O B R E PA N A M A : M I L L I N G A R E A S A G M I L L A N D M I L L B U I L D I N G F O U N D AT I O N S
Slide 16: 2014 Highlights
2014 Highlights 2014 Production Actual Guidance Production guidance met on all main Copper ('000 tonnes) 428 419-436 metals with record copper production Nickel ('000 tonnes) 46 45-48 Gold ('000 ounces) 230 218-237 1.50 6.00 4.90 1.48 1.41 1.40 5.00 4.40 4.40 Copper C1 cost and Nickel C1 cost both 1
Slide 17: Production
Production 120 115 113 108 412 428 Copper production 8% lower than Q4 2013, 4% higher than 2013 110 105 102 100 • Record annual copper production reflecting full year '000 Tonnes 90 80 production from acquired operations. 70 60 50 • Kansanshi production 15% lower than Q4 2013 due to lower 40 oxide g
Slide 18: C1 Cost
C1 Cost Copper C1 cost ($/lb) Nickel C1 cost ($/lb) Q4 2014 copper C1 cost $0.12/lb higher than Q4 2013 Q4 2014 nickel C1 cost broadly in line with Q4 2013 Kansanshi Q4 2014 higher with increased mining and processing Ravensthorpe $0.81/lb higher vs Q4 2013 due to lower costs due to a high strip rat
Slide 19: Financial Overview
Financial Overview Full year Comparative EBITDA broadly in line with 2013 despite a lower Q4 Q4 Comparative EBITDA 16% lower $ million Q4 2014 Q3 2014 Q4 2013 2014 2013 than the prior year quarter. • Gross profit impacted by lower Revenue 821 885 897 3,542 3,553 copper and gold prices partly offset
Slide 20: Full Year Gross Profit
Full Year Gross Profit Gross profit higher year on year excluding the impact of metal prices 1,200 Copper -$175m Gold -$30m Nickel +$60m 1,150 1,134 Lower Kansanshi (due to 1,100 smelter constraints) and Guelb Moghrein volumes, partly offset 1,050 by higher Kevitsa Higher mineral property depreciati
Slide 21: Quarterly Net Debt Movement
Quarterly Net Debt Movement Opening Net Debt at October 1, 2014 ($ million) (5,035) EBITDA 301 Working capital (8) Tax paid (38) Capital expenditure (654) Net interest paid(1) (66) Other (46) Net debt movement (511) Closing Net Debt at December, 31 2014 ($ million) (5,546) Net Debt comprised of: Cas
Slide 22: Management Actions
Management Actions A focus on cost savings and cash conservation • Financial and commodity market volatility. • Actions taken by management to ensure compliance with its financial covenants include: • Re-phasing of planned capital expenditure with a reduction in 2015 to $1.2b. - $1.4b. • Identifying
Slide 23: Zambian Developments
Zambian developments Royalties from 6% to 20% January 2015 Corporate tax to 0% • Amendments to Zambian Tax regime have reduced corporate tax to 0% and increased royalties from 6% to 20% for open pit mines. • Higher royalty rate results in a decrease in EBITDA at Zambian operations. • No VAT refunds
Slide 24: 2015 Market Guidance
2015 Market Guidance Copper guidance in line with 2014 production Lower nickel production due to the shutdown at Ravensthorpe Copper production(1) Nickel production Gold production 410 – 440k tonnes 32 – 40k contained tonnes 218 – 247k ounces Zinc production Palladium production Platinum production
Slide 25: Appendix
APPENDIX & FIRST QUANTUM
Slide 26: Reconciliation of Comparative EBITDA and Comparative Earnings
Reconciliation of Comparative EBITDA and Comparative Earnings $ million Q4 2014 Q3 2014 Q4 2013 2014 2013 EBITDA 301.0 366.7 364.2 1,412.8 1,352.0 Costs relating to leach tank failure at Ravenshorpe 8.5 - - 8.5 - Impairment of investments and associates - 16.0 2.5 16.0 20.6 Acquisition and other cos