Slide 1: Our Record Speaks For Itself
Our Record Speaks For Itself June 2012 TSX: FM; LSE: FQM
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward-Looking Statements 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
Slide 3: First Quantum Today
First Quantum Today • A significant copper producer – 2012E : 270k – 290k tonnes • A new and growing nickel producer – 2012E : 36k– 40k tonnes • On the cusp of transformational growth – Copper : tripling production capacity – Nickel : increasing annual production capacity to 125k tonnes • Growth bei
Slide 4: A Strong Financial Position
A Strong Financial Position Mar 31, 2012 $ millions Cash $1,027 Total Debt $47 Undrawn and available financing $1,250 4
Slide 5: What We have Delivered
What We have Delivered Best-in-class Copper Growth Leading Shareholder Returns 2000 – 2011 2000 – 2011 Barrick First Quantum 32% Southern Copper Inmet Southern Peru First Quantum 21% Antofagasta Teck Norilsk Glencore Vale BHP Billiton Freeport Teck Antofagasta Eramet Anglo American Freeport Hudbay B
Slide 6: Looking Forward: Our Production Targets
Looking Forward: Our Production Targets 900 125 Copper Production Nickel Production 000’s tonnes 100 000’s tonnes 600 75 50 300 25 0 0 11F 12F 13F 14F 15F 16F 07 13F 10 14F 04 05 06 08 09 11F 16F 12F 15F Base Projects Base Projects Optional 6
Slide 7: Nickel Added to the Asset Portfolio: Ravensthorpe, Australia
Nickel Added to the Asset Portfolio Ravensthorpe, Australia • Acquired as a decommissioned plant • First production within 20 months of purchase • Commercial production declared Dec 28 2011 7
Slide 8: Nickel Added to the Asset Portfolio: Ravensthorpe, Australia
Nickel Added to the Asset Portfolio Ravensthorpe, Australia • Production – Q4’11 : 5,666 tonnes – Q1’12 : 6,617 tonnes • C1 cash cost Q1’12 – $5.69/payable lb of nickel • Exploring options to improve payable nickel content 8
Slide 9: Nickel Added to the Asset Portfolio: Kevitsa, Finland
Nickel Added to the Asset Portfolio Kevitsa, Finland • Nickel-copper-PGE project • Commissioning underway • Operations team active in all aspects • First product imminent 9
Slide 10: Nickel Added to the Asset Portfolio: Kevitsa, Finland
Nickel Added to the Asset Portfolio Kevitsa, Finland • Initial ore feed of 5.5 mt/yr with intention to expand by ~50% in 2013 • Target operations: – 10 ktpa nickel @ ~$6.70 - $7.00 / lb – 20 ktpa copper @ ~$1.10 - $1.20 / lb • Workforce primarily from Lapland; FQM technical staff in key areas • Mark
Slide 11: Nickel Added to the Asset Portfolio: Enterprise, Zambia
Nickel Added to the Asset Portfolio Enterprise, Zambia • Located 12 km northwest of Sentinel • High grade sulphide nickel – open pit potential • Potential to produce 40 - 70 ktpa of Ni vaesite nickeloan pyrite 11
Slide 12: Nickel Added to the Asset Portfolio: Enterprise, Zambia
Nickel Added to the Asset Portfolio Enterprise, Zambia • Current focus – continue to define resource, design the mine and confirm process route • Campaign treatment at the Sentinel facilities significantly reduces capital – utilization of re-grind mills and cleaner circuits • Open pit mining – poten
Slide 13: A Robust Pipeline: Sentinel, Zambia
A Robust Pipeline Sentinel, 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 – $1.7B capex 13
Slide 14: A Robust Pipeline: Sentinel, Zambia
A Robust Pipeline Sentinel, Zambia • Commercial terms for electric power agreed in principle • Board approval granted; full- scale development starting within original timeframe • Construction completion targeted for late 2014 • Expected production capacity of up to 300 ktpa 14
Slide 15: A Robust Pipeline: Copper Smelter
A Robust Pipeline Copper Smelter • Concentrate feed rate 1.2 Mtpa —71% Sentinel —100% Kansanshi —Average copper grade 26% • Blister copper production 300,000 tpa • Acid production 1.0 Mtpa 15
Slide 16: A Robust Pipeline: Copper Smelter
A Robust Pipeline Copper Smelter • Capital cost of US$635M • Commissioning from mid 2014 • Operating cost US$69/tonne of concentrate 16
Slide 17: Economic Benefits of the Copper Smelter
Economic Benefits of the Copper Smelter Total Annual Savings * US$340 MM – US$510 MM • Transport Kansanshi * 100% of concentrate to smelter Sentinel * 71% of concentrate to smelter and remainder for export Cost savings per annum * Concentrate @ US$220 /t: US$130 MM – US$200 MM • Export Levy on Conce
Slide 18: A Robust Project Pipeline: Haquira
A Robust Project Pipeline Haquira • Large scale copper project located in southern Peru M&I resource of 3.7 Mt of copper equivalent and an inferred resource of 2.4 Mt of copper equivalent • Current focus: Community relations and land access; Expanding drill program and environmental matters • St
Slide 19: A Strong Operating Base: Kansanshi
A Strong Operating Base Kansanshi • Located near Solwezi in the north western Province of Zambia • First production in 2005 • Open pit mining • Flexible ore treatment to allow for variation in ore type – Sulphide circuit; oxide circuit; gold facility • On-going program of resource development and ex
Slide 20: A Strong Operating Base: Kansanshi
A Strong Operating Base Kansanshi • Multi-phase production expansion project Expansio Estimate n Project Capacity Completion Cost Production Impact underway ($M) Acid – 2012 – 2015 Plant 5 1000t/day 2012 18 60% increase in overall Oxide 7.2 mtpa 2012 31 Copper: 10,000 - 15,000 tpa production capacit
Slide 21: A Strong Operating Base: Guelb Moghrein
A Strong Operating Base Guelb Moghrein • 100% ownership • Located 250 kilometres northeast of the nation’s capital, Nouakchott • As at December 31, 2011, the estimated minelife was ~10 years (including stockpiles) • First production in 2006 • Workforce of ~1,200 21
Slide 22: A Strong Operating Base: Guelb Moghrein
A Strong Operating Base Guelb Moghrein • Record quarterly throughput in Q1’12 • Continuous improvement – Augmenting mining operations with the addition of larger equipment – Optimizing flotation performance with improved auto control and reagent changes 22
Slide 23: Within the Top 10 Largest Producers by 2016
Within the Top 10 Largest Producers by 2016 Projected 2016 Copper Producer Landscape 23
Slide 24: Capital Intensity – US$/Tonne
Capital Intensity – US$/Tonne Cobre Panama Caracles Caserones Sierra Gorda El Moro Telegraphio Tampakan Toromocho Ouui Tolgoi Las Bambas Salobo Los Bronces Cerro Verde Ministro Mina Hales Quebrada Blanca Canariaco Quellaveco Haquira $14,290 Rio Blanco Antamina Antapaccay Galeno Buena Vista Konkola S
Slide 25: What Our Shareholders Own
What Our Shareholders Own The ability and proven • A substantial copper producer; within the world’s top ten by 2016 track record to add value through efficient • An emerging nickel producer; within the world’s top ten by 2016 delivery of growth at costs below industry • A strong financial position
Slide 26: Our Record Speaks For Itself
Our Record Speaks For Itself TSX: FM; LSE: FQM