First Quantum Minerals Ltd. · TSX:FM

First Quantum Minerals — Investor Presentation (January 2014)

42 slides from First Quantum Minerals's investor presentation, January 2014

  1. Slide 1: Introduction - The Trident Project

    Introduction - The Trident Project January 2014 www.first-quantum.com TSX: FM LSE: FQM LuSE: FQMZ

  2. Slide 2: Trident Project Location

    TRIDENT PROJECT LOCATION January 2014 2

  3. Slide 3: About the Trident Project

    ABOUT THE TRIDENT PROJECT Trident Project:  Located in the Solwezi District of Northwestern Province, Zambia  Approximately 150km from Solwezi on the T5 main road to Mwinilunga  Comprises five prospecting large scale licences  A number of attractive base metal prospects including the Sentinel de

  4. Slide 4: Trident Project Layout

    TRIDENT PROJECT LAYOUT January 2014 4

  5. Slide 5: Sentinel Mine in Construction – Commissioning Mid 2014

    SENTINEL MINE IN CONSTRUCTION – COMMISSIONING MID 2014 Updated resource published May 2012:  514 boreholes for 172,692m defined an NI43-101 resource of:  Total measured & indicated : 1,027Mt @ 0.51% Cu  Inferred : 165Mt @ 0.42% Cu  Cut-off : 0.2% Cu  Mineral Reserve: 774 Mt @ 0.50% Cu  Proved

  6. Slide 6: Enterprise Mine in Approval – Early Works Underway

    ENTERPRISE MINE IN APPROVAL – EARLY WORKS UNDERWAY Maiden resource published December 2012:  359 boreholes for 116,000m defined an NI43-101 resource of:  Total measured indicated : 40.1Mt @ 1.07% Ni  Inferred : 7.1Mt @ 0.70% Ni  Cutoff : 0.15% Ni  Mineral Reserve: 32.7 Mt @ 1.10% Ni  Further p

  7. Slide 7: Regional Exploration

    REGIONAL EXPLORATION Regional exploration:  Over US$60m expenditure on exploration to date across Trident.  Airborne magnetic, radiometric and time domain electromagnetic surveys and geological mapping over all licences  Soil geochemical sampling over all licences amounting to 20,652 samples  Re

  8. Slide 8: Sentinel Mine Under Construction

    SENTINEL MINE UNDER CONSTRUCTION January 2014 8

  9. Slide 9: About the Sentinel Mine – Project Scope

    ABOUT THE SENTINEL MINE – PROJECT SCOPE  55Mtpa target throughput  3 semi mobile in pit crushers and assembly of large scale mining equipment  Largest operating SAG/Ball mill trains in the world (100MW milling power)  265,000t of freight = 14,500 truckloads of materials  2 rivers to be dammed/d

  10. Slide 10: Progress Photos – Sentinel Plant Area

    PROGRESS PHOTOS – SENTINEL PLANT AREA AERIAL PHOTO 31-DEC-2013 January 2014 10

  11. Slide 11: Construction Progress – End Dec 2013

    CONSTRUCTION PROGRESS – END DEC 2013 120% PROJECT BASELINE SCHEDULE CREATED ON JULY 2012 100% OVERALL PROGRESS ACTUAL = 74.02 % PLAN = 75.09 % 80% Plan Monthly Progress Actual Monthly Progress 60% Plan Total Progess Actual Total Progress 40% 20% 0% 2012 2013 2014 May12 May13 May14 Mar13 Mar14 Nov12

  12. Slide 12: Capital Expenditure – End Dec 2013

    CAPITAL EXPENDITURE – END DEC 2013 SENTINEL PROJECT COST REPORT Budget Approved Current Incurred AREA / COST $M Committed Forecast Estimate Changes Budget to Date TOTAL $1,725.0 $159.8 $1,884.8 $1,706.9 $1,884.8 $1,213.3  Schedule: Train 1 = commissioning Q2 2014 Train 2 = commissioning Q4 2014, de

  13. Slide 13: Employment – End Dec 2013

    EMPLOYMENT – END DEC 2013 Department Local Expat Filipinos / Indonesians TOTAL Infrastructure 524 11 105 640 FQML Plant 688 26 412 / 144 1270 Operations and Support 526 30 - 556 FQMO Roads 670 15 - 685 Subcontractors 1456 115 - 1571 Overall Manpower 3,864 197 661 4,722 Percentage (%) 82% 4% 14% 100%

  14. Slide 14: 3 x Rope Shovels - 1,350t, 57m3 Bucket

    3 X ROPE SHOVELS - 1,350T, 57M3 BUCKET January 2014 14

  15. Slide 15: 3 x PCX5500 Loaders - 205t, 21m3 Bucket

    3 X PCX5500 LOADERS - 205T, 21M3 BUCKET January 2014 15

  16. Slide 16: 36 x Trucks – 21 x 960E + 15 x 860E

    36 X TRUCKS – 21 X 960E + 15 X 860E January 2014 16

  17. Slide 17: In Pit Crush – 3 x (ThyssenKrupp) 63-89 20Mtpa

    IN PIT CRUSH – 3 X (THYSSENKRUPP) 63-89 20MTPA January 2014 17

  18. Slide 18: 100MW Milling – 2 x 40' SAG + 2 x 28' Ball

    100MW MILLING – 2 X 40’SAG + 2 X 28’BALL January 2014 18

  19. Slide 19: Progress Photos – Plant Area

    PROGRESS PHOTOS – PLANT AREA MILL BUILDINGS 31-DEC-2013 FLOTATION AREA 31-DEC-2013 STOCKPILE VAULT 20-JAN-2014 CONVEYOR LINE 21-JAN-2014 January 2014

  20. Slide 20: Progress Photos – Plant Area

    PROGRESS PHOTOS – PLANT AREA CABLE PULLING 31-DEC-2013 ROUGHER FLOTATION 31-DEC-2013 CLEANER FLOTATION 2-JAN-2014 TAILS THICKENER 31-DEC-2013 January 2014

  21. Slide 21: Progress Photos – Plant Area

    PROGRESS PHOTOS – PLANT AREA REAGENTS, DEPRESSANTS AREA & CONCENTRATE STORAGE BUILDING 31-DEC-2013 PIPERACK LINE 31-DEC-2013 CRUSHER ASSEMBLY YARD 31-DEC-2013 CAT EQUIPMENT ASSEMBLY YARD 31-DEC-2013 January 2014

  22. Slide 22: January 2014

    January 2014 &

  23. Slide 23: Progress Photos – Mine Area

    PROGRESS PHOTOS – MINE AREA MSA, RUBBER TYRE WORKSHOP 31-DEC-2013 MSA, KOMATSU ASSEMBLY YARD 31-DEC-2013 MINING EQUIPMENT AT BOX CUT 2-JAN-2014 NORTHWEST BOXCUT AERIAL PHOTO 01-DEC-2013 January 2014 23

  24. Slide 24: Progress Photos – Infrastructure

    PROGRESS PHOTOS – INFRASTRUCTURE CHISOLA DAM INLET 20-JAN-2014 CHISOLA DAM, OUTLET PIPE & TUNNEL 2-JAN-2014 RAW WATER LINE 2-JAN-2014 33KV SITE POWER 02-SEPT-2013 January 2014 24

  25. Slide 25: Progress Photos – ZESCO Substation

    PROGRESS PHOTOS – ZESCO SUBSTATION ABB SWITCHYARD, EAST GANTRY FOOTINGS 01-NOV- ABB SWITCHYARD, CONTROL BUILDING FDN 01-NOV- 2013 2013 POWERLINE CLEARING & EARTHWORKS ABB SWITCHYARD 30-DEC-2013 20-DEC-2013 January 2014

  26. Slide 26: Power Line Development Connecting the West of Zambia

    POWER LINE DEVELOPMENT CONNECTING THE WEST OF ZAMBIA January 2014 26

  27. Slide 27: Upgrades to ZESCO Network

    UPGRADES TO ZESCO NETWORK January 2014 27

  28. Slide 28: ZESCO Power Infrastructure Project

    ZESCO POWER INFRASTRUCTURE PROJECT First Quantum commitments to ZESCO grid upgrades:  First Quantum to provide upfront finance :  68km Lumwana – Kalumbila 330kV transmission line + substations;  400km Kalumbila – Mumbwa 330kV transmission line;  145km Mumbwa – Lusaka West 330kV transmission line

  29. Slide 29: ZESCO Grid and Regional Transmission Line Interconnectors

    ZESCO GRID 33kV to 330kV AND / REGIONAL TRANSMISSION LINE 4 INTERCONNECTORS a, et, 2 ‘KOLWEZ! D R CONGO LILONGWE > ZIMBABWE

  30. Slide 30: Town Development Upfront Investment in the Community

    TOWN DEVELOPMENT UPFRONT INVESTMENT IN THE COMMUNITY January 2014 30

  31. Slide 31: About the New Town

    ABOUT THE NEW TOWN Located in the Solwezi District of Northwestern Province, Zambia :  Approximately 150km from Solwezi on the T5 main road to Mwinilunga  At the heart of the ‘New Copperbelt’ Proper planning and services for 10,000 homes  Town plan approved by Solwezi Council on 7 March 2012  EI

  32. Slide 32: Town – Potential Scope

    TOWN – POTENTIAL SCOPE Potential employment Total Direct – KML Operations 2,000 Indirect – Mine Contractors 1,000 Multiplier Jobs 6,000 – 8,000 TOTAL Approximately 10,000 Potential housing Total KML committed – Phase 1 690 KML likely – Phase 2 900 Third parties 7,000 – 9,000 TOTAL Up to 10,000 At th

  33. Slide 33: Expertly Designed & Fully Serviced Town

    EXPERTLY DESIGNED & FULLY SERVICED TOWN Town design by Zambian and international firms. Water, sewerage and waste  11 Jul 2012 – MOU signed with NWW  Weekly waste collection Metered electrical reticulation  31 Jan 2013 – Contracts signed with NWEC  28 Nov 2012 – ZESCO agreement signed Roads:  F

  34. Slide 34: MFEZ to Encourage Local Businesses

    MFEZ TO ENCOURAGE LOCAL BUSINESSES Application to ZDA for MFEZ status:  Substantial tax incentives to businesses setting up in the area: 1. 0% tax for first 5 years, next 3 years at 50%, next 2 years at 75%; 2. 0% tax on dividends for a period of 5 years; 3. 0% import duties on raw materials, capit

  35. Slide 35: Zambian Investment and Job Opportunities

    ZAMBIAN INVESTMENT AND JOB OPPORTUNITIES Business opportunities for:  Retail;  Hospitality and tourism;  Financial services;  Construction;  Mine services;  Manufacturing and light industrial;  Warehousing and logistics;  Agricultural services;  Forestry; and  Other. Accommodation :  Purc

  36. Slide 36: Worker Housing – Resettlement and Livelihood Program

    WORKER HOUSING – FOR HOME OWNERSHIP RESETTLEMENT AND LIVELIHOOD PROGRAM January 2014 36

  37. Slide 37: Progress Photos – Senior Housing

    PROGRESS PHOTOS – SENIOR HOUSING SPORTS FACILITY 04-NOV-2013 SENIOR HOUSING - SINGLES 31-MAR-2013 SENIOR HOUSING AREA 28-FEB-2013 TRIDENT PREPARATORY SCHOOL 05-NOV-2013 January 2014

  38. Slide 38: Progress Photos – Affordable Housing

    PROGRESS PHOTOS – AFFORDABLE HOUSING AFFORDABLE HOUSING LAYOUT TEACHER’S HOME 3-JAN-2014 TRUST SCHOOL 05-NOV-2013 COMPLETED 4-BEDROOM HOUSE 3-JAN-2014 January 2014 38

  39. Slide 39: Block Plant – Local Fabrication

    BLOCK PLANT – LOCAL FABRICATION January 2014 39 39

  40. Slide 40: Community Projects – Underway

    COMMUNITY PROJECTS – UNDERWAY January 2014 40

  41. Slide 41: Progress Photos – Resettlement

    PROGRESS PHOTOS – RESETTLEMENT RESETTLEMENT HOUSES RESETTLEMENT HOUSES RESETTLEMENT SCHOOL RESETTLEMENT CLINIC January 2014 41

  42. Slide 42: Progress Photos – CSR

    PROGRESS PHOTOS – CSR MALARIA SCREENING 01-DEC-2014 MALARIA SCREENING 01-DEC-2014 LIVELIHOOD SUPPORT 01-DEC-2014 LIVELIHOOD SUPPORT MOSQUITO SPRAYING January 2014 42

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