First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q1 2019 Earnings Presentation
26 slides from First Quantum Minerals's earnings presentation, Apr 30, 2019
Slide 1: First Quantum Minerals First Quarter 2019
FIRST QUANTUM MINERALS First Quarter 2019
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION 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: Clive Newall, President and Director
Clive Newall President and Director 3
Slide 4: 2019 – A Transformational Year
2019 – A TRANSFORMATIONAL YEAR Q1 Summary* Comparative Earnings $95 million Comparative Earnings Per Share $0.14 Copper Production 136,969 tonnes Copper Sales 130,262 All-in Sustaining Costs $1.77 per pound *Comparative earnings, comparative earnings per share and AISC (which excludes 3 rd party con
Slide 5: Cobre Panama produces first copper concentrate in Q1
Cobre Panama produces first copper concentrate in Q1 5 TSX: FM
Slide 6: Cobre Panama – Significant milestones achieved in Q1
Cobre Panama – Significant milestones achieved in Q1 6
Slide 7: Cobre Panama - Ore commissioning of Train 1 complete
Cobre Panama - Ore commissioning of Train 1 complete 7
Slide 8: Cobre Panama - Power station sets 100% complete
Cobre Panama - Power station sets 100% complete 8
Slide 9: Cobre Panama – Over 80% of 2019 production expected in H2 2019
Cobre Panama –. Over 80% of 2019 production expected in H2 2019 9
Slide 10: Cobre Panama – 140,000 – 175,000 tonnes of production expected in 2019
Cobre Panama – 140,000 – 175,000 tonnes of production expected in 2019 10
Slide 11: Financial Review
ne ee 3 oe _ FINANCIAL RE Te? FIRST QUANTUM = Sr shay oe: c 4s . ey =— ~ . VI
Slide 12: Hannes Meyer, Chief Financial Officer
Hannes Meyer Chief Financial Officer 12
Slide 13: Quarterly Production
QUARTERLY PRODUCTION¹ Record first quarter production at Sentinel Panama BCMs mined up 14% on Q4 2018 • Record first quarter production at Sentinel, a 15% increase over the same period in 2018. • 137 kt of copper production in the quarter, 6% lower than the 2018 comparative quarter, reflecting lower
Slide 14: Financial Overview
FINANCIAL OVERVIEW Comparative earnings per share up 100% on Q1 2018 $ million (except per share numbers) Q1 2018 Q1 2019 Revenue 885 857 Gross Profit 181 185 Comparative EBITDA1 363 368 Comparative Earnings 1 49 95 Comparative Earnings per share $ 0.07 0.14 Net Debt (5,575) (7,007) • Comparative ea
Slide 15: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS Q1 2019 C1 cost¹ and AISC¹ within full year guidance C1 costs AISC • Q1 2019 C1 cost is $0.07/lb higher than Q1 2018. • AISC in Q1 2019 is $0.05/lb higher than Q1 2018. • The higher C1 cost in the quarter compared to the • The higher AISC compared to the prior year reflects
Slide 16: Debt and Liquidity Profile at March 31, 2019
DEBT AND LIQUIDITY PROFILE AT MARCH 31, 2019 Liquidity at March 31, 2019 $1.4bn Net debt/EBITDA covenant ratio at March Covenant Ratio 31, 2019 of 3.98x which is well below covenant requirement of 5.75x. TSX: FM 16
Slide 17: Hedging Program Outlook
HEDGING PROGRAM OUTLOOK¹ Average hedge floor of $2.86/lb for remainder of 2019 ¹ Hedging outlook as at April 30, 2019. TSX: FM 17
Slide 18: Capital Expenditure
CAPITAL EXPENDITURE 2019 YTD 2019 2020 2021 $ million Capital Expenditure Actual Guidance Guidance Guidance Cobre Panama Cobre Panama Project 133 230 - - Funding ($bn) First Quantum share of Cobre Panama Project 98 195 - - Capitalized stripping costs 54 200 250 250 Sustaining capital and other proje
Slide 19: Appendix
APPENDIX & FIRST QUANTUM. meen
Slide 20: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at December 31, 2018 ($ million) (6,497) Comparative EBITDA 368 Working capital (156) Capital expenditure (including capitalized losses) (447) Interest paid and capitalized to property, plant and equipment (216) Net receipts from JV (KPMC) 35 Taxes paid (
Slide 21: Non-GAAP Measures Reconciliation – Comparative EBITDA and Comparative Earnings
NON-GAAP MEASURES RECONCILIATION – COMPARATIVE EBITDA AND COMPARATIVE EARNINGS Comparative EBITDA $m Q1 2019 Operating profit from continuing operations 153 Depreciation 194 Write-off of assets and other costs associated with land slippage 13 Foreign exchange loss 4 Loss on disposal of assets 2 Revi
Slide 22: Non-GAAP Measures Reconciliation – C1 and AISC
NON-GAAP MEASURES RECONCILIATION – C1 AND AISC $m Q1 2019¹ Cost of sales (672) Depreciation 194 By-product credits 87 Royalties 54 Treatment and refining charges (30) Freight costs (8) Finished goods (31) Other¹ 13 C1 Cost (393) General and administrative expenses (18) Sustaining capital expenditure
Slide 23: Zambian Sales Tax Update
ZAMBIAN SALES TAX UPDATE Draft Sales Tax Bill announced April 2, 2019 ZRA planned Imported Local effective goods and VAT abolished with goods and Non- date: services outstanding balance to services refundable 16% be refunded 1 July 2019 9% Exemptions Estimated C1 impact ($/lb): Estimated AISC impact
Slide 24: 2019 Guidance
2019 GUIDANCE Production¹ 2019 Total copper production (tonnes) including Cobre Panama ² 700 – 735 Copper (tonnes) – Cobre Panama ² 140 – 175 Copper (tonnes) excluding Cobre Panama 560 Gold (ounces) – excluding Cobre Panama 185 Zinc (tonnes) 12 Commercial production at Cobre Panama • Will be declare
Slide 25: 2019 Guidance
2019 GUIDANCE Costs ($/lb) 2019 C1 - excluding Cobre Panama and Zambian sales tax 1.20 – 1.40 AISC - excluding Cobre Panama and Zambian sales tax 1.70 – 1.85 Impact of Zambian sales tax from 1 July on full year C1 and AISC ~ 0.10 Depreciation – excluding Cobre Panama ($m) 800 – 825 Depreciation Full
Slide 26: First Quantum Minerals
FIRST QUANTUM MINERALS TSX:FM info@fqml.com 416-361-6400 1-888-688-6577 26
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