First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Investor Presentation (December 2012)
26 slides from First Quantum Minerals's investor presentation, December 2012
Slide 1: Our Record Speaks For Itself
Our Record Speaks For Itself December 2012 ecem 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 : 285k – 295k 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 • Delivering
Slide 4: First Quantum Today: Strong Financial Position
First Quantum Today Strong Financial Position Sept 30, 2012 $ millions Cash $375 Total Debt $55 Undrawn and available $1,250 financing Note receivable 2015 $500 4
Slide 5: Diversifying the Balance Sheet
First Quantum Today Diversifying the Balance Sheet • $350 million Senior Notes • Interest @ 7.25% per annum paid semi-annually 5
Slide 6: 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
Slide 7: Looking Forward: Our Production Targets
Looking Forward: Our Production Targets Copper Nickel 800 000’s tonnes 000’s tonnes 90 600 68 400 45 200 23 0 0 '12 '13 '14 '15 '16 '17 '12 '13 '14 '15 '16 '17 Base Projects Base Projects 7
Slide 8: A New & Growing Nickel Producer: Ravensthorpe mine, Australia
A New & Growing Nickel Producer Ravensthorpe mine, Australia • Acquired as a decommissioned plant • First production within 20 months of purchase • Commercial production declared Dec 28 2011 • Production – Q4’11 : 5,666 tonnes – Q1’12 : 6,617 tonnes – Q2’12 : 8,053 tonnes – Q3’12 : 8,032 tonnes • C1
Slide 9: A New & Growing Nickel Producer: Kevitsa project, Finland
A New & Growing Nickel Producer Kevitsa project, Finland • Nickel-copper-PGE project • Commercial production achieved on August 18, 2012 • Initial ore feed of 5.5 mt/yr ; intention to expand by ~50% in 2013 • Target operations: – 10 ktpa nickel @ ~$6.70 - $7.00 /lb – 20 ktpa copper @ ~$1.45 - $1.60
Slide 10: A New & Growing Nickel Producer: Enterprise target, Zambia
A New & Growing Nickel Producer Enterprise target, Zambia • Located 12 km northwest of Sentinel • M&I resource estimate for the Main and Southwest Zones of 40.1Mt @ 1.07% Ni; plus an additional 7.0 Mt @ 0.7% Ni in inferred resources • Preliminary evaluation: – Potential to develop an open pit 4.0 Mt
Slide 11: Tripling Copper Production Capacity: Sentinel project, Zambia
Tripling Copper Production Capacity Sentinel project, 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 – Annual production up to 300,000 tonnes 1
Slide 12: Tripling Copper Production Capacity: Sentinel project
Tripling Copper Production Capacity Sentinel project, Zambia • Commercial terms for electric power agreed in principle • Board approval granted • Full-scale development started within original timeframe • Detailed design progressing; commitments for long-lead items in place • Construction completion
Slide 13: Tripling Copper Production Capacity: Copper smelter, Zambia
Tripling Copper Production Capacity Copper smelter, Zambia • Processing capacity of 1.2 Mtpa —71% Sentinel —100% Kansanshi —Average copper grade 26% • Blister copper production 300,000 tpa; acid production 1.0 Mtpa • Estimates: − Capital cost of US$650M − Operating cost US$69/tonne of concentrate −
Slide 14: 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 15: Tripling Copper Production Capacity: Haquira project, Peru
Tripling Copper Production Capacity Haquira project, Peru • 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 en
Slide 16: Building a Portfolio of Early-Stage Projects
Building a Portfolio of Early-Stage Projects • 19.99% ownership stake in Zincore Metals Inc. – Mineral exploration company focused mainly on zinc and related base metal opportunities in the Americas, namely Peru, Mexico and Canada – Delores copper porphyry project located ~ 40 km from Haquira • 19.2
Slide 17: A Significant Copper Producer: Kansanshi mine, Zambia
A Significant Copper Producer Kansanshi mine, Zambia • Located near Solwezi in the north western Province of Zambia • First production in 2005 • Open pit mining • Updated Mineral Resource & Reserve Estimates: – 121% increase in M&I estimate to 744.3 Mt @ 0.86 TCu – 178% increase in Proved and Probab
Slide 18: A Significant Copper Producer: Kansanshi expansion
A Significant Copper Producer Kansanshi mine, Zambia • Multi-phase production expansion project underway – 2012 – 2015 60% increase in overall production capacity – 2012 – 2014 130% increase in oxide production capacity – 2014 - 2015 90% increase in sulphide production capacity 18
Slide 19: A Significant Copper Producer: Guelb Moghrein mine, Mauritania
A Significant Copper Producer Guelb Moghrein mine, Mauritania • 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 19
Slide 20: A Significant Copper Producer: Guelb Moghrein mine
A Significant Copper Producer Guelb Moghrein mine, Mauritania • 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 20
Slide 21: Within the Top 10 Largest Producers by 2016
Within the Top 10 Largest Producers by 2016 Projected 2016 Copper Producer Landscape 21
Slide 22: Capital Intensity – US$/Tonne
Capital Intensity – US$/Tonne Cobre Panama Caracles Caserones Sierra Gorda El Moro Telegraphio Tampakan Toromocho Oyu Tolgoi Las Bambas Salobo Los Bronces Cerro Verde Ministro Mina Hales Quebrada Blanca Canariaco Quellaveco Rio Blanco Antamina Antapaccay Galeno Buena Vista Konkola Sentinel $6,000 Ka
Slide 23: How We Do Projects
How We Do Projects • Define and plan, set contracting strategy early • Identify risks • Copy existing designs, duplication, standardization • Maximize commonality of equipment First Quantum Project • Maximize in-house work: By − Project management By Others − Technical involvement FQM − Procurement,
Slide 24: 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 25: Our Record Speaks For Itself
Our Record Speaks For Itself TSX: FM; LSE: FQM
Slide 26: A New & Growing Nickel Producer: Enterprise Nickel Project
A New & Growing Nickel Producer Enterprise Nickel Project (Main and SW) Mineral Resource Estimate as at 28th November 2012 Cut-off grade of 0.15% Ni Contained Tonnage Grade Ni (million tonnes) (Ni %) (kilo tonnes) Main Zone - Measured 2.7 1.51 41 Main Zone - Indicated 34.3 1.08 372 SW Zone - Indicat
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