Slide 1: Growth
A SOLID BASE A POSITION OF STRENGTH A ROBUST PROJECT PIPELINE Growth www.first-quantum.com TSX: FM LSE: FQM 1 July 2011
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: A Growing Diversified Metals and Mining Company
A Growing Diversified Metals and Mining Company Profile: Copper Production Objectives • A mid-tier and growing mining and metals 000’s tonnes company currently producing LME grade "A" copper cathode, copper in concentrate and 1,200 gold Investment Highlights: 900 — Core strength of discovering, deve
Slide 4: Strong Operating Base & Development Pipeline
Strong Operating Base & Development Pipeline Operations Projects Exploration – Kansanshi, Zambia — Ravensthorpe, Australia — Enterprise, Zambia – Guelb Moghrein, Mauritania — Kevitsa, Finland — Fishtie, Zambia — Sentinel, Zambia — Haquira, Peru Other Investment — Mopani (16.9%), Zambia 4
Slide 5: A Solid Track Record
A Solid Track Record Revenue Earnings* Operating Cash Flow ($ millions) ($ millions) ($ millions) $2,378 $557 $900 $520 $772 $1,864 $419 $678 $1,740 $399 $637 $1,539 $564 $300 $1,095 $155 $237 $445 $114 $28 $46 *Before impairments and other adjustments 5
Slide 6: A Strong Operating Base
A Strong Operating Base Unit Cash Margin Debt to Capitalization Ratio Cash & Equivalents (US$/lb copper) (US$ millions) $3.20 1.60 $1,500 $2.40 1.20 $1,125 $1.60 0.80 $750 $0.80 0.40 $375 $- 0.00 $- 6
Slide 7: A Leader in Delivering Value to Shareholders
A Leader in Delivering Value to Shareholders Since trading on the TSX, First Quantum’s annualized return is over 37% 7
Slide 8: A Solid Platform
A SOLID Platform & FIRST QUANTUM
Slide 9: Operations – Kansanshi Copper/Gold Mine
Operations – Kansanshi Copper/Gold Mine • Located near Solwezi, Zambia • Copper-gold operation • Production began in 2005 • 2010 production — 231,124 tonnes of copper — 109,629 ounces of gold 9
Slide 10: Operations – Kansanshi Copper/Gold Mine
Operations – Kansanshi Copper/Gold Mine Expanding Production Capacity: • Phase 1 underway – expansion to oxide circuit • A major program of resource development and exploration drilling underway • Results will provide design details for next expansion phases • Current aim to reach annual production
Slide 11: Operations – Guelb Moghrein Copper/Gold Mine
Operations – Guelb Moghrein Copper/Gold Mine • Located near Akjoujt, Mauritania • Copper-gold operation • Production began in 2006 • 2010 production — 36,969 tonnes of copper — 81,766 ounces of gold 11
Slide 12: Operations – Guelb Moghrein Copper/Gold Mine
Operations – Guelb Moghrein Copper/Gold Mine • Optimizing recent expansion • Increased throughput and enhanced recoveries will allow annual copper production to rise to ~50,000 tonnes • Ongoing exploration at and nearby focused on identifying additional feedstock to extend the life of the operation
Slide 13: A Robust Project Pipeline
A ROBUST PROJECT PIPELINE Growth 13
Slide 14: Growth and Diversification
Growth and Diversification • Copper production objective: 1,200 Copper Production Profile 000’s tonnes – Triple production in 2015 to ~1.1M tonnes 900 • Nickel production objective: 600 300 – Beginning in 2011 and increasing to 55,000 tonnes in 2014 - 04 05 06 07 08 09 10 12F13F14F15F • Investment i
Slide 15: Projects – Ravensthorpe Nickel Project
Projects – Ravensthorpe Nickel Project • Located in Western Australia • Open pit using conventional drill and blast, load and haul system • Processing plant using proven technology • Purchase in February 2010 for US$340 million • Estimated capital for modification of US$190 million 15
Slide 16: Projects – Ravensthorpe Nickel Project
Projects – Ravensthorpe Nickel Project • On schedule for commissioning in 2nd half 2011 • Average annual production of nickel metal: – 39,000 tonnes for the first five years – 28,000 tonnes over the life of mine • C1 cost estimate: – $5.00/lb nickel – $3.00/lb without realization – assumptions: nick
Slide 17: Projects – Kevitsa Nickel/Copper Project
Projects – Kevitsa Nickel/Copper Project • Located in northern Finland • Open pit mine – estimated measured and indicated resources of 240 million tonnes grading 0.30% nickel; 0.28 nickel sulphide; 0.41% copper; using a nickel cut-off grade of 0.1% • Conventional processing to produce two concentrat
Slide 18: Projects – Kevitsa Nickel/Copper Project
Projects – Kevitsa Nickel/Copper Project • At initial capacity average annual production – 10,000 tonnes of nickel – 20,000 tonnes of copper • LOM C1 cost estimate of $2.50/lb nickel, net of by product credits • Assumptions: – nickel = $6.75/lb; copper = $2.00/lb; Euro/US = 1.35 • Capital cost estim
Slide 19: Projects – The Trident Project
Projects – The Trident Project • Located in Northwestern Province – ~150 kilometres from the Kansanshi mine • Acquired in January 2010 for ~$260 million • Trident project comprises: – Sentinel copper deposit – Enterprise target – Intrepid target 19
Slide 20: Projects – The Sentinel Deposit
Projects – The Sentinel Deposit • Significant drill program underway with 16 drills onsite • Excellent continuity of mineralization • Mining and processing conditions appear relatively straightforward • Large-scale mining licences granted • Extensive CSR program already underway • Initial design and
Slide 21: Projects – The Sentinel Deposit – Drill Pattern
Projects – The Sentinel Deposit – Drill Pattern February 2011 21
Slide 22: Projects – The Sentinel Deposit
Projects – The Sentinel Deposit • Internal evaluation assumptions: – Resource in the range of at least 700 million tonnes at a headgrade in the range of 0.65% to 0.80% copper – Annual throughput rate of 40 million tonnes – Annual production of an initial 150,000 tonnes of copper rising up to 300,000
Slide 23: Projects – New Copper Smelter
Projects – New Copper Smelter • Compelling economics • Limited smelter capacity in Zambia currently • Facility would be dedicated to production from Kansanshi and Sentinel • Benefits include: – Production of sulphuric acid for use in Kansanshi’s oxide circuit – Existing infrastructure – Available wo
Slide 24: Projects – Haquira Copper Deposit
Projects – Haquira Copper Deposit • Acquired in December 2010 • Large scale copper project located in southern Peru – M&I resource of 3.7 million tonnes of copper equivalent and an inferred resource of 2.4 million tonnes of copper equivalent • Current priorities: – Expanding infill and condemnation
Slide 25: Copper Market
Copper Market & FIRST QUANTUM MINERALS LTD 25
Slide 26: Surpluses Overestimated & Deficits Underestimated
Surpluses Overestimated & Deficits Underestimated Source: Brook Hunt 26
Slide 27: Copper Grades Have Significantly Declined
Copper Grades Have Significantly Declined Source: Brook Hunt & Broker Research 27
Slide 28: Emerging Markets - Substantial Growth Ahead
Emerging Markets - Substantial Growth Ahead Source: Maddison 28
Slide 29: Projected Impact on the Copper Market
Projected Impact on the Copper Market Source: International Copper Study Group 29
Slide 30: A Rapidly Growing Mining & Metals Company
A Rapidly Growing Mining & Metals Company • Well positioned in the industry • Unique technical strength • Existing operations provide a solid platform to support growth • Strong financial position and cash flow • 2011 milestones in execution of growth strategy: – Emergence as a nickel producer – Est
Slide 31: Growth
A SOLID BASE A POSITION OF STRENGTH A ROBUST PROJECT PIPELINE Growth www.first-quantum.com TSX: FM LSE: FQM 31 July 2011
Slide 32: Corporate Profile
Corporate Profile Stock exchange listings & symbols – (S&P/TSX 60 Index) TSX: FM LSE: FQM Shares issued and outstanding 86.2 million Fully diluted 95.1 million 52-week share price range C$148.00-C$48.20 Recent share price – July 26, 2011 C$139.00 Market capitalization – $ millions C$12.0 billion Ave
Slide 33: Financial Summary
Financial Summary Three Months ended March 31, 2011 Total revenues $705.2M Cost of sales $244.1M Net earnings $206.7M Basic earnings per share $2.41 Cash flow before working capital movements $216.7M Financing activities $(52.8)M Investing activities $(185.0)M Cash flow per share before working capi