First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Investor Presentation (May 2007)
27 slides from First Quantum Minerals's investor presentation, May 15, 2007
Slide 1: Building an international mining company
Building an international mining company May, 2007 (all figures in US dollars where applicable, except where indicated) A copy of this presentation can be downloaded at www.first-quantum.com Disclaimer Some of the statements contained in the following material are forward-looking statements and not
Slide 2: Share Structure
Share Structure Listed Toronto Stock Exchange Symbol “FM” (member of S&P/TSX 60 index) Listed London Stock Exchange (main board) Symbol “FQM” Issued 67.3 million Fully diluted 69.1 million 52 week range C $36.93 - $90.24 Avg. volume (daily) 600,000 Recent Share Price (5/14/07) C $89.00 Market Capita
Slide 3: Overview and Financial Snapshot
Overview Growth Pipeline Advanced Development / Exploration Exploration Construction Operating Kolwezi Kashime – 100% Frontier – 95% Kansanshi - 80% Village Kibamba – 100% Kolwezi – 65% Bwana/Lonshi – 100% Mwati Guelb Moghrein – 80% Mokambo Mufulira – 16.9% Exxaro JV Nkana – 16.9% Shabunda 5/15/2007
Slide 4: 2006 Snapshot and 2007 1Q Snapshot
2006 Snapshot 183,277 tonnes of copper production Sold 172,487 tonnes of copper, stockpile of 15,000 tonnes Cash costs (C1) of $0.87 per pound Cash flow of $588 million or $9.04 per share (before non-cash working capital changes) Earnings of $414 million or $6.37 per share Cash of $265 million Worki
Slide 5: Zambia & DRC Copperbelt
Zambia & DRC Copperbelt 5/15/2007 Slide 9 Bwana\Lonshi 5/15/2007 Slide 10
Slide 6: Bwana/Lonshi
Bwana/Lonshi Highlights Lonshi oxide reserve (12/05) – 730,000 tonnes @ 8.3% Cu (60,590, tonnes of copper) 35,000 tonnes of copper per year Cash costs estimated at $0.75/ lb - $0.80/lb Mine reserve will be depleted in mid - 2008 5/15/2007 Slide 11 Lonshi Mine (September, 2006) 5/15/2007 Slide 12
Slide 7: Bwana Mkubwa SX/EW Plant
Bwana Mkubwa SX/EW Plant 5/15/2007 Slide 13 Bwana Mkubwa – The future HPL facility at Bwana - Lonshi sulphide Oxide Sources - Frontier oxide - Kashime oxide - Lonshi dolomitic ore - External ore - Combination of the above 5/15/2007 Slide 14
Slide 8: Kansanshi Mine
Kansanshi Mine 5/15/2007 Slide 15 Kansanshi Mine 5/15/2007 Slide 16
Slide 9: Kansanshi Mine Highlights
Kansanshi Mine Highlights: Commercial production began in April, 2005 Mine life 30+ years Approximate Annual Copper Production - 127,179 tonnes in 2006 - 145,000 tonnes in 2007 - 165,000 tonnes in thereafter Forecast cash costs of $0.90-$0.95 for balance of 5 year plan 5/15/2007 Slide 17 Kansanshi M
Slide 10: Kansanshi Mine – HPL Facility
Kansanshi Mine – HPL Facility 5/15/2007 Slide 19 Kansanshi Mine – HPL Facility Benefits: Reduce reliance on Copperbelt smelter capacity Generation of acid for leaching Elevated temperature leaching and ferric sulfate improve recoveries for mixed ores Avoid TC/RC’s and freight parity Not a new techno
Slide 11: HPL Facility Update and Guelb Moghrein Mine
Kansanshi Mine – HPL Facility Update: Commissioning of #1 autoclave began in March Operating at design throughput of 52,500T concentrate/year Initial results: - 91% sulphur conversion - 97% copper recovery Commissioning of #2 autoclave will begin shortly 5/15/2007 Slide 21 Guelb Moghrein Mine 5/15/2
Slide 12: Guelb Moghrein Mine
Guelb Moghrein Mine Highlights: *Resource (12/03) – 23.7 million tonnes @ 1.88% Cu; 1.41 g/t Au (446,000 tonnes of copper and 1 million ounces of gold) Open pit accessible sulphide ore body Process plan: mill + float + CIL= copper/gold concentrate + dore Annual Target: 30,000 tonnes of copper & 65,0
Slide 13: Guelb Moghrein Mine
Guelb Moghrein Mine 5/15/2007 Slide 25 Guelb Moghrein Mine 5/15/2007 Slide 26
Slide 14: Frontier Project
Frontier Project 5/15/2007 Slide 27 Frontier Project 5/15/2007 Slide 28
Slide 15: Frontier Project Overview and Engineering Study
Frontier Project Overview: Measured & Indicated Sulphide Resource (12/06) 182 million tonnes @ 1.16% copper (2.1 million tonnes of copper) Deposit remains open Process plan: mill + floatation = copper in concentrate Construction underway Commercial production targeted for 3Q 2007 5/15/2007 Slide 29
Slide 16: Frontier Project Economic Highlights
Frontier Project Economic Highlights Copper Price ($/lb) 1.50 2.00 2.50 3.00 Pre-tax IRR (%) 24 58 92 124 Pre-tax NPV (10%) ($M) 213 739 1,299 1,858 Pre-tax NPV (12%) ($M) 156 605 1,083 1,561 Net cash flow ($M) 957 2,365 3,862 5,360 (after capital & before tax) Payback period (years) 3.6 1.5 <0.4 <0
Slide 17: Frontier Deposit (April, 2007)
Frontier Deposit (April, 2007) 5/15/2007 Slide 33 Frontier Deposit (April, 2007) 5/15/2007 Slide 34
Slide 18: Frontier Deposit (April, 2007)
Frontier Deposit (April, 2007) 5/15/2007 Slide 35 Frontier Deposit (April, 2007) 5/15/2007 Slide 36
Slide 19: Kolwezi Tailings Project
Kolwezi Tailings Project 5/15/2007 Slide 37 Kolwezi Tailings Project 5/15/2007 Slide 38
Slide 20: Kolwezi Tailings Project Ownership and Highlights
Kolwezi Tailings Project Ownership Structure: First Quantum Minerals Ltd. 65.0% Gécamines (carried) 12.5% IDC* (participating) 10.0% IFC** (participating) 7.5% Government of the DRC (carried) 5.0% *International Development Corporation of South Africa **International Finance Corporation 5/15/2007 Sl
Slide 21: Exploration
Kolwezi Tailings Project 5/15/2007 Slide 41 Exploration 5/15/2007 Slide 42
Slide 22: Exploration – Copperbelt Portfolio
Exploration What are we looking for? 5/15/2007 Slide 43 Exploration – Copperbelt Portfolio 5/15/2007 Slide 44
Slide 23: Kibamba and Kashime Prospects
Kibamba Prospect, DRC Highlights Discovered during 2005 exploration season 10 kilometre long structural zone Initial drill program results: - RSF01 - 80 metres grading 2.02% Cu & 0.25% Co - RSF13 - 75 metres grading 1.12% Cu & 0.03% Co - RSF16 - 82 metres grading 1.88% Cu & 0.12% Co 5/15/2007 Slide
Slide 24: Outlook: 2007 Objectives
Outlook 5/15/2007 Slide 47 2007 Objectives Bring HPL to commercial production Finish construction / begin commercial production at Frontier Fine tune Guelb Moghrein production Complete sulphide expansion at Kansanshi Secure future ore feed for Bwana Finalize engineering at Kolwezi and begin construc
Slide 25: Development Projects and Potential Copper Production Profile
Development Projects 2006 2007 2008 2009 2010 Frontier Kansanshi (expansion) Kolwezi* Kolwezi* (expansion) = Financing & feasibility = Construction (subject to positive feasibility and project finance) = Commercial production * Subject to final board approval 5/15/2007 Slide 49 Potential Copper Prod
Slide 26: Challenges and EPS & CFPS Estimates
Challenges Scarcity of human capital Strained infrastructure Long lead delivery for capital items Inflation Commodity price variations Local political issues and impacts 5/15/2007 Slide 51 EPS & CFPS Estimates First Call Consensus Earnings & Cash Flow Estimates (US$) EPS CFPS* 2007 $8.18 $10.64 2008
Slide 27: Investment Highlights
Investment Highlights Pure Copper Play Earnings and cash flow highly leveraged to copper Unmatched Growth Profile Copper production to grow from 40K tonnes in 2004 to +300K tonnes in 2008 Blue Sky On going exploration may lead to new mines 5/15/2007 Slide 53 Building an international mining company
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