Slide 1: First Quantum Minerals Second Quarter 2017 Conference Call & Webcast
FIRST QUANTUM MINERALS SECOND QUARTER 2017 CONFERENCE CALL & WEBCAST TSX: FM July 28, 2017 1
Slide 2: Cautionary Note Regarding Forward-Looking Statement
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENT 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 i
Slide 3: Cobre Panama Progress – Port & Power Station Overview
COBRE PANAMA PROGRESS – PORT & POWER STATION OVERVIEW TSX: FM 3
Slide 4: Jetty Service Platform Coal & Copper Conveyor Galleries
COBRE PANAMA PROGRESS – JETTY SERVICE PLATFORM COAL & COPPER CONVEYOR GALLERIES TSX: FM 4
Slide 5: Cobre Panama Progress – Power Station
COBRE PANAMA PROGRESS – POWER STATION Set 1 Set 2 TSX: FM 5
Slide 6: Power Station – Turbine & Boiler
COBRE PANAMA PROGRESS – POWER STATION – TURBINE & BOILER TSX: FM 6
Slide 7: Power Station – Turbine & Generator – Interior View
COBRE PANAMA PROGRESS – POWER STATION – TURBINE & GENERATOR – INTERIOR VIEW TSX: FM 7
Slide 8: Cobre Panama Progress – Mine Site Overview
COBRE PANAMA PROGRESS – MINE SITE OVERVIEW TSX: FM 8
Slide 9: Cobre Panama Progress – Milling View North
COBRE PANAMA PROGRESS – MILLING VIEW NORTH TSX: FM 9
Slide 10: Cobre Panama Progress – Milling View South
COBRE PANAMA PROGRESS – MILLING VIEW SOUTH TSX: FM 10
Slide 11: Cobre Panama Progress – Flotation Area
COBRE PANAMA PROGRESS – FLOTATION AREA TSX: FM 11
Slide 12: Concentrate Bulk Thickener Area
COBRE PANAMA PROGRESS – CONCENTRATE BULK THICKENER AREA TSX: FM 12
Slide 13: Copper Filtration & Storage
COBRE PANAMA PROGRESS – COPPER FILTRATION & STORAGE TSX: FM 13
Slide 14: Mine Development & Prestrip & In-Pit Crusher Box Cuts
COBRE PANAMA PROGRESS – MINE DEVELOPMENT & PRESTRIP & IN-PIT CRUSHER BOX CUTS TSX: FM 14
Slide 15: Financial Review
FINANCIAL REVIEW
Slide 16: Q2 2017 Highlights
Q2 2017 HIGHLIGHTS '000 tonnes Q2 2017 vs Q1 2017 vs Q2 2016 Copper production 8% above Q2 2016 and 7% above Copper Production(1) 142 +10 +11 Q1 2017 as Sentinel throughput increased Smelter Production Record quarterly smelter throughput Concentrate processed (dmt) 334 +7 +25 Copper anodes produced
Slide 17: Quarterly Production
QUARTERLY PRODUCTION Copper production 8% above Q2 2016 • Reflects higher Sentinel and Kansanshi • Kansanshi 3% higher from increased milling volumes and improved mixed ore circuit recovery and grades • Sentinel production 12kt higher than Q2 2016 following ramp up and 7kt higher than Q1 2017 due to
Slide 18: Q2 Financial Overview
Q2 FINANCIAL OVERVIEW Impact of higher depreciation and lower by-product sales partially offset by higher copper sales including contribution from Sentinel $ million Q2 2017 Q1 2017 Q2 2016 Comparative EBITDA 4% higher than Q2 2016 and in line with the previous quarter Revenue 782 766 659 Gross prof
Slide 19: Hedging Program Outlook
HEDGING PROGRAM OUTLOOK Hedging program continues; hedged price increasing across 2017 and significantly higher in 2018 • Hedging program continues, hedging up to 1 year forward • Increased use of zero cost collars in 2018 providing protection and potential upside • Balance of H2 2017 copper sales h
Slide 20: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS Copper C1 cost ($/lb) Copper AISC ($/lb) Q2 2017 C1 cost below Q1 2017 Q2 2017 AISC lower than Q1 2017 Including Sentinel, C1 reduced from $1.26/lb to AISC lower than Q1 2017 due to lower C1 cost with $1.12/lb some offset from higher capitalized stripping Excluding Se
Slide 21: Q2 2017 Gross Profit vs Q1 2017
Q2 2017 GROSS PROFIT VS Q1 2017 Gross profit $3m below Q1 2017 as higher depreciation was partially offset by higher metal prices including the impact of the hedge program $ million 69 (2) 66 (2) 7 (6) Q1 2017 Metal Price FX Costs Depreciation Q2 2017 TSX: FM 21
Slide 22: Long Term Debt Profile
LONG TERM DEBT PROFILE Debt Maturity Profile Covenant Ratio Liquidity No senior note principle Net debt/EBITDA covenant June 30, 2017 liquidity: due until 2021 ratio of 4.81x - within bank $450m net unrestricted cash covenant of 5.5x $838m undrawn RCF (expires 2019) Debt Maturity Profile at 30 June
Slide 23: Financing Update
FINANCING UPDATE Good progress made of financing initiatives Liquidity management initiatives Project financing progresses Project financing for Cobre Panama was launched to Prudent assessment of the balance sheet and liquidity ECA’s in December 2016 management continues with: ECA’s continued th
Slide 24: Capital Expenditure – Cobre Panama
COBRE PANAMA CAPITAL EXPENDITURE1 Cobre Panama Funding ($bn) Funded by $5.48bn First $ billion Total Quantum 3rd Party Cobre Panama project Capital spend to December 2015 2.72 1.86 0.86 Capital spend to December 2016 0.76 0.31 0.45 Capital spend to June 2017 0.52 0.31 0.21 Estimated 2017 capital spe
Slide 25: Market Guidance 2017
MARKET GUIDANCE 2017 Copper production guidance for individual operations updated; total unchanged Production guidance for all other metals unchanged '000 Nickel - contained tonnes Gold - ounces Zinc - tonnes 25 200 20 Cash cost guidance unchanged Copper Nickel C1 1.20 - 1.40 4.60 - 4.80 $/lb AISC 1
Slide 26: Appendix
APPENDIX FIRST QUANTUM MINER ALS LTD
Slide 27: Market Guidance 2017-2019
MARKET GUIDANCE 2017 -2019 Total guidance unchanged Production1 (000’s) 2017 Guidance 2018 Guidance 2019 Guidance Copper – tonnes 570 600 605 Nickel – contained tonnes 25 25 25 Gold – ounces 200 200 200 Zinc – tonnes 20 20 15 C1 Cash Cost2 ($ per pound) Copper 1.20 – 1.40 1.20 – 1.40 1.20 – 1.40 Nic
Slide 28: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at March 31, 2017 ($ million) (4,661) Comparative EBITDA 267 Working capital (30) Gross capital expenditure including pre-commercial (363) Net interest1 (55) Franco-Nevada precious metal stream 53 KMPC contribution 53 Movement on restricted cash 38 Taxes
Slide 29: First Quantum Minerals Second Quarter 2017 Conference Call & Webcast
FIRST QUANTUM MINERALS SECOND QUARTER 2017 CONFERENCE CALL & WEBCAST TSX: FM July 28, 2017 29