Slide 1: First Quantum Minerals Third Quarter 2016 Conference Call & Webcast
FIRST QUANTUM MINERALS THIRD QUARTER 2016 CONFERENCE CALL & WEBCAST OCTOBER 28, 2016 TSX: FM
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 – Mine/Pre-Strip
COBRE PANAMA PROGRESS – MINE/PRE-STRIP January 2016 Mine pre-strip works 40% complete September 2016 3
Slide 4: Cobre Panama Progress – Pre-Strip
COBRE PANAMA PROGRESS – PRE-STRIP 4
Slide 5: Cobre Panama Progress – Port
COBRE PANAMA PROGRESS – PORT January 2016 • Fully permitted port • Export Jetty – key weather risk construction areas completed September 2016 • Conveyor installations commencing 5
Slide 6: Cobre Panama Progress – Port Overview
COBRE PANAMA PROGRESS – PORT OVERVIEW September 2016 6
Slide 7: Cobre Panama Progress – Power Station
COBRE PANAMA PROGRESS – POWER STATION September 2016 7
Slide 8: Cobre Panama Progress – Coal Silos and Boiler Building
COBRE PANAMA PROGRESS – COAL SILOS AND BOILER BUILDING September 2016 8
Slide 9: Cobre Panama Progress – 230kV Transmission Line
COBRE PANAMA PROGRESS – 230KV TRANSMISSION LINE September 2016 9
Slide 10: Cobre Panama Progress – Process Plant
COBRE PANAMA PROGRESS – PROCESS PLANT January 2016 • 4 mills installed and 3 gearless mill drives • Flotation crane installation commencing September • Thickener erection 2016 in progress September 2016 10
Slide 11: Financial Review
FINANCIAL REVIEW FIRST QUANTUM MINERALS LTD.
Slide 12: Q3 2016 Highlights – Continuing Operations
Q3 2016 HIGHLIGHTS – CONTINUING OPERATIONS1 Record quarterly copper production with higher Kansanshi and pre-commercial Sentinel Production Q3 2016 vs Q2 2016 vs Q3 2015 production Copper ('000 tonnes) 143 +11 +39 Las Cruces had record high production for a Nickel ('000 tonnes) 5 +0 -3 Gold ('000 ou
Slide 13: Production – Continuing Operations
PRODUCTION – CONTINUING OPERATIONS Copper production 38% above Q3 2015 • Reflects strong overall performance across continuing operations and continued ramp up of Sentinel • Kansanshi production of 67kt was 23% higher than Q3 2015 • Sentinel pre-commercial production of 39kt (Q3 2015: 11kt) • Kansan
Slide 14: Financial Overview – Continuing Operations
FINANCIAL OVERVIEW – CONTINUING OPERATIONS1 Impact of lower market metal prices partially offset by cost savings, lower royalties and sales hedges $ million Q3 2016 Q2 2016 Q3 2015 Gross profit $20m below Q3 2015 as the impact of lower market prices Revenue 605 659 632 and higher depreciation was Gr
Slide 15: Cash Costs – Continuing Operations
CASH COSTS – CONTINUING OPERATIONS Copper C1 cost ($/lb) Copper AISC ($/lb) Q3 2016 copper C1 cost 16% lower than Q3 2015 Q3 2016 AISC 21% lower than Q3 2015 Continued focus on cost reductions and efficiencies Lower C1 cost Lower fuel costs Lower royalty costs - 9% Zambian royalty effective
Slide 16: Q3 2016 Gross Profit vs Q3 2015 – Continuing Operations
Q3 2016 GROSS PROFIT VS Q3 2015 – CONTINUING OPERATIONS OPERATIONS Gross profit $20m below Q3 2015 as lower realized metal prices and higher depreciation are partially offset by cost savings and reduced royalties 100 24 13 80 3 28 $ million (4) (25) (59) Gross Sales Q3 2015 realized Hedging FX Costs
Slide 17: Hedging Strategy
HEDGING STRATEGY Sales hedging program established to protect cash flows in a low metal price environment ahead of Panama project completion. 2015 89kt of copper hedged and realized at $2.41/lb, generating $54m in additional revenue. 2016 Total 500kt of copper hedged at $2.26/lb for the year. $134m
Slide 18: Capital Expenditure
CAPITAL EXPENDITURE Cobre Panama capex Revised 2016 US$ million Q3 2016 YTD 2016 Guidance higher in 2016, overall Total Cobre Panama 196 537 750 project cost remains FQM share of Cobre Panama 118 322 450 unchanged at $5.48bn Trident project 14 67 75 Stripping costs 38 81 140 Other sustaining capex a
Slide 19: Long Term Debt Profile
LONG TERM DEBT PROFILE Debt Maturity Profile Covenant Ratio Liquidity No bond principle due Net debt/EBITDA covenant Q3 2016 liquidity: until 2019 ratio of 4.3x - within bank $810m unrestricted cash covenant of 5.5x $593m undrawn RCF (expires 2019) $m 19
Slide 20: Market Guidance 2016
MARKET GUIDANCE 2016 2016 Production guidance - continuing operations • Overall production guidance for copper1 and zinc has been increased, nickel and gold guidance remains unchanged • Sentinel guidance revised to 130,000 tonnes Cu production1 Sentinel Cu production Ni production Zn production Au p
Slide 21: Appendix
APPENDIX FIRST QUANTUM
Slide 22: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at June 30, 2016 ($ million) (4,123) Comparative EBITDA 220 Working capital 6 Gross capital expenditure including pre-commercial (269) Net interest1 (105) Franco-Nevada precious metal gold stream 40 KMPC contribution 40 Other 3 Closing Net Debt at Septemb
Slide 23: First Quantum Minerals Third Quarter 2016 Conference Call & Webcast
FIRST QUANTUM MINERALS THIRD QUARTER 2016 CONFERENCE CALL & WEBCAST OCTOBER 28, 2016 TSX: FM