First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Investor Presentation (May 2013)
26 slides from First Quantum Minerals's investor presentation, May 15, 2013
Slide 1: The New Leader in Global Copper
The New Leader in Global Copper May 15, 2013 Global Diversified
Slide 2: Cautionary Note Regarding Forward-Looking Statement
Cautionary Note Regarding Forward-Looking Statement Certain statements and information contained in this presentation, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such for
Slide 3: Strong Q1 2013 Results
Strong Q1 2013 Results US$ millions unless otherwise noted Q1 2013 Q1 2012 Change Revenues 901.2 728.7 24% Comparative earnings – per share $0.32 $0.25 28% Cash flow after working capital changes 416.4 138.5 201% Cash 1,857.6 1,026.6 81% Copper production - tonnes 79,308 65,869 20% Nickel production
Slide 4: A Significant Step Forward in Our Growth & Diversification Strategy
A Significant Step Forward in Our Growth & Diversification Strategy Australia Australia 6% Americas 8% Americas 9% 16% Americas 35% Europe Africa 16% 49% Europe Africa 65% 67% Europe 29% 1 Mtpa1 300 Ktpa1 1.3 Mtpa 1 2018E Copper production. Source: BrookHunt 4
Slide 5: Geographically Diversified Portfolio of High-Quality Operations & Projects
Geographically Diversified Portfolio of High-Quality Operations & Projects 5
Slide 6: High-Quality, Stable Operations
High-Quality, Stable Operations 6
Slide 7: Kansanshi Cu-Au mine, Zambia
High-Quality, Stable Operations Kansanshi Cu-Au mine, Zambia • Located near Solwezi in the north western Province of Zambia • First production in 2005 • Open pit mining • Flexible ore treatment to allow for variation in ore type : – sulphide circuit; oxide circuit; gold facility • Near mine resource
Slide 8: Kansanshi Cu-Au mine, Zambia: Multi-phase production expansion
High-Quality, Stable Operations Kansanshi Cu-Au mine, Zambia Multi-phase production expansion project underway Expansion Estimate Production – 2012 – 2015 Project Capacity Completion Cost Impact 60% increase in overall (US$M) production capacity Oxide 7.2 mtpa Complete 31 Copper: 10,000 - 15,000 tpa
Slide 9: Guelb Moghrein Cu-Au mine, Mauritania
High-Quality, Stable Operations Guelb Moghrein Cu-Au mine, Mauritania • 100% ownership • Located 250 kilometres northeast of the nation’s capital, Nouakchott • As at December 31, 2012, the estimated minelife was ~9 years (including stockpiles) based on current operations • First production in 2006 •
Slide 10: Guelb Moghrein Cu-Au mine, Mauritania
High-Quality, Stable Operations Guelb Moghrein Cu-Au mine, Mauritania • Stronger, more sustained performance over the past 12 months • Focused on improving plant availability • Evaluating potential to recover magnetite as a by-product • Deposit considered to be an IOCG type deposit - structure and m
Slide 11: Ravensthorpe Ni mine, Australia
High-Quality, Stable Operations Ravensthorpe Ni mine, Australia • Acquired as a decommissioned plant in 2010 • First production within 20 months of purchase • Estimated mine life of 32 years • Commercial production declared Dec 28 2011 • Workforce = ~405 • Q1 ‘12 performance – 9,023 tonnes of contai
Slide 12: Kevitsa Ni-Cu-PGE mine, Finland
High-Quality, Stable Operations Kevitsa Ni-Cu-PGE mine, Finland • Built, commissioned and started commercial operations within 36 months of board approval • Estimated mine life of 29 years • Commercial production declared August 2012 • Workforce = ~290 • Further potential – Process optimization – Ap
Slide 13: Las Cruces Cu mine, Spain
High-Quality, Stable Operations Las Cruces Cu mine, Spain • Acquired in March 2013 • Estimated mine life of 9 years with potential for an additional 10 to 15 years • Average grade of 5.4% copper • Workforce = 250 direct employees; 650 contractors • Annual production capacity – 72,000 tonnes of coppe
Slide 14: Çayeli Cu-Zn mine, Turkey
High-Quality, Stable Operations Çayeli Cu-Zn mine, Turkey • Acquired in March 2013 • Estimated mine life of 6 years with potential for an additional 3 years • Average grade of 3.1% copper and 3.6% zinc • Workforce = 493 employees • Q1 C1 cash cost of US$0.93/lb. copper • 2013 Estimates: – 28,000 – 3
Slide 15: Pyhäsalmi Cu-Zn mine, Finland
High-Quality, Stable Operations Pyhäsalmi Cu-Zn mine, Finland • Acquired in March 2013 • One of the most efficient underground mines in the world • Estimated mine life of 6 years • Average grade of 1.1% copper and 1.9% zinc • Workforce = 261 employees • Q1 C1 cash cost of (US$0.55)/lb. copper • 2013
Slide 16: Outlook for 2013
Outlook for 2013 Copper Nickel Gold Zinc (000’s tonnes) | _(000’s contained tonnes) (000°s ounces) (000’s tonnes) Group 384 - 416 40-45 193 - 213 41-48 Kansanshi 250-270 : 126 - 140 : Guelb Moghrein 37-41 - 56-61 - Ravensthorpe : 31-35 : : Kevitsa 15-16 9-10 11-12 : Cayeli! 21-24 - 27-31 Las Cruces"
Slide 17: Our Project Pipeline
Our Project Pipeline Development Projects
Slide 18: Copper Smelter, Zambia
Our Project Pipeline 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 − Commissioning f
Slide 19: Sentinel Cu project, Zambia
Our Project Pipeline Sentinel Cu 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 – US$2.0 capex – Annual production up to 300,000 tonnes 19
Slide 20: Cobre Panama Cu project, Panama
Our Project Pipeline Cobre Panama Cu project, Panama • Acquired March 2013 • Large open pit copper project • Larger project than the Panama Canal • Major aspect in our acquisition decision • Est. mine life of 40 years • Est. average annual production of 260,000 tonnes copper • Speeding up access to
Slide 21: Haquira Cu project, Peru
Our Project Pipeline Haquira Cu project, Peru • Focused on community & environmental aspects • Potential: - 20 year mine life – Avg 190k tonnes of copper production per year 21
Slide 22: Our Growth Profile
Our Growth Profile Proven Track Record of Developing & Operating Mines Pipeline 000’s tonnes copper 000’s tonnes nickel Cobre Haquira 1,200 90 Panama Enterprise 80 Sentinel 70 Kansanshi Expansion 800 60 and Smelter 50 40 400 30 20 10 -- 0 2001 2001 2002 2002 2003 2003 2004 2004 2005 2006 2005 2006 2
Slide 23: Leading Copper Growth
Freeport-McMoRan 1.8 Glencore Xstrata 1.5 Codelco 1.5 First Quantum 1.3 BHP Billiton 1.2 Leading Copper Growth Southern Copper 0.9 Rio Tinto 0.8 Anglo American 0.8 KGHM 0.6 Source: BrookHunt Kazakhmys 0.5 2018E Copper Production, Mt Teck Resources 0.5 Vale 0.5 Antofagasta 0.4 Norilsk 0.4 First Quant
Slide 24: Building on Our Record of Delivering Value to Shareholders
Building on Our Record of Delivering Value to Shareholders Total Annualized Shareholder Return 2000 – 2012 24
Slide 25: The New Global Copper Leader
The New Global Copper Leader The New Go-To Copper Producer Attractive Diverse Geographic Exposure A Long-Standing Commitment to Social and Environmental Excellence Creating Value with Our Project Development Expertise An Exciting Future Ahead 25
Slide 26: The New Leader in Global Copper
The New Leader in Global Copper May 15, 2013 Global Diversified
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