First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Investor Presentation (January 2014)
24 slides from First Quantum Minerals's investor presentation, January 2014
Slide 1: The New Leader in Global Copper
The New Leader in Global Copper January 2014 TSX: FM; LSE: FQM
Slide 2: Cautionary Note Regarding Forward-Looking Statement
Cautionary Note Regarding Forward-Looking Statement 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 a
Slide 3: First Quantum Minerals - The New Leader in Global Copper
First Quantum Minerals - The New Leader in Global Copper • Geographically diversified asset base • 6 major projects at various stages of development • 7 high-quality, stable operations; current total copper and nickel production • Total production capacities for copper and capacities of 445 ktpa and
Slide 4: Strong Q4 2013 Production
Strong Q4 2013 Production • Copper production up 35% to 114,791 tonnes - Record quarter production of 72,602 tonnes at Kansanshi - Contribution of 29,306 tonnes from the acquired operations • Nickel production up 25% to 12,634 tonnes - Record quarter production of 10,244 tonnes at Ravensthorpe • Add
Slide 5: High-Quality, Stable Operations
High-Quality, Stable Operations 5
Slide 6: Flagship Operation: Kansanshi Cu-Au mine, Zambia
Flagship Operation 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 • As at December 31, 2012, the es
Slide 7: Flagship Operation: Kansanshi Cu-Au mine, Zambia
Flagship Operation Kansanshi Cu-Au mine, Zambia • Higher year-over-year production reflecting capacity expansion Expansion Estimate Production • Q4 ‘13 performance Project Capacity Completion Cost Impact – 72,602 tonnes of copper; (US$M) 43,508 ounces of gold Oxide 7.2 mtpa Complete 34 Copper: 10,00
Slide 8: Our Development Project Pipeline
Our Development Project Pipeline 8
Slide 9: Our Project Pipeline: Copper Smelter, Zambia
Our Project Pipeline Copper Smelter, Zambia • Processing capacity of 1.2 Mtpa —Combination of concentrate from Kansanshi & Sentinel —Average copper grade 26% • Copper production 300,000 tpa; acid production 1.0 Mtpa • Estimates: − Capital cost of US$690M − Commissioning from mid 2014 • Estimated sav
Slide 10: Our Project Pipeline: 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 – Annual production up to 300,000 tonnes – US$2.0 billion capex (inc
Slide 11: Our Project Pipeline: Cobre Panama Cu project, Panama
Our Project Pipeline Cobre Panama Cu project, Panama • Acquired March 2013 • Critical review following acquisition – Focused mainly on Engineering, Contracts and Construction initially – Copied major areas of the design of the almost complete Sentinel process plant • Made significant changes – Unwou
Slide 12: Our Project Pipeline: Cobre Panama Cu project, Panama
Our Project Pipeline Cobre Panama Cu project, Panama • A larger, more robust project – Installed capacity Yrs 1-10 = ~70 Mtpa 17% higher than prior Expansion up to 100 Mtpa beyond Yr 10 – Average annual LOM* copper production of 320,000 tonnes ~ 20% higher than prior – Average annual LOM by-pr
Slide 13: Our Project Pipeline: Cobre Panama Cu project, Panama
Our Project Pipeline Cobre Panama Cu project, Panama • Capex estimate of $6.4 billion – inclusive of $913 million incurred prior to acquisition • Capital per installed tonne of capacity of $17,125 – ~25% lower than prior • A clear and well-defined timeframe – 230 KV overland power line – Q4 ’15 – 30
Slide 14: Cobre Panama Project - Early Operations Area
COBRE PANAMA PROJECT - EARLY OPERATIONS AREA 14
Slide 15: Cobre Panama Project - Large Earthmoving Equipment Assembly Area
COBRE PANAMA PROJECT – LARGE EARTHMOVING EQUIPMENT ASSEMBLY AREA 15
Slide 16: Cobre Panama Project - Process Plant Site Earthworks
COBRE PANAMA PROJECT – PROCESS PLANT SITE EARTHWORKS 16
Slide 17: Cobre Panama Project - Mill Pad Earthworks
COBRE PANAMA PROJECT – MILL PAD EARTHWORKS 17
Slide 18: Cobre Panama Project - Process Plant Stockpile Pad
COBRE PANAMA PROJECT – PROCESS PLANT STOCKPILE PAD 18
Slide 19: Cobre Panama Project - Power Station Area
COBRE PANAMA PROJECT – POWER STATION AREA 19
Slide 20: Cobre Panama Project - Breakwater and Material Offloading Facility
COBRE PANAMA PROJECT – BREAKWATER AND MATERIAL OFFLOADING FACILITY 20
Slide 21: Optimizing Capital Structure & Financial Flexibility
Optimizing Capital Structure & Financial Flexibility Refinancing the short-term US$2.5 Bn revolver at FQM (Akubra) with a five-year Term and Revolving Credit Facility Exchanging the FQM (Akubra) Inc. US$1.49 Bn 8.75% 2020 and US$500m 7.50% 2021 notes into new 6.75% 6-year notes and new 7.00% 7-y
Slide 22: Current Corporate Structure Chart
Current Corporate Structure Chart (Figures as of 30 September 2013) US$350 MM Senior Notes LTM Sep-13 EBITDA: US$1.1 Bn Total Debt / Total Leverage: US$0.8 Bn / 0.7x Total Assets: US$8.2 Bn US$2.0 Bn Senior Notes 100% 100% 100% 100% 100% 100% 100% US$2.5 Bn RCF FQM FQM Australia Metal Corp FQM
Slide 23: Pro Forma Corporate Structure Chart
Pro Forma Corporate Structure Chart (Figures as of 30 September 2013) US$2.28 Bn (1) New Senior Notes US$350m Senior Notes US$2.5 Bn 5 year Term and RCF LTM Sept-13 EBITDA: US$1.6 Bn Total Debt / Total Leverage: US$3.5 Bn / 2.1x Total Assets: $15.0 Bn 100% 100% 100% 100% 100% 100% 100% 100% 10
Slide 24: The New Leader in Global Copper
The New Leader in Global Copper January 2014
First Quantum Minerals — Investor Presentation (January 2014) on 6ix