First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Debt Investor Presentation (February 2024)
37 slides from First Quantum Minerals's debt investor presentation, Feb 21, 2024
Slide 1: Comprehensive Refinancing and Recapitalization
A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the final base shelf prospectus, any amendment to the final bas
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION This presentation is confidential and does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of First Quantum Minerals Ltd. (“FQM”, “First Quantu
Slide 3: Today's Presenters
TODAY’S PRESENTERS Tristan Pascall – Chief Executive Officer Joined First Quantum in 2007. Held progressively senior operational roles, including General Manager at Cobre Panamá and was part of the development and construction teams at Sentinel and Cobre Panamá 24+ years of mining industry and finan
Slide 4: First Quantum – Execution & Resilience
FIRST QUANTUM – EXECUTION & RESILIENCE First Quantum is an experienced and proven developer and operator of large-scale, open-pit copper mines in a variety of terrains on four continents. Our results-driven culture has helped drive successful growth, nearly doubling total production since 2015. Pana
Slide 5: The Leader in Copper
THE LEADER IN COPPER • Top 5 producer of copper(1): 708kt in 2023 1 THE RIGHT METALS • Top 10 producer of nickel(2): 26kt in 2023 • Significant producer of gold: 227koz in 2023 • FQM Zambia: top 10 copper complex with vertically integrated production on the cusp of a major expansion • Taca Taca: a h
Slide 6: Overview of Capital Structure Initiatives
Overview of Capital Structure Initiatives
Slide 7: Summary: Refinancing and Recapitalisation
SUMMARY: REFINANCING AND RECAPITALISATION REFINANCING AND DELIVER SOLID FOUNDATIONS ON WITH A COMPREHENSIVE AND HOLISTIC PLAN THAT WILL… RECAPITALISATION TO… WHICH TO GROW • Amend & Extend (“A&E”) Existing Revolving Credit Facility (“RCF”) ✓ Reduce Leverage ✓ Covenant Headroom: <3.50x → <5.75x2 and
Slide 8: Ongoing Initiatives to Further Improve Liquidity
ONGOING INITIATIVES TO FURTHER IMPROVE LIQUIDITY RECENTLY COMPLETED & IN PROGRESS OTHER LEVERS AVAILABLE Dividend Suspension Announced in January, demonstrating commitment to strengthening balance sheet ✓ Planned capex programs reduced/re phased by c.$400m and $250m in 2024 and 2025 respectively, in
Slide 9: Provide Runway to Complete S3 and Work Towards CP Resolution
PROVIDE RUNWAY TO COMPLETE S3 AND WORK TOWARDS CP RESOLUTION ABSOLUTELY FOCUSED ON DELIVERING… …WITH PATHWAY TO ACHIEVE PORTFOLIO OBJECTIVES Senior Notes New 2L Notes Term Loan Trident Loan RCF (Drawn) RCF (Undrawn) Continue Delivering in Zambia ✓ 3,093 Current Maturity 250 ✓ Profile ($m) Enterprise
Slide 10: Reduced Leverage and Enhanced Liquidity
REDUCED LEVERAGE AND ENHANCED LIQUIDITY TRANSACTION SOURCES & USES REDUCED LEVERAGE AND SUSTAINABLE CAPITAL STRUCTURE Sources $m Capitalization ($m) Expected A&E of TL and RCF Facilities $2,243 Cash and cash equivalents1 1,5092 Debt3 New 2L Notes $1,600 943 1L Term Loan New Equity $1,000 1L RCF ($1.
Slide 11: Support and Validation from Our Banking Group
SUPPORT AND VALIDATION FROM OUR BANKING GROUP CREDIT FACILITIES OVERVIEW Conditions Precedent • Amount: $2.24bn, as current (RCF:$1.3bn & Term Loan: $943m) • Minimum of $1.8bn raised in capital markets, of which minimum $800m is • Margin: starting +375bps equity • Maturity: extended to 15 Apr 2027,
Slide 12: Holistic Refinancing Approach to Support Long-Term Value
HOLISTIC REFINANCING APPROACH TO SUPPORT LONG-TERM VALUE NEW EQUITY ISSUANCE $1,000m of common shares issued to: Repay certain indebtedness Enhance our liquidity profile and for general corporate purposes NEW SECOND LIEN SECURED SENIOR NOTES $1,600m 5yr senior second lien notes issued to: Redeem exi
Slide 13: A Leading Copper Operator and Developer
A Leading Copper Operator and Developer
Slide 14: First Quantum Minerals at a Glance
FIRST QUANTUM MINERALS AT A GLANCE Major Copper producer with a world-class portfolio of greenfield development options and the team to deliver them Las Cruces, Spain Cu Zn Cobre Panamá, Panama Cu Au Ag Mo • Ownership: 100% • Ownership: 90% • Stage: Closed in 2023, UG development project FQM Offices
Slide 15: A Leading Pure-Play Copper Producer
A LEADING PURE-PLAY COPPER PRODUCER TOP 10 PURE-PLAY COPPER PRODUCERS – 2023E ATTRIBUTABLE PRODUCTION (KT CU)1 Significant controlling shareholder 89% owned by Grupo Mexico 6752 32% owned by 1,299 the Polish 65% owned Government by the Luksic 2983 family 962 52% owned by Citic, Zijin and 522 Robert
Slide 16: Leading Development Capabilities and Operational Expertise
LEADING DEVELOPMENT CAPABILITIES AND OPERATIONAL EXPERTISE COMMISSIONING BENEFITS OF FQM APPROACH FIRST QUANTUM Months between first production and commercial 52 PROJECT MODEL production for large greenfield copper projects in the Americas First Quantum In-house 17 11 12 8 9 9 EPCM 6 Cobre Panama La
Slide 17: Track Record of Delivering on High Quality Assets
TRACK RECORD OF DELIVERING ON HIGH QUALITY ASSETS • FQM is a premier mine developer using in-house project design, management and execution • Experienced and proven developer of large-scale, open-pit copper mines in challenging terrains, be it in the Arctic Circle, tropical Panama, the Sahara Desert
Slide 18: Cobre Panamá in Context
COBRE PANAMÁ IN CONTEXT COBRE PANAMÁ OVERVIEW KEY PROJECT STATS Colon Cobre Panamá is one of the largest copper mines built globally in the past decade Cobre Panamá Mine & Process Plant Ownership Mine Type Located in Colon Province, 120km west of Panama City, the complex includes an open Panama pit,
Slide 19: Cobre Panamá Current Status
COBRE PANAMÁ CURRENT STATUS CURRENT SITUATION Cobre Panamá remains in a phase of Preservation and Safe Management (P&SM) with production halted Approximately 1,400 workers remain on site to run the P&SM program, although further reductions to a headcount below 1,000 workers may follow depending on e
Slide 20: Focus on Zambia Operations
FOCUS ON ZAMBIA OPERATIONS KANSANSHI incl. S33 SENTINEL ENTERPRISE 80% First Quantum Ownership (100% Economic rights), 100% First Quantum 100% First Quantum 20% ZCCM-IH 906.1 Mt 700.7 Mt 32.1 Mt Enterprise P&P Reserves 0.59% Cu 0.44% Cu 1.01% Ni 0.10 g/tonne Au Kansanshi Sentinel Mine Type Open Pit
Slide 21: A New Dawn for Investment in Zambia
A NEW DAWN FOR INVESTMENT IN ZAMBIA • Since being elected in 2021, the new government in Zambia has taken an investor- friendly approach and has delivered on providing fiscal stability and reforms for the mining sector over the last three national budgets • The Zambian government and FQM agreed a br
Slide 22: Extensive Portfolio Growth Optionality
EXTENSIVE PORTFOLIO GROWTH OPTIONALITY TACA TACA LA GRANJA HAQUIRA World-class undeveloped copper resources with the potential to support multi-decade operations Location Salta Province, Argentina Cajamarca, Peru Apurimac, Peru Commodity Cu, Au, Mo Cu Cu La Granja (55%) In partnership with Mine Type
Slide 23: FY23 Results
FY23 Results
Slide 24: Full Year 2023: The Year in Summary
FULL YEAR 2023 The Year in Summary TOTAL COPPER PRODUCTION • Q1 2023 - $850 million redemption of 2024 Notes • Q1 2023 - Agreement reached with the Government of Panama on a Refreshed Concession Contract 707,678t • Q1 2023 - CP100 Expansion completed ahead of schedule • Q2 2023 - First nickel concen
Slide 25: Production Guidance
PRODUCTION GUIDANCE Copper (kt) Nickel (kt) Gold (koz) +5%¹ +14%¹ 140 - 165 +8%¹ 400 - 460 400 - 460 36 - 51 1 370 - 420 120 - 140 377 20 10 1 49 - 59 20 28 26 - 41 95 - 115 97 34 - 44 170 - 200 180 - 210 22 - 37 2 130 - 150 22 135 25 - 35 28 - 38 28 4 15 - 25 10 - 20 85 - 95 90 - 105 214 220 - 250
Slide 26: Copper: Critical Mineral for the Future
COPPER CRITICAL MINERAL FOR THE FUTURE THE METALS THAT WE MINE ARE VITAL TO THE TRANSITION ROBUST GROWTH IN COPPER DEMAND WITH NEW SUPPLY REQUIRED TO A LOW CARBON ECONOMY AND FOR SOCIOECONOMIC TO SATISFY FUTURE DEMAND 35 DEVELOPMENT 30 25 20 75% Mt 15 16 YEARS of Paris agreement 10 5 Average time fr
Slide 27: Closing Remarks
Closing Remarks
Slide 28: A Leader in Copper…on a Solid Foundation
A LEADER IN COPPER…ON A SOLID FOUNDATION Following the comprehensive refinancing, First Quantum has: Continued stable, reliable production in Zambia The liquidity needed to support our immediate growth A sustainable balance sheet to withstand various market and operating environments A maturity prof
Slide 29: Appendix
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Slide 30: Cash Cost and All-In Sustaining Cost Guidance
CASH COST AND ALL-IN SUSTAINING COST GUIDANCE Copper C1 Cash Cost2 ($/lb) Nickel C1 Cash Cost ($/lb) Copper Costs C1 cash cost guidance has increased as a result of the suspension of operations at Cobre Panamá Excluding Cobre Panamá, C1 cash costs for 1.80 - 2.05 1.80 - 2.05 1.80 - 2.05 2024 are in
Slide 31: Capital Expenditure Guidance
CAPITAL EXPENDITURE GUIDANCE Capital Expenditure ($m) Capital expenditure continues to experience inflationary cost increases driven by higher shipping rates, steel prices, power costs, labour rates and general inflation Guidance reflects these cost increases as well as additional scope increases an
Slide 32: Q4 2023 Revenues and Costs
Q4 2023 REVENUES AND COSTS REALIZED COPPER PRICE1 (per lb) Decline in revenue driven by disruptions to Cobre Panamá operations and lower production at Zambian sites. $3.62 ~400kt 6.00 ~410kt 5.00 REVENUE Copper C1 cash cost¹ ($/lb) $1.2 billion 4.00 Gross realized copper price¹ ($/lb) Copper price (
Slide 33: EBITDA Waterfall
EBITDA¹ WATERFALL EBITDA¹ $696 million lower than Q3 2023 driven by lower copper sales. External Factors (-$43 million) Internal Factors (-$653 million) 2 ¹ EBITDA is a non-GAAP financial measure, which does not have a standardized meaning under IFRS and might not be comparable to similar measures d
Slide 34: Copper C1 Cash Cost
COPPER C1 CASH COST¹ Higher unit cash costs driven by lower production and higher electricity costs at Zambian operations following the signing of the new ZESCO agreement, mitigated by lower maintenance costs. $0.20 per lb higher cash costs 1.85 Fixed costs 1.75 (e.g Electricity) Services Labour 202
Slide 35: Quarterly Net Debt Movement
QUARTERLY NET DEBT1 MOVEMENT Net debt1 increased by $783 million during the quarter primarily due to Cobre Panamá $567m tax payment in November, and disruptions to shipping at Cobre Panamá's Punta Ricon port. $1.2BN LIQUIDITY 31 DECEMBER 2023 $250m Undrawn RCF $959m Unrestricted Cash 1 2 3 4 ¹ EBITD
Slide 36: Technical Information
TECHNICAL INFORMATION Except as stated otherwise, the mineral resource and mineral reserve estimates and other scientific and technical information contained throughout this investor presentation (the “Investor Presentation”) are based on information compiled by or under the supervision of a “qualif
Slide 37: First Quantum Minerals Ltd. info@fqml.com
First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577 TSX FM
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