Slide 1: Fourth Quarter & Year 2016 Conference Call & Webcast
FIRST QUANTUM MINERALS FOURTH QUARTER & YEAR 2016 CONFERENCE CALL & WEBCAST FEBRUARY 17, 2017 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 – Port & Power Station Overview
COBRE PANAMA PROGRESS – PORT & POWER STATION OVERVIEW 3
Slide 4: Cobre Panama Progress – Port & Power Station Overview
COBRE PANAMA PROGRESS – PORT & POWER STATION OVERVIEW 4
Slide 5: Cobre Panama Progress – Power Station Overview
COBRE PANAMA PROGRESS – POWER STATION OVERVIEW 5
Slide 6: Cobre Panama Progress – Coal Feed Conveyor & Coal Storage Shed
COBRE PANAMA PROGRESS – COAL FEED CONVEYOR & COAL STORAGE SHED 6
Slide 7: Cobre Panama Progress – Power Station
COBRE PANAMA PROGRESS – POWER STATION 7
Slide 8: Cobre Panama Progress – Power Station
COBRE PANAMA PROGRESS – POWER STATION 8
Slide 9: Cobre Panama Progress – Overall Process Plant & Mine View
COBRE PANAMA PROGRESS – OVERALL PROCESS PLANT & MINE VIEW 9
Slide 10: Cobre Panama Progress – Process Area Overview
COBRE PANAMA PROGRESS – PROCESS AREA OVERVIEW 10
Slide 11: Cobre Panama Progress – Thickener Area
COBRE PANAMA PROGRESS – THICKENER AREA 11
Slide 12: Cobre Panama Progress – Boxcuts for In Pit Crushing Stations
COBRE PANAMA PROGRESS – BOXCUTS FOR IN PIT CRUSHING STATIONS 12
Slide 13: Cobre Panama Progress – Mill Area
COBRE PANAMA PROGRESS – MILL AREA 13
Slide 14: Cobre Panama Progress – Milling Train
COBRE PANAMA PROGRESS – MILLING TRAIN 14
Slide 15: Cobre Panama Progress – Plant Area
COBRE PANAMA PROGRESS – PLANT AREA 15
Slide 16: Cobre Panama Progress – Tailings Management Facility Decant Tunnel – Inlet
COBRE PANAMA PROGRESS – TAILINGS MANAGEMENT FACILITY DECANT TUNNEL – INLET 16
Slide 17: Financial Review
FINANCIAL REVIEW FIRST QUANTUM MINERALS LTD. 17
Slide 18: 2016 Year Highlights – Continuing Operations
2016 YEAR HIGHLIGHTS – CONTINUING OPERATIONS1 Production Sales Record copper production and sales driven by ramp-up of Sentinel, higher Kansanshi with record annual production at Las Cruces Kansanshi smelter produced 257 thousand tonnes of copper anode and achieved overall copper recovery of 97% Com
Slide 19: 2016 Year Copper Unit Cost – Continuing Operations
2016 YEAR COPPER UNIT COST – CONTINUING OPERATIONS Second consecutive year of unit cost reductions AISC 30% or 61 cent lower than 2014 driven by: 61c 2016 Unit cash costs ($/Lb) C1 AISC Full Year C1 27% reduction against 2014 following successful delivery of cost saving program and benefit of oper
Slide 20: Q4 2016 Highlights – Continuing Operations
Q4 2016 HIGHLIGHTS – CONTINUING OPERATIONS1 Record quarterly copper production with Sentinel production and higher Kansanshi Production 2 Q4 2016 vs Q3 2016 vs Q4 2015 Copper ('000 tonnes) 146 +3 +30 Sentinel commercial production declared Nickel ('000 tonnes) 6 +1 -2 November 1, 2016 following incr
Slide 21: Quarterly Production – Continuing Operations
QUARTERLY PRODUCTION – CONTINUING OPERATIONS1 Copper production 26% above Q4 2015 • Reflects continued ramp-up of Sentinel and higher Kansanshi • Kansanshi production 7% higher reflecting improved plant recovery • Sentinel quarterly production 48kt (Q4 2015: 15kt) as throughput steadily increased fr
Slide 22: Q4 Financial Overview – Continuing Operations
Q4 FINANCIAL OVERVIEW – CONTINUING OPERATIONS1 Impact of lower realized metal prices and higher depreciation partially offset by cost savings and higher sales including contribution from Sentinel $ million except EPS Q4 2016 Q3 2016 Q4 2015 Gross profit $58m below Q4 2015 with impact of lower realiz
Slide 23: Quarterly Unit Cash Costs – Continuing Operations
QUARTERLY UNIT CASH COSTS – CONTINUING OPERATIONS Copper C1 cost1 ($/lb) Copper AISC1 ($/lb) Q4 2016 C1 cost higher than Q3 2016 due to: Q4 2016 AISC higher than Q3 2016 and Q4 2015 Lower gold by-product contribution in particular at Q4 2016 above previous quarter and Q4 2015 driven by Kansanshi
Slide 24: Q4 2016 Gross Profit vs Q4 2015 – Continuing Operations
Q4 2016 GROSS PROFIT VS Q4 2015 – CONTINUING OPERATIONS OPERATIONS Gross profit $58m below Q4 2015 as lower realized metal prices and higher depreciation is partially offset by cost savings and higher sales volumes 110 $ million 30 9 52 9 (21) 3 (88) Sales Q4 2015 Metal Price FX Costs Depreciation R
Slide 25: Long Term Debt Profile
LONG TERM DEBT PROFILE Debt Maturity Profile Covenant Ratio Liquidity No bond principle due Net debt/EBITDA covenant December 31, 2016 liquidity: until 2019 ratio of 4.47x - within bank $565m unrestricted cash covenant of 5.5x $713m undrawn RCF (expires 2019) $ million $1.3bn 25
Slide 26: Cobre Panama – Project Financing Update
COBRE PANAMA – PROJECT FINANCING UPDATE Good progress made on Project Financing Project financing for Cobre Panama was Site visit and term sheet discussions will be launched to ECA’s in December 2016 held in March with follow up discussions in Q2 Discussions with a number of ECA’s across Tar
Slide 27: Capital Expenditure
CAPITAL EXPENDITURE 2016 2017 2018 2019 $ million Actual Guidance Guidance Guidance Total Cobre Panama 764 1,060 830 110 Cobre Panama Funding ($bn) First Quantum share of Cobre Panama 458 640 500 (90) Stripping costs 99 200 200 200 Other sustaining capex and other projects 215 230 150 150 Total Firs
Slide 28: Market Guidance 2017-2019
MARKET GUIDANCE 2017 -2019 Production1 (000’s) 2017 Guidance 2018 Guidance 2019 Guidance Copper – tonnes 570 600 605 Nickel – contained tonnes 25 25 25 Gold – ounces 200 200 200 Zinc – tonnes 20 20 15 C1 Cash Cost2 ($ per pound) Copper 1.20 – 1.40 1.20 – 1.40 1.20 – 1.40 Nickel 4.60 – 4.80 4.60 – 4.
Slide 29: Appendix
APPENDIX FIRST QUANTUM
Slide 30: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at September 30, 2016 ($ million) (4,188) Comparative EBITDA 218 Working capital (45) Gross capital expenditure including pre-commercial (308) Net interest1 (110) Franco-Nevada precious metal stream 47 KMPC contribution 47 Kevitsa (final disposal proceeds
Slide 31: First Quantum Minerals
FIRST QUANTUM MINERALS FOURTH QUARTER & YEAR 2016 CONFERENCE CALL & WEBCAST FEBRUARY 17, 2017 TSX: FM