First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q3 2024 Earnings Presentation
40 slides from First Quantum Minerals's earnings presentation, Oct 23, 2024
Slide 1: Third Quarter 2024 Financial & Operating Results
Third Quarter 2024 Financial & Operating Results RESPONSIBLE GROWTH TSX FM
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION 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: Opening Remarks
Cobre Panamá OPENING REMARKS Tristan Pascall, CEO RESPONSIBLE GROWTH TSX FM
Slide 4: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS TOTAL COPPER PRODUCTION Recent Developments • 2024 copper production and C1 cash cost1 guidance narrowed. Gold production 116,088t 13% increase from Q2 2024 driven by guidance increased. Nickel production guidance unchanged • Energy crisis in Zambia continued, however, production
Slide 5: 2024 Updated Guidance
2024 UPDATED GUIDANCE • Guidance update reflects year-to-date performance and the outlook for the remainder of the year • Total capital expenditure guidance unchanged PRODUCTION GUIDANCE COST AND CAPEX GUIDANCE Previous UPDATED Copper Cost Guidance ($/lb) Previous UPDATED Kansanshi 130 – 150 155 – 1
Slide 6: Sustainability Highlights from the Quarter
SUSTAINABILITY HIGHLIGHTS FROM THE QUARTER Humanitarian maize hauling from Empowering women through Cobre Panamá Outreach Holistic mining and wildlife Tanzania tea sapling production Program management First Quantum has partnered with the Çayeli provided support to female Cobre Panamá embarked on a
Slide 7: Operational Overview
Sentinel OPERATIONAL OVERVIEW Rudi Badenhorst, COO RESPONSIBLE GROWTH TSX FM
Slide 8: Kansanshi
KANSANSHI Q3 2024 COPPER PRODUCTION 2024 Outlook 49,810t 20% higher than Q2 2024 due to higher • Production guidance for copper and gold increased • Gold production in Q4 expected to be lower than Q3 due to lower grades throughput and feed grades • Swap of the mixed and sulphide mills to continue in
Slide 9: Trident - Sentinel
TRIDENT - SENTINEL Q3 2024 COPPER PRODUCTION 2024 Outlook 58,412t 9% higher than Q2 2024 due to improved • Production for copper narrowed to the lower end of previous guidance • Ongoing development of Stage 3 (Western cut-back) will increase availability of throughput softer material on shorter haul
Slide 10: Trident - Enterprise
TRIDENT – ENTERPRISE Q3 2024 NICKEL PRODUCTION 2024 Outlook 4,827t 21% decrease from Q2 2024 due to lower • Nickel production guidance unchanged • Focus for remainder of the year will be on increasing mobile equipment reliability grades and 9-day power disruption through supporting the contractor up
Slide 11: Other Mines
OTHER MINES Las Cruces Çayeli NI 43-101 published February 2024 Q3 2024 PRODUCTION: 3,178t Cu, and 542t Zn Continue to pursue sales process Q3 2024 C1 CASH COST1: $1.93 per lb Cu 2024 PRODUCTION GUIDANCE: 10Kt Cu, 3.5kt Zn Guelb Moghrein Q3 2024 PRODUCTION: 4,688t Cu Q3 2024 C1 CASH COST1: $1.09 per
Slide 12: Financial Overview
Kansanshi Smelter FINANCIAL OVERVIEW Ryan MacWilliam, CFO RESPONSIBLE GROWTH TSX FM
Slide 13: Q3 2024 Revenue and Costs
Q3 2024 REVENUE AND COSTS GROSS REALIZED COPPER PRICE1 • Increased revenue quarter-over-quarter, driven by higher sales volume (per lb) • Lower copper C1 cash costs1 quarter-over-quarter driven by higher production $4.24 across all operating sites. Lower fuel costs and strong gold by-product credits
Slide 14: Q3 2024 Net Earnings and EBITDA
Q3 2024 NET EARNINGS AND EBITDA¹ EBITDA¹ EBITDA¹ was 55% higher quarter-over-quarter driven by higher sales volumes, $520 million lower care & maintenance costs but impacted by lower copper prices² (net of hedge impact³) Up 55% quarter-over-quarter EBITDA¹ ($ million) ADJUSTED EPS¹ ($/share) NET EAR
Slide 15: EBITDA Waterfall
EBITDA¹ WATERFALL (Excluding Cobre Panamá & share of JV and Ravensthorpe)³ External Factors (-$64 million) Internal Factors (+$195 million) • Copper -$59m • Nickel -$8m • Gold +$6m ¹ EBITDA is a non-GAAP financial measure and realized metal prices are non-GAAP ratios, which do not have a standardize
Slide 16: Copper C1 Cash Cost
COPPER C1 CASH COST¹ • Lower unit cash costs in Q3 was driven by improved production across all sites, higher by-product gold credits and lower fuel costs at Zambian operations • Zambian electricity costs increased with the impact of supplementary imported power $0.16 per lb lower cash costs ~400kt
Slide 17: Quarterly Net Debt Movement
QUARTERLY NET DEBT1 MOVEMENT Net debt1 increased by $154 million during the quarter mainly due to planned capital expenditure on S3 at Kansanshi, coupled with an increase in net working capital $1.5bn LIQUIDITY SEPTEMBER 30, 2024 $693m Unrestricted $830m Cash Undrawn RCF ¹ Net debt is a supplementar
Slide 18: Hedging Strategy
HEDGING STRATEGY • Continued to enter into additional unmargined zero cost collars as protection from downside price movements during the quarter • Approximately 43% of our planned copper production hedged through to the end of 2025 • Hedge gain of $21 million realized during the quarter • 72.5kt of
Slide 19: Closing Remarks
Reforestation Initiatives Cobre Panamá CLOSING REMARKS Tristan Pascall, CEO RESPONSIBLE GROWTH TSX FM
Slide 20: S3 Expansion
S3 EXPANSION S3 Expansion Works Progress-To-Date Outlook • Additional concentrator capacity • Completed assembly of the SAG and ball mills and commenced • Majority of capital spend expected installation of the gearless mill drives in 2024 • Additional SAG and ball mill • Work in priority areas, incl
Slide 21: S3 Expansion Milling Area
S3 EXPANSION MILLING AREA July 2024 October 2024 21
Slide 22: Capital Allocation - 2024 and Beyond
CAPITAL ALLOCATION - 2024 AND BEYOND Focus on debt reduction, consistent operational performance in Zambia, execution of the S3 Expansion and Cobre Panamá resolution 1. Balance Sheet Initiatives 2. Brownfield 3. Greenfield With Cobre Panamá in a phase of P&SM, Balance sheet management currently Kans
Slide 23: Upcoming Events
UPCOMING EVENTS January 2025 • 2024 PRELIMINARY PRODUCTION, 2025-2027 GUIDANCE* February 11, 2025 • Q4 2024 FINANCIAL AND OPERATING RESULTS (Conference call February 12, 2025) April 23, 2025 • Q1 2025 FINANCIAL AND OPERATING RESULTS (Conference call April 24, 2025) May 8, 2025 • ANALYST/INVESTOR DIN
Slide 24: Appendix
APPENDIX RESPONSIBLE GROWTH TSX FM
Slide 25: Copper Cash Cost and AISC
COPPER CASH COST¹ AND AISC¹ Lower Thequarterly copper C1 First Quantum cash cost¹ Financial and AISC¹ (excluding Cobre Panamá) of $1.57/lb and $2.35/lb respectively, driven by Policy improved production and lower sustaining capital expenditure² COPPER C1¹ ($/lb) COPPER AISC¹ ($/lb) 2.90 1.95 2.70 1.
Slide 26: Financial Summary
FINANCIAL SUMMARY The First Quantum Financial Policy $ millions (except per share numbers) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Sales revenues 1,279 1,231 1,036 1,218 2,029 Gross profit 456 333 156 87 660 EBITDA¹,² 520 336 180 273 969 Net earnings (loss) attributable to shareholders of the Compan
Slide 27: Debt Maturity Profile
DEBT MATURITY PROFILE • Proactive management of debt maturities continues • Trident loan has been refinanced² reducing repayments in 2025 and extending the facility until 2028 DEBT MATURITY AT SEPTEMBER 30, 2024 PROFORMA DEBT AMORTISATION POST-TRIDENT FACILITY REFINANCE² 2,292 2,150 1,600 1,600 1,50
Slide 28: Non-GAAP EBITDA and Adjusted Earnings Reconciliation
NON-GAAP EBITDA1 AND ADJUSTED EARNINGS (LOSS)1 RECONCILIATION $ millions (except per share numbers) Q3 2024 Q2 2024 Q3 2023 Operating profit 329 117 585 Depreciation 159 148 323 Foreign exchange loss 23 6 23 Impairment expense² 2 61 - Restructuring expense³ 2 6 31 Other expense 5 (2) 8 Revisions in
Slide 29: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C12 AND AISC2 $ millions Q3 2024 Q2 2024 Q3 2023 Cost of sales¹ (823) (898) (1,369) Depreciation 159 148 323 By-product credits 127 104 152 Royalties 91 89 92 Treatment and refining charges (20) (16) (79) Freight costs (3) (7) (7) Finished goods (16) 12 20 Other4 68
Slide 30: EBITDA Sensitivity
EBITDA¹ SENSITIVITY The First Quantum Financial Policy Impact on September Actual price/rate 2024 YTD EBITDA¹ of a Assumption September 2024 YTD 10% unfavourable change in price/rate Copper (including hedge impact) $4.14/lb $253 million Gold $2,296/oz $23 million Nickel $7.74/lb $26 million Zambian
Slide 31: Kansanshi, Including S3 Expansion
KANSANSHI, INCLUDING S3 EXPANSION Ownership Mine Type Processing Rate S3 Expansion 80% First Quantum Open Pit Adjacent 1.38 Mtpa S3 25 Mtpa Expansion smelter 20% ZCCM-IH Vein deposit, mixed (First production 2025) 27 Mtpa circuit (oxide, supergene and oxide Smelter expansion to 1.6 Mtpa mixed, sulph
Slide 32: Kansanshi Pit Development
KANSANSHI PIT DEVELOPMENT Source: Kansanshi 43-101 Technical Report July 2024 32
Slide 33: Trident (Sentinel & Enterprise)
TRIDENT (SENTINEL & ENTERPRISE) Ownership Mine Type Sentinel Processing Enterprise Processing 100% First Quantum Open Pit 62 Mtpa Sulphide circuit 4 Mtpa Sulphide circuit Sentinel: Copper First ore Q1 2023 Enterprise: Nickel First nickel concentrate Q2 2023 SENTINEL & First sale Q3 2023 ENTERPRISE C
Slide 34: Sentinel Pit Development
SENTINEL PIT DEVELOPMENT Source: Trident 43-101 Technical Report March 2020 34
Slide 35: Cobre Panamá, Including CP100 Expansion
COBRE PANAMÁ1, INCLUDING CP100 EXPANSION Ownership Mine Type Processing Rate CP100 Expansion 90% First Quantum Open Pit 85 Mtpa Sulphide circuit Expansion to 100 Mtpa 10% KOMIR Cu-Au-Ag-Mo Porphyry P&P Reserves M&I Resources Inferred Resources 2,767.7 Mt 3,313.0 Mt 1,084.5 Mt 0.37% Cu 0.37% Cu 0.26%
Slide 36: Las Cruces Underground Project
LAS CRUCES UNDERGROUND PROJECT • Benefits from existing team, workforce and Las Cruces Underground Resource Classification infrastructure MINERAL RESOURCE STATEMENT AS OF SEPTEMBER 30, 2023 • Environmental permits received in 2020; Mine Tonnes CuEq Cu Zn Pb Ag exploitation permit received in 2021; W
Slide 37: Taca Taca
TACA TACA 275,000 Low 32 Years US$3.6 Billion Tonnes of Cu C1 Cash Cost1 Mine Life Capital Per Year (Peak) Investment • 50 - 200 Megawatts of Renewable Energy • Primary ESIA for the project continues to be under evaluation by the Secretariat of Mining of Salta Province with approval still expected i
Slide 38: La Granja
LA GRANJA La Granja is one of the largest undeveloped copper resources in the world, with potential to support a multi-decade open-pit operation • First Quantum is the operator with a 55% interest • Large copper project in northern Peru • Partnership with Rio Tinto, acquired in August • Located in t
Slide 39: Haquira Overview
HAQUIRA OVERVIEW • Large scale porphyry copper project in Apurímac, Southern Peru • Acquired in December 2010 • One of the world’s major undeveloped copper deposits • M&I resource of 3.7 million tonnes of contained copper equivalent plus an inferred resource of 2.4 million tonnes of copper equivalen
Slide 40: First Quantum Minerals Ltd. contact
First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577 RESPONSIBLE GROWTH TSX FM
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