First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q2 2024 Earnings Presentation
43 slides from First Quantum Minerals's earnings presentation, Jul 24, 2024
Slide 1: Second Quarter 2024 Financial & Operating Results
Second 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: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS TOTAL COPPER PRODUCTION Recent Developments • Ravensthorpe placed on care and maintenance in early May 2024 102,709t 2% increase from Q1 2024 driven by • Initiated copper hedging program as protection from downside price movements • Enterprise declared commercial production as of
Slide 5: Shareholder Rights Agreement
SHAREHOLDER RIGHTS AGREEMENT • The Shareholder Rights Agreement will formalize and provide structure to the First Quantum and Jiangxi Copper relationship and will help to support reasonable sharing of best practices between the parties across the copper value chain Four key provisions: 1. Nomination
Slide 6: 2024 Guidance
2024 GUIDANCE • Copper and gold production guidance and copper unit cost guidance remain unchanged • Nickel production guidance narrowed reflecting year-to-date production at Ravensthorpe and strong year-to-date production at Enterprise; Nickel unit cost guidance withdrawn (Ravensthorpe only) PRODUC
Slide 7: ESG Highlights
ESG HIGHLIGHTS Local community engagement at Hitachi battery mining truck trials Leading Malaria eradication Small business management Cobre Panamá begin at Kansanshi efforts in Zambia for women at Guelb Moghrein Cobre Panamá actively funds and Hitachi Construction Machinery is trialing First Quantu
Slide 8: Operational Overview
Sentinel OPERATIONAL OVERVIEW Rudi Badenhorst, COO RESPONSIBLE GROWTH TSX FM
Slide 9: Kansanshi
KANSANSHI Q2 2024 COPPER PRODUCTION 2024 Outlook 41,507t 32% higher than Q1 2024 due to higher • Copper grades expected to improve modestly over 2024 with higher-grade material from higher elevation areas at Main 15 and Main 17 cutbacks feed grades • Swap of the mixed and sulphide mills planned for
Slide 10: Trident (Sentinel)
TRIDENT (SENTINEL) Q2 2024 COPPER PRODUCTION 2024 Outlook 53,595t 14% lower than Q1 2024 due to lower • Mining performance and throughput expected to continue to improve over the remainder of the year with the ongoing development of Stage 3, which will enable improved mining productivities and incre
Slide 11: Trident (Enterprise)
TRIDENT (ENTERPRISE) Q2 2024 NICKEL PRODUCTION 2024 Outlook 6,147t 52% increase from Q1 2024 • Ore variability controls to be prioritized as mixed oxides with lower feed grade to be primarily processed in September and October 2024, but nickel production consistency expected to be maintained with hi
Slide 12: Other Mines
OTHER MINES Las Cruces Çayeli NI 43-101 published February 2024 Q2 2024 PRODUCTION: 2,798t Cu, and 494t Zn Continue to pursue sales process Q2 2024 C1 CASH COST1: $1.60 per lb Cu 2024 PRODUCTION GUIDANCE: 9Kt Cu, 3.5kt Zn Guelb Moghrein Q2 2024 PRODUCTION: 4,809t Cu Q2 2024 C1 CASH COST1: $1.06 per
Slide 13: Financial Overview
Kansanshi Smelter FINANCIAL OVERVIEW Ryan MacWilliam, CFO RESPONSIBLE GROWTH TSX FM
Slide 14: Q2 2024 Revenues and Costs
Q2 2024 REVENUES AND COSTS REALIZED COPPER PRICE1 (per lb) • Increased revenue quarter-over-quarter, driven by higher realized copper prices • Low copper C1 cash cost quarter-over-quarter, due to strong gold by-product $4.39 Up 16% quarter-over-quarter credits as a result of increased gold prices an
Slide 15: Q2 2024 Net Loss and EBITDA
Q2 2024 NET LOSS AND EBITDA¹ EBITDA¹ EBITDA¹ was 86% higher quarter-over-quarter driven by higher realized copper $336 million prices² and lower operating costs across the Zambian operations Up 86% quarter-over-quarter EBITDA¹ ($ million) ADJUSTED EPS¹ NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF THE CO
Slide 16: EBITDA Waterfall
EBITDA¹ WATERFALL (Excluding Cobre Panamá & share of JV and Ravensthorpe) ³ EBITDA1,3 is $137 million higher than Q1 2024, driven by favourable realized metal prices1 and lower operating costs across the Zambian operations External Factors (+$102 million) Internal Factors (+$35 million) $ millions •
Slide 17: Copper C1 Cash Cost
COPPER C1 CASH COST¹ • Excluding Cobre Panamá, lower unit cash costs in Q2 was driven by higher gold by-product credits, higher capitalized stripping at Zambian sites and higher Zambian contractor costs • Zambian electricity costs were higher reflecting the impact of supplementary imported power $0.
Slide 18: Quarterly Net Debt Movement
QUARTERLY NET DEBT1 MOVEMENT Net debt1 increased by $160 million during the quarter mainly due to higher capital expenditures at Kansanshi and interest paid $1.6bn LIQUIDITY JUNE 30, 2024 $ million $740m Undrawn RCF $876m Unrestricted Cash ¹ Net de bt is a supple me nta ry financial measure. These m
Slide 19: Hedging Strategy
HEDGING STRATEGY • Copper hedging program part of ongoing balance sheet protection strategy and on track to safeguard minimum prices and compliance with financial covenants • Hedges comprised of un-margined zero cost collars to manage copper price exposure out to end of 2025 • Program seeks to hedge
Slide 20: Closing Remarks
Reforestation Initiatives Cobre Panamá CLOSING REMARKS Tristan Pascall, CEO RESPONSIBLE GROWTH TSX FM
Slide 21: S3 Expansion
S3 EXPANSION S3 Expansion Works Progress-To-Date Outlook • Additional concentrator capacity • Crucial mechanical equipment assembly and installation in • Majority of capital spend expected Q2 2024 (mills and primary crusher) in 2024 • Additional SAG and ball mill • Last delivery of flotation cells w
Slide 22: S3 Expansion Milling Area
S3 EXPANSION MILLING AREA February 2024 July 2024 22
Slide 23: Capital Allocation - 2024 and Beyond
CAPITAL ALLOCATION - 2024 AND BEYOND Focus on debt reduction, consistent operational performance in Zambia, execution of brownfield expansions 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
Slide 24: Upcoming Events
UPCOMING EVENTS October 22, 2024 • Q3 2024 FINANCIAL AND OPERATING RESULTS (Conference call October 23, 2024) January 2025 • 2024 PRELIMINARY PRODUCTION, 2025-2027 GUIDANCE* February 11, 2025 • Q4 2024 FINANCIAL AND OPERATING RESULTS (Conference call February 12, 2025) May 8, 2025 • ANALYST/INVESTOR
Slide 25: Appendix
APPENDIX RESPONSIBLE GROWTH TSX FM
Slide 26: Copper Cash Cost and AISC
COPPER CASH COST¹ AND AISC¹ Lower quarterly copper C1 cash cost¹ and AISC¹ (excluding Cobre Panamá) of $1.73/lb and $2.71/lb, respectively, driven by The First Quantum Financial Policy higher capitalized stripping and higher gold by-product credits from favourable realized prices² COPPER C1¹ ($/lb)
Slide 27: Financial Summary
FINANCIAL SUMMARY The First Quantum Financial Policy EBITDA¹ was higher than previous quarter driven by favourable realized copper and gold prices⁴ $ millions (except per share numbers) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sales revenues 1,231 1,036 1,218 2,029 1,651 Gross profit 333 156 87 660 2
Slide 28: Debt Maturity Profile
DEBT MATURITY PROFILE Following refinancing in Q1, the profile remains materially unchanged with RCF drawdowns in Q2 in line with S3 capex DEBT MATURITY AT JUNE 30, 2024 2,240 1,600 $ million 1,500 1,300 807 1,600 382 1,300 359 560 425 359 11 180 11 2024 2025 2026 2027 2028 2029 2030 2031 Trident Fa
Slide 29: Non-GAAP EBITDA and Adjusted Earnings Reconciliation
NON-GAAP EBITDA1 AND ADJUSTED EARNINGS (LOSS)1 RECONCILIATION $ millions (except per share numbers) Q2 2024 Q1 2024 Q2 2023 Operating profit (loss) 117 20 252 Depreciation 148 157 301 Foreign exchange loss (gain) 6 (20) (15) Impairment expense 61 10 - Share of results of joint venture - 1 - Royalty
Slide 30: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C12 AND AISC2 $ millions Q2 2024 Q1 2024 Q2 2023 Cost of sales¹ (898) (880) (1,386) Depreciation 148 157 301 By-product credits 104 73 99 Royalties 89 62 103 Treatment and refining charges (16) (25) (66) Freight costs (7) (15) (8) Finished goods 12 72 1 Other4 141 55
Slide 31: EBITDA Sensitivity
EBITDA¹ SENSITIVITY The First Quantum Financial Policy Impact on YTD June Actual price/rate 2024 EBITDA¹ of a 10% Assumption YTD June 2024 unfavourable change in price/rate Copper (including hedge impact) $4.12/lb $121 million Gold $2,203/oz $13 million Nickel $7.94/lb $21 million Zambian kwacha 25.
Slide 32: EBITDA
EBITDA¹ (Excluding Cobre Panamá & share of JV and Ravensthorpe) The First Quantum Financial Policy $ millions Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Group EBITDA¹ 336 180 273 969 568 Less Cobre Panamá EBITDA¹ (53) (70) 131 600 373 Less Ravensthorpe EBITDA¹ (26) (20) (41) (15) (11) Less share of joi
Slide 33: Balance Sheet Initiatives
BALANCE SHEET INITIATIVES REFINANCING AND ONGOING ACTIONS COMPLETED INITIATIVES ONGOING INTIATIVES RECAPITALISATION WHY? WHAT HAS BEEN DONE? WHAT IS UNDERWAY? ✓ REDUCE LEVERAGE ✓ DIVIDEND SUSPENSION ASSET SALES OF SMALL MINES ✓ $500m JIANGXI COPPER PREPAY STAKE SALES IN LARGER MINES ✓ ENHANCE LIQUID
Slide 34: 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 35: Kansanshi Pit Development
KANSANSHI PIT DEVELOPMENT Source: Kansanshi 43-101 Technical Report July 2024 35
Slide 36: 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 ENTERP RISE
Slide 37: Sentinel Pit Development
SENTINEL PIT DEVELOPMENT Source: Trident 43-101 Technical Report March 2020 37
Slide 38: 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 39: 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 40: 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 41: 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 42: 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 43: First Quantum Minerals Ltd. contact details
First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577 RESPONSIBLE GROWTH TSX FM
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