First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q1 2023 Earnings Presentation
43 slides from First Quantum Minerals's earnings presentation, Apr 26, 2023
Slide 1: Responsible Growth: Q1 2023 Financial and Operating Results
TSX FM RESPONSIBLE GROWTH Q1 2023 Financial and Operating Results
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, Chief Executive Officer
Slide 4: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS Recent Developments TOTAL COPPER PRODUCTION • Agreement reached with the Government of Panamá on a Refreshed 138,753t Lower than Q4 2022 due to lower Concession Contract • Construction and commissioning of the CP100 Expansion completed ahead of production across three major schedu
Slide 5: Cobre Panamá Update
COBRE PANAMÁ UPDATE The Refreshed Concession Contract will have an initial On March 8, 2023, First Quantum and the 20-year term, with a 20-year extension option and Government of Panamá issued a press release additional extensions for the life of mine with the announcing that an agreement has been r
Slide 6: La Granja Transaction Details
LA GRANJA TRANSACTION DETAILS La Granja is one of the largest undeveloped copper resources in the world, with potential to support a multi-decade open-pit operation Agreement First Quantum will acquire a 55% interest in the La Granja project from Rio Tinto for a consideration of $105 million and wil
Slide 7: 2023 Guidance Unchanged
2023 GUIDANCE UNCHANGED PRODUCTION GUIDANCE COST AND CAPEX GUIDANCE 2023E Copper Cost Guidance ($/lb) 2023E Cobre Panamá 350 - 380 C11 1.65 - 1.85 Kansanshi 130 - 150 AISC1 2.25 - 2.45 Sentinel 260 - 280 Other 30 Ravensthorpe Nickel Cost Guidance ($/lb) 2023E Copper production (K tonnes) 770 - 840
Slide 8: Q1 2023 ESG Highlights
Q1 2023 ESG HIGHLIGHTS Educational Support Biodiversity Educational Support External Recognition Trident handed over a vital school Kansanshi has launched this year’s Guelb Moghrein signed an agreement Employees from Cobre Panamá have infrastructure, as well as textbooks and tree planting exercise a
Slide 9: Operational Overview
Sentinel OPERATIONAL OVERVIEW Rudi Badenhorst, Chief Operating Officer
Slide 10: Cobre Panamá
COBRE PANAMÁ Q1 2023 COPPER PRODUCTION 2023 Outlook 65,427t Lower than Q4 2022 due to 15-days • CP100 Expansion: Construction and commissioning complete. On track to achieve 100 Mtpa by the end of 2023 temporary suspension of concentrate • 2023 grades and recoveries to be consistent with 2022, regar
Slide 11: Kansanshi
KANSANSHI Q1 2023 COPPER PRODUCTION 2023 Outlook 28,683t 18% lower than Q4 2022 due to rainy • Fleet deployment changes have opened up mining areas, placing less reliance on variable grade ore stockpiles, as well as mining cutbacks season and lower feed grades M15 and M17 at elevations with historic
Slide 12: Sentinel
SENTINEL Q1 2023 COPPER PRODUCTION 2023 Outlook 36,232t Lower than Q4 2022 due to water accumulation • Rescheduled mine plan to access higher grade zones, complemented by a redistribution of loading equipment and increase in truck fleet capacity throughout the year in Stage 1 pit from extreme rainfa
Slide 13: Other Mines
OTHER MINES Las Cruces Q1 2023 PRODUCTION: 2,093t Cu cathode Çayeli Q1 2023 PRODUCTION: 2,903t Cu Q1 2023 C1 CASH COST1: $4.09 per lb Cu Q1 2023 C1 CASH COST1: $1.92 per lb Cu 2023 PRODUCTION GUIDANCE: 6kt Cu 2023 PRODUCTION GUIDANCE: 10Kt Cu, 3kt Zn Reprocessing of high-grade tailings is expected t
Slide 14: Financial Overview
Kansanshi Smelter FINANCIAL OVERVIEW Ryan MacWilliam, Chief Financial Officer
Slide 15: Q1 2023 Revenues and Costs
Q1 2023 REVENUES AND COSTS REALIZED COPPER PRICE1 (per lb) Copper price remained stable throughout the quarter after increasing in $3.95 Up 11% quarter-over-quarter January due to supply concerns. Warehouse stocks at record lows 1 Copper C1 cash cost ($/lb) REVENUE 1 Gross realized copper price ($/l
Slide 16: Copper C1 Cash Cost Waterfall
COPPER C1 CASH COST¹ WATERFALL Lower production is the main driver for higher units costs. Key consumable prices and freight rates have eased during the quarter $0.23 per lb lower cash costs -$0.03 Fuel -$0.01 Grinding media ¹Copper C1 cash cost (copper C1) is a non-GAAP ratio which does not have a
Slide 17: Q1 2023 Earnings and EBITDA
Q1 2023 EARNINGS AND EBITDA1 EBITDA¹ $518 million Revenue decreased on the back of lower copper sales volumes Down 20% quarter-over-quarter NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY EBITDA¹ ($ million) ADJUSTED EPS¹ ($) 906 $75 million 583 647 0.49 Down 36% quarter-over-quarter 518 0.
Slide 18: EBITDA Waterfall
EBITDA¹ WATERFALL EBITDA¹ $129 million lower than Q4 2022 driven by lower sales External Factors Internal Factors (-$242 million) (+$113 million) +$9 Fuel +$2 Grinding Media +$2 Sulphur +$126 Copper +$1 Explosives -$36 Nickel +$9 Other 3 2 ¹EBITDA is a non-GAAP financial measure and realized metal p
Slide 19: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES PRIORITIES EXCESS CASH DEBT REPAYMENT Further debt reduction likely post debt reduction targets achieved RE-INVESTING IN THE BUSINESS Sustaining¹ and stripping capital INORGANIC PROJECTS BALANCE SHEET PRESERVATION Target opportunities where First Quantum can Targeting a
Slide 20: Closing Remarks
CP100 Screening Plant CLOSING REMARKS Tristan Pascall, Chief Executive Officer
Slide 21: CP100 Expansion
CP100 EXPANSION CP100 Expansion Works Progress to date Outlook • Process water upgrades • 8 additional ultra-class haul trucks • 100 Mtpa rate expected by the end of commissioned ; Rope shovel operational 2023 • Addition of Ball Mill 6 • PPA signed for CP100 (64MW) from 100% • First crusher at Colin
Slide 22: S3 Expansion
S3 EXPANSION S3 Expansion Works Progress To Date Outlook • Additional concentrator • Board approval in May 2022 • Long-lead mining fleet and plant capacity • Overall project procurement is ~25% equipment ordered and deliveries committed as at the end of the quarter commencing H2 2023 • Additional SA
Slide 23: Enterprise
ENTERPRISE Enterprise Works Progress To Date Outlook • Main workstream is pre-strip • Board approval in May 2022; pre-stripping • First production expected in Q2 2023 commenced • 4 Mtpa processing circuit • Ramp-up to commercial production mainly constructed in 2014 as • Ancillary infrastructure dev
Slide 24: Capital Allocation - 2023 and Beyond
CAPITAL ALLOCATION - 2023 AND BEYOND Focus on debt reduction, consistent operational performance and execution of brownfield expansions 1. Balance Sheet 2. Brownfield 3. Greenfield Debt Reduction Cobre Panamá CP100 Expansion Cautious approach to greenfield • Remains a priority • On track for 100 Mtp
Slide 25: Upcoming Events
Upcoming Events May 4, 2023 • ANNUAL GENERAL MEETING May 4, 2023 • ANALYST/INVESTOR DINNER (In-Person, Toronto) June 13, 2023 • INAUGURAL ESG DAY (Virtual) June 28, 2023 • ANALYST/INVESTOR DINNER (In-Person, London) July 25, 2023 • Q2 2023 FINANCIAL AND OPERATING RESULTS (Conference call July 26, 20
Slide 26: Appendix
Las Cruces Appendix
Slide 27: Quarterly Net Debt Movement
QUARTERLY NET DEBT1 MOVEMENT Net debt1 increased by $88 million this quarter due to working capital cash flow timing and continued investment in the business ¹Net debt is a supplementary financial measure and EBITDA is a non-GAAP financial measure which do not have standardized meanings under IFRS a
Slide 28: Debt Maturity Profile as at March 31, 2023
DEBT MATURITY PROFILE AS AT MARCH 31, 2023 2,093 255 488 1,500 $ millions 1,000 625 1,350 455 170 455 2023 2024 2025 2026 2027 Senior Notes Term Loan Trident Facility Funding includes $1,300 million in Revolving Credit Facility expiring in 2025, with $1,195 million drawn as of March 31, 2023. This i
Slide 29: Copper Cash Cost and AISC
COPPER CASH COST¹ AND AISC¹ The Firstcopper Year-to-date Quantum Financial C1 cash cost¹ Policy and AISC¹ of $2.24/lb and $2.87/lb, impacted by lower production COPPER C1 CASH COST¹ ($/lb) COPPER AISC¹ ($/lb) 2.24 2.87 1.82 1.86 2.37 2.42 1.74 2.27 2.34 1.61 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q
Slide 30: Financial Summary
FINANCIAL SUMMARY Financials The Firstwere impacted Quantum by lowerPolicy Financial sales volumes. Cash flows from operating activities are higher than the prior quarter due to favourable movements on working capital $ million (except per share numbers) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Sales
Slide 31: Cobre Panamá – The Proposed Concession Contract
COBRE PANAMA – THE PROPOSED CONCESSION CONTRACT On March 8, 2023, the Company announced that MPSA had agreed and finalized the draft of the Refreshed Concession Contract with the Government of Panamá (“GOP”) for the Cobre Panamá mine, which will include the following principal economic terms once it
Slide 32: Precious Metal Stream Arrangement
PRECIOUS METAL STREAM ARRANGEMENT • Cobre Panamá gold and silver revenues consist of revenues derived from the sale of metals produced by the mine, as well as revenues recognized from the amortization of the precious metal stream arrangement • Stream gold and silver revenues are indexed to copper so
Slide 33: Non-GAAP EBITDA and Adjusted Earnings Reconciliation
NON-GAAP EBITDA¹ AND ADJUSTED EARNINGS¹ RECONCILIATION $ Million (except per share numbers) Q1 2023 Q4 2022 Q1 2022 Operating profit 225 314 782 Depreciation 271 327 295 Foreign exchange (gain) loss 16 25 56 Other expense (income)2 6 (5) 46 Revisions in estimates of restoration provisions at closed
Slide 34: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C1 AND AISC $ million Q1 2023 Q4 2022 Q1 2022 Cost of sales¹ (1,278) (1,471) (1,255) Depreciation 271 327 295 By-product credits 119 122 168 Royalties 65 88 133 Treatment and refining charges (53) (60) (53) Freight costs (3) (17) (15) Finished goods (8) 8 (4) Other4
Slide 35: EBITDA Sensitivity
EBITDA¹ SENSITIVITY Guidance for the upcoming three years is provided annually as part of year-end reporting. On a quarterly basis, The First Quantum guidance Financial for the current yearPolicy will b updated as necessary or re-affirmed. Impact on March 2023 Actual price/rate Assumption QTD EBITDA
Slide 36: Cobre Panamá, Including CP100 Expansion
COBRE PANAMÁ, INCLUDING CP100 EXPANSION Ownership Mine Type Processing Rate CP100 Expansion 90% First Quantum Open Pit 85-90 Mtpa Sulphide circuit Expansion to 100 Mtpa 10% KOMIR Cu-Au-Ag-Mo Porphyry (end of 2023) Strip Ratio P&P Reserves M&I Resources Inferred Resources LOM 1:1 2,843.6 Mt 3,375.6 M
Slide 37: Kansanshi, Including S3 Expansion
KANSANSHI, INCLUDING S3 EXPANSION Ownership Mine Type Processing Rate S3 Expansion 80% First Quantum Open Pit 7 Mtpa Oxide circuit S3 25 Mtpa Expansion 20% ZCCM-IH Vein deposit; Primary 8 Mtpa Mixed circuit (First production H2 2025) sulphide, mixed 15 Mtpa Sulphide circuit Smelter expansion to 1.6
Slide 38: Sentinel and Enterprise
SENTINEL AND ENTERPRISE Ownership Mine Type Processing Rate Enterprise 100% First Quantum Open Pit Sentinel: 62 Mtpa 4 Mtpa Sulphide circuit Sulphide circuit (first ore Q1 2023) Sentinel: primary sulphide copper SENTINEL & Enterprise: hydrothermal ENTERPRISE sulphide nickel Strip Ratio P&P Reserves
Slide 39: Las Cruces Underground Project
LAS CRUCES UNDERGROUND PROJECT • Benefits from existing team, workforce and infrastructure • Indicative details (not included in 3-year guidance) • 3-4 year development • Mine life >15 years • Annual production ~45 kt CuEq • Environmental permits received in 2020; mine exploitation permit received i
Slide 40: Summary of Brownfield Projects
SUMMARY OF BROWNFIELD PROJECTS COBRE PANAMÁ plus CP100 KANSANSHI plus S3 ENTERPRISE LAS CRUCES UNDERGROUND Commodity Cu, Au, Ag, Mo Cu, Au Ni Cu, Zn, Pb, Ag Mine Type Open Pit Open Pit Open Pit Underground Total Production 400 ktpa Cu 250 ktpa Cu 30 ktpa Ni 45 ktpa CuEq • Strong team in place • Stro
Slide 41: Taca Taca
TACA TACA 275,000 Low 32 Years US$3.6 Billion Tonnes of Cu C1 Cash Costs Mine Life Capital Per Year (Peak) Investment 50 - 200 Megawatts of Renewable Energy Sanction decision not expected before 2024, conditional on market conditions Copper (ktpa) Gold (kozpa) Molybdenum (ktpa) 300 K Tonnes (Cu, Mo)
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
TSX FM First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577
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