Slide 1: First Quantum Minerals Fourth Quarter 2018 Conference Call & Webcast
FIRST QUANTUM MINERALS FOURTH QUARTER 2018 CONFERENCE CALL & WEBCAST FEBRUARY 15, 2019 TSX: FM FEBRUARY 15, 2019 1
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
Slide 3: Cobre Panama – First Ore
COBRE PANAMA – FIRST ORE TSX: FM FEBRUARY 15, 2019 3
Slide 4: Cobre Panama – First Ore Continued
COBRE PANAMA – FIRST ORE CONTINUED TSX: FM FEBRUARY 15, 2019 4
Slide 5: Cobre Panama – Stockpile
COBRE PANAMA – STOCKPILE TSX: FM FEBRUARY 15, 2019 5
Slide 6: Cobre Panama – Decant Pumping Station
COBRE PANAMA – DECANT PUMPING STATION TSX: FM FEBRUARY 15, 2019 6
Slide 7: Cobre Panama – Tailings Facility North Embankment
COBRE PANAMA – TAILINGS FACILITY NORTH EMBANKMENT TSX: FM FEBRUARY 15, 2019 7
Slide 8: Cobre Panama – Process Plant & Mine
COBRE PANAMA – PROCESS PLANT & MINE TSX: FM FEBRUARY 15, 2019 8
Slide 9: Cobre Panama – Power Station
COBRE PANAMA – POWER STATION TSX: FM FEBRUARY 15, 2019 9
Slide 10: Cobre Panama – Port Facility
COBRE PANAMA – PORT FACILITY TSX: FM FEBRUARY 15, 2019 10
Slide 11: Financial Review
FINANCIAL REVIEW TSX: FM FEBRUARY 15, 2019 11
Slide 12: Quarterly and Full Year Production
QUARTERLY AND FULL YEAR PRODUCTION Q4 2018 copper production a new record Record copper production up 6% on FY 2017 • Q4 2018 record quarter of production due to improved performances at Sentinel, Guelb Moghrein and Cayeli and the continued strong performance at Kansanshi. • Record annual production
Slide 13: Continued and Consistent Optimization
CONTINUED AND CONSISTENT OPTIMIZATION Sentinel copper production of 224kt was 17% higher than FY 2017 • Throughput up 16% in 2018, due to improved ore supply and further optimization of the milling circuits. • Recovery up 5% in 2018 compared to the prior year and has remained consistently above 91%.
Slide 14: Financial Overview
FINANCIAL OVERVIEW Comparative EBITDA up 51% on Q4 2017 and full year 2017 $ Million 51% $ million (except per share numbers) Q4 2017 Q4 2018 2017 FY 2018 FY Revenue 885 1,054 3,310 3,966 Gross Profit 117 280 335 978 Comparative EBITDA1 318 481 1,154 1,737 1 Comparative Earnings (Loss) (36) 182 (111
Slide 15: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS Q4 2018 C1¹ and AISC¹ within full year guidance C1 AISC • Q4 2018 C1 is $0.08/lb below Q3 2018 and $0.07/lb • AISC in Q4 2018 is $0.12/lb lower than Q3 2018 below Q4 2017. and $0.08/lb lower than Q4 2017. • The lower C1 in the quarter compared to the prior year • The lower
Slide 16: Debt and Liquidity Profile at Year-End
DEBT AND LIQUIDITY PROFILE AT YEAR-END Liquidity at December 31, 2018 $1.5bn Net debt/EBITDA covenant ratio at Covenant Ratio December 31, 2018 of 3.67x which is well below covenant requirement of 4.75x. TSX: FM FEBRUARY 15, 2019 16
Slide 17: Improved Debt Profile at February 15, 2018
IMPROVED DEBT PROFILE AT FEBRUARY 15, 2018 Note: The $1.2bn Revolving Credit Facility (which can be upsized to $1.5 billion if the accordion feature is activated) matures on December 31, 2022. TSX: FM FEBRUARY 15, 2019 17
Slide 18: Hedging Program Outlook
HEDGING PROGRAM OUTLOOK¹ Average hedge floor of $2.91/lb in first half of 2019 ¹ Hedging outlook as at February 15, 2019. TSX: FM FEBRUARY 15, 2019 18
Slide 19: Capital Expenditure
CAPITAL EXPENDITURE 2018 2019 2020 2021 $ million Capital Expenditure Actual Guidance Guidance Guidance Cobre Panama Cobre Panama Project 1,332 230 - - First Quantum share of Cobre Panama Project 907 190 - - Funding ($bn) Capitalized stripping costs 136 200 250 250 Sustaining capital and other proje
Slide 20: Appendix
APPENDIX TSX: FM FEBRUARY 15, 2019 20
Slide 21: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at September 30, 2018 ($ million) (6,116) Comparative EBITDA 481 Working capital (89) Capital expenditure (including capitalized losses) (606) Net Interest (55) Franco-Nevada streaming receipts 26 Related-party debt movements 56 Net payments to joint vent
Slide 22: Annual Net Debt Movement
ANNUAL NET DEBT MOVEMENT Opening Net Debt at January 1, 2018 ($ million) (5,575) Comparative EBITDA 1,737 Working Capital (161) Capital expenditure (including capitalized losses) (2,143) Taxes paid (285) Net interest (459) Dividends paid (25) Franco-Nevada streaming receipts 630 Net amounts from joi
Slide 23: Market Guidance 2019 - 2021
MARKET GUIDANCE 2019 - 2021 PRODUCTION GUIDANCE ($000s’) 2019 2020 2021 Production guidance for Las Total copper (tonnes) 700 – 735 840 – 870 820 Cruces reflects the land slippage in Copper (tonnes) – Cobre Panama only 140 – 175 270 – 300 300 January 2019, with lost production currently estimated at
Slide 24: Non-GAAP Measures Reconciliation – Comparative EBITDA and Comparative Earnings
NON-GAAP MEASURES RECONCILIATION – COMPARATIVE EBITDA AND COMPARATIVE EARNINGS Comparative EBITDA $m Q4 2018 FY 2018 Operating profit from continuing operations 260 809 Depreciation 224 864 Foreign exchange loss/ (gain) (13) 64 (Gain)/ loss on disposal of assets and liabilities 2 (6) Other expense 8
Slide 25: Non-GAAP Measures Reconciliation – C1 and AISC
NON-GAAP MEASURES RECONCILIATION – C1 AND AISC $m Q4 2018¹ FY 2018¹ Cost of sales (770) (2,955) Depreciation 222 858 By-product credits 95 351 Royalties 50 210 Treatment and refining charges (34) (118) Freight costs (7) (46) Finished goods (6) - Other¹ 33 47 C1 Cost (417) (1,653) General and adminis
Slide 26: First Quantum Minerals
FIRST QUANTUM MINERALS FOURTH QUARTER 2018 CONFERENCE CALL & WEBCAST FEBRUARY 15, 2019 TSX: FM FEBRUARY 15, 2019 26