First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Merger or Acquisition (February 2013)
35 slides from First Quantum Minerals's merger presentation, February 2013
Slide 1: An Opportunity to Create a New Leader in Global Copper
An Opportunity to Create a New Leader in Global Copper A Combination of First Quantum and Inmet February 2013 Global Diversified TSX: FM; LSE: FQM
Slide 2: Cautionary Statement
Cautionary Statement Certain statements and information contained in this presentation, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or info
Slide 3: A Significant Premium Today with Considerable Upside in the Future
A Significant Premium Today with Considerable Upside in the Future C$72.00 per Inmet share, implying a total equity purchase consideration of approximately C$5.1 billion1 Each Inmet shareholder will have the option to elect to receive consideration per Inmet share of: – C$72.00 in cash, or – 3.2
Slide 4: A Compelling Combination
A Compelling Combination & FIRST QUANTUM @)
Slide 5: A Vision to Create a Global Copper Leader
A Vision to Create a Global Copper Leader The combination of First Quantum and Inmet will be the largest pure copper player in the sector, with a portfolio of operating and development assets across four continents First Quantum and Inmet are complementary and bringing together the best talents
Slide 6: On the Cusp of a Substantial Re-Rating
On the Cusp of a Substantial Re-Rating Large-Cap Copper Producers P / NAV1 Mid-Cap Copper Producers Southern Copper Antofagasta Pro-forma First Quantum3 PanAust Oz Minerals Freeport4 Lundin Teck First Quantum Hudbay Copper Mountain Inmet2 Taseko Capstone Market Capitalization US$ Bn1 Source: Capital
Slide 7: First Quantum Has Delivered and Continues to Deliver
First Quantum Has Delivered and Continues to Deliver 7
Slide 8: We Build Projects Efficiently and Well Below Industry Norms
We Build Projects Efficiently and Well Below Industry Norms Capital Intensity (US$ / t) Cobre Panama (Inmet) Galeno (Minmetals) Las Bambas (Xstrata) Tampakan (Xstrata) Toromocho (Chinalco) Potential for significant Sierra Gorda (KGHM) capital cost savings by Ministro Mina Hales (Codelco) adopting Fi
Slide 9: We Deliver Value to Shareholders
We Deliver Value to Shareholders Total Annualized Shareholder Return1 Jan-2000 – 23-Nov-2012 2 3 4 Source: S&P Capital IQ (1) Based on local currency basis (2) Based on 7-Oct-2002 – 23-Nov-2012 period (period since listing) (3) Based on 10-Feb-2010 – 23-Nov-2012 period (period since listing) (4) Bas
Slide 10: And Specifically Deliver On Each Project We Take On
And Specifically Deliver On Each Project We Take On US$ Bn 99% 4.0 3.8 3.5 3.0 375% 2.5 2.5 150% 2.0 1.9 1.8 1.5 67% 115% 26% 1.0 1.0 0.7 0.9 0.7 0.7 0.6 0.5 0.5 0.3 -- Kansanshi Guelb Moghrein Kevitsa1 Trident Ravensthorpe Haquira3 2001 2004 2008 (Sentinel / Enterprise)2 2010 2010 2010 Cost plus Ca
Slide 11: And Exceed Expectations
And Exceed Expectations Delivered Exceeded Project Announced Target Parameter Promised Delivered Target? Expectations? Kansanshi February Peak Production 130,000 tonnes of 244,979 tonnes of copper1 2004 copper Peak Production 35,000 ounces of gold 112,286 ounces of gold Commissioning Late
Slide 12: First Quantum's Project Philosophy
First Quantum's Project Philosophy Core First Quantum Criteria Core First Quantum Attributes • Set ambitious targets for • Industry leading performance (e.g. schedule, cost and performance capital cost per tonne of output) • Finished project must perform to • Strong track record expectation • Our pr
Slide 13: Traditional Project
Traditional Project Owner EPCM Engineer 13
Slide 14: First Quantum Target Project Model
First Quantum Target Project Model Engineering & Design By FQM 14
Slide 15: Typical First Quantum Project
Typical First Quantum Project Concrete Piping 8% 7% Earthworks E& I 5% 10% Construction Management 4% Transport & Logistics 8% Pre-commissioning & Commissioning 1% Contracts 2% Engineering & Design 5% Procurement 3% Structure/Mechanical/Plate 47% 15
Slide 16: We've Successfully Executed in Diverse Environments
We’ve Successfully Executed in Diverse Environments 16
Slide 17: We've Successfully Executed in Diverse Environments
We’ve Successfully Executed in Diverse Environments 17
Slide 18: We've Successfully Executed in Diverse Environments
We’ve Successfully Executed in Diverse Environments 18
Slide 19: We've Proven Our Technical Expertise
We’ve Proven Our Technical Expertise 19
Slide 20: We've Proven Our Technical Expertise
We’ve Proven Our Technical Expertise 20
Slide 21: A Track Record of Project Delivery
A Track Record of Project Delivery Track record of executing development projects in several jurisdictions Each project completed on time and commercial production achieved as planned Delivered Apr 05 Delivered Nov 07 Expansions Delivered Dec 11 Delivered Zambia DRC Zambia Australia 2005 2006 20
Slide 22: Sentinel Project
Sentinel Project & FIRST QUANTUM (2)
Slide 23: Key Recent Accomplishments
Key Recent Accomplishments Total Sentinel project progress to date is 19.2% cumulative Record construction progress in earthworks and concrete 50% concrete poured (36,600m3) Over 6,600t of structural steel issued Approved For Construction (>50%), over 2,000t fabricated, over 1,000t erected
Slide 24: Sentinel On Schedule and On Budget
Sentinel On Schedule and On Budget Commitments Budget Sentinel Capex $950M $1,885M 24
Slide 25: The Planning (2011)
The Planning (2011) 25
Slide 26: Sentinel Mill Area (June 2012)
Sentinel Mill Area (June 2012) Sentinel Mill Area (August 2012) 26
Slide 27: Sentinel Mill Area (September 2012)
Sentinel Mill Area (September 2012) Sentinel Mill Area (October 2012) 27
Slide 28: Sentinel Mill Area (November 2012)
Sentinel Mill Area (November 2012) Sentinel Mill Area (January 2013) 28
Slide 29: Senior Housing and Golf Course
Senior Housing and Golf Course 29
Slide 30: Block Making Machine for Housing
Block Making Machine for Housing Truss Making Machine for Housing Senior Housing Senior Housing 30
Slide 31: Sentinel is Not Cobre Panama – But it is Comparable
Sentinel is Not Cobre Panama – But it is Comparable A project's size is defined not by how much you spend on it Main Project Elements Sentinel Cobre Panama (excl. Enterprise) Throughput 55 Mtpa 60 Mtpa Output (LOM Average) 270 – 300 ktpa 266 ktpa Year of First Production 2014 2016 Process Plant $713
Slide 32: Sentinel is Not Cobre Panama – But it is Comparable
Sentinel is Not Cobre Panama – But it is Comparable Sentinel Frontier Cobre Panama Throughput (Mtpa) 55 10 60 Copper Production (ktpa) 270-300 96 266 $m % $m % $m % Total Capex 1,885 100% 226 100% 6,182 100% Process Plant and Mining 1,146 61% 156 69% 1,531 25% Equipment Mine other, Dewatering, Pre-
Slide 33: We Build Projects Efficiently and Well Below Industry Norms
We Build Projects Efficiently and Well Below Industry Norms Capital Intensity (US$ / t) Cobre Panama (Inmet) Galeno (Minmetals) Las Bambas (Xstrata) Tampakan (Xstrata) Toromocho (Chinalco) Potential for significant Sierra Gorda (KGHM) capital cost savings by Ministro Mina Hales (Codelco) adopting Fi
Slide 34: A Vision to Create a Global Copper Leader
A Vision to Create a Global Copper Leader Combination of First Quantum and Inmet expected to be the new go-to copper producer Combination creates significant value Combination expected to be re-rated upwards Combination with a long standing commitment to social and environmental excellence
Slide 35: An Opportunity to Create a New Leader in Global Copper
An Opportunity to Create a New Leader in Global Copper A Combination of First Quantum and Inmet February 2013 Global Diversified TSX: FM; LSE: FQM 35
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