Slide 1: Our Record Speaks For Itself
Our Record Speaks For Itself September 2012 TSX: FM; LSE: FQM
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward-Looking Statements Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently
Slide 3: First Quantum Today
First Quantum Today • A significant copper producer – 2012E : 270k – 290k tonnes • A new and growing nickel producer – 2012E : 36k– 40k tonnes • On the cusp of transformational growth – Copper : tripling production capacity – Nickel : increasing annual production capacity to 125k tonnes • Delivering
Slide 4: First Quantum Today: Strong Financial Position
First Quantum Today Strong Financial Position Jun 30, 2012 $ millions Cash $857 Total Debt $40 Undrawn and available financing $1,250 Note receivable 2015 $500 4
Slide 5: What We Have Delivered
What We have Delivered Best-in-class Copper Growth Leading Shareholder Returns 2000 – 2011 2000 – 2011 Barrick First Quantum 32% Southern Copper Inmet Southern Peru First Quantum 21% Antofagasta Teck Norilsk Glencore Vale BHP Billiton Freeport Teck Antofagasta Eramet Anglo American Freeport Hudbay B
Slide 6: Looking Forward: Our Production Targets
Looking Forward: Our Production Targets 900 125 Copper Production Nickel Production 000’s tonnes 100 000’s tonnes 600 75 50 300 25 0 0 11F 12F 13F 14F 15F 16F 04 05 06 07 08 09 10 11F 12F 13F 14F 15F 16F Base Projects Base Projects Optional 6
Slide 7: A New & Growing Nickel Producer: Ravensthorpe mine, Australia
A New & Growing Nickel Producer Ravensthorpe mine, Australia • Acquired as a decommissioned plant • First production within 20 months of purchase • Commercial production declared Dec 28 2011 • Production – Q4’11 : 5,666 tonnes – Q1’12 : 6,617 tonnes – Q2’12 : 8,053 tonnes • C1 cash cost 1H’ 12 : $5.
Slide 8: A New & Growing Nickel Producer: Kevitsa project, Finland
A New & Growing Nickel Producer Kevitsa project, Finland • Nickel-copper-PGE project • Commissioning underway; 1st concentrate produced on May 26 ‘12 • Initial ore feed of 5.5 mt/yr ; intention to expand by ~50% in 2013 • Target operations: – 10 ktpa nickel @ ~$6.70 - $7.00 /lb – 20 ktpa copper @ ~$
Slide 9: A New & Growing Nickel Producer: Enterprise target, Zambia
A New & Growing Nickel Producer Enterprise target, Zambia • Located 12 km northwest of Sentinel • High grade sulphide nickel • Open pit potential • Resource definition program nearing completion • Preliminary metallurgical test work results show good recoveries of nickel sulphides generating a high
Slide 10: Tripling Copper Production Capacity: Sentinel project, Zambia
Tripling Copper Production Capacity Sentinel project, Zambia • Located ~ 140 km northwest of Solwezi, northern Zambia • M&I resource of 1,027 Mt at 0.51% Cu grade, containing 5.2 Mt Cu • Estimates: – 2.2:1 LOM strip ratio – >15 years mine life – $1.7B capex – Annual production upto 300,000 tonnes 10
Slide 11: Tripling Copper Production Capacity: Sentinel project
Tripling Copper Production Capacity Sentinel project, Zambia • Commercial terms for electric power agreed in principle • Board approval granted • Full-scale development started within original timeframe • Detailed design progressing; commitments for long- lead items in place • Construction completio
Slide 12: Tripling Copper Production Capacity: Copper smelter, Zambia
Tripling Copper Production Capacity Copper smelter, Zambia • Processing capacity of 1.2 Mtpa —71% Sentinel —100% Kansanshi —Average copper grade 26% • Blister copper production 300,000 tpa; acid production 1.0 Mtpa • Estimates: − Capital cost of US$650M − Operating cost US$69/tonne of concentrate −
Slide 13: Economic Benefits of the Copper Smelter
Economic Benefits of the Copper Smelter Total Annual Savings * US$340 MM – US$510 MM • Transport Kansanshi * 100% of concentrate to smelter Sentinel * 71% of concentrate to smelter and remainder for export Cost savings per annum * Concentrate @ US$220 /t: US$130 MM – US$200 MM • Export Levy on Conce
Slide 14: Tripling Copper Production Capacity: Haquira project, Peru
Tripling Copper Production Capacity Haquira project, Peru • Large scale copper project located in southern Peru M&I resource of 3.7 Mt of copper equivalent and an inferred resource of 2.4 Mt of copper equivalent • Current focus: Community relations and land access; expanding drill program and en
Slide 15: Building a Portfolio of Early-Stage Projects
Building a Portfolio of Early-Stage Projects • 19.99% ownership stake in Zincore Metals Inc. – Mineral exploration company focused mainly on zinc and related base metal opportunities in the Americas, namely Peru, Mexico and Canada – Delores copper porphyry project located ~ 40 km from Haquira • 19.2
Slide 16: A Significant Copper Producer: Kansanshi mine, Zambia
A Significant Copper Producer Kansanshi mine, Zambia • Located near Solwezi in the north western Province of Zambia • First production in 2005 • Open pit mining • Flexible ore treatment to allow for variation in ore type – sulphide circuit; oxide circuit; gold facility • Near mine resource definitio
Slide 17: A Significant Copper Producer: Kansanshi expansion
A Significant Copper Producer Kansanshi mine, Zambia • Multi-phase production expansion project underway – 2012 – 2015 Expansio Estimate 60% increase in overall n Project Capacity Completion Cost Production Impact ($M) production capacity Acid Plant 5 1000t/day 2012 18 – 2012 – 2014 Oxide 7.2 mtpa 2
Slide 18: A Significant Copper Producer: Guelb Moghrein mine, Mauritania
A Significant Copper Producer Guelb Moghrein mine, Mauritania • 100% ownership • Located 250 kilometres northeast of the nation’s capital, Nouakchott • As at December 31, 2011, the estimated minelife was ~10 years (including stockpiles) • First production in 2006 • Workforce of ~1,200 18
Slide 19: A Significant Copper Producer: Guelb Moghrein mine
A Significant Copper Producer Guelb Moghrein mine, Mauritania • Record quarterly throughput in Q1’12 • Continuous improvement – Augmenting mining operations with the addition of larger equipment – Optimizing flotation performance with improved auto control and reagent changes 19
Slide 20: Within the Top 10 Largest Producers by 2016
Within the Top 10 Largest Producers by 2016 Projected 2016 Copper Producer Landscape 20
Slide 21: Capital Intensity – US$/Tonne
Capital Intensity – US$/Tonne Cobre Panama Caracles Caserones Sierra Gorda El Moro Telegraphio Tampakan Toromocho Oyu Tolgoi Las Bambas Salobo Los Bronces Cerro Verde Ministro Mina Hales Quebrada Blanca Canariaco Quellaveco Rio Blanco Antamina Antapaccay Galeno Buena Vista Konkola Sentinel $6,000 Ka
Slide 22: How We Do Projects
How We Do Projects • Define and plan, set contracting strategy early • Identify risks • Copy existing designs, duplication, standardization • Maximize commonality of equipment First Quantum Project • Maximize in-house work: By − Project management By Others − Technical involvement FQM − Procurement,
Slide 23: What Our Shareholders Own
What Our Shareholders Own The ability and proven • A substantial copper producer; within the world’s top ten by 2016 track record to add value through efficient • An emerging nickel producer; within the world’s top ten by 2016 delivery of growth at costs below industry • A strong financial position
Slide 24: Our Record Speaks For Itself
Our Record Speaks For Itself TSX: FM; LSE: FQM