Slide 1: First Quantum Minerals First Quarter 2018 Conference Call & Webcast
FIRST QUANTUM MINERALS FIRST QUARTER 2018 CONFERENCE CALL & WEBCAST TSX: FM April 27, 2018 1
Slide 2: Cautionary Note Regarding Forward-Looking Statement
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENT 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: Sentinel - Mining
SENTINEL - MINING TSX: FM 3
Slide 4: Sentinel Mine – Overview Process Plant
SENTINEL MINE – OVERVIEW PROCESS PLANT TSX: FM 4
Slide 5: Sentinel Mine – Overview Process Plant
SENTINEL MINE – OVERVIEW PROCESS PLANT TSX: FM 5
Slide 6: Sentinel Mine – Overview Process Plant
SENTINEL MINE – OVERVIEW PROCESS PLANT TSX: FM 6
Slide 7: Cobre Panama - Overview
COBRE PANAMA - OVERVIEW TSX: FM 7
Slide 8: Power Station Overview
POWER STATION OVERVIEW TSX: FM 8
Slide 9: Cobre Panama – In-Pit Crushers and Pre-Strip
COBRE PANAMA – IN-PIT CRUSHERS AND PRE-STRIP TSX: FM 9
Slide 10: Cobre Panama – Secondary Crushing
COBRE PANAMA – SECONDARY CRUSHING TSX: FM 10
Slide 11: Cobre Panama – Mill Area
COBRE PANAMA – MILL AREA TSX: FM 11
Slide 12: Cobre Panama – Flotation Area
COBRE PANAMA – FLOTATION AREA TSX: FM 12
Slide 13: Cobre Panama – Concentrate Area
COBRE PANAMA – CONCENTRATE AREA TSX: FM 13
Slide 14: Financial Review
FINANCIAL REVIEW TSX: FM
Slide 15: Quarterly Production
QUARTERLY PRODUCTION Copper production up 10% on Q1 2017 Sentinel throughput remained high despite the wet season • Sentinel production was 14kt higher than Q1 2017 due to improved recovery and throughput. • The Kansanshi smelter achieved quarterly records in throughput and copper anode production.
Slide 16: Q1 2018 Overview
Q1 2018 OVERVIEW Comparative EBITDA up 37% on Q1 2017 37% $ million (except earnings/(loss) per share) Q1 2017 Q4 2017 Q1 2018 Comparative EBITDA $ million Revenue 766 885 885 Gross Profit 69 117 181 Comparative EBITDA1 265 318 363 Comparative Earnings (Loss)1 (29) (36) 49 Comparative Earnings (Loss
Slide 17: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS Q1 2018 C1 and AISC within full year guidance • Q1 2018 C1 in line with Q1 2017 and below Q4 2017. • AISC in Q1 2018 is $0.13/lb higher than Q1 2017 due to planned increase in sustaining capex and higher royalty rates. TSX: FM 17
Slide 18: Strengthening the Balance Sheet
STRENGTHENING THE BALANCE SHEET Debt maturity(1) and liquidity profile improved Liquidity with refinancing at March 31, 2018 $2.5bn Net debt/EBITDA covenant ratio of Covenant Ratio 4.4x which is well below covenant requirement at 5x. (1) Debt profile as at April 26, 2018. Note that the Kalumbila ter
Slide 19: Hedging Program Outlook
HEDGING PROGRAM OUTLOOK Increase in hedge prices and lower hedge volumes going forward • Copper price protection program for 2018. • Continued use of zero cost collars in 2018 providing protection and potential upside. • 22.5 kt of put option contracts entered into, with maturities to April 2018 at
Slide 20: Capital Expenditure
CAPITAL EXPENDITURE $ million Capital Expenditure Q1 2018 2018 2019 2020 Cobre Panama Actual Guidance Guidance Guidance Funding ($bn) Total Cobre Panama 338 1,180 382 - First Quantum share of Cobre Panama 236 826 293 - Stripping costs 24 200 200 200 Other sustaining capex and other projects 77 360 4
Slide 21: Appendix
APPENDIX FIRST QUANTUM
Slide 22: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at December 31, 2017 ($ million) (5,575) Comparative EBITDA 363 Working Capital 45 Capital expenditure (including capitalized losses) (439) Net Interest (69) Franco-Nevada Tranche 1 stream receipt 70 Franco-Nevada Tranche 2 stream receipt 178 Net receipts
Slide 23: First Quantum Minerals First Quarter 2018 Conference Call & Webcast
FIRST QUANTUM MINERALS FIRST QUARTER 2018 CONFERENCE CALL & WEBCAST TSX: FM APRIL 27, 2018 23