Slide 1: Third Quarter 2015 Conference Call & Webcast
THIRD QUARTER 2015 CONFERENCE CALL & WEBCAST NOVEMBER 10, 2015 TSX: FM; LSE: FQM
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
Slide 3: Third Quarter 2015
THIRD QUARTER 2015 • Highest comparative earnings and cash flow from operations* for 2015 Achieved despite lowest quarterly metal prices for the year and 12-day power reduction at Zambian operations Reflects ramp-up of the new smelter, continued focus on cost control and solid performances at al
Slide 4: Key Developments
KEY DEVELOPMENTS Cobre Panama Revised precious metals stream agreement signed in November $338 million received from Franco-Nevada Corporation Project capital estimate reduced 7% to $5.95 billion Copper hedge program Currently consists of 208,575 tonnes of copper at an average price of $
Slide 5: Cobre Panama Project Progress Photos
COBRE PANAMA PROJECT PROGRESS PHOTOS 5
Slide 6: Cobre Panama – Port – Jetty Under Construction
COBRE PANAMA – PORT – JETTY UNDER CONSTRUCTION 6
Slide 7: Cobre Panama – Port – Jetty Under Construction
COBRE PANAMA – PORT – JETTY UNDER CONSTRUCTION 7
Slide 8: Cobre Panama – Port – Coal Storage
COBRE PANAMA – PORT – COAL STORAGE COAL STORAGE COAL STORAGE – INTERNAL CONVEYOR FOUNDATIONS COAL STORAGE – RETAINING WALL COAL STORAGE – EXTENSION EARTHWORKS 8
Slide 9: Cobre Panama – Port – Concentrate Storage Building
COBRE PANAMA – PORT – CONCENTRATE STORAGE BUILDING 9
Slide 10: Cobre Panama – Port and Power Plant
COBRE PANAMA – PORT AND POWER PLANT 10
Slide 11: Cobre Panama – Power Plant Overview
COBRE PANAMA – POWER PLANT OVERVIEW 11
Slide 12: Cobre Panama – Power Plant
COBRE PANAMA – POWER PLANT UNIT 1 SILO COAL FEEDERS UNIT 1 BOILER & SCR STEEL UNIT 1 BOILER BUILDING DUCTING UNIT 1 FD FAN FOUNDATION – EAST SIDE 12
Slide 13: Cobre Panama – TMF Decant Outlet Channel
COBRE PANAMA – TMF DECANT OUTLET CHANNEL 13
Slide 14: Cobre Panama – Process Plant Overview
COBRE PANAMA – PROCESS PLANT OVERVIEW 14
Slide 15: Cobre Panama – Botija Pit Pre-Strip
COBRE PANAMA – BOTIJA PIT PRE-STRIP 15
Slide 16: Financial Review
FINANCIAL REVIEW 16
Slide 17: Q3 2015 Highlights
Q3 2015 Highlights Cu production above Q3 2014 and Q2 2015 with pre-commercial Sentinel production. '000 tonnes Q3 2015 Q2 2015 vs Q2 2015 Ni production above Q2 2015 as Ravensthorpe Copper Production 107 104 3 Copper Sales 105 84 20 increases following re-commissioning of AL circuit. Copper Nickel
Slide 18: C1 Cost
C1 Cost Copper C1 cost ($/lb) Nickel C1 cost ($/lb) Q3 2015 copper C1 cost lower than Q2 2015 Q3 2015 nickel C1 cost lower than Q2 2015 A continued focus on cost reduction and efficiencies helped to Ravensthorpe C1 costs down due to increased production lower mining and processing costs together wit
Slide 19: Financial Overview
Financial Overview Comparative EBITDA impacted by lower metal prices and sales volumes Gross profit against Q2 2015 higher due $ million Q3 2015 Q2 2015 Q3 2014 to higher sales volumes, lower C1 costs, Revenue 673 610 885 lower Zambian royalty rate and Gross Profit 103 54 241 favourable FX, partly o
Slide 20: Q3 2015 Gross Profit versus Q2 2015
Q3 2015 Gross Profit versus Q2 2015 Gross profit higher than Q2 2015 from cost savings and higher sales 49 103 54 34 53 8 (96) Sales Q2 2015 Price FX Costs Royalty Q3 2015 Volumes 20
Slide 21: Q3 2015 Gross Profit versus Q3 2014
Q3 2015 Gross Profit versus Q3 2014 Gross profit lower than Q3 2014 as price declined 241 16 49 103 (14) 43 (232) Q3 2014 Price FX Costs Depreciation Royalties Q3 2015 21
Slide 22: Long Term Debt Profile
Long Term Debt Profile Q3 2015 Liquidity ($m) Debt Maturity Profile ($m) No Bond Principle due until Q3 2015 Liquidity: 2019 $276m unrestricted cash Credit Rating of B2 $1.60bn undrawn RCF (expires 2019) Bond Rating of B3 22
Slide 23: Projects – Capital Expenditure
CAPITAL EXPENDITURE 2015 2016 US$ billon 2015 YTD Guidance Guidance Cobre Panama 0.42 0.60 0.88 Projects Kansanshi 0.14 0.15 - Cobre Panama Trident 0.15 0.23 0.02 Funding ($bn) Other 0.02 0.03 - Total projects 0.73 1.01 0.90 Stripping costs 0.17 0.23 0.20 Other sustaining capex 0.16 0.19 0.10 Total
Slide 24: 2015 Market Guidance
2015 Market Guidance Production guidance for copper, nickel and gold revised Copper production(1) Nickel production Gold production 380 – 400k tonnes 33 – 37k contained tonnes 210 – 231k ounces (Previous: 385 – 410k tonnes) (Q2: 32 – 40k contained tonnes) (Q2: 218 – 247k ounces) Zinc production Pall
Slide 25: Appendix
APPENDIX & FT OS
Slide 26: Quarterly Net Debt Movement
Quarterly Net Debt Movement Opening Net Debt at July 1, 2015 ($ million) (5,209) Comparative EBITDA 261 Working capital and tax (93) Dividends paid (16) Capital expenditure (375) Net interest paid(1) (98) Part repayment of ENRC promissory note 215 Other (6) Net debt movement (112) Closing Net Debt a
Slide 27: Third Quarter 2015 Conference Call & Webcast
THIRD QUARTER 2015 CONFERENCE CALL & WEBCAST NOVEMBER 10, 2015 TSX: FM; LSE: FQM