Slide 1: Responsible Growth: Q4 2023 Financial and Operating Results
TSX FM RESPONSIBLE GROWTH Q4 2023 Financial and Operating Results
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 i
Slide 3: Opening Remarks
Cobre Panamá OPENING REMARKS Tristan Pascall, Chief Executive Officer
Slide 4: Q4 2023 Highlights
Q4 2023 HIGHLIGHTS Recent Developments TOTAL COPPER PRODUCTION • Announcement of Robert Harding as new Chair of the Board 160,200t 28% decrease from Q3 2023 due to • Cobre Panamá production suspended at end of November, placed into phase of Preservation and Safe Management (P&SM) lower production at
Slide 5: Full Year 2023: The Year in Summary
FULL YEAR 2023 The Year in Summary TOTAL COPPER PRODUCTION • Q1 2023 - $850 million redemption of 2024 Notes 707,678t • Q1 2023 - Agreement reached with the Government of Panama on a Refreshed Concession Contract • Q1 2023 - CP100 Expansion completed ahead of schedule Down 9% from 2022 due to lower
Slide 6: Cobre Panamá Update
COBRE PANAMÁ UPDATE • Cobre Panamá remains in a phase of P&SM with production halted • Previous illegal blockages have been cleared, allowing for the delivery of necessary supplies to conduct the P&SM program • The Company is working with the Ministry of Commerce and Industries (“MICI”) to address t
Slide 7: Overview of the Arbitration Process
OVERVIEW OF THE ARBITRATION PROCESS • First Quantum has launched two separate tracks of international arbitration • The processes can run concurrently in the short term CANADA / PANAMA FREE TRADE AGREEMENT ARBITRATION INTERNATIONAL CHAMBER OF COMMERCE ARBITRATION The company is entitled to seek all
Slide 8: Delivering ESG Programs in Q4
DELIVERING ESG PROGRAMS IN Q4 Reforestation efforts at Cobre Lower plastic waste campaign Local business development Female entrepreneurs Panamá Kansanshi Mine has achieved Trident joined forces with the Zambia The team at Guelb Moghrein held a We uphold our commitment to reforest significant stride
Slide 9: Operational Overview
Sentinel OPERATIONAL OVERVIEW Rudi Badenhorst, Chief Operating Officer
Slide 10: Cobre Panamá: Q4 Production and 2024 Outlook
COBRE PANAMÁ Q4 2023 COPPER PRODUCTION 2024 Outlook 62,616t 44% lower than Q3 2023 as production was • MICI currently reviewing P&SM preliminary draft provided by Cobre Panamá on January 16, 2024 suspended since November 2023 following • Previous blockages around the mine have dissipated, allowing f
Slide 11: Kansanshi: Q4 Production and 2024 Outlook
KANSANSHI Q4 2023 COPPER PRODUCTION 2024 Outlook 31,887t • Production guidance for copper in 2024 is similar to 2023 levels 19% lower than Q3 2023 due to lower • Gold production has been revised due to an improved understanding of the throughput, grades and recoveries sources of sulphide copper-gold
Slide 12: Trident (Sentinel & Enterprise): Q4 Production and 2024 Outlook
TRIDENT (SENTINEL & ENTERPRISE) Q4 2023 COPPER PRODUCTION 2024 Outlook 59,964t 6% lower than Q3 2023 due to lower • Primary focus on development of Stage 3 (Western Cut-back) to improve mining productivities, increase access to softer material at higher elevations throughput from harder ore and slow
Slide 13: Other Mines
OTHER MINES Las Cruces 2023 PRODUCTION: 3,892t Cu Çayeli Q4 2023 PRODUCTION: 2,487t Cu Completed re-processing of tailings in June 2023; Q4 2023 C1 CASH COST1: $2.31 per lb Cu Final sale of copper cathodes in July 2023; 2024 PRODUCTION GUIDANCE: 9Kt Cu, 3kt Zn All permits required for approval of th
Slide 14: Financial Overview
Kansanshi Smelter FINANCIAL OVERVIEW Ryan MacWilliam, Chief Financial Officer
Slide 15: Q4 2023 Revenues and Costs
Q4 2023 REVENUES AND COSTS REALIZED COPPER PRICE1 (per lb) Decline in revenue driven by disruptions to Cobre Panamá operations and $3.62 subsequent PS&M of the mine as well as lower production at Zambian sites. ~400kt Down 2% quarter-over-quarter 7.00 450 LME, COMEX, SHFE Copper inventories (kt) 400
Slide 16: Q4 2023 Net Loss and EBITDA
Q4 2023 NET LOSS AND EBITDA¹ EBITDA¹ EBITDA¹ down quarter-over-quarter due to disruptions at Cobre Panamá and reduced sales at Zambia. $273 million Net Loss includes an impairment charge2 of $900m recognized in Q4 predominantly on Ravensthorpe with continued weakness in the nickel price. Down 72% qu
Slide 17: EBITDA Waterfall
EBITDA¹ WATERFALL EBITDA¹ $696 million lower than Q3 2023, main driver being disruptions at Cobre Panamá followed by lower sales at Zambia. Sale of copper concentrate in Cobre Panamá shed will contribute around $150 million in Q1 2024. External Factors (-$43 million) Internal Factors (-$653 million)
Slide 18: Copper C1 Cash Cost
COPPER C1 CASH COST¹ Higher unit cash costs driven by lower production and higher electricity costs at Zambian operations following the signing of the new ZESCO agreement, mitigated by lower maintenance costs. 2023 costs finished within guidance range as inflation continues to slow. $0.20 per lb hig
Slide 19: Quarterly Net Debt Movement
QUARTERLY NET DEBT1 MOVEMENT Net debt1 increased by $783 million during the quarter primarily due to Cobre Panamá $567m tax payment5 in November, and disruptions to shipping at Cobre Panamá's Punta Ricon port. $1.2BN LIQUIDITY 31 DECEMBER 2023 $250m Undrawn RCF $959m Unrestricted Cash 1 2 3 5 4 ¹ EB
Slide 20: Balance Sheet Initiatives
BALANCE SHEET INITIATIVES INTERNAL ACTIONS EXTERNAL ACTIONS DIVIDEND SUSPENSION COPPER PREPAYMENT FROM Suspension of the semi-annual dividend SUPPORTIVE LONG-TERM OFFTAKER $500m pre pay for copper in Zambia at competitive rates CAPITAL EXPENDITURE REDUCTIONS Reduce and Rephase Committed to deliver S
Slide 21: Closing Remarks
Reforestation Initiatives Cobre PanamáCP100 Screening Plant CLOSING REMARKS Tristan Pascall, Chief Executive Officer
Slide 22: S3 Expansion
S3 EXPANSION S3 Expansion Works Progress-To-Date Outlook • Additional concentrator capacity • Board approval in May 2022 • Majority of capital spend expected in 2024 • Additional SAG and ball mill • Overall project procurement ~70% committed, ~30% of the fleet commissioned and progressed 80% of the
Slide 23: Enterprise
ENTERPRISE Enterprise Works Progress-To-Date Outlook • Main workstream is pre-strip • Board approval in May 2022 • Additional flotation capacity should be commissioned in early 2024 • 4 Mtpa processing circuit • All major infrastructures completed ahead mainly constructed in 2014 as of the wet seaso
Slide 24: Capital Allocation - 2024 and Beyond
CAPITAL ALLOCATION - 2024 AND BEYOND Focus on debt reduction, consistent operational performance and execution of brownfield expansions 1. Balance Sheet Initiatives 2. Brownfield 3. Greenfield With Cobre Panamá in a phase of P&SM, Kansanshi S3 Expansion Cautious approach to greenfield the Company is
Slide 25: Upcoming Events
UPCOMING EVENTS April 23, 2024 • Q1 2024 FINANCIAL AND OPERATING RESULTS (Conference call April 24, 2024) May 9, 2024 • ANALYST/INVESTOR DINNER (Toronto) June 2024 • ANALYST/INVESTOR DINNER* (London) July 23, 2024 • Q2 2024 FINANCIAL AND OPERATING RESULTS (Conference call July 24, 2024) September 9-
Slide 26: Appendix
FIRST QA TUM MINERALS APPENDIX
Slide 27: Three-Year Guidance
THREE-YEAR GUIDANCE PRODUCTION GUIDANCE COST AND CAPEX GUIDANCE 2024E 2025E 2026E Copper Cost Guidance ($/lb) 2024E 2025E 2026E Kansanshi 130 – 150 170 – 200 180 – 210 C12 1.80 – 2.05 1.80 – 2.05 1.80 – 2.05 Sentinel 220 – 250 210 – 240 210 – 240 AISC2 2.70 – 3.00 2.85 – 3.15 2.80 – 3.10 Other 2
Slide 28: Copper Cash Cost and AISC
COPPER CASH COST¹ AND AISC¹ Increased quarterly The First copper Quantum C1 cashPolicy Financial cost¹ and AISC¹ of $1.82/lb and $2.52/lb, respectively, driven by lower production. COPPER C1¹ ($/lb) COPPER AISC¹ ($/lb) 2.50 1.85 2.40 1.75 2.24 2.87 2.64 1.98 2.52 2.46 1.86 1.82 1.82 2.42 2.02 1.42 Q
Slide 29: Financial Summary
FINANCIAL SUMMARY EBITDA¹ The FirstandQuantum cash flows were impacted Financial Policy by lower sales volumes at Cobre Panamá due to the suspension of operations and port restrictions. $ millions (except per share numbers) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Sales revenues 1,218 2,029 1,651 1,5
Slide 30: Precious Metal Stream Arrangement
PRECIOUS METAL STREAM ARRANGEMENT • Cobre Panamá gold and silver revenues consist of revenues derived from the sale of metals produced by the mine, as well as revenues recognized from the amortization of the precious metal stream arrangement. • Stream gold and silver revenues are indexed to copper s
Slide 31: Non-GAAP EBITDA and Adjusted Earnings Reconciliation
NON-GAAP EBITDA7 AND ADJUSTED EARNINGS (LOSS)7 RECONCILIATION $ millions (except per share numbers) Q4 2023 Q3 2023 Q4 2022 FY 2023 FY 2022 Operating profit (loss) (984) 585 314 78 2,241 Depreciation 226 323 327 1,127 1,230 Foreign exchange loss (gain) 43 23 25 67 (184) Impairment expense4 900 - - 9
Slide 32: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C12 AND AISC2 $ millions Q4 2023 Q3 2023 Q4 2022 FY 2023 FY 2022 Cost of sales¹ (1,131) (1,369) (1,471) (5,164) (5,426) Depreciation 226 323 327 1,121 1,230 By-product credits 92 152 122 462 583 Royalties 86 92 88 346 414 Treatment and refining charges (42) (79) (60)
Slide 33: EBITDA Sensitivity
EBITDA¹ SENSITIVITY The First Quantum Financial Policy Actual price/rate Impact on FY EBITDA¹ Assumption FY December 2023 change in price/rate Copper $3.85/lb $546 million Gold $1,941/oz $38 million Nickel $9.74/lb $45 million Zambian kwacha 20.22 ZMW/USD $22 million 1 EBITDA is a non-GAAP financial
Slide 34: Cobre Panamá, Including CP100 Expansion
COBRE PANAMÁ, INCLUDING CP100 EXPANSION Ownership Mine Type Processing Rate CP100 Expansion 90% First Quantum Open Pit 85 Mtpa Sulphide circuit Expansion to 100 Mtpa 10% KOMIR Cu-Au-Ag-Mo Porphyry P&P Reserves M&I Resources Inferred Resources 2,843.6 Mt 3,375.6 Mt 1,087.3 Mt 0.38% Cu 0.37% Cu 0.26%
Slide 35: Kansanshi, Including S3 Expansion
KANSANSHI, INCLUDING S3 EXPANSION Ownership Mine Type Processing Rate S3 Expansion 80% First Quantum Open Pit Adjacent 1.38 Mtpa S3 25 Mtpa Expansion smelter 20% ZCCM-IH Vein deposit, mixed (First production H2 2025) 27 Mtpa circuit (oxide, supergene and oxide Smelter expansion to 1.6 Mtpa mixed, su
Slide 36: Kansanshi Pit Development
KANSANSHI PIT DEVELOPMENT M18 M16 M17 Source: Kansanshi 43-101 Technical Report June 2020 36
Slide 37: Trident (Sentinel & Enterprise)
TRIDENT (SENTINEL & ENTERPRISE) Ownership Mine Type Sentinel Processing Enterprise Processing 100% First Quantum Open Pit 62 Mtpa Sulphide circuit 4 Mtpa Sulphide circuit Sentinel: Copper First ore Q1 2023 Enterprise: Nickel First nickel concentrate Q2 SENTINEL & 2023 ENTERPRISE First sale Q3 2023 P
Slide 38: Sentinel Pit Development
SENTINEL PIT DEVELOPMENT Source: Trident 43-101 Technical Report March 2020 38
Slide 39: Las Cruces Underground Project
LAS CRUCES UNDERGROUND PROJECT • Benefits from existing team, workforce and Las Cruces Underground Resource Classification infrastructure MINERAL RESOURCE STATEMENT AS OF SEPTEMBER 30, 2023 • Environmental permits received in 2020; Mine Tonnes CuEq Cu Zn Pb Ag exploitation permit received in 2021; W
Slide 40: Taca Taca
TACA TACA 275,000 Low 32 Years US$3.6 Billion Tonnes of Cu C1 Cash Costs Mine Life Capital Per Year (Peak) Investment • 50 - 200 Megawatts of Renewable Energy • Received a second set of observations to the ESIA in June 2023 and submitted responses in October 2023; Approval of the ESIA is expected in
Slide 41: La Granja
LA GRANJA La Granja is one of the largest undeveloped copper resources in the world, with potential to support a multi-decade open-pit operation • Large copper project in northern Peru • Located in the district of Querocoto in the northern region of Cajamarca, Peru, approximately 90 kilometres north
Slide 42: Haquira Overview
HAQUIRA OVERVIEW • Large scale porphyry copper project in Apurímac, Southern Peru • Acquired in December 2010 • One of the world’s major undeveloped copper deposits • M&I resource of 3.7 million tonnes of contained copper equivalent plus an inferred resource of 2.4 million tonnes of copper equivalen
Slide 43: First Quantum Minerals Ltd. contact details
First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577 TSX FM