Slide 1: First Quantum Minerals
& FIRST QUANTUM MINERALS
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: Tristan Pascall, Chief Operating Officer
Tristan Pascall Chief Operating Officer
Slide 4: Q2 2021 Operational Highlights
Q2 2021 OPERATIONAL HIGHLIGHTS Total copper production¹ 200k tonnes 18% higher than Q2 2020 ‣ Cobre Panama produced at ~4X the rate of COVID-19 impacted Q2 2020. Continued ‣ Total gold production for the quarter of 81koz was 49% progress on ramp up to 85mtpa, with stronger throughput rates somewhat
Slide 5: 2021 ESG: Climate Change Commitments
2021 ESG: CLIMATE CHANGE COMMITMENTS Innovation driving sustainability • Fourth annual ESSDR published recently highlighting the impact of Company’s innovation programs: • An estimated 1.1 million tonnes CO2 emissions saved in 2020 • The 2020 ESSDR is available on our website • 2020 ESTMA tax transp
Slide 6: Hannes Meyer, Chief Financial Officer
Hannes Meyer Chief Financial Officer
Slide 7: Financial Overview
FINANCIAL OVERVIEW Financial performance in the quarter was driven by strong sales and increased metal prices, resulting in a significant increase in comparative EBITDA and net earnings, as well as a notable reduction in net debt. Gross profit of $625 million and comparative Net debt decreased durin
Slide 8: Quarterly Copper Unit Cash Costs
QUARTERLY COPPER UNIT CASH COSTS YTD Copper C1 and AISC within full year guidance TOTAL C1 COST AISC 1.40 1.95 1.30 1.80 1.20 1.65 1.10 1.91 1.28 1.29 1.26 Guidance 1.50 1.77 1.81 1.00 1.20 1.24 1.72 1.62 1.07 1.35 1.48 0.90 0.80 1.20 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2021 YTD Q2 2020 Q3 2020
Slide 9: Q2 Summary Financial Overview
Q2 SUMMARY FINANCIAL OVERVIEW Basic earnings per share of $0.20 and comparative earnings per share of $0.25, $0.43 and $0.37 higher than Q2 2020 respectively $ M illion (except per share numbers) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Revenue 1,847 1,678 1,601 1,402 1,014 Gross Profit 625 540 443 3
Slide 10: Significant Increase in Gross Profit
SIGNIFICANT INCREASE IN GROSS PROFIT Gross profit for the quarter of $625 million was $484 million higher than Q2 2020, based on improved metal prices and higher contribution from Cobre Panama. FM 10
Slide 11: Debt and Liquidity Profile
DEBT AND LIQUIDITY PROFILE NET DEBT Liquidity update: $ millions Net debt has decreased 11 by • The Company signed a bilateral borrowing facility 7,658 over $0.9 billion since June for $175 million on April 15, 2021, available for 12 7,545 2020. months from the date of signing. 7,409 7,062 Following
Slide 12: Copper Hedging Program Outlook
COPPER HEDGING PROGRAM OUTLOOK1,2 150.0 Approximately one quarter of $/lb Kt 4.75 expected copper sales for the next 125.0 12 months are hedged to 4.00 unmargined forward and zero cost 100.0 93.0 collar sales contracts, at an 80.8 average floor price and average 3.25 75.0 ceiling price of $3.16/lb a
Slide 13: Tristan Pascall, Chief Operating Officer
Tristan Pascall Chief Operating Officer
Slide 14: Outlook for 2021 & Beyond
OUTLOOK FOR 2021 & BEYOND The Path Forward 1. Capital Allocation 2. Brownfield 3. Greenfield Cobre Panama Ramp-up Cautious approach to Greenfield Debt Reduction - Progressing toward 85mtpa until debt reduction achieved - Top priority for 2021 - On track for 100mtpa by 2024 Taca Taca in Argentina - P
Slide 15: Appendix
APPENDIX
Slide 16: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Year-to-date Quarterly movement from movement from December 31, March 31, 2021 2020 Opening Net Debt ($ million) (7,062) (7,409) Comparative EBITDA 902 1,713 Working capital (1) 51 Capital expenditure (264) (444) Interest paid (68) (261) Net payments to joint venture (KPM
Slide 17: 2021 Guidance Updates
2021GUIDANCE UPDATES Market guidance for nickel production and nickel cash costs updated. Total copper, total gold, copper cash costs and total capital expenditure guidance remains unchanged. Previous Updated Ravensthorpe nickel production has been reduced to Production Guidance1 guidance 2021 guida
Slide 18: 2021 Copper and Gold Production Guidance Update by Site
2021 COPPER AND GOLD PRODUCTION GUIDANCE UPDATE BY SITE Previous Updated Total copper production guidance remains Copper Production Guidance (‘000 tonnes)1 guidance guidance unchanged, with Cobre Panama guidance 2021 2021 range increasing 10,000 to 5,000 tonnes to Cobre Panama 300 – 330 310 – 335 be
Slide 19: 2021 Guidance – Interest, Tax and Depreciation
2021 GUIDANCE – INTEREST, TAX AND DEPRECIATION Interest Interest expense for the quarter ended June 30, 2021 was $186 million and for the first six months of the year was $373 million. A significant proportion of the Company’s interest expense is incurred in jurisdictions where no tax credit is reco
Slide 20: Precious Metal Stream Arrangement
PRECIOUS METAL STREAM ARRANGEMENT • Cobre Panama gold and silver revenues consist of revenues derived from the sale of metals produced by the mine, and also revenues recognized from the amortization of the precious metal stream arrangement. • Stream gold and silver revenues are indexed to copper sol
Slide 21: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES RECONCILIATION COMPARATIVE EBITDA AND COMPARATIVE EARNINGS Q2 2021 Q2 2020 YTD 2021 YTD 2020 Operating profit 588 77 1,101 81 Depreciation 286 257 572 568 Foreign exchange loss 23 10 34 133 Other expense 4 4 4 6 Revisions in estimates of restoration provisions at closed sites 1 4 2
Slide 22: Non-GAAP Measures Reconciliation: C1 and AISC
NON-GAAP MEASURES RECONCILIATION: C1 and AISC $ million Q2 2021 Q2 2020 YTD 2021 YTD 2020 Cost of sales (1,222) (873) (2,360) (1,908) Depreciation 286 257 572 568 By-product credits 224 122 419 287 Royalties 120 50 227 102 Treatment and refining charges (52) (33) (106) (84) Freight costs (17) (18) (
Slide 23: EBITDA Sensitivity
EBITDA SENSITIVITY Impact on YTD Actual price/rate EBITDA of a 10% Assumption YTD June 2021 change in price/ rate Copper (includes hedge impact) $4.12/lb $138 million Gold $1,806/oz $26 million Nickel (includes hedge impact) $7.92/lb $11 million Zambian kwacha 22.01 ZMW/USD $10 million FM 23
Slide 24: info@fqml.com
info@fqml.com 416-361-6400 | 1-888-688-6577 TSX FM