First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q1 2021 Earnings Presentation
22 slides from First Quantum Minerals's earnings presentation, Apr 27, 2021
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: Q1 2021 Operational Highlights
Q1 2021 OPERATIONAL HIGHLIGHTS Strong copper prices and low costs drove strong financial performance ▸Operations performed in line with plan ▸Heavy rains in Zambia ▸Sentinel copper production grew by 3% despite rain and repairs limiting throughput ▸4th crusher commissioning in second half of 2021 ▸K
Slide 5: 2021 Climate Change Commitments
2021 CLIMATE CHANGE COMMITMENTS Continuing to improve and formalize our approach to all aspects of ESG • Report in alignment with the Task Force on Climate-related Financial Disclosures (“TCFD”) framework. • Set tangible and realistic targets, with an identified pathway to achievement, for absolute
Slide 6: Hannes Meyer, Chief Financial Officer
Hannes Meyer Chief Financial Officer
Slide 7: Overview
OVERVIEW Record copper production at Cobre Panama drove strong operational performance in the quarter. Financial performance in the quarter was driven by strong sales, with increased metal prices and low overall operating costs, resulting in a significant increase in comparative EBITDA and net earni
Slide 8: Q1 Summary – Production
Q1 SUMMARY – PRODUCTION1 Total copper production¹ 205k tonnes 5% higher than Q1 2020 ‣ Record copper production at Cobre Panama of 82kt, a 46% increase from ‣ Total gold production for the quarter of 78koz the first quarter of 2020. was 13% higher than the first quarter in 2020. ‣ Despite ball mill
Slide 9: Quarterly Copper Unit Cash Costs
QUARTERLY COPPER UNIT CASH COSTS C1 cash cost was 5% lower than Q1 2020, with all major operations Copper C1 and AISC at the delivering a reduction in cash costs. lower end of full year guidance COPPER TOTAL C1 COST COPPER AISC 1.40 1.90 1.30 1.80 1.20 1.70 1.60 1.10 1.30 1.28 1.50 1.77 1.00 1.20 1.
Slide 10: Q1 Summary Financial Overview
Q1 SUMMARY FINANCIAL OVERVIEW Basic earnings per share of $0.21 and comparative earnings per share of $0.22, $0.30 and $0.33 higher than Q1 2020 respectively. $ Million (except per share numbers) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Revenue 1,678 1,601 1,402 1,014 1,182 Gross Profit 540 443 346 1
Slide 11: Significant Increase in Gross Profit
SIGNIFICANT INCREASE IN GROSS PROFIT Gross profit for the quarter of $540 million was $393 million higher than the first quarter of 2020, based on improved metal prices, higher contribution from Cobre Panama and lower operating costs. 1 1 Underlying gross profit is shown after impact of market metal
Slide 12: Debt and Liquidity Profile
DEBT AND LIQUIDITY PROFILE DEBT MATURITY AS AT MARCH 31, 2021 Liquidity update: $ millions 1,600 1,350 1,500 • The Company signed a bilateral 1,070 1,000 borrowing facility for $175 million in April 850 561 470 2021, available for 12 months from the date of signing. 450 600 111 2021 2022 2023 2024 2
Slide 13: Copper Hedging Program Outlook
COPPER HEDGING PROGRAM OUTLOOK¹ Approximately 35% of expected copper sales for the next 12 months hedged 150.0 5.20 ‣ The Company has unmargined $/lb Kt nickel forward sales contracts for 125.0 1,092 tonnes at an average price of 105.8 4.45 $7.13 per lb outstanding with 100.0 93.0 maturities to Octo
Slide 14: Appendix
APPENDIX
Slide 15: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Quarterly movement from December 31, 2020 Opening Net Debt ($ million) (7,409) Comparative EBITDA 811 Working capital 52 Capital expenditure (180) Interest paid (193) Payments to joint venture (KPMC) (31) Taxes paid (75) Other (37) Closing Net Debt at March 31, 2021 ($ mi
Slide 16: 2021 Guidance Summary
2021GUIDANCE SUMMARY Market guidance for production, cash costs and capital expenditure remains unchanged from expectations previously disclosed by the Company. Production Guidance1 2021 Copper (‘000 tonnes) 785 - 850 Gold (‘000 ounces) 280 - 300 Nickel (‘000 contained tonnes) 23 - 27 Copper Cost Gu
Slide 17: 2021 Guidance – Interest, Tax and Depreciation
2021 GUIDANCE – INTEREST, TAX AND DEPRECIATION Interest Interest expense for the quarter ended March 31, 2021 was $187 million. A significant proportion of the Company’s interest expense is incurred in jurisdictions where no tax credit is recognized. Interest expense for the full year 2021 is expect
Slide 18: Precious Metal Stream Arrangement
PRECIOUS METAL STREAM ARRANGEMENT • Cobre Panama gold and silver revenues consist of revenues derived from the sale of metals produced by the mine, and also revenues recognized from the amortization of the precious metal stream arrangement. • Stream gold and silver revenues are indexed to copper sol
Slide 19: Non-GAAP Measures Reconciliation: Comparative EBITDA and Earnings
NON-GAAP MEASURES RECONCILIATION COMPARATIVE EBITDA AND COMPARATIVE EARNINGS Q1 2021 Q4 2020 Q1 2020 Operating profit 513 357 4 Depreciation 286 326 311 Foreign exchange loss 11 32 123 Other expense - 8 2 Revisions in estimates of restoration provisions at closed sites 1 2 (6) Comparative EBITDA ($
Slide 20: Non-GAAP Measures Reconciliation: C1 and AISC
NON-GAAP MEASURES RECONCILIATION: C1 and AISC $ million Q1 2021 Q1 2020 Cost of sales (1,138) (1,035) Depreciation 286 311 By-product credits 195 165 Royalties 107 52 Treatment and refining charges (54) (51) Freight costs (9) (10) Finished goods - (9) Other 17 37 C1 Cost (596) (540) General and admi
Slide 21: EBITDA Sensitivity
EBITDA SENSITIVITY Impact on YTD Actual price/rate EBITDA of a 10% Assumption YTD March 2021 change in price/ rate Copper (includes hedge impact) $3.86/lb $45 million Gold $1,796/oz $12 million Nickel (includes hedge impact) $7.97/lb $0.3 million Zambian kwacha 21.63 ZMW/USD $5 million FM 21
Slide 22: Contact Information
info@fqml.com 416-361-6400 | 1-888-688-6577 TSX FM
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