First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q1 2022 Earnings Presentation
42 slides from First Quantum Minerals's earnings presentation, April 2022
Slide 1: Responsible Growth: Q1 2022 Financial and Operating Results
TSX FM RESPONSIBLE GROWTH Q1 2022 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 Panama CLOSING REMARKS OPENING REMARKS Tristan Pascall, Chief Operating Officer
Slide 4: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS Q1 2022 Highlights Recent Developments Adjusted EPS1 of $0.70, up 59% quarter-over-quarter as a The conflict in Ukraine and the associated wide-reaching sanctions declining hedge position led to higher realized metal prices imposed upon Russia have led to higher energy and commodi
Slide 5: 2022 Guidance
2022 GUIDANCE PRODUCTION GUIDANCE COST AND CAPEX GUIDANCE Previous Updated Copper Cost Guidance ($/lb) Previous Updated Cobre Panama 330 – 360 330 – 360 C11 1.30 – 1.50 1.45 – 1.60 Kansanshi 190 – 210 175 – 195 AISC1 1.90 – 2.05 2.15 – 2.30 Sentinel 260 - 280 250 – 265 Other 30 35 Ravensthorpe Nicke
Slide 6: Cobre Panama
COBRE PANAMA Quarterly Performance COPPER PRODUCTION AND C1 CASH COSTS Production of 78,337 tonnes was impacted by lower throughput due to planned 1.72 SAG mill relines. March achieved record mill throughput of 7.6 million tonnes 82 82 87 80 1.65 78 Copper C1 cash costs1 of $1.65 per lb were impacte
Slide 7: Kansanshi
KANSANSHI Quarterly Performance COPPER PRODUCTION AND C1 CASH COSTS Production of 41,899 tonnes was impacted by the extended rainy season and 59 1.46 56 54 decline in oxide and mixed ore grades and associated recoveries 53 49 50 51 52 42 Copper C1 cash costs1 of $1.46 per lb were impacted by lower p
Slide 8: Sentinel
SENTINEL Quarterly Performance COPPER PRODUCTION AND C1 CASH COSTS Production was 52,475 tonnes due to lower mill throughput and grades. An 71 extended rainy season created ground conditions that delayed the Stage 2 North- 63 61 60 60 1.61 wall stripping thereby delaying access to high-grade ore 57
Slide 9: Q1 2022 ESG Highlights
Q1 2022 ESG HIGHLIGHTS Cobre Panama, working with Nutre Hogar, supports 132 women completed our annual female empowerment malnourished children across Panama. The mine has Congratulations to the 3 women and 3 men who completed the programme in Mauritania. This is aimed at improving literacy, constru
Slide 10: Financial Overview
Cobre Panama Mill FINANCIAL OVERVIEW Hannes Meyer, Chief Financial Officer
Slide 11: Financial Overview
FINANCIAL OVERVIEW Record Gross The First profit of $908m Quantum and adjusted Financial Policy earnings per share¹ of $0.70 for the quarter Gross profit of $908 million and EBITDA¹ of $1,180 Cash flow from operating activities of $666 million for million for the quarter. the quarter. • Significantl
Slide 12: Financial Overview (Continued)
FINANCIAL OVERVIEW (CONTINUED) Strong The financial First performance Quantum during Financial the quarter Policy $ Million (except per share numbers) Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Sales revenues⁴ 2,163 2,061 1,747 1,782 1,622 Gross profit 908 784 613 625 540 EBITDA¹ 1,180 1,085 886 902 81
Slide 13: Copper Cash Cost
COPPER CASH COST¹ Quarterly The FirstCopper C1 cash Quantum cost¹ and Financial AISC¹ of $1.61/lb and $2.27/lb, with a revision to full year guidance. Policy COPPER C1 CASH COST¹ ($/lb) COPPER AISC¹ ($/lb) 2.40 1.60 2.00 1.20 1.60 1.20 2.27 0.80 1.61 1.39 1.91 2.05 1.29 1.26 1.87 1.24 0.80 1.72 0.40
Slide 14: Significant Increase in Gross Profit
SIGNIFICANT INCREASE IN GROSS PROFIT Gross The profitQuantum First was 68% higher than Policy Financial Q1 2021, driven by higher realized metal prices and reduced hedge profile. $ Million 14
Slide 15: Net Debt Evolution
NET DEBT¹ EVOLUTION 7,615 7,658 7,545 7,409 4.5x 4.6x 7,062 $1.8bn 3.9x 6,751 reduction since $ Million 3.4x Q2 ‘20 6,302 2.8x 6,053 2.2x 5,815 1.9x 1.6x 1.4x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 '20 '20 '20 '20 '21 '21 '21 '21 '22 Net Debt Leverage • Under new facility the covenant test is carried out semi-a
Slide 16: Debt Maturity and Hedge Profile
DEBT MATURITY AND HEDGE PROFILE Pro forma debt maturity profile Pro forma debt maturity profile (post $500m 2023 partial redemption) $500m in 2023 senior notes were redeemed on April 5, 2022. There is $500m of 2023 senior notes remaining post 1,838 redemption. 488 1,500 1,305 $ Million Copper hedgin
Slide 17: Closing Remarks
Cobre Panama CLOSING REMARKS CLOSING REMARKS Tristan Pascall, Chief Operating Officer
Slide 18: Outlook for 2022 and Beyond
OUTLOOK FOR 2022 AND BEYOND The Path Forward – focus on debt reduction and brownfield projects 2. Brownfield – 1. Capital Allocation 3. Greenfield Path to 1 Million Tonnes Debt Reduction Cobre Panama Ramp-up Cautious approach to greenfield until • On track for CP100 by 2024 debt reduction target ach
Slide 19: CP100 Expansion
CP100 EXPANSION Currently underway Expansion to 100 Mtpa (from 85 Mtpa) • Process water upgrades • 2 m diameter, 9 km long pipeline from the tailings storage facility decant area to the process water tank • Additional ball mill (Ball Mill 6) • Provides a second ball mill into milling train three • N
Slide 20: S3 Expansion
S3 EXPANSION Benefits from earthworks, concrete already having been completed Expansion of existing sulphide processing facilities by 25 Mtpa to 53 Mtpa • Additional concentrator capacity • An additional SAG and ball mill • Construction of overland conveyor • Flowsheet based on existing copper sulph
Slide 21: Enterprise
ENTERPRISE 4 Mtpa processing circuit was mainly constructed in 2014 as part of Sentinel Minimal infrastructure is proposed at Enterprise • Mined ore to be hauled to the Sentinel processing plant Initial mining activity will focus on pre-strip of oxide and transitional ore The proposed mine plan span
Slide 22: Las Cruces Underground Project
LAS CRUCES UNDERGROUND PROJECT Benefits from existing team, workforce and infrastructure Indicative details (not included in 3-year guidance) • 3-4 year development • Mine life >15 years • Annual production ~45 kt CuEq Environmental permits received in 2020; Mine exploitation permit received in 2021
Slide 23: Summary of Brownfield Projects
SUMMARY OF BROWNFIELD PROJECTS COBRE PANAMA plus CP100 KANSANSHI plus S3 ENTERPRISE LAS CRUCES UNDERGROUND Commodity Cu, Au, Ag, Mo Cu, Au Ni Cu, Zn, Pb, Ag Mine Type Open Pit Open Pit Open Pit Underground Total Production 400 ktpa Cu 250 ktpa Cu 30 ktpa Ni 45 ktpa CuEq • Strong team in place • Stro
Slide 24: Upcoming Events in 2022
UPCOMING EVENTS IN 2022 February 15, 2022 Q4/21 FINANCIAL AND OPERATING RESULTS (Conference call February 16, 2022) April 26, 2022 Q1/22 FINANCIAL AND OPERATING RESULTS (Conference call April 27, 2022) May 5, 2022 ANNUAL GENERAL MEETING (Virtual) July 26, 2022 Q2/22 FINANCIAL AND OPERATING RESULTS (
Slide 25: Appendix
Cobre Panama Appendix
Slide 26: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Movement from December 31, 2021 Opening Net debt¹ ($ million) (6,053) EBITDA¹ 1,180 Working capital² (277) Capital expenditure (279) Interest paid³ (157) Taxes paid (208) Other⁴ (21) Closing net debt¹ at March 31, 2022 ($ million) (5,815) Net debt¹ Breakdown Q4 2020 Q3 20
Slide 27: 2022 Guidance Updates
2022 GUIDANCE UPDATES Guidance The Firsthas been adjusted Quantum for production Financial Policy and cash costs. Production Guidance1 Previous Updated Total copper production guidance has been lowered by 20,000 and 25,000 tonnnes to between 790,000 and 855,000 tonnes with Copper (‘000 tonnes) 810 –
Slide 28: 2022 Production Guidance by Operation
2022 PRODUCTION GUIDANCE BY OPERATION¹ Guidance for the upcoming three years is provided annually as part of year-end reporting. On a quarterly basis, guidance for the The First current Quantum year Financial will b updated Policyor re-affirmed. as necessary Copper Production Guidance Previous Updat
Slide 29: 2022 Capex Guidance
2022 CAPEX GUIDANCE Capital The expenditure First Quantum guidance remains Financial unchanged for 2022 Policy Guidance 1,250 995 250 205 310 610 252 $ million 154 168 690 538 288 2020 2021 2022 Project Capital¹ Sustaining Capital¹ Capitalized Stripping¹ Expected full year capital expenditure includ
Slide 30: 2022 Guidance - Interest, Tax and Depreciation
2022 GUIDANCE - INTEREST, TAX AND DEPRECIATION $ millions (except tax rate) Previous Updated Q1 2022 guidance guidance • Updated guidance reflects the partial redemption of 2023 Interest expense on debt¹ 121 470 450 Notes in April. • Guidance continues to reflect Law 9 legislation for Cobre Panama.
Slide 31: 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, 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 32: Non-GAAP EBITDA and Adjusted Earnings Reconciliation
NON-GAAP EBITDA¹ AND ADJUSTED EARNINGS¹ RECONCILIATION Guidance $First for(except the upcoming MillionQuantum per share three years is provided annually as part of year-endQ1 numbers) reporting. 2022 On a quarterly Q4 2021 basis, guidance for the Q1 2021 The Financial Policy current year will b upda
Slide 33: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C1 AND AISC Guidance for the upcoming three years is provided annually as part of year-endQ1reporting. $ million 2022 On aQ4quarterly 2021 basis, Q1guidance 2021 for the The First Quantum current year will Financial Policy Costbofupdated sales¹ as necessary or re-aff
Slide 34: EBITDA Sensitivity
EBITDA¹ SENSITIVITY Guidance for the upcoming three years is provided annually as part of year-end reporting. On a quarterly basis, guidance for the The First current Quantum year Financial will b updated Policyor re-affirmed. as necessary Impact on YTD EBITDA¹ Actual price/rate YTD Assumption of a
Slide 35: Three-Year Guidance
THREE-YEAR GUIDANCE Production Cobre Panama: Includes the CP100 Expansion; Production to ramp-up and exit 2023 at 100 Mtpa Kansanshi: Limited S3 production in 2024 (S3 production to ramp up in 2025); Development and timing still subject to Board approval Enterprise: First nickel production in 2023;
Slide 36: Cobre Panama (including CP100 Expansion)
Cobre Panama (including CP100 Expansion) Ownership Location Mine Type Processing Rate 90% First Quantum Colon Province, Panama Open Pit 85 Mtpa Sulphide circuit 10% KOMIR 25km from coast where wholly Cu-Au-Ag-Mo Porphyry CP100 Expansion to 100 Mtpa owned power plant and port (2024) are located Produ
Slide 37: Kansanshi (Including S3 Expansion)
Kansanshi (Including S3 Expansion) Ownership Location Mine Type Processing Rate 80% First Quantum Solwezi, Zambia Open Pit 7 Mtpa Oxide circuit Vein deposit; Primary sulphide, 8 Mtpa Mixed circuit 20% ZCCM-IH mixed supergene and oxide 15 Mtpa Sulphide circuit Adjacent 1.35 Mtpa smelter S3 25 Mtpa Ex
Slide 38: Sentinel (Including Enterprise)
Sentinel (Including Enterprise) Ownership Location Mine Type Processing Rate 100% First Quantum Kalumbila, Zambia Open Pit Sentinel: 62 Mtpa Sulphide circuit 150 km west of Kansanshi Sentinel: primary sulphide copper Enterprise 4 Mtpa sulphide circuit subject to Board approval Enterprise: hydrotherm
Slide 39: Taca Taca
Taca Taca 275,000 <$1.40/Lb Cu 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 Copper (ktpa) Gold (kozpa) Molybdenum (ktpa) 300 K Tonnes (Cu, Mo) or Ounces (Au) 250 200 150 100 50 0 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 1
Slide 40: Haquira Overview
HAQUIRA OVERVIEW Community Meeting Large scale porphyry copper project in Apurímac, Southern Peru Acquired in December 2010 Drilling campaign planned for 2022/2023 to expand and better understand resource Focus on community and environmental aspects Haquira Property Layout Source: Haquira PEA NI 43-
Slide 41: First Quantum Minerals ESG at a Glance
FIRST QUANTUM MINERALS ESG AT A GLANCE Actions on Climate Biodiversity Environment Water Reforestation Change Net Positive Impact 0 67% 3,420 -50% Commitment to Level 4 or 5 incidents in 2020 Water reuse across our Hectares reforested in GHG emissions reduction by or 2021 operations in 2020, <1% wat
Slide 42: First Quantum Minerals Ltd.
TSX FM First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577
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