First Quantum Minerals Ltd. · TSX:FM
First Quantum Minerals — Q2 2018 Earnings Presentation
18 slides from First Quantum Minerals's earnings presentation, Jul 31, 2018
Slide 1: First Quantum Minerals Second Quarter 2018 Conference Call & Webcast
FIRST QUANTUM MINERALS SECOND QUARTER 2018 CONFERENCE CALL & WEBCAST JULY 31, 2018 TSX: FM JULY 31, 2018 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 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: Cobre Panama – Vessel Unloading at Port
COBRE PANAMA – VESSEL UNLOADING AT PORT TSX: FM JULY 31, 2018 3
Slide 4: Cobre Panama – Minesite Overview
COBRE PANAMA – MINESITE OVERVIEW TSX: FM JULY 31, 2018 4
Slide 5: Cobre Panama – In-Pit Crusher
COBRE PANAMA – IN-PIT CRUSHER TSX: FM JULY 31, 2018 5
Slide 6: Cobre Panama – Milling Area Overview
COBRE PANAMA – MILLING AREA OVERVIEW TSX: FM JULY 31, 2018 6
Slide 7: Cobre Panama – Flotation & Stockpile Feed Conveyors
COBRE PANAMA – FLOTATION & STOCKPILE FEED CONVEYORS TSX: FM JULY 31, 2018 7
Slide 8: Cobre Panama – Tailings Decant Water Area
COBRE PANAMA – TAILINGS DECANT WATER AREA TSX: FM JULY 31, 2018 8
Slide 9: Financial Review
FINANCIAL REVIEW
Slide 10: Quarterly Production
QUARTERLY PRODUCTION Copper production up 6% on Q2 2017 and 4% Sentinel production up 28% on Q2 2017 and on Q1 2018 11% on Q1 2018 • Sentinel production was 12kt higher than Q2 2017 due to improved throughput and recoveries. • The Kansanshi smelter produced 80kt of copper anode and 291kt of sulphuri
Slide 11: Q2 2018 Overview
Q2 2018 OVERVIEW Comparative EBITDA up 75% on Q2 2017 $ Million 75% $ million (except per share numbers) Q2 2017 Q1 2018 Q2 2018 Revenue 782 885 1,049 Gross Profit 66 181 271 Comparative EBITDA1 267 363 466 1 Comparative Earnings (Loss) (18) 49 128 Comparative Earnings (Loss) per share $ (0.03) 0.07
Slide 12: Quarterly Unit Cash Costs
QUARTERLY UNIT CASH COSTS Q2 2018 C1 and AISC within full year guidance C1 AISC 1.75 1.76 1.72 1.76 1.50 1.21 1.30 1.27 1.28 1.12 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Guidance Guidance • C1 Q2 2018 is in line with Q1 2018 and $0.16/lb higher • AISC in Q2 20
Slide 13: Strengthening the Balance Sheet
STRENGTHENING THE BALANCE SHEET Debt maturity(1) and liquidity profile improved Liquidity with refinancing at June 30, 2018 $2.2bn Net debt/EBITDA covenant ratio of Covenant Ratio 4.0x which is well below covenant requirement at 5.0x. (1) Debt profile as at June 30, 2018. Note that the Kalumbila ter
Slide 14: Hedging Program Outlook
HEDGING PROGRAM OUTLOOK Increasing hedge prices going forward at lower hedge volumes Hedging profile as at June 30, 2018. TSX: FM JULY 31, 2018 14
Slide 15: Capital Expenditure
CAPITAL EXPENDITURE $ million Capital Expenditure YTD 2018 2018 2019 2020 Cobre Panama Actual Guidance Guidance Guidance Funding ($bn) Total Cobre Panama 781 1,180 382 - First Quantum share of Cobre Panama 547 826 293 - Stripping costs 59 200 200 200 Other sustaining capex and other projects 174 360
Slide 16: Appendix
APPENDIX TSX: FM JULY 31, 2018 16
Slide 17: Quarterly Net Debt Movement
QUARTERLY NET DEBT MOVEMENT Opening Net Debt at March 31, 2018 ($ million) (5,575) Comparative EBITDA 466 Working Capital (73) Capital expenditure (including capitalized losses) (575) Net Interest (116) Franco-Nevada tranches streaming receipts 89 Related-party debt movements 89 Net payments to join
Slide 18: First Quantum Minerals
FIRST QUANTUM MINERALS SECOND QUARTER 2018 CONFERENCE CALL & WEBCAST JULY 31, 2018 TSX: FM JULY 31, 2018 18
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