Slide 1: Responsible Growth: Q2 2023 Financial and Operating Results
TSX FM RESPONSIBLE GROWTH Q2 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: Q2 2023 Highlights
Q2 2023 HIGHLIGHTS Recent Developments TOTAL COPPER PRODUCTION • Progress on Cobre Panamá Refreshed Concession Contract, including completion of 187,175t 35% increase from Q1 2023 due to public consultation • First nickel concentrate produced at Enterprise higher grades across three major • Achieved
Slide 5: Cobre Panamá Update
COBRE PANAMÁ UPDATE Progress-to-Date • March 8, 2023 - MPSA and the GOP agree on the terms and conditions for a Concession Agreement • April 24, 2023 - 30-day public consultation process for the Concession Agreement successfully completed • June 14, 2023 - MICI receives authorization from the Cabine
Slide 6: 2023 Guidance
2023 GUIDANCE • Production to be stronger in H2 2023. Full year production expected to be towards the lower end of guidance • Unit cash costs1 expected to decrease in H2 2023. Full year C1 cash cost1 and AISC1 expected to be towards the upper end of guidance PRODUCTION GUIDANCE COST AND CAPEX GUIDAN
Slide 7: Q2 2023 ESG Highlights
Q2 2023 ESG HIGHLIGHTS Infrastructure Development Skills and Training Health and Wellness Education and local support Guelb Moghrein has expanded the At our new Industrial Professional Our Health and Wellness teams have The Cobre Las Cruces Foundation water distribution network in Akjoujt to Trainin
Slide 8: Operational Overview
Sentinel OPERATIONAL OVERVIEW Rudi Badenhorst, Chief Operating Officer
Slide 9: Cobre Panamá Q2 2023 Copper Production
COBRE PANAMÁ Q2 2023 COPPER PRODUCTION 2023 Outlook 90,086t 38% higher than Q1 2023 attributable to • CP100 Expansion: Periodically operating at design capacity; On track to exit 2023 at a consistent rate of 100 Mtpa improved grades and higher tonnes milled • 2023 grades and recoveries to be consist
Slide 10: Kansanshi Q2 2023 Copper Production
KANSANSHI Q2 2023 COPPER PRODUCTION 2023 Outlook 34,657t 21% higher than Q1 2023 due to improved • Continued focus to open M15 and M17, areas with historically higher grades grades • Extensive drilling campaign in areas associated with vein mineralization prior to mining • 2023 production to be at l
Slide 11: Trident (Sentinel & Enterprise) Q2 2023 Copper Production
TRIDENT (SENTINEL & ENTERPRISE) Q2 2023 COPPER PRODUCTION 2023 Outlook 54,045t 49% higher than Q1 2023 as dewatering • Focus will remain on blast quality to improve fragmentation and mine-to-mill optimization activities allowed access to higher-grade ore • 2023 production to be at lower end of guida
Slide 12: Other Mines
OTHER MINES Las Cruces Q2 2023 PRODUCTION: 1,799t Cu cathode Çayeli Q2 2023 PRODUCTION: 3,010t Cu Q2 2023 C1 CASH COST1: $5.13 per lb Cu Q2 2023 C1 CASH COST1: $1.72 per lb Cu 2023 PRODUCTION: 3,900t Cu 2023 PRODUCTION GUIDANCE: 10Kt Cu, 3kt Zn Completed re-processing of tailings in June 2023; Mine
Slide 13: Financial Overview
Kansanshi Smelter FINANCIAL OVERVIEW Ryan MacWilliam, Chief Financial Officer
Slide 14: Q2 2023 Revenues and Costs
Q2 2023 REVENUES AND COSTS REALIZED COPPER PRICE1 (per lb) Copper price decreased in May on the back of recessionary fears and underwhelming industrial data $3.75 Down 5% quarter-over-quarter 7.00 450 400 LME, COMEX, SHFE Copper inventories (kt) REVENUE 6.00 Copper C1 cash cost¹ ($/lb) 350 $1.7 bill
Slide 15: Copper C1 Cash Cost
COPPER C1 CASH COST¹ Lower unit cash costs driven by improved production and lower fuel prices, partially offset by higher maintenance and contractor costs and lower by-product credits on the back of lower gold grades at Cobre Panamá $0.16 per lb higher cash costs Fixed costs (e.g -$0.02 Fuel Electr
Slide 16: Q2 2023 Earnings and EBITDA
Q2 2023 EARNINGS AND EBITDA1 EBITDA¹ EBITDA¹ increase quarter-over-quarter driven by higher copper sales volumes $568 million Up 10% quarter-over-quarter NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY EBITDA¹ ($ millions) ADJUSTED EPS¹ ($/share) 647 0.22 $93 million 583 518 568 Up 24% quar
Slide 17: EBITDA Waterfall
EBITDA¹ WATERFALL EBITDA¹ $50 million higher than Q1 2023 driven by higher copper sales External Factors (-$76 million) Internal Factors (+$126 million) -$78 Copper -$9 Nickel +$9 Fuel -$5 Other +$4 Sulphur +$4 Explosives - $1 Grinding Media 2 ¹EBITDA is a non-GAAP financial measure which does not h
Slide 18: Debt Maturity Profile
DEBT MATURITY PROFILE Bond issue increased liquidity by $1 billion to $2.2 billion and weighted average debt maturity increased by 48% As at March 31, 2023 As at June 30, 2023 3,288 1,195 $ millions $ millions 255 1,793 1,500 255 1,500 488 1,300 - 1,000 488 1,000 - 625 625 455 1,350 1,500 1,500 1,30
Slide 19: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Interim dividend of CDN$0.08 per share, in respect of the financial year ended December 31, 2023, to be paid on September 19, 2023 to shareholders of record on August 28, 2023 PRIORITIES EXCESS CASH DEBT REPAYMENT Further debt reduction likely post debt reduction target
Slide 20: Closing Remarks
CP100 Screening Plant CLOSING REMARKS Tristan Pascall, Chief Executive Officer
Slide 21: CP100 Expansion
CP100 EXPANSION CP100 Expansion Works Progress to date Outlook • Process water upgrades • 8 additional ultra-class haul trucks • Exit 2023 at a consistent rate of 100 commissioned; Rope shovel operational Mtpa • Addition of Ball Mill 6 • PPA signed for CP100 (64MW) from 100% • First crusher at Colin
Slide 22: S3 Expansion
S3 EXPANSION S3 Expansion Works Progress To Date Outlook • Additional concentrator • Board approval in May 2022 • Long-lead and steelwork deliveries capacity • Overall project procurement ~33% commencing H2 2023 • Additional SAG and ball mill committed at the end of Q2 2023 • Majority of capital spe
Slide 23: Enterprise
ENTERPRISE Enterprise Works Progress To Date Outlook • Main workstream is pre-strip • Board approval in May 2022 • First concentrate sales expected in Q3 2023 • 4 Mtpa processing circuit • Ancillary infrastructure developments, i.e. mainly constructed in 2014 as haul road between Enterprise and • Ra
Slide 24: Capital Allocation - 2023 and Beyond
CAPITAL ALLOCATION - 2023 AND BEYOND Focus on debt reduction, consistent operational performance and execution of brownfield expansions 1. Balance Sheet 2. Brownfield 3. Greenfield Debt Reduction Cobre Panamá CP100 Expansion Cautious approach to greenfield • Remains a priority • On track for 100 Mtp
Slide 25: Upcoming Events
UPCOMING EVENTS October 24, 2023 • Q3 2023 FINANCIAL AND OPERATING RESULTS (Conference call October 25, 2023) January 2024 • 2023 PRELIMINARY PRODUCTION, 2024-2026 GUIDANCE* February 13, 2024 • Q4 2023 FINANCIAL AND OPERATING RESULTS (Conference call February 14, 2024) April 23, 2024 • Q1 2024 FINAN
Slide 26: Appendix
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Slide 27: Quarterly Net Debt Movement
QUARTERLY NET DEBT1 MOVEMENT Net debt1 decreased by $130 million this quarter due to higher EBITDA1 generation compared to the prior quarter and favourable working capital cash inflows ¹Net debt is a supplementary financial measure and EBITDA is a non-GAAP financial measure which do not have standar
Slide 28: Copper Cash Cost and AISC
COPPER CASH COST¹ AND AISC¹ The First Reduced Quantum quarterly Financial copper C1 cashPolicy cost¹ and AISC¹ of $1.98/lb and $2.64/lb, respectively, driven by higher production COPPER C1¹ ($/lb) COPPER AISC¹ ($/lb) 2.24 2.87 2.64 1.98 1.82 1.86 2.37 2.34 2.42 1.74 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q
Slide 29: Financial Summary
FINANCIAL SUMMARY Financials The Firstimproved QuantumonFinancial the back of higher sales volumes and lower C1 cash costs 3. Cash flows from operating activities Policy were higher than the prior quarter due to favourable movements on working capital $ millions (except per share numbers) Q2 2023 Q1
Slide 30: Cobre Panamá – The Proposed Concession Contract
COBRE PANAMÁ – THE PROPOSED CONCESSION CONTRACT On March 8, 2023, the Company and the Government of Panamá (“GOP”) reached agreement in respect of the terms and conditions for a refreshed Concession Contract, which is subject to approval by law • Payment by MPSA of $375 million plus an additional $2
Slide 31: 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 32: Non-GAAP EBITDA and Adjusted Earnings Reconciliation
NON-GAAP EBITDA¹ AND ADJUSTED EARNINGS¹ RECONCILIATION $ millions (except per share numbers) Q2 2023 Q1 2023 Q2 2022 Operating profit 252 225 856 Depreciation 301 271 288 Foreign exchange (gain) loss (15) 16 (239) Other expense (income) 3 6 2 Royalty payable to ZCCM-IH2 18 - - Revisions in estimates
Slide 33: Non-GAAP Measures Reconciliation C1 and AISC
NON-GAAP MEASURES RECONCILIATION C12 AND AISC $ millions Q2 2023 Q1 2023 Q2 2022 Cost of sales¹ (1,386) (1,278) (1,275) Depreciation 301 271 288 By-product credits 99 119 148 Royalties 103 65 110 Treatment and refining charges (66) (53) (55) Freight costs (8) (3) (11) Finished goods 1 (8) (76) Other
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, The First Quantum guidance Financial for the current yearPolicy will b updated as necessary or re-affirmed. Impact of 10% Actual change in price/rate price/rate on Assu
Slide 35: 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 (End of 2023) P&P Reserves M&I Resources Inferred Resources 2,843.6 Mt 3,375.6 Mt 1,087.3 Mt 0.38% Cu 0
Slide 36: Cobre Panamá
COBRE PANAMÁ On March 8, 2023, First Quantum and the The Refreshed Concession Contract will have an initial Government of Panamá issued a press release 20-year term, with a 20-year extension option and announcing that an agreement has been reached additional extensions for the life of mine with the
Slide 37: 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 38: Kansanshi Pit Development
KANSANSHI PIT DEVELOPMENT M18 M16 M17 Source: Kansanshi 43-101 Technical Report June 2020 38
Slide 39: 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; First nickel Enterprise: Nickel concentrate Q2 2023) SENTINEL & ENTERPRISE P&P Reserves M&I
Slide 40: Sentinel Pit Development
SENTINEL PIT DEVELOPMENT Source: Trident 43-101 Technical Report March 2020 40
Slide 41: 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 i
Slide 42: Summary of Brownfield Projects
SUMMARY OF BROWNFIELD PROJECTS COBRE PANAMÁ 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 43: 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 currently working to provide the requested information; Approval of the
Slide 44: La Granja Transaction Details
LA GRANJA TRANSACTION DETAILS La Granja is one of the largest undeveloped copper resources in the world, with potential to support a multi-decade open-pit operation Agreement First Quantum will acquire a 55% interest in the La Granja project from Rio Tinto for a consideration of $105 million and wil
Slide 45: 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 46: First Quantum Minerals Ltd. contact details
First Quantum Minerals Ltd. info@fqml.com 416-361-6400 1-888-688-6577 TSX FM