Slide 1: A Rapidly Growing Metals & Mining Company
A Rapidly Growing Metals & Mining Company www.first-quantum.com TSX: FM LSE: FQM LuSE: FQMZ December 2011 1
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward-Looking Statements Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently
Slide 3: First Quantum - A Compelling Investment
First Quantum - A Compelling Investment A mid-tier and growing mining and metals company currently producing LME grade "A" copper cathode, copper in concentrate, nickel and gold. A Compelling Investment: — Solid track record • Operational - developed five mines, within nine years, on schedule and wi
Slide 4: Strong Operating Base & Development Pipeline
Strong Operating Base & Development Pipeline Operations Projects Exploration – Kansanshi, Zambia — Ravensthorpe, Australia — Haquira, Peru – Guelb Moghrein, Mauritania — Kevitsa, Finland — Sentinel, Zambia — Enterprise, Zambia Other Investment — Mopani (16.9%), Zambia 4
Slide 5: Asset and Project Update
/\ Asset and Project Update & MINERALS LTD.
Slide 6: Existing Assets – Focus on Development / Expansion
Existing Assets – Focus on Development / Expansion Kansanshi Guelb Moghrein First production in 2005 First production in 2006 2010 production of 231 kt copper / 110 koz gold 2010 production of 37 kt copper / 82 koz of gold Multi-phase expansion plans in progress: Optimizing recent expans
Slide 7: Projects
Projects Ravensthorpe Kevitsa Commissioning as planned for continuous Over 90% complete operation before end 2011 Expected to begin pre-commissioning in First production 4 October 2011 December 2011 towards continuous Re-constructed plants consistently achieving operation in mid 2012 desig
Slide 8: Projects
Projects Sentinel – Copper Enterprise – Nickel EIA and land use agreement obtained Focused drill program with eight rigs currently on site Resource drilling complete; finalization of 140 holes for 49,750 metres completed to an average resource estimate expected in late 2011 depth of ~350m, o
Slide 9: Projects
Projects Haquira Zambian Copper Smelter Acquired in December 2010 Limited smelter capacity in Zambia currently Large scale copper project located in southern Enhanced benefits to First Quantum include: Peru Production of sulphuric acid for use in M&I resource of 3.7 Mt of copper Kansansh
Slide 10: We Have Bought Well and Continue to Execute
We Have Bought Well and Continue to Execute US$ Bn 4.5 281% Acquisitions – Generating Significant Value 4.2 4.0 3.5 3.0 808% 2.5 2.4 2.0 287% 99% 165% 1.5 1.3 1.1 1.2 121% 1.2 1.0 0.9 0.6 1.1 0.4 0.4 0.5 0.3 0.3 0.4 0.1 0.3 0.2 0.3 0.0 Kansanshi Guelb Moghrein Kevitsa(2) Trident Ravensthorpe Haquira
Slide 11: What We Have Delivered So Far
What We Have Delivered So Far Copper Growth (1) Total Annualised Shareholder Return (2) 2000-2011 CAGR (%) January 2000 – November 2011 (%) Barrick 34% First Quantum 38% Southern Copper 31% Southern Copper 23% Inmet 30% First Quantum 22% Vale 28% Xstrata 20% Antofagasta 28% Teck 18% BHP Billiton 18%
Slide 12: What We Are Looking to Deliver: Copper Growth Remains Best in Class
What We Are Looking to Deliver: Copper Growth Remains Best in Class 2016 Copper Producer Landscape Copper Growth (Mt) 6th Largest Global 13th Largest Global 2011 – 2016 CAGR (%) Copper Producer Copper Producer FQM 29.2% by 2016 Currently Vale S Copper Xstrata Glencore Rio Tinto Kazakhmys 1.0 Barrick
Slide 13: Long-Term Targets
Long-Term Targets Copper Production Nickel Production ktpa ktpa 1,200 100 1,000 75 800 600 50 400 25 200 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Kansanshi Guelb Moghrein Kevitsa Sentinel Haquira Ravensthorp
Slide 14: Long-term Copper Dynamics
Long-term Copper Dynamics 15
Slide 15: Surpluses Overestimated & Deficits Underestimated
Surpluses Overestimated & Deficits Underestimated Brook Hunt Supply / Demand – Forecast vs. Actual Supply / Demand Surplus (Deficit) (ktpa) Copper Demand (ktpa) 1,500 19,000 1,137 960 1,000 737 648 18,000 500 424 295 236 0 78 0 17,000 (77) (134) (135) (293) (334) (500) (422) 16,000 (1,000) (1,080) (
Slide 16: Copper Grades Have Declined Significantly
Copper Grades Have Declined Significantly Grades of Global Copper Mined % Cu 1.60 1.40 Lack of sizeable, high quality production coming on-stream… 1.20 Initial production of Grasberg 1.00 and Escondida 0.80 0.60 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Source: Brook Hunt. Broker Research 16
Slide 17: Emerging Markets – Substantial Growth Ahead
Emerging Markets – Substantial Growth Ahead GDP per Capita US$ 35,000 USA 30,000 25,000 UK 20,000 15,000 10,000 Brazil 5,000 China Russia 0 1835 1855 1875 1895 1915 1935 1955 1975 1995 Source: Maddison 17
Slide 18: Projected Impact on the Copper Market
Projected Impact on the Copper Market Key Points Intensity of Refined Copper Consumption (1) Multiple of India, Brazil, China kg Cu per capita 7.1x Should China, India and Brazil all 25 Average Intensity of Use (x) grow in line with population Aggregate Copper Use 6.1x 21.50 forecasts and reach co
Slide 19: Copper Price Estimates Over Time
Copper Price Estimates Over Time 4.50 Copper Price (US$ / lb Cu) 2009 4.00 2011 3.50 2010 3.00 Actual 2008 2.50 2011 2.00 2007 Long Term 2010 LT 2009 LT 1.50 2008 LT 2004 2006 2007 LT 1.00 2002 2003 2005 2006 LT 2001 2002 LT 2004 LT 2000 2001 LT 2003 LT 2005z LT 0.50 2000 LT 0.00 Long Term Price Est
Slide 20: Projects Less Sensitive to Copper Prices
Projects Less Sensitive to Copper Prices Top 25 Copper Projects Capex Intensity (US$ / t) Minimum Required Copper Price to Generate 15% IRR (US$ / tonne Cu) Cobre Panama (Inmet) $ 21,622 Caracoles (Antofagasta) $ 20,421 Caserones (JX Nippon) $ 20,045 Sierra Gorda (Quadra FNX) $ 19,895 El Moro (GoldC
Slide 21: Value Potential
Value Potential & MINERALS LTD.
Slide 22: Copper Assets Undervalued by the Market
Copper Assets Undervalued by the Market Anglo American Sur – Value Implications Anglo Sur US$ Bn Anglo American Sur Valuation (100% Basis) US$ Bn Transaction Value (49%) 5.39 25 Implied EV 22.00 22.00 Implied Multiples 20 EV / EBITDA 2011E (1) 15.9x EV / Resources (2) (US$ / t) 1,187 +87% EV / Produ
Slide 23: A Rapidly Growing Mining & Metals Company
A Rapidly Growing Mining & Metals Company • Unique technical strength at the core of the strong track record of delivery • Existing operations provide a solid platform to support growth • Strong financial position and cash flow • ~$5 billion investment in growth over 2012 – 2016 to significantly inc
Slide 24: A Rapidly Growing Metals & Mining Company
A Rapidly Growing Metals & Mining Company www.first-quantum.com TSX: FM LSE: FQM LuSE: FQMZ December 2011 1
Slide 25: Corporate Profile
Corporate Profile Stock exchange listings & symbols – (S&P/TSX 60 Index) TSX: FM LSE: FQM LuSE: FQMZ Shares issued and outstanding 476.3 million Fully diluted 476.3 million 52-week share price range C$29.60 – C$12.60 Recent share price – November 4, 2011 C$22.81 Market capitalization – $ millions C$