Collective Mining | Corporate Presentation - April 2024
Corporate Presentation
1. The New Leader in Global Copper
May 15, 2013
Global Diversified
2. 2
Cautionary Note Regarding Forward-Looking Statement
Certain statements and information contained in this presentation, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the anticipated commencement, completion and terms of the proposed
offer and the anticipated strategic and operational benefits of the offer. Often, but not always, forward-looking statements or information can be identified by the use of words such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “projects”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
With respect to forward-looking statements and information contained in this presentation, First Quantum has made numerous assumptions including among other things, assumptions about the price of copper, gold,
cobalt, nickel, PGE, and sulphuric acid, anticipated costs and expenditures, and First Quantum's ability to achieve its goals. Although management of First Quantum believes that the assumptions made and the
expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and
information by their nature involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking statements or information. These risks, uncertainties and other factors include, but are not limited to, uncertainties surrounding
the ability to realize operational synergies following completion of the offer, reliance on Inmet’s publicly available information which may not fully identify all risks related to its performance, success in integrating the
retail distribution systems, and the integration of supply chain management processes, future production volumes and costs, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania,
Finland, Turkey, Spain, Panama and Australia, adverse weather conditions in any of the foregoing countries, labor disruptions, mechanical failures, water supply, procurement and delivery of parts and supplies to the
operations and the production of off-spec material.
See First Quantum’s annual information form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although we have attempted to identify factors
that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors, many of which are beyond the control of First
Quantum, that might cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or
information.
While First Quantum may elect to update the forward-looking statements at any time, First Quantum does not undertake to update them at any particular time or in response to any particular event, other than as may be
required by applicable securities laws. Investors and others should not assume that any forward-looking statement contained in this presentation represents management's estimate as of any date other than the date of
this presentation.
Neither First Quantum nor any of its directors or officers has verified the accuracy or completeness of information or statements contained herein which are made by or derived from third-party sources (including any
projections or estimates made by third-party research analysts). Such third-party sources may have failed to identify events or facts which may have occurred or which may affect the significance or accuracy of any such
information or statements. First Quantum has no means of verifying the accuracy or completeness of such information or statements made by or derived from third-party sources or whether there has been any failure by
such sources to identify events that may have occurred or may affect the significance or accuracy of any information or statements.
This presentation does not constitute an offer to buy or an invitation to sell, or the solicitation of an offer to buy or invitation to sell, any securities of First Quantum or Inmet. Such an offer may only be made pursuant to
the offer and takeover bid circular First Quantum has filed with the Canadian securities regulators and pursuant to registration or qualification under the securities laws of any other such jurisdiction.
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates disclosed herein have been prepared in accordance with Canadian National Instrument 43-
101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions
and Guidelines" (the "CIM Guidelines"). The terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" are recognized by Canadian securities regulatory
authorities, however, they may not be recognized by the securities regulatory authorities of other jurisdictions. Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral
reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it
cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral
resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a
mineral reserve, or is or will ever be economically or legally mineable or recovered.
Note: all dollar amounts in US dollars unless otherwise indicated; C$ indicates Canadian dollars
3. 3
Strong Q1 2013 Results
US$ millions unless otherwise noted Q1 2013 Q1 2012 Change
Revenues 901.2 728.7 24%
Comparative earnings – per share $0.32 $0.25 28%
Cash flow after working capital changes 416.4 138.5 201%
Cash 1,857.6 1,026.6 81%
Copper production - tonnes 79,308 65,869 20%
Nickel production - tonnes 11,072 8,573 29%
Gold production - ounces 55,944 42,495 32%
Average copper price – per lb 3.60 3.77 -5%
Average nickel price – per lb 7.85 8.91 -12%
4. 4
A Significant Step Forward in Our Growth & Diversification Strategy
Africa
67%
Europe
16%
Americas
9%
Australia
8%
Europe
65%
Americas
35%
Africa
49%
Europe
29%
Americas
16%
Australia
6%
1 Mtpa1 300 Ktpa1 1.3 Mtpa
1 2018E Copper production. Source: BrookHunt
7. 7
High-Quality, Stable Operations
Kansanshi Cu-Au mine, Zambia
• Located near Solwezi in the north
western Province of Zambia
• First production in 2005
• Open pit mining
• Flexible ore treatment to allow for
variation in ore type :
– sulphide circuit; oxide circuit; gold
facility
• Near mine resource definition and
exploration programs
• Workforce = ~1,700
9. 9
High-Quality, Stable Operations
Guelb Moghrein Cu-Au mine, Mauritania
• 100% ownership
• Located 250 kilometres northeast of
the nation’s capital, Nouakchott
• As at December 31, 2012, the
estimated minelife was ~9 years
(including stockpiles) based on current
operations
• First production in 2006
• Workforce = ~1,470
10. 10
High-Quality, Stable Operations
Guelb Moghrein Cu-Au mine, Mauritania
• Stronger, more sustained performance
over the past 12 months
• Focused on improving plant availability
• Evaluating potential to recover
magnetite as a by-product
• Deposit considered to be an IOCG type
deposit - structure and mineralogy has
common features with other IOCG
deposits elsewhere in the world
11. 11
High-Quality, Stable Operations
Ravensthorpe Ni mine, Australia
• Acquired as a decommissioned plant
in 2010
• First production within 20 months
of purchase
• Estimated mine life of 32 years
• Commercial production declared Dec
28 2011
• Workforce = ~405
• Q1 ‘12 performance
– 9,023 tonnes of contained nickel
– C1 cash cost of US$5.36/payable lb.
12. 12
High-Quality, Stable Operations
Kevitsa Ni-Cu-PGE mine, Finland
• Built, commissioned and started
commercial operations within 36
months of board approval
• Estimated mine life of 29 years
• Commercial production declared
August 2012
• Workforce = ~290
• Further potential
– Process optimization
– Approval to increase throughput to a
maximum of 10Mtpa from 5.5Mtpa
13. 13
High-Quality, Stable Operations
Las Cruces Cu mine, Spain
• Acquired in March 2013
• Estimated mine life of 9 years with
potential for an additional 10 to 15
years
• Average grade of 5.4% copper
• Workforce = 250 direct employees;
650 contractors
• Annual production capacity – 72,000
tonnes of copper cathode
• Q1 ‘13 cash cost of US$1.00/lb.
14. 14
High-Quality, Stable Operations
Çayeli Cu-Zn mine, Turkey
• Acquired in March 2013
• Estimated mine life of 6 years with
potential for an additional 3 years
• Average grade of 3.1% copper and
3.6% zinc
• Workforce = 493 employees
• Q1 C1 cash cost of US$0.93/lb. copper
• 2013 Estimates:
– 28,000 – 31,000 tonnes of copper
– 36,000 – 40,000 tonnes of zinc
15. 15
High-Quality, Stable Operations
Pyhäsalmi Cu-Zn mine, Finland
• Acquired in March 2013
• One of the most efficient underground
mines in the world
• Estimated mine life of 6 years
• Average grade of 1.1% copper and 1.9% zinc
• Workforce = 261 employees
• Q1 C1 cash cost of (US$0.55)/lb. copper
• 2013 Estimates:
– 12,000 – 13,000 tonnes of copper
– 20,000 – 23,000 tonnes of zinc
18. 18
Our Project Pipeline
Copper Smelter, Zambia
• Processing capacity of 1.2 Mtpa
—71% Sentinel
—100% Kansanshi
—Average copper grade 26%
• Blister copper production 300,000 tpa; acid
production 1.0 Mtpa
• Estimates:
− Capital cost of US$650M
− Operating cost US$69/tonne of
concentrate
− Commissioning from mid 2014
• Estimated savings: US$340M - US$510M/year
19. 19
Our Project Pipeline
Sentinel Cu project, Zambia
• Located ~ 140 km northwest of
Solwezi, northern Zambia
• M&I resource of 1,027 Mt at 0.51% Cu
grade, containing 5.2 Mt Cu
• Estimates:
– 2.2:1 LOM strip ratio
– >15 years mine life
– US$2.0 capex
– Annual production up to 300,000
tonnes
20. 20
Our Project Pipeline
Cobre Panama Cu project, Panama
• Acquired March 2013
• Large open pit copper project
• Larger project than the Panama Canal
• Major aspect in our acquisition
decision
• Est. mine life of 40 years
• Est. average annual production of
260,000 tonnes copper
• Speeding up access to site
21. 21
Our Project Pipeline
Haquira Cu project, Peru
• Focused on community &
environmental aspects
• Potential:
- 20 year mine life
– Avg 190k tonnes of
copper production
per year
24. 24
Building on Our Record of Delivering Value to Shareholders
Total Annualized Shareholder Return
2000 – 2012
24
25. 25
The New Global Copper Leader
The New Go-To Copper Producer
Attractive Diverse Geographic Exposure
A Long-Standing Commitment to Social and Environmental Excellence
Creating Value with Our Project Development Expertise
An Exciting Future Ahead
26. The New Leader in Global Copper
May 15, 2013
Global Diversified
