The New Leader in Global Copper
November 2013

TSX: FM; LSE: FQM
Cautionary Note Regarding Forward-Looking Statement
Some of the statements contained in the following material are
forward...
First Quantum Minerals - The New Leader in Global Copper
• Geographically diversified asset base
• 7 high-quality, stable ...
Strong Q3 2013 Results
• Copper production 36% higher to 114,488 tonnes
• Nickel production up 26% to 12,485 tonnes
• Gold...
High-Quality, Stable Operations

5
High-Quality, Stable Operations
Kansanshi Cu-Au mine, Zambia
• Located near Solwezi in the north
western Province of Zambi...
High-Quality, Stable Operations
Kansanshi Cu-Au mine, Zambia

• Higher year-over-year production reflecting
capacity expan...
High-Quality, Stable Operations
Guelb Moghrein Cu-Au mine, Mauritania
• 100% ownership
• Located 250 kilometres northeast ...
High-Quality, Stable Operations
Guelb Moghrein Cu-Au mine, Mauritania
• Stronger, more sustained performance
over the past...
High-Quality, Stable Operations
Ravensthorpe Ni mine, Australia
• Acquired as a decommissioned plant
in 2010
• First produ...
High-Quality, Stable Operations
Kevitsa Ni-Cu-PGE mine, Finland

• Built, commissioned and started
commercial operations w...
High-Quality, Stable Operations
Las Cruces Cu mine, Spain
• Acquired in March 2013
• Estimated mine life of 9 years;
poten...
High-Quality, Stable Operations
Çayeli Cu-Zn mine, Turkey
• Acquired in March 2013
• Estimated mine life of 6 years with
p...
High-Quality, Stable Operations
Pyhäsalmi Cu-Zn mine, Finland

• Acquired in March 2013

• One of the most efficient under...
Outlook for 2013
Production

Copper

Zinc

(000’s contained tonnes)

(000’s ounces)

(000’s tonnes)

397 - 416
260 - 267
3...
Our Development Project Pipeline

16
Our Project Pipeline
Copper Smelter, Zambia
•

Processing capacity of 1.2 Mtpa
—71% Sentinel
—100% Kansanshi
—Average copp...
Our Project Pipeline
Sentinel Cu project, Zambia
• Located ~ 140 km northwest of
Solwezi, northern Zambia
• M&I resource o...
Our Project Pipeline
Cobre Panama Cu project, Panama
• Acquired March 2013
• Large open pit copper project; Larger
project...
Our Project Pipeline
Haquira Cu project, Peru
• Focused on community &
environmental aspects
• Potential:
- 20 year mine l...
One of the Few Mining Companies
Investing in Building Capacity
Forces at work in copper market suggest medium- to long-term
prices driven by greenfield incentive pricing as market tight...
The New Global Copper Leader
The New Go-To Copper Producer
Attractive Diverse Geographic Exposure
A Long-Standing Commitme...
The New Leader in Global Copper
November 2013
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Corporate Presentation - November 2013

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First Quantum Minerals Corporate Presentation, November 2013, Investor Relations, Mining

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Corporate Presentation - November 2013

  1. 1. The New Leader in Global Copper November 2013 TSX: FM; LSE: FQM
  2. 2. Cautionary Note Regarding Forward-Looking Statement 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 available. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Readers must rely on their own evaluation of these uncertainties. Note: all dollar amounts in US dollars unless otherwise indicated 2
  3. 3. First Quantum Minerals - The New Leader in Global Copper • Geographically diversified asset base • 7 high-quality, stable operations; current total copper and nickel production capacities of 445 ktpa and 45 ktpa, respectively • 4 major projects with completion targeted from mid-2014 to 2017 • Total production capacities for copper and nickel to rise to 1.3 Mtpa and 110 ktpa, respectively by 2018 • Proven track record of building projects efficiently and delivering superior shareholder returns • Low-cost producer: $1.37 - $1.45/lb copper; $5.20 - $5.60/lb nickel Pre-Acquisition First Quantum Post-Acquisition First Quantum Australia 10% Australia 19% Africa 36% Europe 10% Americas 45% Africa 71% 1 Mtpa1 1.3 1 2018E Copper production Europe 9% Mtpa1 3
  4. 4. Strong Q3 2013 Results • Copper production 36% higher to 114,488 tonnes • Nickel production up 26% to 12,485 tonnes • Gold production 29% higher to 65,368 ounces • Copper production cash costs lower by 19% to $1.16 per pound • Comparative net earnings of $143.6 million or $0.24 per share • • inclusive of $21.9 million or $0.04 per share of unfavorable, recurring acquisition-related adjustments Unfavorable impact of $112.9 million due to lower metal prices Q3 '12 Q4 '12 Q1 '13 Q2'13 Q3'13 Copper Production Q3 '12 Q4 '12 Q1 '13 Q2'13 Q3'13 Q3 '12 Q4 '12 Q1 '13 Q2'13 Q3'13 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Nickel Production Gold Production Copper Cash Production Cost 4
  5. 5. High-Quality, Stable Operations 5
  6. 6. 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 • As at December 31, 2012, the estimated mine life was ~17 years • Workforce = ~1,700 6
  7. 7. High-Quality, Stable Operations Kansanshi Cu-Au mine, Zambia • Higher year-over-year production reflecting capacity expansion • Q3 ‘13 performance – 71,037 tonnes of copper; 43,904 ounces of gold – C1 cash cost of US$1.25/lb. Expansion Estimate Project Capacity Completion Cost (US$M) – 2012 – 2015 Oxide 7.2 mtpa Complete Oxide • Multi-phase capacity expansion project underway Production Impact 31 Copper: 10,000 - 15,000 tpa 14.5 mtpa 2013 - 2014 200 Copper: 60,000 - 75,000 tpa Smelter 1.2 mtpa 2014 650 Smelter Acid – 1.0 Mtpa Sulphide 25 mtpa 2015 565 Copper: 60,000 - 70,000 tpa 60% increase in overall production capacity – 2012 – 2014 130% increase in oxide production capacity – 2014 - 2015 90% increase in sulphide production capacity 7
  8. 8. 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 mine life was ~ 9 years (including stockpiles) based on current operations • First production in 2006 • Workforce = ~1,470 8
  9. 9. High-Quality, Stable Operations Guelb Moghrein Cu-Au mine, Mauritania • Stronger, more sustained performance over the past 12 months • Focused on improving plant availability • IOCG type deposit - structure and mineralogy has common features with other IOCG deposits elsewhere in the world • Magnetite plant project: – In detailed design stage – Estimated capex of $50M – Expected annual production of 1M - 2M tonnes of 69% Fe magnetite concentrate – Expected start up in mid 2014 – Expected to extend mine life through retreatment of tailings dam 9
  10. 10. 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 • Q3 ‘13 performance – 9.917 tonnes of contained nickel – C1 cash cost of US$4.85/payable lb. 10
  11. 11. 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 – Public hearings & inspections held in September; decision expected within 6 months 11
  12. 12. High-Quality, Stable Operations Las Cruces Cu mine, Spain • Acquired in March 2013 • Estimated mine life of 9 years; potential for extension • Current average reserve grade of 5.4% copper • Workforce = 250 direct employees; 650 contractors • Annual production capacity – 72,000 tonnes of copper cathode • Q3 ‘13 cash cost of US$0.69/lb. 12
  13. 13. 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 • Q3 2013 C1 cash cost of US$0.98/lb. copper • 2013 Estimates: – 23,000 – 26,000 tonnes of copper – 30,000 – 32,000 tonnes of zinc 13
  14. 14. 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 • Q3 C1 cash cost of US$0.65/lb. copper • 2013 Estimates: – 9,000 – 11,000 tonnes of copper – 16,000 – 18,000 tonnes of zinc – 820,000 tonnes pyrite 14
  15. 15. Outlook for 2013 Production Copper Zinc (000’s contained tonnes) (000’s ounces) (000’s tonnes) 397 - 416 260 - 267 37 - 41 15 - 16 23 - 26 53 - 55 9 - 11 44 - 47 35 – 37 9 - 10 - 232 – 250 155 – 165 56 – 61 11 - 12 4–5 6-7 46 - 50 30 - 32 16 - 18 Copper Nickel Unit cash cost Capital expenditure Gold (000’s tonnes) Group Kansanshi Guelb Moghrein Ravensthorpe Kevitsa Çayeli1 Las Cruces1 Pyhäsalmi1 Group Nickel (US$/lb.) (US$/lb.) $1.37 - $1.45 $5.20 - $5.60 Excluding Cobre Panama $2.0 billion The production guidance shown above for Çayeli, Las Cruces and Pyhäsalmi represents guidance from acquisition date of March 22, 2013 until the end of the year. 1 15
  16. 16. Our Development Project Pipeline 16
  17. 17. Our Project Pipeline Copper Smelter, Zambia • Processing capacity of 1.2 Mtpa —71% Sentinel —100% Kansanshi —Average copper grade 26% • 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 17
  18. 18. 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 – Annual production up to 300,000 tonnes – US$2.0 billion capex (incl. Enterprise nickel project) • Includes 4 Mtpa nickel facility; flexibility to augment copper capacity 18
  19. 19. Our Project Pipeline Cobre Panama Cu project, Panama • Acquired March 2013 • Large open pit copper project; Larger project than the Panama Canal • Est. mine life of 40 years • Est. average annual production of 260,000 tonnes copper • Progress since acquisition: – – – – Several contracts modified or cancelled Access to site improved Components for power plant arriving on site Biodiversity, environmental and social programs continuing 19
  20. 20. 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 20
  21. 21. One of the Few Mining Companies Investing in Building Capacity
  22. 22. Forces at work in copper market suggest medium- to long-term prices driven by greenfield incentive pricing as market tightens $3.75 - 4.00/lb Short- and medium-term corrections to demand especially if deficit is expected to be prolonged $3.25 - 3.50/lb Incentive price for marginal greenfield projects needed to meet modest demand growth Design adjustments and substitution Slowing growth driven by macroeconomics Mines depleting, projects difficult to build and fund ~$3.00/lb Strategic buyers see value versus all-in cash costs and future greenfield needs $2.80 - $3.00/lb 90th percentile total cash + susex cost (growing at 2.5% p.a. on a real basis) $2.20/lb 90th percentile C1 cash cost (growing at 2.5% p.a. on a real basis) Price floor on a year over year basis Medium- to long-term price range Short-term price range Strategic buyers and traders, disruptions and project issues Real cost inflation, strained balance sheets and need for miners to have cash to replace reserves Analyst LT consensus price Price floor on a quarter over quarter basis 22
  23. 23. 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 1.8 2018E Copper Production, Mt 1.5 0.5 0.5 0.4 0.4 0.3 First Quantum 2012 0.5 Norilsk 0.6 Antofagasta 0.8 Teck Resources 0.8 Kazakhmys Southern Copper BHP Billiton First Quantum Codelco Glencore Xstrata FreeportMcMoRan 0.9 Vale 1.2 KGHM 1.3 Anglo American 1.5 Rio Tinto • • • • Source: BrookHunt 23
  24. 24. The New Leader in Global Copper November 2013

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