Investor presentation-june
Upcoming SlideShare
Loading in...5
×
 

Investor presentation-june

on

  • 517 views

 

Statistics

Views

Total Views
517
Views on SlideShare
517
Embed Views
0

Actions

Likes
0
Downloads
3
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Investor presentation-june Investor presentation-june Presentation Transcript

    • A SOLID BASE A POSITION OF STRENGTH A ROBUST PROJECT PIPELINE Growthwww.first-quantum.com TSX: FM LSE: FQM 1June 2011
    • Cautionary Note ConcerningForward-Looking StatementsSome of the statements contained in the following material are forwardlooking statements and not statement of facts. Such statements are based onthe current beliefs of management, as well as assumptions based onmanagement information currently available. Forward-looking statements aresubject to various risks, uncertainties and other factors that could causeactual results to differ materially from expected results. Readers must rely ontheir own evaluation of these uncertainties.Note: all dollar amounts in US dollars unless otherwise indicated 2
    • A Growing Diversified Metals and Mining Company Profile: Copper Production Objectives • A mid-tier and growing mining and metals 000’s tonnes company currently producing LME grade "A" copper cathode, copper in concentrate and 1,200 gold Investment Highlights: 900 — Core strength of discovering, developing and operating mines efficiently and cost-effectively 600 — A significant copper producer set to more than triple its production by 2015 300 — An emerging nickel producer - — Expanding into high-potential, low-risk 04 05 06 07 08 09 10 12F13F14F15F mining jurisdictions Actual Provisional — Strong financial position 3
    • A Solid Track Record Revenue Earnings* Operating Cash Flow ($ millions) ($ millions) ($ millions) $2,378 $557 $900 $520 $772 $1,864 $419 $678 $1,740 $399 $637 $1,539 $564 $300 $1,095 $155 $237 $445$114 $28 $46 *Before impairments and other adjustments 4
    • A Strong Operating Base Unit Cash Margin Debt to Capitalization Ratio Cash & Equivalents (US$/lb copper) (US$ millions)$3.20 1.60 $1,500$2.40 1.20 $1,125$1.60 0.80 $750$0.80 0.40 $375 $- 0.00 $- 5
    • A Leader in Delivering Value to ShareholdersSince trading on the TSX, First Quantum’s annualized return is over 37%$160.00 TSX (from January 11, 2000 to May 17, 2011)$140.00 Return = 3596%$120.00 Total Return = 3770%$100.00 $80.00 $60.00 $40.00 $20.00 $- Jan-00 Sep-00 May-01 Jan-02 Sep-02 May-03 Jan-04 Sep-04 May-05 Jan-06 Sep-06 May-07 Jan-08 Sep-08 May-09 Jan-10 Sep-10 May-11 6
    • Strong Operating Base & Development Pipeline Operations  Projects  Exploration – Kansanshi, Zambia — Ravensthorpe, Australia — Enterprise, Zambia – Guelb Moghrein, Mauritania — Kevitsa, Finland — Fishtie, Zambia — Sentinel, Zambia — Haquira, Peru  Other Investment — Mopani (16.9%), Zambia 7
    • A SOLIDPlatform 8
    • Operations – Kansanshi Copper/Gold Mine• Located near Solwezi, Zambia• Copper-gold operation• Production began in 2005• 2010 production — 231,124 tonnes of copper — 109,629 ounces of gold 9
    • Operations – Kansanshi Copper/Gold Mine Expanding Production Capacity: • Phase 1 underway – expansion to oxide circuit • A major program of resource development and exploration drilling underway • Results will provide design details for next expansion phases • Current aim to reach annual production of ~400,000 tonnes by 2015 10
    • Operations – Guelb Moghrein Copper/Gold Mine • Located near Akjoujt, Mauritania • Copper-gold operation • Production began in 2006 • 2010 production — 36,969 tonnes of copper — 81,766 ounces of gold 11
    • Operations – Guelb Moghrein Copper/Gold Mine • Optimizing recent expansion • Increased throughput and enhanced recoveries will allow annual copper production to rise to ~50,000 tonnes • Ongoing exploration at and nearby focused on identifying additional feedstock to extend the life of the operation 12
    • A ROBUST PROJECT PIPELINEGrowth 13
    • Growth and Diversification 1,200 Copper Production Profile 000’s tonnes • Copper production objective: 900 – Triple production in 2015 to 1.1M tonnes 600 • Nickel production objective: 300 – Beginning in 2011 and increasing to 55,000 tonnes in 2014 - 04 05 06 07 08 09 10 12F13F14F15F • Investment in growth projects: Actual Provisional Nickel Production Profile 75 – ~ $2 billion projected over the 2011 – 000’s tonnes 60 2015 timeframe – excluding assumptions 45 on the Haquira deposit and the building of 30 a copper smelter in Zambia 15 - 2012F 2013F 2014F 14
    • Projects – Ravensthorpe Nickel Project• Located in Western Australia• Open pit using conventional drill and blast, load and haul system• Processing plant using proven technology 15
    • Projects – Ravensthorpe Nickel Project• On schedule for commissioning in 2nd half 2011• Average annual production of nickel metal: – 39,000 tonnes for the first five years – 28,000 tonnes over the life of mine• Expected mine life >30 years 16
    • Projects – Kevitsa Nickel/Copper Project• Located in northern Finland• Open pit mine – Estimated measured and indicated resources of 240 million tonnes grading 0.30% nickel; 0.28 nickel sulphide; 0.41% copper; using a nickel cut-off grade of 0.1%• Conventional processing to produce two concentrates: – nickel-cobalt-PGE-concentrate grading ~ 12% nickel – copper-PGE-gold concentrate grading ~ 28% copper• Designed for 5 million tonnes per annum with built-in expansion capabilities 17
    • Projects – Kevitsa Nickel/Copper Project• At initial capacity average annual production – 10,000 tonnes of nickel – 20,000 tonnes of copper• LOM C1 cost estimate of $2.50/lb nickel, net of by product credits• Capital cost estimate of $400 million• Estimated mine life >20 years• Assumptions: – nickel = $6.75/lb; copper = $2.00/lb; Euro/US = 1.35• Ongoing drill program returning further positive results• Production targeted for mid 2012 18
    • Projects – The Trident Project• Located in Northwestern Province – ~150 kilometres from the Kansanshi mine• Acquired in January 2010• Trident project comprises: – Sentinel copper deposit – Enterprise target – Intrepid target 19
    • Projects – The Sentinel Deposit• Significant drill program underway with 16 drills onsite• Excellent continuity of mineralization• Mining and processing conditions appear relatively straightforward• Large-scale mining licences granted• Extensive CSR program already underway• Initial design and construction could start in 2011 with commercial production in early 2014 20
    • Projects – The Sentinel Deposit – Drill PatternFebruary 2011 21
    • Projects – The Sentinel Deposit• Internal evaluation assumptions: – Resource in the range of at least 700 million tonnes at a headgrade in the range of 0.65% to 0.80% copper – Annual throughput rate of 40 million tonnes – Annual production of an initial 150,000 tonnes of copper rising up to 300,000 tonnes – Capital cost in the range of $1B, including the necessary infrastructure – recoveries in the range of 90% to 95% – unit cash cost of production approximate to Kansanshi• Initial design and construction could start in 2011 with commercial production in early 2014 22
    • Projects – New Copper Smelter• Compelling economics• Limited smelter capacity in Zambia currently• Facility would be dedicated to production from Kansanshi and Sentinel• Benefits include: – Production of sulphuric acid for use in Kansanshi’s oxide circuit – Existing infrastructure – Available workforce in nearby community – Would eliminate dependence on 3rd party available capacity 23
    • Projects – Haquira Copper Deposit• Acquired in December 2010• Large scale copper project located in southern Peru – M&I resource of 3.7 million tonnes of copper equivalent and an inferred resource of 2.4 million tonnes of copper equivalent• Current priorities: – Expanding infill and condemnation drill program – Updated reserves and resources estimate and the environmental impact assessment in mid-2012 when detailed project design will commence 24
    • A Significant & Growing Copper Producer Copper Production Profile Copper Production Profile 000’s tonnes Lbs per common share1,200 Base Provisional 2010A 8.29 - 900 2012F 8.33 - 600 2013F 11.41 - 300 2014F 15.89 2.56 2015F 18.45 11.53 - 04 05 06 07 08 09 10 12F13F14F15F Actual Provisional Assumptions: 1) Sentinel starts commissioning in 2012 2) Haquira starts commissioning in 2014 3) Further expansion phases at Kansanshi start commissioning in 2014 25
    • An Emerging Nickel Producer Nickel Production Profile Nickel Production Profile 000’s tonnes Lbs per common share 75 Base 60 2012F 1.17 45 2013F 1.25 30 2014F 1.50 15 - 2012F 2013F 2014F 26
    • Lowering Political Risk Profile Country Ease of Doing Business Australia 10 Finland 13 Peru 36 Zambia 76 Mauritania 165 Source: World Bank Survey – Doing Business 2011• The Doing Business project provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level 27
    • A Rapidly Growing Mining & Metals Company• Unique technical strength• Existing operations provide a solid platform to support growth• Strong financial position and cash flow• 2011 milestones in execution of growth strategy: – Emergence as a nickel producer – Establishing a presence in Peru• ~$2 billion investment in growth over 2011 – 2015 to significantly increase copper production 28
    • A SOLID BASE A POSITION OF STRENGTH A ROBUST PROJECT PIPELINE Growthwww.first-quantum.com TSX: FM LSE: FQM 29June 2011
    • Corporate Profile Stock exchange listings & symbols – (S&P/TSX 60 Index) TSX: FM LSE: FQM Shares issued and outstanding 86.2 million Fully diluted 95.1 million 52-week share price range C$148.00-C$48.20 Recent share price – May 19, 2011 C$134.50 Market capitalization – $ millions C$11.6 billion Average daily trading volume - shares 621,000 Dividend paid in regards to year 2010 – per share C$0.80 Geographic breakdown of institutional shareholders NA=45%; Eur=45%; other=10% 30
    • Financial Summary Three Months ended March 31, 2011 Total revenues $705.2M Cost of sales $244.1M Net earnings $206.7M Basic earnings per share $2.41 Cash flow before working capital movements $216.7M Financing activities $(52.8)M Investing activities $(185.0)M Cash flow per share before working capital movements $2.53 Cash and equivalents – as at March 31, 2011 $1,486.4M Average shares outstanding for the period 85.8M 31