First Quantum Minerals is a growing mining company producing copper and gold. It has a solid base of existing mining operations in Zambia and Mauritania, providing a platform for growth. The company has a robust pipeline of projects that will more than triple its copper production by 2015. These include the Ravensthorpe nickel project in Australia and the Kevitsa nickel/copper project in Finland. Exploration is also expanding the resource base. With a strong financial position and focus on execution, First Quantum is well positioned for continued rapid growth as a major copper and nickel producer.
1. A SOLID BASE
A POSITION OF STRENGTH
A ROBUST PROJECT PIPELINE
Growth
www.first-quantum.com TSX: FM LSE: FQM
1
June 2011
2. 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 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. A Growing Diversified Metals and Mining Company
Profile: Copper Production Objectives
โข A mid-tier and growing mining and metals 000โs tonnes
company currently producing LME grade "A"
copper cathode, copper in concentrate and 1,200
gold
Investment Highlights:
900
โ Core strength of discovering,
developing and operating mines
efficiently and cost-effectively 600
โ A significant copper producer set to
more than triple its production by 2015 300
โ An emerging nickel producer
-
โ Expanding into high-potential, low-risk 04 05 06 07 08 09 10 12F13F14F15F
mining jurisdictions
Actual Provisional
โ Strong financial position
3
5. 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
6. A Leader in Delivering Value to Shareholders
Since trading on the TSX, First Quantumโs 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
7. Strong Operating Base & Development Pipeline
๏ง Operations ๏ง Projects ๏ง Exploration
โ Kansanshi, Zambia โ Ravensthorpe, Australia โ Enterprise, Zambia
โ Guelb Moghrein, Mauritania โ Kevitsa, Finland โ Fishtie, Zambia
โ Sentinel, Zambia
โ Haquira, Peru
๏ง Other Investment
โ Mopani (16.9%), Zambia
7
9. Operations โ Kansanshi Copper/Gold Mine
โข Located near Solwezi, Zambia
โข Copper-gold operation
โข Production began in 2005
โข 2010 production
โ 231,124 tonnes of copper
โ 109,629 ounces of gold
9
10. Operations โ Kansanshi Copper/Gold Mine
Expanding Production Capacity:
โข Phase 1 underway โ
expansion to oxide circuit
โข A major program of resource
development and exploration
drilling underway
โข Results will provide design
details for next expansion
phases
โข Current aim to reach annual
production of ~400,000 tonnes
by 2015
10
11. Operations โ Guelb Moghrein Copper/Gold Mine
โข Located near Akjoujt, Mauritania
โข Copper-gold operation
โข Production began in 2006
โข 2010 production
โ 36,969 tonnes of copper
โ 81,766 ounces of gold
11
12. Operations โ Guelb Moghrein Copper/Gold Mine
โข Optimizing recent expansion
โข Increased throughput and
enhanced recoveries will
allow annual copper
production to rise to
~50,000 tonnes
โข Ongoing exploration at and
nearby focused on identifying
additional feedstock to extend
the life of the operation
12
14. Growth and Diversification
1,200 Copper Production Profile
000โs tonnes
โข Copper production objective: 900
โ Triple production in 2015 to 1.1M tonnes
600
โข Nickel production objective: 300
โ Beginning in 2011 and increasing to
55,000 tonnes in 2014 -
04 05 06 07 08 09 10 12F13F14F15F
โข Investment in growth projects:
Actual Provisional
Nickel Production Profile
75
โ ~ $2 billion projected over the 2011 โ 000โs tonnes
60
2015 timeframe โ excluding assumptions
45
on the Haquira deposit and the building of
30
a copper smelter in Zambia
15
-
2012F 2013F 2014F
14
15. Projects โ Ravensthorpe Nickel Project
โข Located in Western Australia
โข Open pit using conventional
drill and blast, load and haul
system
โข Processing plant using proven
technology
15
16. Projects โ Ravensthorpe Nickel Project
โข On schedule for
commissioning in 2nd half 2011
โข Average annual production
of nickel metal:
โ 39,000 tonnes for the first
five years
โ 28,000 tonnes over the
life of mine
โข Expected mine life >30 years
16
17. Projects โ Kevitsa Nickel/Copper Project
โข Located in northern Finland
โข Open pit mine
โ 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%
โข Conventional processing to produce
two concentrates:
โ nickel-cobalt-PGE-concentrate grading ~
12% nickel
โ copper-PGE-gold concentrate grading ~
28% copper
โข Designed for 5 million tonnes per
annum with built-in expansion
capabilities
17
18. Projects โ Kevitsa Nickel/Copper Project
โข At initial capacity average annual
production
โ 10,000 tonnes of nickel
โ 20,000 tonnes of copper
โข LOM C1 cost estimate of $2.50/lb
nickel, net of by product credits
โข Capital cost estimate of $400 million
โข Estimated mine life >20 years
โข Assumptions:
โ nickel = $6.75/lb; copper = $2.00/lb;
Euro/US = 1.35
โข Ongoing drill program returning
further positive results
โข Production targeted for mid 2012
18
19. Projects โ The Trident Project
โข Located in Northwestern
Province โ ~150 kilometres
from the Kansanshi mine
โข Acquired in January 2010
โข Trident project comprises:
โ Sentinel copper deposit
โ Enterprise target
โ Intrepid target
19
20. Projects โ The Sentinel Deposit
โข Significant drill program underway
with 16 drills onsite
โข Excellent continuity of
mineralization
โข Mining and processing conditions
appear relatively straightforward
โข Large-scale mining licences granted
โข Extensive CSR program already
underway
โข Initial design and construction
could start in 2011 with commercial
production in early 2014
20
21. Projects โ The Sentinel Deposit โ Drill Pattern
February 2011
21
22. Projects โ The Sentinel Deposit
โข Internal evaluation assumptions:
โ Resource in the range of at least 700
million tonnes at a headgrade in the range
of 0.65% to 0.80% copper
โ Annual throughput rate of 40 million tonnes
โ Annual production of an initial 150,000
tonnes of copper rising up to 300,000 tonnes
โ Capital cost in the range of $1B, including
the necessary infrastructure
โ recoveries in the range of 90% to 95%
โ unit cash cost of production approximate
to Kansanshi
โข Initial design and construction could start
in 2011 with commercial production in
early 2014
22
23. Projects โ New Copper Smelter
โข Compelling economics
โข Limited smelter capacity in Zambia currently
โข Facility would be dedicated to production from Kansanshi
and Sentinel
โข Benefits include:
โ Production of sulphuric acid for use in Kansanshiโs oxide circuit
โ Existing infrastructure
โ Available workforce in nearby community
โ Would eliminate dependence on 3rd party available capacity
23
24. Projects โ Haquira Copper Deposit
โข Acquired in December 2010
โข Large scale copper project
located in southern Peru
โ M&I resource of 3.7 million tonnes
of copper equivalent and an
inferred resource of 2.4 million
tonnes of copper equivalent
โข Current priorities:
โ Expanding infill and
condemnation drill program
โ Updated reserves and
resources estimate and the
environmental impact
assessment in mid-2012 when
detailed project design will
commence
24
25. A Significant & Growing Copper Producer
Copper Production Profile Copper Production Profile
000โs tonnes Lbs per common share
1,200 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
26. An Emerging Nickel Producer
Nickel Production Profile Nickel Production Profile
000โs tonnes Lbs per common share
75
Base
60
2012F 1.17
45
2013F 1.25
30
2014F 1.50
15
-
2012F 2013F 2014F
26
27. Lowering Political Risk Profile
Country Ease of Doing Business
Australia 10
Finland 13
Peru 36
Zambia 76
Mauritania 165
Source: World Bank Survey โ Doing Business 2011
โข 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
28. A Rapidly Growing Mining & Metals Company
โข Unique technical strength
โข Existing operations provide a solid platform to support growth
โข Strong financial position and cash flow
โข 2011 milestones in execution of growth strategy:
โ Emergence as a nickel producer
โ Establishing a presence in Peru
โข ~$2 billion investment in growth over 2011 โ 2015 to significantly
increase copper production
28
29. A SOLID BASE
A POSITION OF STRENGTH
A ROBUST PROJECT PIPELINE
Growth
www.first-quantum.com TSX: FM LSE: FQM
29
June 2011
30. Corporate Profile
Stock exchange listings & symbols โ (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 โ May 19, 2011 C$134.50
Market capitalization โ $ millions C$11.6 billion
Average daily trading volume - shares 621,000
Dividend paid in regards to year 2010 โ per share C$0.80
Geographic breakdown of institutional shareholders NA=45%; Eur=45%; other=10%
30
31. 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 โ as at March 31, 2011 $1,486.4M
Average shares outstanding for the period 85.8M
31