Our Record Speaks For Itself

Transcription

1 Our Record Speaks For Itself June 2012 TSX: FM; LSE: FQM

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 First Quantum Today A significant copper producer 2012E : 270k 290k tonnes A new and growing nickel producer 2012E : 36k 40k tonnes On the cusp of transformational growth Copper : tripling production capacity Nickel : increasing annual production capacity to 125k tonnes Growth being delivered at costs well below industry norms 3

4 A Strong Financial Position Mar 31, 2012 $ millions Cash $1,027 Total Debt $47 Undrawn and available financing $1,250 4

5 What We have Delivered Best-in-class Copper Growth Barrick Southern Copper First Quantum 21% Teck Glencore Freeport Antofagasta Anglo American BHPB Codelco Norilsk KGHM Kazakhmys Rio Tinto Leading Shareholder Returns First Quantum 32% Inmet Southern Peru Antofagasta Norilsk Vale BHP Billiton Teck Eramet Freeport Hudbay Lundin Rio Tinto Xstrata Vedanta Anglo American Kazakhmys ENRC 5

6 F 12F 13F 14F 15F 16F Looking Forward: Our Production Targets 900 Copper Production 000 s tonnes Nickel Production 000 s tonnes F 12F 13F 14F 15F 16F Base Projects Base Projects Optional 6

7 Nickel Added to the Asset Portfolio Ravensthorpe, Australia Acquired as a decommissioned plant First production within 20 months of purchase Commercial production declared Dec

8 Nickel Added to the Asset Portfolio Ravensthorpe, Australia Production Q4 11 : 5,666 tonnes Q1 12 : 6,617 tonnes C1 cash cost Q1 12 $5.69/payable lb of nickel Exploring options to improve payable nickel content 8

9 Nickel Added to the Asset Portfolio Kevitsa, Finland Nickel-copper-PGE project Commissioning underway Operations team active in all aspects First product imminent 9

10 Nickel Added to the Asset Portfolio Kevitsa, Finland Initial ore feed of 5.5 mt/yr with intention to expand by ~50% in 2013 Target operations: 10 ktpa ~$ $7.00 / lb 20 ktpa ~$ $1.20 / lb Workforce primarily from Lapland; FQM technical staff in key areas Marketing and logistics arrangements on track 10

11 Nickel Added to the Asset Portfolio Enterprise, Zambia Located 12 km northwest of Sentinel High grade sulphide nickel open pit potential Potential to produce ktpa of Ni vaesite nickeloan pyrite 11

12 Nickel Added to the Asset Portfolio Enterprise, Zambia Current focus continue to define resource, design the mine and confirm process route Campaign treatment at the Sentinel facilities significantly reduces capital utilization of re-grind mills and cleaner circuits Open pit mining potential one-off prestrip utilizing Sentinel mining fleet 12

13 A Robust Pipeline Sentinel, 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 $1.7B capex 13

14 A Robust Pipeline Sentinel, Zambia Commercial terms for electric power agreed in principle Board approval granted; fullscale development starting within original timeframe Construction completion targeted for late 2014 Expected production capacity of up to 300 ktpa 14

15 A Robust Pipeline Copper Smelter Concentrate feed rate 1.2 Mtpa 71% Sentinel 100% Kansanshi Average copper grade 26% Blister copper production 300,000 tpa Acid production 1.0 Mtpa 15

16 A Robust Pipeline Copper Smelter Capital cost of US$635M Commissioning from mid 2014 Operating cost US$69/tonne of concentrate 16

17 Economic Benefits of the Copper Smelter Total Annual Savings Transport Kansanshi Sentinel * US$340 MM US$510 MM * 100% of concentrate to smelter * 71% of concentrate to smelter and remainder for export Cost savings per annum * US$220 /t: US$130 MM US$200 MM Export Levy on Concentrate Current * 10% of export value Blister Production * 230, ,000 tpa Cost savings per annum * US$7,000 /t: US$160 MM US$220 MM Acid Supply Current Consumption Increase with AP5 * 1,200 US$200 / t: US$90 MM / year * +900 US$200 / t: US$150 MM /year 17

18 A Robust Project Pipeline Haquira Large scale copper project located in southern Peru M&I resource of 3.7 Mt of copper equivalent and an inferred resource of 2.4 Mt of copper equivalent Current focus: Community relations and land access; Expanding drill program and environmental matters Strategic investment in Zincore Metals and its Delores copper porphyry project located ~ 40 km from Haquira 18

19 A Strong Operating Base Kansanshi 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 On-going program of resource development and exploration Workforce of ~1,800 19

20 A Strong Operating Base Kansanshi Multi-phase production expansion project underway % increase in overall production capacity % increase in oxide production capacity % increase in sulphide production capacity Expansio n Project Capacity Completion Estimate Cost ($M) Acid Plant t/day Production Impact Oxide 7.2 mtpa Copper: 10,000-15,000 tpa Oxide 12 mtpa Copper: 60,000-75,000 tpa Smelter 1.2 mtpa Smelter Acid 1.0 Sulphide $40-$50/tonne mtpa Copper: 60,000-70,000 tpa 20

21 A Strong Operating Base Guelb Moghrein 100% ownership Located 250 kilometres northeast of the nation s capital, Nouakchott As at December 31, 2011, the estimated minelife was ~10 years (including stockpiles) First production in 2006 Workforce of ~1,200 21

22 A Strong Operating Base Guelb Moghrein Record quarterly throughput in Q1 12 Continuous improvement Augmenting mining operations with the addition of larger equipment Optimizing flotation performance with improved auto control and reagent changes 22

23 Within the Top 10 Largest Producers by 2016 Projected 2016 Copper Producer Landscape 23

24 Capital Intensity US$/Tonne Cobre Panama Caracles Caserones Sierra Gorda El Moro Telegraphio Tampakan Toromocho Ouui Tolgoi Las Bambas Salobo Los Bronces Cerro Verde Ministro Mina Hales Quebrada Blanca Canariaco Quellaveco Haquira Rio Blanco Antamina Antapaccay Galeno Buena Vista Konkola Sentinel Kansanshi Expansion $6,000 $5,000 $14,290-5,000 10,000 15,000 20,000 25,000 24

25 What Our Shareholders Own The ability and proven track record to add value through efficient delivery of growth at costs below industry norms A substantial copper producer; within the world s top ten by 2016 An emerging nickel producer; within the world s top ten by 2016 A strong financial position Production in an industry with strong fundamentals

26 Our Record Speaks For Itself TSX: FM; LSE: FQM