The New Leader in Global Copper
April 2013
Global
Diversified
TSX: FM; LSE: FQM
Disclaimer
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 Inmets 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 Quantums 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
Creating the New Leader in Global Copper
First Quantum is one of the worlds leading copper producers, with a geographically diversified portfolio of high-quality
operations and projects
Uniquely positioned to deliver Cobre Panama more effectively by leveraging our global project development expertise
Maximize our in-house project development capability with prudent use of consultants and third party contractors
Robust liquidity and balance sheet strength, to support development of future large scale mining projects with
cost efficiency and discipline
Long standing commitment to operational, social and environmental excellence
The acquisition brings together the best talents of each company to create significant shareholder value
First Quantum presents an opportunity for investors to maintain / gain exposure to multiple transformational re-rating
events over the next five years with a base asset portfolio of high quality low cost assets in both emerging and
developed countries
A Premier Base Metals Company
Seven producing mines and six world class projects across eight countries and five continents
Unmatched Portfolio of World
Class Development Projects
Kansanshi Expansion and
Smelter, Zambia
Sentinel, Zambia
Enterprise, Zambia
Cobre Panama, Panama
Haquira, Peru
Cu Au
Solid Platform of Diversified,
Stable Operations
Las Cruces, Spain
Cu
Kevitsa, Finland
Ni Cu
Pyhsalmi, Finland
Cu Zn
ayeli, Turkey
Cu Zn
Guelb Moghrein,
Mauritania
Cu Au
Ravensthorpe, Australia
Ni Co
Kansanshi, Zambia
Cu Au
Cu
Ni
Cu Au
Ag Mo
Cu
High Quality Operations
Asset
Kansanshi
Las Cruces
Guelb Moghrein
ayeli
Pyhsalmi
Ravensthorpe
Kevitsa
Location
Zambia
Spain
Ownership (1)
2012 Production
80%
261 kt Cu
136 koz Au
100%
Mauritania
100%
Turkey
100%
Finland
100%
Australia
100%
Finland
100%
(1)
(2)
68 kt Cu
38 kt Cu
61 koz Au
31 kt Cu
41 kt Zn
13 kt Cu
26 kt Zn
33 kt Ni
8 kt Cu
4 kt Ni
2012 Cash Cost
US$1.49 / lb Cu
US$1.16 / lb Cu
US$1.48 / lb Cu
US$0.88 / lb Cu
US$(0.68) / lb Cu
US$5.97 / lb Ni
US$5.47 / lb Ni
US$1.28 / lb Cu
Mine Life
2037
2022
2019
2019+
2018
2049
2033
Reserves & Resources (Contained)
Reserves
5,782 kt Cu, 3.3 Moz Au
M&I Resources
6,252 kt Cu, 3.3 Moz Au
Inferred
2,593 kt Cu, 1.3 Moz Au
Reserves
768 kt Cu
M&I Resources
768 kt Cu
Inferred
424 kt Cu
Reserves
306 kt Cu, 0.7 Moz Au
M&I Resources
369 kt Cu, 0.8 Moz Au
Inferred
73 kt Cu, 0.2 Moz Au
Reserves
216 kt Cu, 258 kt Zn
M&I Resources
421 kt Cu, 414 kt Zn
Inferred
21 kt Cu, 52 kt Zn
Reserves
91 kt Cu, 157 kt Zn
M&I Resources
142 kt Cu, 198 kt Zn
Reserves (2)
1,357 kt Ni
M&I Resources
1,642 kt Ni
Inferred
605 kt Ni
Reserves
486 kt Ni, 643 kt Cu
M&I Resources
712 kt Ni, 973 kt Cu
Inferred
101 kt Ni, 125 kt Cu
Ownership of Inmets assets shown pro-forma for acquisition of 100% of Inmet
Measured and indicated recoverable resources
Unmatched Portfolio of Development Projects
Expansion Projects
Asset
Location
Ownership
Target
Production
Completion
Kansanshi Expansion
and Copper Smelter
Zambia
80%
(100% smelter)
400 kt Cu
Mid 2014
Location
Ownership (1)
Target
Production
Completion
Greenfield Projects
Asset
Sentinel
Enterprise
Cobre Panama
Haquira
Zambia
Zambia
Panama
Peru
100%
100%
80%
100%
(1)
270-300 kt Cu
38-60 kt Ni
266 kt Cu
N/A
2014
2014
2016
N/A
Reserves & Resources (Contained)
Reserves
3,870 kt Cu
M&I Resources
5,238 kt Cu
Inferred
697 kt Cu
Reserves
363 kt Ni
M&I Resources
431 kt Ni
Inferred
50 kt Ni
Reserves
11,813 kt Cu, 192 kt Mo, 7.3 Moz Au, 131.0 Moz Ag
M&I Resources
14,820 kt Cu, 239 kt Mo, 9.0 Moz Au, 170.0 Moz Ag
Inferred
8,318 kt Cu, 125 kt Mo, 3.5 Moz Au, 92.0 Moz Ag
M&I Resources
3,418 kt Cu, 0.6 Moz Au
Inferred
2,030 kt Cu, 0.3 Moz Au
Ownership of Inmets assets shown pro-forma for acquisition of 100% of Inmet
A World Class Growth Profile
Unmatched Project Pipeline
Proven Track Record of Developing & Operating Mines
ktpa Cu production
ktpa Ni production
Well-positioned to deliver
industry-leading growth
1,200
Cobre
Panama
Haquira
90
Enterprise
80
Sentinel
Successfully Commissioned 6 mines
in 12 Years Across 5 Countries
800
70
Kansanshi
Expansion
and Smelter
60
50
Kevitsa (1)
2012
40
400
Kansanshi
2004
Bwana Lonshi
2001
Ravensthorpe
2011
Frontier
2007
Guelb Moghrein
2006
30
20
10
-2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
20072007 20082008 200920092010 20102011 20112012 2012
2013 2013
2014 2014
2015
2015
2016
Mufulira & Nkana
Bwana / Lonshi
Frontier
Kansanshi
Guelb Moghrein
Kevitsa
Sentinel
Cayeli
Las Cruces
Pyhasalmi
Cobre Panama
Nickel
(1)
2016
2017
2017
2018+
Nickel and copper mine
First Quantum 2012
0.4
Norilsk
0.5
Antofagasta
0.5
Vale
0.5
Teck Resources
Kazakhmys
KGHM
0.8
Anglo American
0.9
Rio Tinto
Southern Copper
BHP Billiton
First Quantum
1.5
Codelco
Glencore Xstrata
Freeport-McMoRan
Leading Copper Growth
2018E Copper Production, Mt
1.8
1.5
1.3
1.2
0.8
0.6
0.4
0.3
Source: BrookHunt
Cobre Panama A Tier-One Project
Cobre Panama is the worlds largest copper project currently under construction
Over 50 Blbs of contained copper, and 13 Moz of contained gold resources
Commercial production is expected to commence in 2016, with an
estimated mine life of over 40 years
Average life-of-mine production of 266 ktpa of copper, with significant gold,
silver and molybdenum by-products
Major Copper Development Projects (Contained Cu Mt)
0
10
20
30
Cobre Panama
(First Quantum)
We are currently assessing potential cost savings and design specification
changes to the existing engineering study completed by in 2012
Ministro Hales
(Codelco)
Current estimated a total capital cost of US$6.2 Bn
Copper Production Profile (kt)
Las Bambas
(Xstrata)
Construction
Stage Assets
400
Sierra Gorda
(KGHM)
300
Toromocho
(Chinalco)
200
Konkola North
(Vale)
100
Feasibility
Stage Assets
-2015
2019
2023
2027
2031
2035
2039
2043
2047
2051
2055
Tampakan
(Xstrata)
M&I Resources
Inferred Resources
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Building Cobre Panama Using the First Quantum Project
Philosophy
Our Project Development Philosophy
Outcomes
A finished project must perform to
expectations
Set ambitious targets for schedule, cost
and performance
Adhere to time schedule
Adhere to capital cost budget
Traditional Project
Industry leading performance
Lowest capital intensity achieved
First Quantum Project Model
Engineering &
Design
Owner
EPCM Engineer
By FQM
10
Sentinel On-Schedule and On-Budget
Key Project Developments
Total project progress to date is ~27% on a cumulative basis
Construction
57% concrete poured (total of 41,920 m3)
Continued works on pipe rack, surge area, e-buildings and
concentrate area concrete
Mill assemblies and installations well underway
Continued steel works: Pipe rack, mill building. thickener tanks, floor
Mill area, 31 March 2013
gore and side walls
4 environmental containment areas on site completed
Commenced excavation for the Mine Service Administration building
Assembled Mill 110 Ton Gantry Crane segments
Labour
Current workforce : 2,062 people
3,000,000 man-hours without a lost time incident as of 31 March
2013
Rougher flotation, 31 March 2013
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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
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