FIRST QUANTUM MINERALS Fourth Quarter 2019 CAUTIONARY STATEMENT ON - PowerPoint PPT Presentation

FIRST QUANTUM MINERALS Fourth Quarter 2019

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward- looking information within the meaning of applicable securities laws. The forward-looking statements include estimates, forecasts and statements as to the Company’s expectations of production and sales volumes, and expected timing of completion of project development at Enterprise and post completion of construction activity at Cobre Panama and are subject to the impact of ore grades on future production, the potential of production disruptions (including at Cobre Las Cruces as a result of the land slippage in January 2019), capital expenditure and mine production costs, the outcome of mine permitting, other required permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, silver, nickel, zinc, pyrite, cobalt, iron and sulphuric acid, estimated mineral reserves and mineral resources, First Quantum’s exploration and development program, estimated future expenses, exploration and development capital requirements, the Company’s hedging policy, and goals and strategies. 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”, “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 herein, the Company has made numerous assumptions including among other things, assumptions about continuing production at all operating facilities, the price of copper, gold, silver, nickel, zinc, pyrite, cobalt, iron and sulphuric acid, anticipated costs and expenditures and the ability to achieve the Company’s goals. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the 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 factors include, but are not limited to, future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Zambia, Peru, Mauritania, Finland, Spain, Turkey, Panama, Argentina and Australia, adverse weather conditions in Zambia, Finland, Spain, Turkey, Mauritania and Panama, labour disruptions, potential social and environmental challenges (including the impact of climate change), power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, the production of off-spec material and events generally impacting global economic, political and social stability. See the Company’s Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has 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 that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of these factors are beyond First Quantum’s control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made herein are qualified by this cautionary statement. 2

Clive Newall President and Director 3

2019 – A TRANSFORMATIVE YEAR • Cobre Panama from first ore to commercial production in less than seven months • Another quarterly copper production record • Record annual copper production • Low cost structure maintained through the year TSX:FM 4

FINANCIAL REVIEW

Hannes Meyer Chief Financial Officer 6

OV OVERVIEW 2019 2019 has b been een a a transformative y year f for the C Company, w wit ith C Cobre Pa Panama, reachin ing comme mmercial pr produc uction n ahe head of sche hedule. Greatly a advanced o our vis isio ion t to b be a leading c copper-focused m metals a and m mining com ompany. In 2020 2020 capital expenditure is expecte ted to d to decrease c com ompared t to o the p prior or seven years, w with t the f focus n now on de dele leveraging t the ba balance sh sheet. Continue to to manage o our capita tal l st structu ture, assess our liq iquid idity a and f fin inancing sources. January 2020 r refin inancin ing w was c consis istent w wit ith t this is s strategy. Further ma r managed our com ommod odity r risk a and cash flow s stability, a approximately a a third of expe pected c coppe pper s sales in n the he f first ha half o of 2020, a are he hedged. The 1 e 12-month L Lost T Time Inj Injur ury F Frequ quency Rate was 0.05 0.05 p per 200,0 200,000 h hours wor orked (2018 2018: 0.06) 0.06). 7 February 14, 2020 TSX: FM TSX FM

DELIVER ERING O ON GRO ROWTH TH Growing copper production 16% i % inc ncrease i in n pr production v n vs 2 2018 Additional gold production 39% % inc ncrease i in n pr produc uction v n vs 2018 Over a third of 2020 c 2020 copper a and go gold Geographical diversification productio ion e expec ected ed f from Co Cobre e Pan anam ama Co Commer ercia ial p productio ion a achie ieved ed Successful Cobre Panama ramp up ahe head o of sche hedul ule a and nd ful ull y year c copp pper production on of of 147kt kt 8 February 14, 2020 TSX TSX: FM FM

PRODUCT UCTION 1,2 ,2 Annua nnual c copp pper pr production 000 Tonnes Record qua quarterly c coppe pper pr production up up 29% '000 T on Q4 4 2018, 2018, a and 16% 16% o on 2018 2018 830 -880 83 830 0  Co Cobre e Pan anam ama a suc uccessful ully r rampe ped up up in n the he y year, 70 702 2 inc nclud uding ng the he declaration o n of commercial pr produc uction n 606 60 6 574 57 4 539 53 9 th mil from Se September 1, 1, 2019 2019 a and t the 8 th ill comin ing o on 428 8 lin ine in in mid id-Dec ecem ember er. FY15 15 FY16 16 FY17 17 FY18 18 FY19 19 202 2020  Record ord q quarterl rly coppe pper pr produc uction o n of 204k 204kt, , attribu buta tabl ble to to Cobr bre Panama c contribu buti tion o of 60kt. Quart rterl rly c copper p r pro roduction  Annua nnual c coppe pper pr produc uction n withi hin n gui uidanc nce r rang nge. Tonnes 204 204 193 193 000 T 168 168 158 158 60 60 '00 56 56 137 137 31 31 35 35 32 32 22 22 25 25 23 23  Total f l full l year gold ld production on of of 257k 257koz wa was 61 61 56 56 55 55 51 51 58 58 39% hi % highe her t tha han n in n 2018. R . Refl flec ectin ing Co Cobre e Pana nama’s c cont ntribut ution o n of 60k 60koz and nd in increa eased ed 62 62 61 61 59 59 59 59 54 54 gold pr produc uction a n at Kans nsanshi hi. Q4 201 2018 Q1 201 2019 Q2 201 2019 Q3 201 2019 Q4 201 2019 Kans nsans nshi hi Sent ntine nel Ot Other Cobre P Pan anam ama 1 Production is presented on a copper contained basis. 2 Total full year 2019 copper production includes 67,704 tonnes of pre-commercial production from Cobre Panama. 9 February 14, 2020 TSX TSX: FM FM