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December 2011
TSX: FM LSE: FQM LuSE: FQMZ www.first-quantum.com
A Rapidly Growing
Metals & Mining
Company
1
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
Cautionary Note Concerning Forward-Looking Statements
2
First Quantum - A Compelling Investment
A mid-tier and growing mining and metals company currently producing LME grade "A" copper cathode, copper in concentrate, nickel and gold.
A Compelling Investment:
— Solid track record • Operational - developed five mines, within nine years, on schedule and within
budget
• Return to shareholders - delivered an annualized return of ~46% since 2000
— A significant and growing copper producer • Increasing annual production capacity to over 1 million tonnes
— An emerging nickel producer
• Developing a large-scale nickel business
— Solid financial position • Cash of $0.8 billion @ Sept 30 2011
— An industry with strong fundamentals
• Forecast demand exceeds supply
3
4
Strong Operating Base & Development Pipeline
Operations – Kansanshi, Zambia
– Guelb Moghrein, Mauritania
Projects — Ravensthorpe, Australia
— Kevitsa, Finland
— Sentinel, Zambia
— Enterprise, Zambia
Exploration — Haquira, Peru
Other Investment — Mopani (16.9%), Zambia
Asset and Project Update
6
Targeting annual production of
~400 kt by end of 2014
Enhanced throughput and recoveries to
increase copper production to ~45 kt
Guelb Moghrein
First production in 2006
2010 production of 37 kt copper / 82 koz of gold
Optimizing recent expansion
Kansanshi
First production in 2005
2010 production of 231 kt copper / 110 koz gold
Multi-phase expansion plans in progress:
Mine pit development to optimize long term grades
Oxide circuit - Phase 1 to 7.2 Mtpa by Q1 2012
Phase 2 to 12 Mtpa by end 2012
Potential addition of Sulphide circuit – incremental 16 Mtpa
On-going program of resource development and exploration
Existing Assets – Focus on Development / Expansion
7
Projects
Successful commissioning achieved, with
continuous operation on track for full production
in 2012
Construction 90% complete,
2012 operation plan on schedule
Kevitsa
Over 90% complete
Expected to begin pre-commissioning in December 2011 towards continuous operation in mid 2012
Target operations:
10 ktpa nickel @ ~$6.70 / lb
20 ktpa copper @ ~$1.10 / lb
Seeking to increase the annual throughput capacity by 50% to 7.5 Mtpa
On-going drill program continues to deliver
encouraging results
Ravensthorpe
Commissioning as planned for continuous operation before end 2011
First production 4 October 2011
Re-constructed plants consistently achieving design throughputs
Atmospheric Leach and Pressure Acid Leach plants successfully brought on line
Target operations:
39 ktpa for the first five years; 28 ktpa over the life of mine; C1 cost of ~$7.00 per lb (1)
(1)At current sulphur prices
8
Projects
World-class deposit with huge potential targeting 2014 production
Sentinel – Copper
EIA and land use agreement obtained
Resource drilling complete; finalization of resource estimate expected in late 2011
Expected to produce 240 ktpa copper concentrate initially, rising up to 300 ktpa
Construction works planned to start in 2012
Targeting commercial production in 2014
Enterprise – Nickel
Focused drill program with eight rigs currently on site
140 holes for 49,750 metres completed to an average depth of ~350m, over an area of ~2.2 kms x 1 km
NI-43-101 compliant resource anticipated in 2012
Targeting concentrator facility of 40 – 70 ktpa of Ni capacity
9
Projects
Large-scale copper product in well-established mining region, project design commencing 2012
Haquira
Acquired in December 2010
Large scale copper project located in southern Peru
M&I resource of 3.7 Mt of copper equivalent and an inferred resource of 2.4 Mt of copper equivalent
Current projects focused on:
Community relations and land access
Expanding infill and condemnation drill program and environmental matters
Zambian Copper Smelter
Limited smelter capacity in Zambia currently
Enhanced benefits to First Quantum include:
Production of sulphuric acid for use in Kansanshi’s oxide circuit
Allows more mined ore to be treated as oxide with higher recoveries
Leverages existing infrastructure
Available workforce in nearby community
Reduce dependence on limited 3rd party capacity
Improved treatment costs
We Have Bought Well and Continue to Execute
10
Acquisitions – Generating Significant Value
(1) Includes estimates by Haywood, TD, CIBC, RBC, BMO, Cormark and Paradigm (2) Acquisition of Scandinavian Minerals (3) Acquisition of Kiwara plc (4) Acquisition of Antares Minerals
0.2 0.3
1.1
0.3
0.4 0.1
1.1
0.3
0.6
0.30.4 0.4
4.2
1.31.2
2.4
0.9
1.2
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
US$ Bn
Kevitsa(2)
2008
Haquira(4)
2010
99%
808%
121%
165%
Trident (Sentinel / Enterprise)(3)
2010
Ravensthorpe 2010
Purchase Price Capex Analyst Consensus
287%
281%
Guelb Moghrein 2004
Kansanshi 2001
(1)
What We Have Delivered So Far
11
Total Annualised Shareholder Return (2)
January 2000 – November 2011 (%)
Copper Growth (1)
2000-2011 CAGR (%)
(1) Source: Brook Hunt. Inclusive of corporate acquisitions. (2) Source: CapIQ.
(4)%
(1)%
0%
1%
1%
3%
4%
7%
10%
12%
18%
20%
22%
23%
34%
Rio Tinto
Kazakhmys
KGHM
Codelco
Norilsk
BHPB
Anglo American
Antofagasta
Glencore
Freeport
Teck
Xstrata
First Quantum
Southern Copper
Barrick
2%
6%
9%
9%
10%
12%
13%
13%
14%
14%
15%
15%
18%
28%
28%
30%
31%
38%
ENRC
Eramet SA
Anglo American
Kazakhmys
HudBay
Rio Tinto
Xstrata
Norilsk
Freeport
Lundin
Vedanta
Teck
BHP Billiton
Antofagasta
Vale
Inmet
Southern Copper
First Quantum
What We Are Looking to Deliver: Copper Growth Remains Best in Class
12
2016 Copper Producer Landscape
(Mt)
Copper Growth
2011 – 2016 CAGR (%)
1.0
0.3
29.2%
Teck
Antofagasta
Freeport
Anglo
Codelco
Norilsk
BHPB
KGHM
Vedanta
Barrick
Kazakhmys
Rio Tinto
Glencore
Xstrata
S Copper
Vale
FQM
Source: Brook Hunt. First Quantum estimates based on management projections.
6th Largest Global Copper Producer
by 2016
13th Largest Global Copper Producer
Currently
Long-Term Targets
13
0
200
400
600
800
1,000
1,200
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Kansanshi Guelb Moghrein Kevitsa Sentinel Haquira Ravensthorpe Enterprise
Copper Production
ktpa
Nickel Production
ktpa
0
25
50
75
100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Long-term Copper
Dynamics
15
Surpluses Overestimated & Deficits Underestimated
15
Brook Hunt Supply / Demand – Forecast vs. Actual
(77)
0
(422)
236
1,137
424
648737
(293)
(1,080)
(334)
(134)
78
295
960
(135)
15,000
16,000
17,000
18,000
19,000
(1,500)
(1,000)
(500)
0
500
1,000
1,500
2003 2004 2005 2006 2007 2008 2009 2010
3-Year Prior Estimate Actual Copper Demand
Supply / Demand Surplus (Deficit) (ktpa)Copper Demand (ktpa)
Source: Brook Hunt and USGS
Grades of Global Copper Mined % Cu
Copper Grades Have Declined Significantly
16 Source: Brook Hunt. Broker Research
0.60
0.80
1.00
1.20
1.40
1.60
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
Initial production of Grasberg and Escondida
Lack of sizeable, high quality production coming on-stream…
Emerging Markets – Substantial Growth Ahead
17
Source: Maddison
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1835 1855 1875 1895 1915 1935 1955 1975 1995
USA
UK
China
Brazil
Russia
GDP per Capita US$
Projected Impact on the Copper Market
18
Illustrative Scenarios Assuming Increased Intensity of Cu Consumption for China, India and Brazil
Key Points
Should China, India and Brazil all grow in line with population forecasts and reach copper use per capita equivalent to, say, the EU-27 country group by 2020, the increased annual copper demand would be approximately 10 Mtpa, equivalent to:
– ca. 60% of current annual global copper demand
– Nine new Escondidas being brought on line
If China, India and Brazil reach the copper
intensity of EU27 countries by 2020, this equates
to...
(1) Defined as copper consumed by semis fabricators or “first users” of refined copper (ingot makers, master alloy plants, wire rod plants, brass mills, alloy wire mills, foundries and foil mills)
(2) Based on Escondida 2010 production of 1.09 Mt (3) Based on FM 2010 production of 323 kt
If China, India and Brazil reach the copper
intensity of Japan by 2020, this equates to...
If China, India and Brazil reach the copper
intensity of Germany by 2020, this equates to...
No. of New
Escondidas (2) New Annual
Cu demand
No. of New
First
Quantum’s (3)
0.551.80
5.506.30 7.00
13.7
18.50
21.50
0
5
10
15
20
25
India Brazil China EU 27 Japan Germany Korea Taiwan
Intensity of Refined Copper Consumption (1) kg Cu per capita
Aggregate Copper Use per Capita: 3.0 kg per capita
Multiple of India, Brazil, China Average Intensity of Use (x)
2.1x 2.3x
6.1x
7.1x
Source: International Copper Study Group
4.5x
Copper Price Estimates Over Time
19
Copper Price (US$ / lb Cu)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Broker Research
2011
2010
2009
2008
2007
2006
2005
2004
2003 2002
2001
Actual
2000
Long Term Price Estimate
2011 Long Term
2010 LT 2009 LT
2008 LT 2007 LT
2006 LT
2005z LT 2004 LT
2003 LT 2002 LT 2001 LT 2000 LT
Projects Less Sensitive to Copper Prices
20
Top 25 Copper Projects
$ 6,130
$ 8,061
$ 9,079
$ 10,696
$ 10,794
$ 11,550
$ 13,611
$ 14,290
$ 14,667
$ 14,672
$ 15,000
$ 15,435
$ 15,470
$ 15,474
$ 15,514
$ 15,759
$ 16,602
$ 17,325
$ 18,400
$ 18,472
$ 18,551
$ 19,895
$ 20,045
$ 20,421
$ 21,622
Konkola Deep (Vedanta)
Buenavista DC (South. Cop)
Sentinel (FQM)
Galeno (Minmetals)
Antapaccay (Xstrata)
Antamina (BHP)
Rio Blanco (Zijin)
Haquira (FQM)
Quellaveco (Anglo Amer.)
Canariaco (Candente)
Quebrada Blanca (Teck)
Ministro Mina Hales (Codelco)
Cerro Verde (Freeport)
Los Bronces (Anglo Amer.)
Salobo (Vale)
Las Bambas (Xstrata)
Oyu Tolgoi (Ivanhoe)
Toromocho (Chinalco)
Tampakan (Xstrata)
Telegrapho (Antofagasta)
El Moro (GoldCorp)
Sierra Gorda (Quadra FNX)
Caserones (JX Nippon)
Caracoles (Antofagasta)
Cobre Panama (Inmet)
Cumulative Production (paid kt Cu)
Minimum Required Copper Price to Generate 15% IRR (US$ / tonne Cu)
Capex Intensity (US$ / t)
Source: Brook Hunt, equity research estimates.
Value Potential
Copper Assets Undervalued by the Market
22
Anglo American Sur – Value Implications
Anglo Sur US$ Bn
Transaction Value (49%) 5.39
Implied EV 22.00
Implied Multiples
EV / EBITDA 2011E (1) 15.9x
EV / Resources (2) (US$ / t) 1,187
EV / Production (2) (US$ / t) 88,307
EV / Broker Consensus 1.87x
First Quantum Implied EV
Premium (3)
EBITDA 2011E (1) 1.39
Implied EV based on
EV / EBITDA 2011E 22.07 +164%
Resources
Kt Cu Equivalent (2) 18,005
Implied EV based on
EV / Resources 21.27 +155%
Production
Kt Cu Equivalent (2) 346
Implied EV based on
EV / Production 30.53 +265%
Analyst NAV Consensus (4) 11.95
Implied EV based on
EV / Broker Consensus (5) 21.31 +155%
Anglo American Sur Valuation (100% Basis)
(1) Based on Broker Consensus
(2) Cu Equivalent based on consensus LT Cu price of US$ 2.54/lb, Ni price of US$8.23/lb and Au price of 1,217.6/oz
(3) Based on First Quantum EV of US$8.36 Bn as of 11 November 2011
(4) Includes estimates by Haywood, TD, CIBC, RBC, BMO, Cormark and Paradigm
(5) Adjusted for net cash of US$1.0 Bn (including US$325 MM of Investments)
8.00
8.98
12.5013.27
13.6714.21
22.00
0
5
10
15
20
25
BBVA Deutsche Bank Morgan Stanley Credit Suisse RBC Jefferies Implied by
Transaction
Value
US$ Bn
Broker Consensus:
US$11.8 Bn
+87% premium
A Rapidly Growing Mining & Metals Company
• Unique technical strength at the core of the strong track record of delivery
• Existing operations provide a solid platform to support growth
• Strong financial position and cash flow
• ~$5 billion investment in growth over 2012 – 2016 to significantly increase copper and nickel production
• Growth program expected to position First Quantum as the world’s 6th largest copper producer and a top ten nickel producer
23
December 2011
TSX: FM LSE: FQM LuSE: FQMZ www.first-quantum.com
A Rapidly Growing
Metals & Mining
Company
1
Corporate Profile
Average daily trading volume - shares
Market capitalization – $ millions
Recent share price – November 4, 2011
Dividend paid in regards to year 2010 – per share
52-week share price range
Geographic breakdown of institutional shareholders
Fully diluted
Shares issued and outstanding
Stock exchange listings & symbols – (S&P/TSX 60 Index)
3.2 million
C$11.0 billion
C$22.81
C$0.80
C$29.60 – C$12.60
US=36%; UK=26%; Canada=23%; other=15%
476.3 million
476.3 million
TSX: FM LSE: FQM LuSE: FQMZ
25
