First Quantum Minerals Provides Operations Update
NEWS RELEASE
20-22
September 16, 2020
www.first-quantum.com
FIRST QUANTUM MINERALS PROVIDES OPERATIONS UPDATE
TORONTO, Ontario (September 16, 2020) - First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX:FM)
today provides an update on operations and continuing efforts to mitigate the impact of COVID -19.
Operational Performance
The Company expect s to produce 725,000 – 770,000 tonnes of copper, 230,000 – 250,000 ounces of gold and 15,000 –
17,000 tonnes of nickel for the full year 2020, as previously stated. Operations continue to perform as expected despite the
challenges presented by the current pandemic and the necessary heightened focus on health and sanitisation protocols .
With the resumption of normal operations at Cobre Panama, the Company is not expecting any additional disruptions
related to COVID-19 now that all precautionary measures have been put into practice.
Cobre Panama reached full production on the three SAG mill trains on August 8, 2020, slightly ahead of schedule after the
operation had been placed on Preservation and Safe Maintenance in early April by order of the Ministry of Health of the
Republic of Panama (“MINSA”). With the cooperation of MINSA , the Company announced the resumption of normal
operations in July with the ramp -up expected to reach full production levels in mid -August. This was achieved ahead of
expectation i n August during which Cobre Panama produced just over 25,000 tonnes of copper The focus is now on
delivering consistent operational performance and maintaining the throughput rate of 85 million tonnes per annum for the
remainder of the year. Production for 2020 is expected to be well within our existing guidance of between 180,000 and
200,000 tonnes of copper and 70,000 and 80,000 ounces of gold.
Kansanshi continues to operate as expected, delivering consistent production despite declines in oxide grades and recovery.
The Compan y’s recently updated Mineral Reserves and Resources at Kansanshi resulted in a 70% and 40% increase
respectively over the last update in May 2015. This extended the the mine life to 24 years (see the Company’s release dated
September 14, 2020).
Sentinel has exceeded expectations so far in the quarter , achieving higher than average monthly production in July, with
over 23,000 tonnes of copper production and in August, with over 25,000 tonnes of copper production. Th is strong
performance is due to consistent milling rates and better than expected grades in August and positions the operation well
to achieve guidance previously provided.
Continued COVID-19 Efforts
The Company continues to prioritize the health and safety of personnel and focus on measures to prevent the transmission
of COVID -19 among st the workforce and communities surrounding our operations. When COVID -19 was declared an
international public health emergency by the World Health Organization in late January 2020, the Company moved quickly
to introduce health and sanitation protocols across its sites in compliance with both local and international guidelines. These
health protocols are regularly reviewed and adjusted as needed.
Specifically, Cobre Panama has undertaken a deep disinfection program and has developed heightened health protocols
which are regularly inspected by MINSA. There have been no cases onsite since May 2020. In addition to the pr otocols in
place throughout the operation, before any personnel is permitted to enter the site, they are tested and quarantined off -
First Quantum Minerals 20-22
Page 2 of 2
site in Company provided accommodation to ensure the site remain virus-free. These strict protocols and sanitary vigilance
remain in place as a “new normal” way of working. The Company is also supporting the wider community in Panama, with
donations of medical equipment and supplies, as well as responding to the Panamanian Government’s request to support
families in need with food and other supplies.
In Zambia, the Company has worked with Zambian Health Authorities to adopt and implement strict procedures at all of its
mine sites to manage the COVID-19 risks. This has enabled normal levels of operations throughout the crisis. In addition to
practicing social distancing and ensuring stringent hygiene practices, implementing self-isolation policies, utilizing alternate
office space and working from home to limit interaction , establishing a comprehensive contact tracing protocol , increased
capacity to generate therapeutic oxygen and building extensive isolation facilities with intensive care capability, Kansanshi
and Sentinel have also procured their own serological testing equipment to ensure that both sites can monitor and manage
the situation appropriately. The Company has also pledged financial support for the provision of medical logistics support
in the Solwezi and Kalumbila districts of North-Western Zambia.
COVID-19 protective measures to minimize person-to-person transmission in the work place and protect business continuity
have been implemented across all operations, in addition to increased medical facility resilience initiatives at the mine clinics
in Mauritania, Zambia and Panama. The Company will continue to monitor the mitigation efforts at the operations and work
with Governments and Health Ministries as new protocols are established or required.
For further information visit our website at www.first-quantum.com
North American contact: Lisa Doddridge, Director, Investor Relations
Tel: (416) 361-6400 Toll-free: 1 (888) 688-6577
United Kingdom contact: Clive Newall, President
Tel: +44 7802 721663
E-Mail: [email protected]
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 construction activity at Cobre Panama
and are subject t o the impact of ore grades on future production, the potential of production disruptions, potential production, operational, labour or marketing
disruptions as a result of the COVID-19 global pandemic (including but not limited to the temporary suspension of labour activities at Cobre Panama implemented
in April 2020), 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 a nd unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or industr y 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 operat ions, 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, Australia 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 produc tion 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.