FIRST QUANTUM MINERALS REPORTS THIRD QUARTER 2024 RESULTS (In United States dollars, except where noted otherwise)
NEWS RELEASE
24-19
October 22, 2024
www.first-quantum.com
FIRST QUANTUM MINERALS REPORTS THIRD QUARTER 2024 RESULTS
(In United States dollars, except where noted otherwise)
Toronto, Ontario ( October 22, 2024 ) - First Quantum M inerals Ltd. (“First Quantum” or the "Company”) (TSX:
FM) today reports results for the three months ended September 30, 2024 (“Q3 2024” or the "third quarter") of net
earnings attributable to shareholders of the Company of $108 million ( $0.13 earnings per share) and adjusted
earnings1 of $119 million ($0.14 adjusted earnings per share2).
“While it is pleasing to see continued strong operational performance from the Zambian operations during the third
quarter, this was marred by a tragic accident in September resulting in the death of a colleague at Kansanshi. We
continue to support the family and we remain committed to ensure the safety of our colleagues across the
business. While ZESCO power restrictions continue, our Zambian team's proactive actions have resulted in
minimal production impacts. The S3 Expansion continues to make good progress for production in the second half
of 2025,” commented Tristan Pascall, Chief Executive Officer of First Quantum. "In Panama, we continue to
engage with local authorities for the approval of the Preservation and Safe Management program for Cobre
Panamá. With Cobre Panamá remaining in a state of preservation and safe management and the ongoing capital
expenditures related to the S3 Expansion, we are continuing efforts to maintain the strength of the balance sheet
and, as such, additional hedges were added during the quarter."
Q3 2024 SUMMARY
In Q3 2024, First Quantum reported gross profit of $456 million, EBITDA1 of $520 million, net earnings attributable
to shareholders of $0.13 per share, and adjusted earnings per share 2 of $0.14. Relative to the second quarter of
2024 (“Q2 2024”), third quarter financial results improved due to higher copper and gold sales volumes along with
stronger realized gold prices. Total copper production for the third quarter was 116,088 tonnes, a 13% increase
from Q2 2024. Copper C1 cash cost3 was $1.57 per lb in the third quarter, a decrease of 9% quarter-over-quarter.
There were a number of developments during the third quarter that are also detailed in this news release:
• 2024 Guidance for copper production has narrowed to the top end of previous guidance, while gold production
guidance has increased. Copper C1 cash cost3 guidance has narrowed to the low end of previous guidance.
• During the quarter, the Company entered into additional derivative contracts. More than half of planned
production and sales remains exposed to spot copper prices through the period until the end of 2025.
• On October 15, 2024, FQM Trident signed a $425 million unsecured term loan facility with a maturity date of
September 2028 to replace the previous Trident facility that was scheduled to mature in December 2025.
• While Zambia’s energy crisis persisted in the third quarter, operational adjustments minimized the effect on
copper production. Minimal operational interruptions are expected heading into the fourth quarter of 2024.
• As part of the ongoing board renewal program, the Company is pleased to announce the appointments of Ms.
Juanita Montalvo and Mr. Hanjun ("Kevin") Xia to its Board of Directors with immediate effect.
1 EBITDA and adjusted earnings (loss) are non-GAAP financial measures. These measures do not have a standardized meaning prescribed by IFRS and might not be
comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
2 Adjusted earnings (loss) per share is a non-GAAP ratio which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial
measures disclosed by other issuers. See “Regulatory Disclosures”.
3 C1 cash cost (C1) is a non-GAAP ratio, which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed
by other issuers. See “Regulatory Disclosures”
Q3 2024 OPERATIONAL HIGHLIGHTS
Total copper production for the third quarter was 116,088 tonnes, a 13% increase from Q2 2024 as a result of
higher production at the Zambian operations. While Zambia’s energy crisis persisted in the third quarter, First
Quantum’s proactive sourcing of supplementary power minimized disruptions, allowing normal operations to
continue for most of the quarter. The impact of higher costs associated with the imported power was mitigated by
strong gold by-product credits during the quarter. Copper C1 cash cost 1 was $0.16 per lb lower quarter-over-
quarter at $1.57 per lb, reflecting higher copper production, along with lower fuel costs. Copper sales volumes
totalled 112,094 tonnes, approximately 3,994 tonnes lower than production due to the timing of shipments.
• Kansanshi reported the highest quarterly copper production since the fourth quarter of 2021. Copper
production of 49,810 tonnes in Q3 2024 was 8,303 tonnes higher than the previous quarter as continued
mining discipline resulted in higher feed grades on the mixed and oxide circuits. During the quarter, the
sulphide and mixed mills were swapped to increase the throughput of mixed material which contained
higher grades. Gold production of 31,659 ounces for the third quarter of 2024 was the highest quarterly
production since the first quarter of 2022. Copper C1 cash cost 1 of $1.29 per lb was $0.22 lower quarter-
over-quarter due to improved production volumes. Production guidance for 2024 has increased to 155,000
- 165,000 tonnes of copper from 130,000 - 150,000 tonnes while gold production guidance has increased
to 90,000 - 100,000 ounces from 65,000 - 75,000 ounces. A swap of the mixed and sulphide mills will
continue in the fourth quarter in order to maximize mixed grade through the mills. Fourth quarter gold
production is expected to be lower than the third quarter due to lower grades.
• Sentinel reported copper production of 58,412 tonnes in Q3 2024, approximately 4,817 tonnes higher than
the previous quarter as improved throughput levels benefitted from better performance of the in-pit
crushers as well as improved fragmentation of the ore. Copper C1 cash cost 1 of $1.86 per lb was lower
than the preceding quarter as a result of higher production volumes. Copper production guidance for 2024
has narrowed to 220,000 - 230,000 tonnes from 220,000 - 250,000 tonnes. Mining performance and
throughput is expected to further improve over the remainder of the year with the ongoing development of
Stage 3 (Western Cut-back) which will enable improved mining productivities due to the increased
availability of softer material on shorter haul cycles. The improvement in fragmentation experienced in the
third quarter that led to improved crushing and milling rates is expected to continue for the remainder of the
year. The development of the Stage 1 sump is on schedule to be completed during October 2024 along
with other site works in preparation for the upcoming wet season.
• Enterprise had its first full quarter of commercial production, producing 4,827 tonnes of nickel during the
third quarter, a decrease from 6,147 tonnes in Q2 2024. The plant has been stable and achieved record
throughput in August 2024. The plant was shut down for the last nine days of September due to power
supply restrictions in order to prioritize power for the copper circuit. Plant operations resumed in October.
Production guidance for 2024 for Enterprise remains unchanged at 17,000 – 20,000 contained tonnes of
nickel. Good progress has been made in preparation for the wet season and securing of the south wall.
The focus for the remainder of the year will be on increasing mobile equipment reliability through
supporting the contractor uplift maintenance practices in order to increase mining volumes.
• Cobre Panamá remains in a phase of preservation and safe management ("P&SM") with production halted
and production guidance suspended. During the quarter, the process plant assets inspection frequency
was changed from 28 to 56 days, while the equipment start-up frequency remains unchanged at 14 days
to ensure equipment preservation through dynamic lubrication and monitoring asset conditions. All the
major ultra-class mobile equipment is in a maintenance cycle that adheres to the original equipment
manufacturer’s long-term storage recommendations and includes periodic inspections as well as
scheduled startups. In addition to asset preservation, a key focus continues to be on maintaining the
environmental stability for all areas of the site and compliance with the environmental and social impact
study for the project, which remains in force. The costs for the P&SM program in the third quarter were
approximately $13 million per month, which included labour, maintenance spares, contractor’s services,
electricity, and other general expenses. During the quarter, activities on site were further curtailed with
reduction in active equipment for the tailings management facility and open pit maintenance. For the
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1 C1 cash cost (C1) is a non-GAAP ratio, which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed
by other issuers. See “Regulatory Disclosures”
remainder of the year, P&SM expenses are expected to be $11 - $13 million per month, depending on the
level of environmental stability and asset integrity programs. The Company is actively managing the P&SM
costs of Cobre Panamá and will adjust the level of employment and cost of these activities according to the
conditions on the ground in Panama. Approximately 121 thousand dry metric tonnes of copper concentrate
remain onsite.
FINANCIAL HIGHLIGHTS
Financial results continue to be impacted by Cobre Panamá being in a phase of P&SM, however, the third quarter
benefitted from higher copper and gold sales volumes along with stronger gold prices.
• Gross profit for the third quarter of $456 million was $123 million higher than Q2 2024, while EBITDA 1 of
$520 million for the same period was $184 million higher.
• Cash flows from operating activities of $260 million ($0.31 per share 2) for the quarter we re $137 million
lower than Q2 2024.
• Net debt3 increased by $154 million during the quarter, attributable mainly to planned capital expenditures
at Kansanshi and an increase in net working capital, taking the net debt 3 level to $5,591 million, with total
debt at $6,284 million as at September 30, 2024.
HEDGING PROGRAM
During the quarter, and consistent with the approach outlined in the second quarter results of 2024, the Company
entered into derivative contracts, in the form of additional unmargined zero cost copper collars, as protection from
downside price movements, financed by selling price upside beyond certain levels on a matched portion of
production. More than half of planned production and sales remains exposed to spot copper prices through the
period until the end of 2025.
At October 22, 2024, the Company had zero cost copper collar contracts for 245,400 tonnes at weighted average
prices of $4.18 per lb to $5.01 per lb outstanding with maturities to December 2025.
Tonnes('000s)
$/lb
COPPER SALES QUARTERLY HEDGE PROFILE - OCTOBER 22 2024
64 39 43 51 48
4.21 4.22 4.19 4.19
4.11
5.13 5.09 5.10
4.81
4.92
Collar Contracts (kt) Floor ($/lb) Potential Upside ($/lb)
Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
4.00
4.50
5.00
First Quantum Minerals Ltd. 24-19
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1 EBITDA is a non-GAAP financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures
disclosed by other issuers. See “Regulatory Disclosures”.
2 Cash flows from operating activities per share is a non-GAAP ratio, which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar
financial measures disclosed by other issuers. See “Regulatory Disclosures”.
3 Net debt is a supplementary financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures
disclosed by other issuers. See “Regulatory Disclosures”.
FQM TRIDENT FACILITY
At Trident, on October 15, 2024, FQM Trident signed a $425 million unsecured term loan facility (the “FQM Trident
Facility”) with a maturity date of September 2028 to replace the previous Trident facility that was scheduled to
mature in December 2025. Repayments on the FQM Trident Facility will commence in March 2026 and are due
every six months thereafter. This action is in line with the Company’s prudent management of its debt maturities.
CONSOLIDATED FINANCIAL HIGHLIGHTS
QUARTERLY
Q3 2024 Q2 2024 Q3 2023
Sales revenues 1,279 1,231 2,029
Gross profit 456 333 660
Net earnings (loss) attributable to shareholders of
the Company 108 (46) 325
Basic earnings (loss) per share $0.13 ($0.06) $0.47
Diluted earnings (loss) per share $0.13 ($0.06) $0.47
Cash flows from operating activities3 260 397 594
Net debt1 5,591 5,437 5,637
EBITDA1,2 520 336 969
Adjusted earnings (loss)1 119 (13) 359
Adjusted earnings (loss) per share3 $0.14 ($0.02) $0.52
Cash cost of copper production excluding Cobre
Panamá (C1) (per lb)3,4 $1.57 $1.73 $1.66
Total cost of copper production excluding Cobre
Panamá (C3) (per lb)3,4 $2.54 $2.83 $2.60
Copper all-in sustaining cost excluding Cobre
Panamá (AISC) (per lb)3,4 $2.35 $2.71 $2.54
Cash cost of copper production (C1) (per lb)3,4 $1.57 $1.73 $1.42
Total cost of copper production (C3) (per lb)3,4 $2.59 $2.87 $2.29
Copper all-in sustaining cost (AISC) (per lb)3,4 $2.42 $2.82 $2.02
Realized copper price (per lb)3 $4.24 $4.39 $3.70
Net earnings (loss) attributable to shareholders of
the Company 108 (46) 325
Adjustments attributable to shareholders of the
Company:
Adjustment for expected phasing of Zambian
value-added tax (“VAT”) (17) (27) (15)
Loss on redemption of debt – – –
Total adjustments to EBITDA1 excluding
depreciation2 32 71 61
Tax adjustments – 6 (12)
Minority interest adjustments (4) (17) –
Adjusted earnings (loss)1 119 (13) 359
1 EBITDA and adjusted earnings (loss) are non-GAAP financial measures, and net debt is a supplementary financial measure. These measures do not have a standardized
meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings (loss) have been adjusted to exclude items from
the corresponding IFRS measure, net earnings (loss) attributable to shareholders of the Company, which are not considered by management to be reflective of underlying
performance. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors
and may not be comparable to similar financial measures disclosed by other issuers. The use of adjusted earnings (loss) and EBITDA represents the Company’s adjusted
earnings (loss) metrics. See “Regulatory Disclosures”.
2 Adjustments to EBITDA in 2024 principally relate to impairment expense, restructuring expense and foreign exchange losses ( 2023 - royalties, restructuring expenses and
foreign exchange losses).
3 Adjusted earnings (loss) per share, realized metal prices, copper all-in sustaining cost (copper AISC), copper C1 cash cost (copper C1) and total cost of copper (copper C3) are
non-GAAP ratios, which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See
“Regulatory Disclosures”.
4 Excludes the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases
were 7,537 tonnes for the three months ended September 30, 2024, (11,228 tonnes for the three months ended September 30, 2023).
First Quantum Minerals Ltd. 24-19
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CONSOLIDATED OPERATING HIGHLIGHTS
QUARTERLY
Q3 2024 Q2 2024 Q3 2023
Copper production (tonnes)1 116,088 102,709 221,550
Cobre Panamá – – 112,734
Kansanshi 49,810 41,507 39,600
Sentinel 58,412 53,595 63,805
Other Sites 7,866 7,607 5,411
Copper sales (tonnes)2 112,094 94,628 218,946
Cobre Panamá – – 113,616
Kansanshi2 49,131 36,332 41,820
Sentinel 53,662 51,113 58,600
Other Sites 9,301 7,183 4,910
Gold production (ounces) 41,006 32,266 73,125
Cobre Panamá – – 45,996
Kansanshi 31,659 23,575 19,946
Guelb Moghrein 8,621 8,144 6,765
Other sites 726 547 418
Gold sales (ounces)3 43,371 37,140 77,106
Cobre Panamá – – 45,959
Kansanshi 34,186 28,860 23,704
Guelb Moghrein 8,382 7,572 7,292
Other sites 803 708 151
Nickel production (contained tonnes)4 4,827 7,400 7,046
Nickel sales (contained tonnes)5 4,598 7,645 5,749
Cash cost of copper production (C1) (per lb)2,6 $1.57 $1.73 $1.42
C1 (per lb) excluding Cobre Panamá 2,6 $1.57 $1.73 $1.66
Total cost of copper production (C3) (per lb)2,6 $2.59 $2.87 $2.29
Copper all-in sustaining cost (AISC) (per lb)2,6 $2.42 $2.82 $2.02
AISC (per lb) excluding Cobre Panamá 2,6 $2.35 $2.71 $2.54
1 Production is presented on a contained basis, and is presented prior to processing through the Kansanshi smelter.
2 Sales exclude the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases
were 7,537 tonnes for the three months ended September 30, 2024, respectively, (11,228 tonnes for the three months ended September 30, 2023).
3 Excludes refinery-backed gold credits purchased and delivered under the precious metal streaming arrangement (see “Precious Metal Stream Arrangement”).
4 Nickel production includes 3,875 tonnes of pre-commercial production from Enterprise for the three months ended June 30, 2024, which is not included in earnings (loss) or C1,
C3 and AISC calculations. (1,556 tonnes for the three months ended September 30, 2023).
5 Nickel sales (contained tonnes) includes 1,388 tonnes of of pre-commercial sales from Enterprise for the three months ended June 2024. (97 tonnes for the three months
ended September 30, 2023.
6 Copper all-in sustaining cost (copper AISC), copper C1 cash cost (copper C1), and total cost of copper (copper C3) are non-GAAP ratios, which do not have a standardized
meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
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REALIZED METAL PRICES1
QUARTERLY
Q3 2024 Q2 2024 Q3 2023
Average LME copper cash price (per lb) $4.18 $4.42 $3.79
Realized copper price1 (per lb) $4.24 $4.39 $3.70
Treatment/refining charges (“TC/RC”) (per lb) ($0.06) ($0.06) ($0.15)
Freight charges (per lb) ($0.03) ($0.05) ($0.02)
Net realized copper price1 (per lb) $4.15 $4.28 $3.53
Average LBMA cash price (per oz) $2,474 $2,338 $1,929
Net realized gold price1,2 (per oz) $2,383 $2,207 $1,764
Average LME nickel cash price (per lb) $7.37 $8.35 $9.23
Net realized nickel price1 (per lb) $7.35 $7.86 $8.96
1 Realized metal prices are a non-GAAP ratio, do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other
issuers. See “Regulatory Disclosures” for further information.
2 Excludes gold revenues recognized under the precious metal stream arrangement.
2024 GUIDANCE
Guidance is based on a number of assumptions and estimates as of September 30, 2024, including among other
things, assumptions about metal prices and anticipated costs and expenditures. Guidance involves estimates of
known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially
different.
Guidance has been updated to reflect performance year-to-date and the outlook for the remainder of the year.
Copper production guidance has narrowed to a range of 400,000 – 420,000 tonnes from 370,000 – 420,000
tonnes. Strong performance from Kansanshi, Guelb Moghrein and Cayeli has resulted in an increase in copper
production guidance for these operations. Sentinel guidance range has been narrowed with the upper end reduced
based on performance to date. Gold production guidance has increased to 120,000 – 135,000 ounces from 95,000
– 115,000 ounces to reflect higher grades experienced to date at Kansanshi. Nickel production guidance remains
unchanged.
Copper unit cost guidance has been narrowed for both C1 1 and AISC1 to reflect performance to date, coupled with
a favourable Zambian kwacha/US dollar exchange rate and strong by-product credits, partially offset by increased
Zambian electricity costs. Guidance does not include any P&SM costs with respect to Cobre Panamá. C1 cash
costs1 guidance assumes a gold price of $2,500 per ounce for the remainder of the year, an average Brent crude
oil price of $85 per barrel and a Zambian kwacha/US dollar exchange rate of 25.
Previous nickel unit cash cost guidance for 2024 was for Ravensthorpe only and was withdrawn in the second
quarter. There is no guidance provided for Enterprise as operations ramp up this year. Care and maintenance
costs for Ravensthorpe are expected to be approximately $2 million per month in the fourth quarter.
Guidance for total capital expenditure remains unchanged at $1,250 - $1,400 million.
PRODUCTION GUIDANCE
000’s
2024
Previous
Guidance
2024
Updated
Guidance
Copper (tonnes) 370 – 420 400 – 420
Gold (ounces) 95 – 115 120 – 135
Nickel (contained tonnes) 22 – 25 22 – 25
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1 Realized metal prices, C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not
be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
PRODUCTION GUIDANCE BY OPERATION1
Copper production guidance (000’s tonnes)
2024
Previous
Guidance
2024
Updated
Guidance
Kansanshi 130 – 150 155 – 165
Trident - Sentinel 220 – 250 220 – 230
Other sites 20 25
Gold production guidance (000’s ounces)
Kansanshi 65 – 75 90 – 100
Guelb Moghrein 28 – 38 28 – 33
Other sites 2 2
Nickel production guidance (000’s contained tonnes)
Ravensthorpe 5 5
Trident - Enterprise 17 – 20 17 – 20
1 Production is stated on a 100% basis as the Company consolidates all operations.
CASH COST1 AND ALL-IN SUSTAINING COST1
Total Copper
2024
Previous
Guidance
2024
Updated
Guidance
C1 (per lb)1 $1.80 – $2.05 $1.80 – $1.95
AISC (per lb)1 $2.70 – $3.00 $2.70 – $2.90
1 C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to
similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
PURCHASE AND DEPOSITS ON PROPERTY, PLANT & EQUIPMENT
2024
Capitalized stripping1 180 – 230
Sustaining capital1 260 – 290
Project capital1 810 – 880
Total capital expenditure 1,250 – 1,400
1 Capitalized stripping, sustaining capital and project capital are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be
comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
ZAMBIA POWER UPDATE
During the quarter, Zambia’s energy crisis persisted due to the El Niño-induced drought, which has significantly
reduced the country’s hydropower generation. Despite these challenges, First Quantum’s proactive sourcing of
supplementary power minimized disruptions, allowing normal operations to continue for most of the quarter.
In late September 2024, planned maintenance work on a 150 MW thermal generation unit at Maamba Collieries
led to a nine-day, 30% power reduction imposed on Zambian Electricity Supply Corporation Limited (“ZESCO”)-
supplied power to the Company’s Zambian mine sites. However, the Company’s supplementary sourcing strategy
limited the actual impact on its Zambian mine sites to a 10% reduction in maximum power availability during the 9-
day period. Operational adjustments, including rescheduling maintenance and prioritizing critical activities,
minimized the effect on copper production.
By the end of the quarter, with the restoration of 150 MW from the thermal generation unit and increased ZESCO
imports from South Africa, power availability at the Company’s Zambian mine sites returned to normal and minimal
operational interruptions are expected heading into the fourth quarter of 2024.
The annualized impact of $0.06 per lb on Copper C1 cash costs 1 from the supplementary sourcing strategy is
aligned with estimates communicated in the second quarter of 2024 and expected to remain unchanged for the
balance of the financial year.
First Quantum Minerals Ltd. 24-19
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1 Copper C1 cash cost (copper C1) is a non-GAAP ratio, which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial
measures disclosed by other issuers. See “Regulatory Disclosures”.
ZAMBIA 2025 NATIONAL BUDGET
The 2025 National Budget was presented on September 27, 2024 by the Minister of Finance and National
Planning, Dr. Situmbeko Musokotwane, under the theme "Building Resilience for Inclusive Growth and Improved
Livelihoods".
No significant changes were announced to the mining tax regime, with the Minister reaffirming his commitment to
maintaining stable and predictable tax policies to encourage investment.
COBRE PANAMÁ UPDATE
At the request of the Ministry of Commerce and Industries (“MICI”), Cobre Panamá delivered a draft plan for the
first phase of the P&SM plan on January 16, 2024. The incoming administration reviewed the P&SM plan upon
taking office in July 2024 and requested additional information, which was submitted by the Company on August
27, 2024, along with a formal presentation to MICI on September 25, 2024. The plan is still pending government
approval and, therefore, not all aspects of the plan have been implemented by the Company.
During the quarter, President Mulino made public statements to the effect that his government intends to address
the Cobre Panamá mine in early 2025. The Government of Panama ("GOP") also announced that an integrated
audit of Cobre Panamá would be conducted with international experts to establish a factual basis to aid in decision
making for the future of the mine. The Company welcomes this audit process, although the timeline remains
unclear.
In parallel with the P&SM of the site, the Company has also embarked on a comprehensive program of public
outreach in order to make more transparent information available to the public about Cobre Panamá. Since the
beginning of 2024, these efforts have reached over 20,000 Panamanian citizens through site visits (which are
currently suspended, pending P&SM approval) and briefings in universities, schools, and public spaces. A further
40,000 Panamanians have undertaken an online virtual tour of the mine.
Steps towards two arbitration proceedings have been taken by the Company, one under the Canada-Panama Free
Trade Agreement (“FTA”) and the other under the International Chamber of Commerce (“ICC”) pursuant to the
arbitration clause of the Refreshed Concession Contract.
• ICC Arbitration: On November 29, 2023, Minera Panamá S.A. ("MPSA") initiated arbitration before the
ICC's International Court of Arbitration pursuant to the ICC’s Rules of Arbitration and Clause 46 of the
Refreshed Concession Contract to protect its rights under Panamanian law and the Refreshed Concession
Contract that the GOP agreed to in October 2023. The arbitration clause of the contract provides for
arbitration in Miami, Florida. A final hearing for this matter is scheduled for September 2025.
• FTA Arbitration: On November 14, 2023, First Quantum submitted a notice of intent to the GOP initiating
the consultation period required under the FTA. First Quantum submitted an updated notice of intent on
February 7, 2024. First Quantum is entitled to seek any and all relief appropriate in arbitration, including,
but not limited to, damages and reparation for Panama’s breaches of the Canada-Panama FTA. These
breaches include, among other things, the GOP’s failure to permit MPSA to lawfully operate the Cobre
Panamá mine prior to the Supreme Court’s November 2023 decision and the GOP’s pronouncements and
actions concerning closure plans and P&SM at Cobre Panamá. The Company has the right to file its
arbitration claim under the FTA within three years of Panama’s breaches of the FTA.
The Company reiterates that arbitration is not the preferred outcome for the situation in Panama and it remains
committed to dialogue with the GOP and to being part of a solution for the country and its people.
KANSANSHI S3 EXPANSION
During the third quarter of 2024, assembly of the SAG and ball mills at the S3 Expansion at Kansanshi was
completed and installation of the gearless mill drives commenced. Work in priority areas, including the primary
crusher, continued as per schedule and focus now shifts to piping and electrical work. Commissioning activities
have started in the 33kv distribution substation and is expected to be energized in the fourth quarter. System
configuration of the plant control system has been completed for the primary circuit and is now focused on ancillary
systems and services. The plant simulator has been made available for operator training on site. The majority of
the capital spend on the S3 Expansion is expected to occur in 2024, with first production expected in the second
half of 2025.
First Quantum Minerals Ltd. 24-19
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