First Quantum Announces $1.0 Billion Gold Stream

TORONTO – First Quantum Minerals announces that, through a wholly owned subsidiary incorporated in Canada, it has entered into a gold streaming agreement with RGLD Gold AG, a wholly owned subsidiary of Royal Gold, Inc. Under the terms of the Agreement, First Quantum will receive a $1.0 billion upfront cash payment in exchange for gold deliveries referenced to copper production from the Kansanshi Mine located in Zambia.

“Following a thorough evaluation of several deleveraging options, I am pleased to announce this milestone transaction which preserves exposure to all of the copper production at Kansanshi while still maintaining exposure to the majority of the Company’s gold production. Today’s announcement further enhances the Company’s financial resilience, while the ramp-up of the S3 Expansion at Kansanshi and a resolution in Panama will continue to strengthen our financial position,” Tristan Pascall, CEO of First Quantum, commented. “It is pleasing to form a new partnership with Royal Gold which is a strong endorsement of the operations at Kansanshi and its multi-generational ore body as well as Zambia as a leading African mining jurisdiction.”

Key Transaction Highlights:

• Strengthens Balance Sheet: The Transaction provides long-term, unsecured, non-debt capital which will significantly bolster liquidity. Proceeds will be used towards the payment of capital expenditure, general working capital requirements and bank loan repayment while the Company continues to monitor debt capital markets for opportunities to manage its maturities. Upon closing of the Transaction, the Company’s net debt¹ to EBITDA¹ ratio is expected to reduce markedly.
• Maintains Majority of Gold Production: The Transaction will allow the Company to maintain full exposure to the copper production at Kansanshi. Based on the Company’s copper and gold production guidance for 2026 and 2027, on average, 84% of the Company’s total gold production will continue to have exposure to spot gold prices. The Company retains full exposure to the recently identified near-surface gold zone occurrences at Kansanshi.
• Competitive Terms: The Transaction provides the Company with the ability to increase gold exposure over time, depending on financial performance, with provisions for higher ongoing production payments and acceleration options upon achieving certain leverage thresholds.