First Quantum copper production up to 116kt, a 13% increase in Q3 2024

Total copper production for the third quarter was 116,088 tonnes, a 13% increase from Q2 2024 due to 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 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 cost1 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 cost1 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 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.