First Quantum Minerals: Q2 2026 Operational Highlights

Total copper production for the second quarter was 100,487 tonnes, a 4% increase from Q1 2026 mainly due to higher production at Sentinel and production of 3,216 tonnes of copper from Cobre Panamá with the commencement of stockpiled ore processing in May 2026, partially offset by the disposition of Çayeli on April 30, 2026.

Excluding Cobre Panamá, C1 copper cash cost was $0.03 lower quarter-over-quarter at $2.48 per lb, benefitting from improved production volumes at Sentinel and higher capitalized stripping costs, which offset the impact of higher fuel prices and lower gold by-product credits as a result of the weakening gold price.

Including Cobre Panamá, copper C1 cash cost was $0.03 higher quarter-over-quarter at $2.54 per lb, reflecting higher cost production from Cobre Panamá. Copper sales volumes totaled 93,300 tonnes, approximately 7,187 tonnes lower than production. Sales volumes were lower than production in the quarter due to timing differences between sales and production. There were no sales from Cobre Panamá in the second quarter of 2026.

• At Cobre Panamá, the removal, processing, and export of stockpiled ore (the “Processing Program”) was authorized on April 7, 2026 by the Government of Panama (“GOP”) through Resolution No. 27. The processing of stockpiled ore is intended to mitigate environmental and operational risks associated with prolonged on‑site storage. The first of three milling circuits was successfully commissioned in May, followed by the commencement of stockpile processing and the production of the first copper concentrate of 3,216 tonnes. Approximately 2.1 million tonnes of ore was processed at an average head grade of 0.23% and recoveries of 67%. The total stockpile is estimated at approximately 38 million tonnes of mineralized ore at varying grades, containing approximately 70,000 tonnes of recoverable copper, sufficient to support twelve months of processing at current rates. Total site employment increased from approximately 2,350 employees in early April to 3,000 employees by the end of June, supporting commissioning, maintenance, and operational activities. Copper production from the processing of stockpiled ore at Cobre Panamá remains unchanged at 30,000 to 40,000 tonnes in 2026. Following the successful commencement of stockpiled ore processing during the second quarter, the Company’s focus has shifted towards stabilizing the first processing train while progressing the sequential refurbishment, maintenance backlogs and commissioning of other required plant equipment. Concentrate grades are expected to remain low while inspection, repairs and preventive maintenance continue on the regrind and columns area of the process plant. With the power station fully recommissioned, incremental power plant costs are now being partially offset by the sale of excess power to support the national grid. Environmental stewardship remains a core priority. All processing activities will continue to be conducted in accordance with the approved P&SM plan, applicable permits, and environmental commitments, while maintaining close coordination with the GOP. The required capital is estimated at approximately $250 million, primarily comprised of working capital to replenish inventories. Cash outflows are expected to include plant and equipment recommissioning, warehouse inventory replenishment, and sustaining capital¹, with costs currently estimated at approximately $90 million to $100 million for commissioning, $40 million to $50 million for inventory, and $75 million to $100 million in sustaining capital[3]. As of the second quarter of 2026, cash outflows in relation to these costs is approximately $60 million.
• Kansanshi reported copper production of 43,997 tonnes in Q2 2026, a decrease of 1,348 tonnes from the previous quarter due to lower throughput, partially offset by higher grades. Throughput was lower in the quarter due to planned maintenance of the S3 and mixed circuits. S3 throughput was sustained above design capacity in the second quarter, achieving the highest monthly processed tonnes in May 2026 since commissioning in August 2025, driven by higher operating time, strong utilization and milling rates. This supported increased processing of long‑term, lower‑grade stockpiles. S3 continues to take a high proportion of feed from surface stockpiles which are tarnished and lower in grade than fresh mined ore. Copper C1 cash cost¹ of $2.16 per lb was $0.47 higher quarter-over-quarter due to higher fuel and consumable costs and lower gold by-product credits. Copper production guidance for 2026 remains unchanged at 175,000 to 205,000 tonnes, while gold production guidance is maintained at 110,000 to 120,000 ounces. This is supported by higher S3 throughput sourced from low‑grade lower-recovery stockpiles following year-to-date performance and the rescheduling of crusher concave reline to next year. While ore will be predominately sourced from low-grade stockpiles, fresh ore from the South East Dome, that is harder and higher grade, will be gradually introduced in the S3 circuit in the second half of the year. The smelter optimization continues towards 1.6Mtpa as feed quality improves. Through proactive management of feed blends and acid inventories, acid sales in the second quarter totaled approximately 36,000 tonnes and are expected to continue in the third quarter, benefitting from increased acid prices. The surplus acid available for third-party sales totaled $12 million during the second quarter, benefitting from higher global and regional sulphuric acid prices to capture additional margin and generate incremental revenue while maintaining operational flexibility.
• Sentinel reported copper production of 50,335 tonnes in Q2 2026, 5,083 tonnes higher than the previous quarter as higher grades and recoveries offset lower throughput. Throughput was impacted by the annual planned total plant shutdown at Trident that was completed in June. Mitigation strategies for ball mill flange bolt fatigue are ongoing in collaboration with the Original Equipment Manufacturer (“OEM”) and engineering consultants. Planning continues for a major upgrade in 2027, which will involve replacing a section of the discharge end with a new OEM design, providing a permanent engineered solution. Copper C1 cash cost¹ of $2.84 per lb was $0.60 lower than the preceding quarter primarily as a result of higher production volumes. While higher diesel prices impacted costs in the second quarter, this was offset by lower employee costs. Production guidance for 2026 remains unchanged at 190,000 to 220,000 tonnes of copper. The focus at Sentinel remains on increasing mill throughput and improving recoveries through initiatives to optimize feed grade, blast fragmentation, stockpile management, milling performance, and flotation efficiency. Grades are expected to improve in the second half of 2026 as mining progresses within Stage 2. Stage 3 ore will increasingly supplement feed from Stage 1 and Stage 2.
• Enterprise produced 11,246 tonnes of nickel in the second quarter of 2026, a 9% decrease from the previous quarter mainly due to the annual planned total plant shutdown at Trident, which was successfully completed during June. Nickel C1 cash cost¹ of $2.75 per lb is $0.23 higher than the previous quarter due to lower production volumes. Production guidance for 2026 is maintained at 30,000 to 40,000 tonnes of contained nickel at a nickel unit cost guidance of $3.25 to $4.25 per lb. Operational priorities remain focused on improving ore quality and grade control through ongoing RC drilling. Mining practices are being refined, including reduced ore bench heights, to minimize dilution and enhance recovery. Ore grades are expected to be lower in the third quarter, in-line with the mine plan. The development of permanent ramps is underway to improve mining productivity. The pit dewatering Stage Tank Pad is scheduled to be handed over to Projects in early July, after which mining activities will focus on increasing the ore footprint through lowering current cutbacks, sump development, and South Wall mining in preparation for the rainy season.
• At Guelb Moghrein, copper and gold production totalled 2,031 tonnes and 6,310 ounces, respectively. Production guidance for 2026 is maintained at 7,000 tonnes of copper and 30,000 to 40,000 ounces of gold. The operation will continue processing sulphide copper ores plus gold containing tailings through CIL during 2026, with intermittent stockpiled oxide gold ore treatment to support the most favourable transition to full oxide ore gold production.

FINANCIAL HIGHLIGHTS

Financial results for the second quarter of 2026 include:

• Gross profit for the second quarter of $297 million was $19 million higher than Q1 2026, and EBITDA[4] of $400 million for the same period was $74 million higher, due to higher copper sales volumes and realized copper prices. A gross loss of $44 million from Cobre Panamá was included in the second quarter results.
• EBITDA1 of $400 million, includes losses of $164 million realized under the Company’s sales hedge program and a negative EBITDA1 contribution from Cobre Panamá of $51 million associated with P&SM costs prior to the commencement of production. As at June 30, 2026, all sales hedges were completed and the Company has no commodity contracts designated as hedged instruments.
• Cash flow from operating activities of $130 million ($0.16 per share[5]) for the quarter is attributable to net earnings of $78 million along with favourable movements in working capital.
• Net debt[6] increased by $123 million during the quarter to $5,407 million at June 30, 2026, primarily attributable to capital expenditures of $322 million and taxes paid of $199 million, partially offset by EBITDA[7] contributions of $400 million.