First Quantum Minerals reports on its operations

Total copper production for the second quarter was 102,709 tonnes, a 2% increase from Q1 2024. Copper sales volumes totaled 94,628 tonnes, approximately 8,081 tonnes lower than production due to the timing of shipments and vessel delays at Walvis Bay, Namibia and Dar-es-Salaam, Tanzania related to weather, port congestion and schedule disruptions. Copper C1 cash cost¹ was $0.29 per lb lower quarter-over-quarter at $1.73 per lb, benefiting from strong gold by-product credits.

• Kansanshi’s copper production of 41,507 tonnes in Q2 2024 was 10,034 tonnes higher than the previous quarter as a result of higher feed grades on the sulphide and mixed circuits. Grades improved due to higher-grade material from the Main 15 and Main 17 cutbacks, predominately from mining at higher elevation. Copper C1 cash cost¹ of $1.51 per lb was $0.83 lower quarter-over-quarter due to higher by- product credits as a result of improved gold production and stronger gold prices. Production guidance for 2024 is maintained at 130,000 to 150,000 tonnes of copper and 65,000 to 75,000 ounces of gold. Copper grades are expected to modestly improve over the course of the year as mining progresses at higher elevation areas with higher-grade material from the Main 15 and Main 17 cutbacks. A swap of the mixed and sulphide mills is planned for the third quarter of 2024 in order to maximize mixed grade through the mills during this period.
• Sentinel reported copper production of 53,595 tonnes in Q2 2024, approximately 8,630 tonnes lower than the previous quarter. The decline in production was due to lower grades in the second quarter, which was expected given the exceptionally strong grades in Q1 2024. The ongoing Stage 3 (Western Cut-back) development progressed well during the second quarter with the in-pit crusher successfully commissioned ahead of schedule and below budget and enabled access to softer ore. Copper C1 cash cost¹ of $1.94 per lb is higher than the preceding quarter, reflecting lower production volumes. Copper production guidance for 2024 is maintained at 220,000 to 250,000 tonnes. Mining performance and throughput is expected to continue to improve over the remainder of the year with the ongoing development of Stage 3, which will enable improved mining productivities and increased availability of softer material on shorter haul cycles.
• Enterprise produced 6,147 tonnes of nickel during the second quarter, an increase from 4,031 tonnes in Q1 2024. The first half of the year has yielded consistently positive results, meeting expectations and supporting the recommendation to declare commercial production as of June 1, 2024. Mining volumes are steadily improving and ramping up in accordance with the mobilization strategy and enhanced contractor fleet asset management. The plant performance has been strong, with increased fresh feed leading to higher recovery rates and a focus on optimising recovery for each ore type. An increase in mining volumes is anticipated through the dry season with a focus on the South Wall cutback and sinking the pit sump in preparation for the wet season. Ore variability controls will be prioritized as mixed oxides with lower feed grade will be primarily processed in September and October of 2024, but nickel production consistency is expected to be maintained through higher throughput at full plant capacity and stable milling rates. Production guidance for 2024 has been narrowed to 17,000 to 20,000 contained tonnes of nickel (previously 10,000 to 20,000 tonnes).
• Cobre Panamá currently remains in a phase of P&SM with production halted and production guidance suspended. During the second quarter, the process plant preservation and maintenance cycle was changed from 14 to 28 days, with equipment being run and monitored. This new maintenance cycle allows for the completion of outstanding work and corrective maintenance activities required to maintain the integrity of the assets. Furthermore, 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. This equipment will be required as part of the P&SM plan that is awaiting approval by the Ministry of Commerce and Industries. The costs for the P&SM program in the second quarter were approximately $17 million per month. For the remainder of the year, P&SM expenses are expected to be $15 to $20 million per month, depending on the level of environmental stability and asset integrity programs. Approximately 121 thousand dry metric tonnes of copper concentrate remains onsite. The sale of this concentrate will result in a net cash inflow of approximately $265 million at current market prices. Relevant ministries and government agencies (a cross-government committee) conducted an inspection at site. In the report of this committee, it was recommended that the copper concentrate be exported and the power plant be re-started.
• At Ravensthorpe, nickel production for the second quarter totaled 1,253 contained tonnes of nickel, compared to 3,740 tonnes in Q1 2024. Ravensthorpe was placed into care and maintenance from May 2024. Preparation and cleaning of plant and equipment for care and maintenance that commenced in May 2024 will be finalized in the first few weeks of the third quarter of 2024. Activity will be focused on execution of preventative maintenance plans that have been developed with equipment being run and monitored to help maintain it in good working condition. In addition, the Company continues to support its personnel and local regional communities through the change in circumstances at Ravensthorpe. Care and maintenance costs for Ravensthorpe are expected to be approximately $5 million per month for the third quarter and reduce to approximately $2 million per month from the fourth quarter onwards. Production guidance has been lowered to 5,000 contained tonnes of nickel (previously 12,000 to 17,000 tonnes) to reflect the closure.

FINANCIAL HIGHLIGHTS

Financial results continue to be impacted by Cobre Panamá being in a phase of P&SM, however, the second quarter benefitted from strong copper and gold prices.

• Gross profit for the second quarter of $333 million was $177 million higher than Q1 2024, while EBITDA1 of
  $336 million for the same period was $156 million higher.
• Cash flows from operating activities of $397 million ($0.48 per share2) for the quarter were $12 million lower than Q1 2024.
• Net debt3 increased by $160 million during the quarter, attributable mainly to planned higher capital expenditures at Kansanshi, bringing the net debt3 level to $5,437 million, with total debt at $6,313 million, as at June 30, 2024.