First Quantum Minerals Ltd.

Welcome to the first Quantum Minerals Limited.

Throughput improved at each of Copper Panama, Kansanshi, and Sentinel. Copper C1 cash costs in the third quarter improved considerably at all three of the operations. Group-wide C1 costs averaged $1.42 per pound during the third quarter, a $0.56 per pound improvement over the second quarter, which was primarily driven by the higher production volumes although there was an easing in some input costs, which Ryan will speak to in his remarks. At Cobre Panama, the operation delivered record copper production of 113,000 tons, 25% higher than the second quarter as grade improved and mold throughput was higher with the continued successful ramp-up of the CP100 expansion project. Throughput was over 24 million tons during the quarter, and we remain on track to exit 2023 at a consistent and reliable annualized rate of 100 million tons through the plant. There is currently a drought in Panama, which is impacting water levels in the Panama Canal and has led to some vessel restrictions. At this time, the Copper Panama operations are not impacted by the canal, with most of the mine supplies sourced from South America and delivered through our own port. With regards to concentrate shipments, the only impact on Cobre Panama are slightly longer voyage times for concentrate shipments to customers based in Asia that have not chosen alternative shipping routes. Moving over to Zambia, at Kinsanchi, copper production of approximately 40,000 tons was nearly 5,000 tons higher than in the second quarter. Production during the third quarter continued to focus on mining cutbacks at elevated benches with higher grades, and this is expected to continue into the fourth quarter. At Sentinel, grades continued to improve in the third quarter, allowing for copper production to improve by nearly 10,000 tons to 64,000 tons in Q3. The improved copper production was driven predominantly by higher grades while throughput was challenged by hard ore found in the lower levels of stage one and two pits. This harder ore impacting mining, crushing, and milling rates during the quarter and is expected to continue into the fourth quarter. As such, along with the challenges experienced earlier in the year at Sentinel, 2023 production guidance has been lowered for the operation which Kristen will address in his closing remarks. Thank you, and I will now hand the call over to Ryan to review the financials. Thank you, Rudy.

The copper price was broadly flat quarter on quarter, averaging $3.79 per pound in Q3, 1% lower than in Q2. However, copper prices fell towards the end of the quarter to just over $360 per pound, as expectations of higher for longer interest rates, with a knock-on impact on industrial activity, and rising geopolitical tensions have led to a risk-off market sentiment. Despite this, copper demand, particularly in China, remains robust on the back of continued electric grid and electric vehicle spending, a reminder that the lifeblood of energy transition will flow through copper veins. As Rudy described, production was very strong through the quarter and resulted in a 23% increase in copper sales to 219,000 tons, which is a record for first quantums. This meant that despite the flat copper price, revenues increased by 23% to $2 billion. As Rudy also noted, there's a drought in Panama that has led to longer voyage times through the canal for some of our shipments. Based on the structure of these contracts, however, the company's revenue recognition and timing of cash receipts on these shipments is not impacted by these delays. The record quarterly copper production also benefited unit costs. helping drive copper C1 cash costs down 28% to $1.42 per pound. Cash costs also benefited from higher byproduct credits as well as lower consumable costs, as fuel, sulfur, and explosive prices all reduced compared to the previous quarter. It is worth noting that Brent crude oil prices increased from $75 per barrel at the beginning of the quarter to $92 per barrel at the end, driven by OPEC cuts and tension in the Middle East. This is the potential to impact costs towards the end of the year once existing fuel inventories are worked through. On labor costs, it was pleasing to see the CoBridge Panama Collective Bargaining Contract successfully signed in September. This agreement will be enforced for the next four years, providing more certainty in our labor spend. More broadly on costs, we have narrowed our C-1 guidance for the year to $1.75 to $1.85 per pound. This mostly reflects a weaker copper production at Sentinel and H1, offset by the strong production in Q3 across the other sites, and the expected strong end to 2023. Slide 17 highlights that third quarter EBITDA increased 71% to $969 million, the highest in the last year. The significant increase was as a result of the record quarterly sales and lower costs. Net earnings attributable to shareholders increased to $325 million, and adjusted earnings per share increased to $0.52. The effective tax rate has averaged 17% year-to-date, with full-year guidance between 40% and 45%. The effective tax rate in the final quarter will be higher as income tax expense for 2023 is adjusted under the refreshed concession contract to Kobe Panama. As noted in IMDNA, it is intended that the charge relating to the taxes and loyalties up to the year in 2022 will be excluded from 2023 adjusted earnings. So the full year guidance rate of 40% to 45% reflects 2023 tax and royalty payments only. I would also note that the anticipated top-up under the new structure in Panama is treated as a royalty and not a tax in the calculation of effective tax rates. Moving on to our balance sheet. Net debt reduced slightly by $13 million to $5.64 billion this quarter. Despite strong EBITDA growth, net debt was impacted by unfavorable changes in working capital, the successful completion of the LaGrania acquisition and the resulting $105 million payment to Rio Tinto, and an increase in CapEx spend of $49 million. The increase in CapEx reflects the steady progress in the S3 expansion project at Consanche, which Tristan will describe later. Lastly, on capital allocation. Current copper prices are well below the level needed to incentivize greenfield developments, particularly when one considers the high CapEx and OpEx inflation in recent years. For context, in real terms, this week's opening cost per price of $3.54 per pound is equivalent to a price of around $2.90 per pound in 2018. Our capital allocation focus, therefore, remains on strengthening the balance sheet and less capital-intensive brownfield projects like S3. rather than allocating any material capital to our portfolio of greenfield projects. Additionally, with CP100 commissioned in Q1 and Enterprise now producing nickel concentrate, the brownfield expenditure on two of our three key projects is behind us, with the production growth to come as Cobra Panama and Enterprise ramp up. Current liquidity remains strong at $2.3 billion, supported by the issuance of the $1.3 billion eight-year bonds in the previous quarter. This positions us well to cover the COVID Panama taxes and royalties, which are payable soon as a result of finalizing the legal framework in Panama. Total payments for the year will be comprised of taxes and royalties for up to the year end 2022 of $395 million, of which $45 million is already paid, and approximately another $215 million will be payable soon to cover the first three quarters of 2023, resulting in a near-term payment of $565 million. For 2023 as a whole, based on current copper prices, we expect a total payment of $375 million for the year. That includes a top-up payment. This will result in a total tax and royalties payable for 2022 and 2023 in Panama of $770 million. And that brings the finance section to an end. I'll now hand the call back to Tristan.