First Quantum Minerals Reports Third Quarter 2017 Results

TORONTO, Oct. 26, 2017

TORONTO, Oct. 26, 2017 /PRNewswire/ - First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM") today announced a comparative loss¹ of $28 million ($0.04 per share¹), net loss from continuing operations attributable to shareholders of the Company¹ of $52 million ($0.08 per share) and cash flows from continuing operating activities of $267 million ($0.39 per share¹) for the three months ended September 30, 2017.  The results include a $157 million loss realized under the copper sales hedge program for which no tax credit is available.

THIRD QUARTER 2017 SUMMARY²

• Good Overall Operational Performance:
• Continued strong copper production³ with 145,376 tonnes:
• The Sentinel mine turned in its strongest performance to date despite reduced power supply for about a five-week period:
• Its throughput increased to 11.4 million tonnes of ore, average recovery improved to 89%, production reached 53,533 tonnes of concentrate and unit cost lowered to $2.05 and $1.62 per pound for all-in sustaining cost and cash cost, respectively.
• Maintained low unit copper production cost⁴: All-in sustaining ("AISC") = $1.75 per pound; Cash cost ("C1") = $1.21 per pound; Total cost ("C3") = $2.03 per pound.
• Set a new quarterly copper sales record of 148,894 tonnes: Reduced copper anode inventory to approximately 36,000 tonnes from about 56,000 tonnes at the end of the second quarter.

• A Robust Project Development Program:
• Cobre Panama development capital estimate revised; project advanced to 63% completion:
• Our estimate now stands at $5.71 billion. This includes the cost of rectification of certain components of the power station, additional spare equipment purchases and several improvements derived from our experience at both Sentinel and the Kansanshi smelter, which are expected to benefit start-up, operations and future sustaining capital. We continue to evaluate other enhancements including the installation of an eighth mill – which would increase throughput further but together with additional pre-stripping, would add to the current estimate.
• Capital estimate for 2017 is now $1,250 million with our share being $750 million assuming the current 80% ownership.
• Commissioning activities for the first generating set of the power station and shared facilities are progressing well.
• The entire project remains scheduled for phased commissioning during 2018, with continued ramp-up over 2019.
• We are continuing environmental impact assessment studies at our advanced-stage exploration projects, Haquira and Taca Taca, with the aim of having the necessary information available to support go-forward decisions in 2019.

• Continuing To Further Strengthen The Balance Sheet And Manage Operational And Price Risk:
• On October 19, 2017, we signed an agreement to refinance our corporate facilities with a new $2.2 billion Facility that has improvements to the interest rate, financial covenants and amortization schedule.
• We continue to advance the process to put in place project financing for the Cobre Panama project towards completion and drawdown expected in the first quarter of 2018.
• At October 26, 2017, our copper sales hedge program consisted of unsettled and unmargined sales hedges for 184,250 tonnes with maturities to September 2018 at an average price of $2.51 per pound and zero cost collar unmargined sales contracts for 120,500 tonnes at a spread of $2.56 - $3.37 per pound with maturities to December 2018.
• We remain in full compliance with all financial covenants and ended the quarter with $508 million of committed undrawn facilities and $476 million in net unrestricted cash and net cash equivalents.

• Corporate And Other Developments:
• Kansanshi and Sentinel are being provided unrestricted power for the first time since July 2015:
• This follows an agreement on a tariff increase, to approximately $0.09 per kilowatt hour, provided we can import a portion of our total power requirements from alternative suppliers.
• Increasing our ownership in Minera Panama, which holds the concession to Cobre Panama, to 90%:
• We expect to close this agreement and the associated additional precious metals stream agreement in the fourth quarter.
• Ravensthorpe Placed On Care And Maintenance Effective October 2017:
• No impairment of the operation has been recognized based on the higher longer term consensus nickel price.
• We are reviewing market conditions regularly for the potential restart of operations while continuing with the permitting process for the Shoemaker Levy deposit.

¹ Net earnings (loss) attributable to shareholders of the Company and Earnings before interest, tax, depreciation, amortization and impairment ("EBITDA") have been adjusted to exclude items which are not reflective of underlying performance to arrive at comparative earnings (loss) and comparative EBITDA. EBITDA, comparative earnings (loss), comparative earnings (loss) per share, comparative EBITDA and cash flows per share are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors. Refer to the "Regulatory Disclosures" section in the MD&A for the quarter ended September 30, 2017 for further information.

² On June 1, 2016 the sale of the Kevitsa mine was completed. In accordance with the requirements of IFRS 5 - Non-current assets Held for Sale and Discontinued Operations, the financial and operating information presented for 2016 exclude the Kevitsa mine.

³ Production is presented on a copper contained basis, and is presented prior to processing through the Kansanshi smelter.

⁴ AISC, C1 and C3 cost per pound are not recognized under IFRS. Refer to the "Regulatory Disclosures" section in the MD&A for the quarter ended September 30, 2017 for further information.