First Quantum Minerals Ltd FQVLF

Cobre care and maintenance

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• Cobre Panam 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.