First Quantum Minerals Reports Operational and Financial

First Quantum Minerals Reports Operational and Financial Results for
the Three and Nine Months Ended September 30, 2012 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/31/12 -- First
Quantum Minerals Ltd. (TSX:FM)(LSE:FQM) -  
(In United States dollars, tabular amounts in millions, except where
noted) 
First Quantum Minerals Ltd. ("First Quantum" or the "Company") today
announced its results for the three and nine months ended September
30, 2012. The complete financial statements and management's
discussion and analysis are available for review at
www.first-quantum.com and should be read in conjunction with this
news release. 
First Quantum's President, Clive Newall, will host a conference call
and live webcast to discuss the results on Thursday, November 1, 2012
at 6:00 am (PST); 9:00 am (EST); 1:00 pm (BST). The call and webcast
will be available on www.first-quantum.com and by dialing
416-340-8530 or toll free in North America on 877-240-9772. 
First Quantum's results have been prepared in accordance with
International Financial Reporting Standards ("IFRS"). 


 
SUMMARIZED OPERATING AND FINANCIAL RESULTS
 
                                       ------------------------------------
                                       Three months ended Nine months ended
                                             September 30      September 30
                                       ------------------------------------
(USD millions unless otherwise noted)       2012     2011     2012     2011
---------------------------------------------------------------------------
Copper production (tonnes)(1)             84,144   58,785  222,198  198,260
Copper sales (tonnes)                     77,396   71,443  217,896  207,619
Cash cost of copper production (C1)(2)                                     
 (per lb)                                  $1.44    $1.52    $1.51    $1.37
Realized copper price (per lb)             $3.45    $3.84    $3.53    $4.04
Nickel production (contained tonnes)(1)    9,916        -   26,663        -
Nickel sales (contained tonnes)            7,120        -   22,298        -
Cash cost of nickel production (C1)(2)                                     
 (per lb)                                  $6.24        -    $5.88        -
Realized nickel price (per lb)             $7.69        -    $8.04        -
Gold production (ounces)(1)               50,784   41,468  137,559  131,701
Gold sales (ounces)                       48,889   47,458  140,953  131,233
---------------------------------------------------------------------------
Sales revenues                             724.8    651.0  2,175.8  2,016.2
Gross profit                               261.0    322.6    806.0  1,125.3
EBITDA(2)                                  276.2    279.2  2,051.5  1,051.6
Net earnings attributable to                                               
 shareholders of the Company               107.3     90.9  1,586.2    452.9
Earnings per share                         $0.23    $0.20    $3.35    $1.03
Diluted earnings per share                 $0.23    $0.20    $3.33    $1.03
---------------------------------------------------------------------------
Comparative earnings(3)                    107.3    139.3    368.3    501.3
Comparative earnings per share(3)          $0.23    $0.30    $0.78    $1.14
---------------------------------------------------------------------------
 
(1) Includes copper, nickel and gold produced at Kevitsa during
    pre-commercial production up to August 18, 2012. See "Summary of
    results" for further information.
(2) Cash costs (C1) and EBITDA are not recognized under IFRS. See
    "Regulatory Disclosures" for further information.
(3) Earnings attributable to shareholders of the Company have been adjusted
    to remove the effect of unusual items to arrive at comparative earnings.
    Comparative earnings and comparative earnings 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. See "Regulatory Disclosures" for a
    reconciliation of comparative earnings.

 
Commercial production achieved at the Kevitsa mine 


 
--  Commercial production achieved on August 18, 2012 following a successful
    commissioning and rapid ramp-up phase at the nickel and copper
    operation. This is the second project successfully commissioned by the
    Company during the past year. 

 
Copper production up 43% over Q3 2011 as a result of record quarterly
production at Kansanshi 


 
--  Total copper production increased significantly due to higher grade,
    throughput and recovery at Kansanshi resulting from mine pit
    developments and plant expansions. Guelb Moghrein increased production
    despite the loss of 12 production days related to an illegal labour
    dispute in July. 
--  Total nickel production benefitted from a contribution of 1,884 tonnes
    from Kevitsa and steady operations at Ravensthorpe. 
--  Total gold production was 22% higher than Q3 2011 due to the
    contribution of 2,713 ounces from Kevitsa and higher recovery at
    Kansanshi. 

 
Comparative earnings decreased from Q3 2011 as a result of lower
copper prices and higher cost of sales 


 
--  Sales revenues increased by $73.8 million to $724.8 million as a result
    of revenue contributions from Ravensthorpe and Kevitsa, higher copper
    and gold sales volumes, offset partially by the impact of 13% lower LME
    copper prices. 
--  Cost of sales increased by $135.4 million to $463.8 million due
    primarily to the addition of operating costs from Ravensthorpe and
    Kevitsa, a higher Zambian royalty rate and the sale of higher-cost
    inventory from Q2 2012. 
--  Cash costs of copper production decreased to $1.44 per pound as higher
    overall production and ore grades outweighed increased acid costs
    related to processing higher acid-consuming ore at Kansanshi. 

 
Development projects continue according to plan 


 
--  The fifth Kansanshi acid plant is scheduled to be operational during Q4
    2012 which will allow for utilization of the expanded 7.2 million tonne
    per annum ("Mtpa") oxide circuit capacity. 
--  The stage two oxide expansion to 14.5 Mtpa at Kansanshi continues and is
    scheduled for commissioning in the first half of 2013. 
--  Detailed design works on the Kansanshi smelter project are well
    progressed and all major equipment packages have been ordered.
    Structural and mechanical installation is expected to commence in early
    2013. 
--  Significant progress made at the Sentinel project on earth works, civil
    works and the advancement of detailed design engineering. 

 
Strong financial position maintained to finance development projects 


 
--  Cash and available debt facilities amount to $1.6 billion as at
    September 30, 2012. 
--  On October 10, 2012, the Company completed the issuance of $350.0
    million of Senior Notes due in 2019. Interest on the senior notes is
    payable semi-annually at a rate of 7.25% per annum 

 
Operational outlook for 2012 


 
--  Expected production increased to approximately; 285,000 to 295,000
    tonnes of copper, unchanged at 36,000 to 40,000 tonnes of contained
    nickel and increased to approximately 175,000 to 190,000 ounces of gold.
--  Expected average C1 cash cost for copper operations reduced to
    approximately $1.50 per pound of copper. 
--  Expected average C1 cash cost for Ravensthorpe reduced to approximately
    $6.20 per pound of nickel. 
--  Expected total capital expenditure of approximately $1.5
    billion in 2012. 

 
OPERATIONS 


 
                                       ------------------------------------
                                       Three months ended Nine months ended
Kansanshi Copper and Gold Operation          September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Sulphide ore tonnes milled (000's)         2,763    2,185    6,575    7,227
Sulphide ore grade processed (%)             0.9      0.4      1.0      0.7
Sulphide copper recovery (%)                  92       88       93       93
                                                                           
Mixed ore tonnes milled (000's)            1,955    2,057    6,610    5,391
Mixed ore grade processed (%)                1.0      0.9      1.1      1.0
Mixed copper recovery (%)                     77       61       67       64
                                                                           
Oxide ore tonnes milled (000's)            1,500    1,594    4,472    4,580
Oxide ore grade processed (%)                2.6      2.3      2.2      2.3
Oxide copper recovery (%)                     84       84       85       86
                                                                           
Copper production (tonnes)                71,484   50,179  190,920  171,132
Copper sales (tonnes)                     65,830   61,102  188,125  181,796
                                                                           
Gold production (ounces)                  35,245   26,677   90,647   82,706
Gold sales (ounces)                       33,510   29,592   92,980   86,746
                                                                           
Cash costs (C1) (per lb)(1)                $1.46    $1.56    $1.50    $1.35
Total costs (C3) (per lb)(1)               $1.86    $1.90    $1.87    $1.67
                                                                           
---------------------------------------------------------------------------
Sales revenues                             507.1    521.6  1,485.6  1,642.6
Gross profit                               223.8    266.7    691.4  1,000.9
EBITDA(1)                                  240.4    298.4    744.8  1,060.7
---------------------------------------------------------------------------
 
(1) C1 and C3 costs and EBITDA are not recognized under IFRS. See
"Regulatory Disclosures" for further information.

 
Copper production increased by 42% from Q3 2011, to a quarterly
record, due to higher ore grades, throughput and recoveries in Q3
2012. Ore grades benefited from improved access to mining areas and
an increase in availability of sulphuric acid in the period, which
allowed for the treatment of some high grade, high acid-consuming
ore. 
Sulphide copper production was significantly higher than Q3 2011 due
to increased throughput and ore grades processed in Q3 2012. Q3 2011
ore grades were impacted by a change in the mine plan which
temporarily reduced the mining of higher grade sulphide ore in favor
of pit development activity. This ongoing mine pit development has
now established significantly wider pits and improved access to
various ore types at target grades to coincide with the plant
expansions underway. Throughput was higher in Q3 2012 due to a
circuit reconfiguration in the prior year which temporarily reduced
the capacity of the sulphide circuit. 
The mixed ore circuit benefited from higher recovery and steady
throughput in Q3 2012. The improved recovery was driven by a more
favorable blend of sulphide and oxide ore processed in Q3 2012. Mixed
ore throughput exceeded the 6.5 Mtpa design capacity in Q3 2012 as a
result of a focus on reducing process disturbances in conjunction
with improving plant availability and utilization. 
Copper production from the oxide circuit increased from Q3 2011 as
reduced throughput was more than offset by improved ore grades
processed in Q3 2012. An increase in the availability of sulphuric
acid enabled the treatment of higher grade, higher acid consuming
oxide ore in Q3 2012. 
Gold production was 32% higher than Q3 2011 due to higher overall
throughput and improved recovery. The continued gold circuit
enhancements and improvements have resulted in a higher proportion of
gold recovered in dore, which is not subject to the smelter
deductions applied to gold recovered from concentrate. 
Q3 2012 C1 costs decreased by $0.10/lb from Q3 2011. C1 costs
benefited from the unit cost effect of producing 42% more copper, as
the increased production was driven primarily by higher grades and
recoveries. This benefit outweighed higher acid costs related to
processing higher acid-consuming ore during Q3 2012. 
Gross profit was lower than Q3 2011 due primarily to lower realized
copper prices and higher royalty rates. The Zambian royalty rate was
increased from 3% to 6%, effective April 2012, resulting in an
increase of $15.5 million in the royalty expense in Q3 2012. Cost of
sales increased in Q3 2012 due to the sale of higher-cost inventory
which was produced in the prior period. 
Outlook 
The main areas of focus continue to be on sulphuric acid supply and
increasing the flexibility of ore sources for the three circuits.
Available mining areas continue to increase as planned with several
new areas in the Main and North-West pits now providing ore. Further
improvements are anticipated with additional plant operational
efficiency and flexibility afforded by multiple concurrent mining
areas. 
The benefit of the 7.2 Mtpa oxide circuit upgrade is expected to be
realized in Q4 2012, coinciding with the commissioning of the fifth
acid plant. The additional leach and CCD capacity in the oxide
process circuit is expected to contribute to maximizing output from
available ore through improved recovery, as well as providing the
capacity to efficiently operate at higher treatment rates. 
In the medium term, some of Kansanshi's mining areas for oxide ore
are characterized as high grade, high acid-consuming ore. Currently
the supply of sulphuric acid from acid plants requires the import of
sulphur at high costs. Consideration will be given to withholding the
high grade, high acid-consuming ore from production until acid is
provided at minimal cost from the Kansanshi smelter. In this event,
the capacity of the oxide expansions and fifth acid plant may not be
fully exploited. 


 
                                       ------------------------------------
Guelb Moghrein Copper and Gold         Three months ended Nine months ended
 Operation                                   September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Sulphide ore tonnes milled (000's)           687      668    2,236    2,057
Sulphide ore grade processed (%)             1.3      1.4      1.3      1.4
Sulphide copper recovery (%)                  94       91       91       91
Copper production (tonnes)                 8,656    8,606   26,632   27,126
Copper sales (tonnes)                      8,962   10,332   27,167   24,173
                                                                           
Gold production (ounces)                  12,827   14,791   43,718   48,995
Gold sales (ounces)                       13,631   17,866   46,225   44,487
                                                                           
Cash costs (C1) (per lb)(1)                $1.43    $1.33    $1.63    $1.40
Total costs (C3) (per lb)(1)               $1.93    $1.89    $2.20    $2.14
                                                                           
---------------------------------------------------------------------------
Sales revenues                              85.6    102.4    267.1    249.0
Gross profit                                24.3     52.4     70.2    124.3
EBITDA(1)                                   29.6     58.2     88.2    138.8
---------------------------------------------------------------------------
 
(1) C1 and C3 costs and EBITDA are not recognized under IFRS. See
"Regulatory Disclosures" for further information.

 
Q3 2012 Copper production was consistent with Q3 2011 despite the
loss of 12 days of production following an illegal strike action by
some unionized employees in July 2012. 
Throughput rates during Q3 2012 benefited from mill optimization
works and improved blast fragmentation aimed at achieving steady
state operations. Copper recovery increased as a result of longer
flotation residence time following a circuit reconfiguration during
the quarter. Copper grades in 2012 reflect the current ore profile in
the pit and are expected to remain at these levels in the future. 
Gold production was lower than Q3 2011 due to reduced gold grade and
recovery. 
C1 costs were higher in Q3 2012 due to a $0.28/lb lower gold credit
resulting from lower gold sales volumes, however cash operating costs
were lower than Q3 2011 due to cost reductions in mining and
processing related to reduced maintenance costs in Q3 2012. 
Gross profit was lower than Q3 2011 as a result of lower realized
copper prices and lower sales volumes. 
Outlook 
Process plant enhancements continue with a focus on consistent
operation at steady state to maximize product recovery and
concentrate quality. Additional mining equipment, to facilitate
higher mine production rates, is planned for commissioning in Q4
2012. 


 
                                       ------------------------------------
                                       Three months ended Nine months ended
Ravensthorpe Nickel Operation                September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Beneficiated ore tonnes processed                                          
 (000's)                                     733        -    2,125        -
Beneficiated ore grade processed (%)         1.4        -      1.5        -
Nickel recovery (%)                           77        -       77        -
Nickel production (contained tonnes)       8,032        -   24,658        -
Nickel sales (contained tonnes)            6,272        -   21,450        -
                                                                           
Nickel production (payable tonnes)         6,188        -   19,009        -
Nickel sales (payable tonnes)              4,790        -   16,432        -
                                                                           
Cash costs (C1) (per lb)(1)                $6.43        -    $5.94        -
Cash costs (C3) (per lb)(1)                $7.84        -    $7.22        -
                                                                           
---------------------------------------------------------------------------
Sales revenues                              81.3        -    293.4        -
Gross profit (loss)                         (1.6)       -     39.7        -
EBITDA(1)                                    6.4        -     67.7        -
---------------------------------------------------------------------------
 
(1) C1 and C3 costs and EBITDA are not recognized under IFRS. See
"Regulatory Disclosures" for further information.

 
Q3 2012 nickel production was in-line with plan as a result of steady
state operation of the complete circuit. Crushing plants and ore
beneficiation continue to operate above plan and ore supply from the
buffer ponds is allowing for scheduled maintenance to be undertaken
without full plant shutdowns. Mining activity increased from prior
periods and the majority of ore feed was sourced from the pit for the
first time since the start of operations. 
Nickel cash costs per payable pound have increased from prior periods
due to increased mining costs, consumables costs and realization
costs. Ore was sourced largely from existing ore stockpiles during
the first half of 2012. Ore costs have increased in Q3 2012 as the
mining operations moved to the mine pit, resulting in additional
costs related to waste stripping and drill and blast activity. Q3
2012 C1 costs were also higher due to the unit cost impact of
processing lower grade ore. 
Outlook 
Circuit developments and enhancements in the beneficiation area are
expected to result in improvements in plant utilization and reduce
flocculent consumption in 2013. 
Various options are also being explored to improve the payable nickel
content in order to increase revenue from sales. 


 
                                       ------------------------------------
                                       Three months ended Nine months ended
Kevitsa Nickel and Copper Operation    September 30, 2012      September 30
                                       ------------------------------------
                                            Post-     Pre-                 
                                          commer-  commer-                 
                                            cial     cial                  
                                          produc-  produc-                 
                                            tion     tion     2012     2011
---------------------------------------------------------------------------
Ore tonnes milled (000's)                    687      720    1,725        -
                                                                          -
Nickel ore grade processed (%)              0.25     0.22     0.22        -
Nickel recovery (%)                           60       54       53        -
Nickel production (tonnes)                 1,041      843    2,005        -
Nickel sales (tonnes)                        848        -      848        -
                                                        -                 -
Copper ore 
grade processed (%)              0.33     0.34     0.33        -
Copper recovery (%)                           84       87       82        -
Copper production (tonnes)                 1,874    2,130    4,646        -
Copper sales (tonnes)                      2,604    1,040    3,644        -
                                                        -                 -
Gold production (ounces)                   1,431    1,282    3,194        -
Platinum production (ounces)               3,926    3,174    7,685        -
Palladium production (ounces)              3,373    2,827    6,764        -
                                                        -                 -
Nickel cash costs (C1) (per lb)(1)         $3.79        -    $3.79        -
Nickel cash costs (C3) (per lb)(1)         $5.35        -    $5.35        -
Copper cash costs (C1) (per lb)(1)         $0.11        -    $0.11        -
Copper cash costs (C3) (per lb)(1)         $1.49        -    $1.49        -
---------------------------------------------------------------------------
Sales revenues                              35.6        -     35.6        -
Gross profit                                17.5        -     17.5        -
EBITDA(1)                                   23.6        -     23.6        -
---------------------------------------------------------------------------
 
(1) C1 and C3 costs and EBITDA are not recognized under IFRS. See
"Regulatory Disclosures" for further information.

 
The expected ramp up of Kevitsa progressed as planned during Q3 2012
and commercial production was achieved on August 18, 2012 following a
successful and rapid commissioning period. The plant is running well
and production is continuing to ramp up. 
Throughput rates have exceeded plan due to continuous operation of
the autogenous mills. Recoveries have increased consistently during
the commissioning phase, however they are temporarily below
life-of-mine targets due to the weathered nature of ore currently
available in the mine pit. Recoveries are expected to increase as
mining progresses deeper into the ore body in early 2013. 
During the first month of commercial operations, the cash costs for
nickel and copper were temporarily lower than normal operating levels
as a result of higher by-product credits, reduced consumable spares
costs and maintenance costs. The higher by-product credits resulted
from the sale of production from the commissioning phase. Nickel C1
costs of $3.79/lb are net of by-product credits of $2.50/lb and
Copper C1 costs of $0.11/lb are net of by-product credit of $1.41/lb. 
At the current approved throughput rate of 5.5 Mtpa, Kevitsa is
expected to produce approximately 11,000 tonnes of nickel and 20,000
tonnes of copper annually. The Company has submitted an environmental
assessment and application to increase the plant throughput rate up
to a maximum of 10 Mtpa. Liaison with the relevant authorities is in
progress and approval is expected in the first half of 2013. With the
current estimated measured and indicated resource, the increased
throughput rate is expected to increase annual production to
approximately 15,000 tonnes of nickel and 28,000 to 30,000 tonnes of
copper while retaining a mine life in excess of 20 years. 
DEVELOPMENT ACTIVITIES 
Kansanshi expansions, Zambia 
The multi-stage Kansanshi plant upgrade to an annual production
capacity of 400,000 tonnes of copper continued in Q3 2012. The stage
one oxide circuit expansion to 7.2 Mtpa was completed in Q2 and
optimized during Q3 2012. The benefit of this expansion is expected
during Q4 2012 once acid supply is increased with the operation of
the fifth acid plant. 
Progress on the stage two oxide capacity expansion to 14.5 Mtpa
continued with civil works nearing completion and structural
installation underway. Completion remains on target for the first
half of 2013. Acid supply will dictate the rate of oxide treatment
until the smelter is commissioned in mid-2014, however the output of
the five acid plants as well as the current volume of acid that can
be externally sourced will allow for interim treatment rates of
approximately 10 Mtpa. 
In the medium term, some of Kansanshi's mining areas for oxide ore
are characterized as high grade, high acid-consuming ore. Currently
the supply of sulphuric acid from the acid plants requires the import
of sulphur at high costs. Consideration will be given to withholding
the high grade, high acid-consuming ore from production until acid is
available at minimal cost from the Kansanshi smelter. In this event,
the capacity of the oxide expansions and fifth acid plant may not be
fully exploited. 
The second phase of the 400,000 tonne annual production capacity
expansion project is a proposed expansion of the sulphide treatment
facilities by construction of a new section of plant capable of
treating up to 16 Mtpa of sulphide ore. Initial board approval has
been granted to allow design work to commence along with ordering of
long-lead equipment. Construction of this new plant is planned to
commence in 2013. Full project commitment is expected in Q4 2012
following completion of the resource definition drilling program,
which is necessary for detailed mine planning. 
Copper smelter project, Zambia 
Kansanshi's concentrate is currently treated at smelters in Zambia,
however, existing domestic smelting capacity will be insufficient to
process the substantial increase in production resulting from the
Kansanshi expansion and the Sentinel project. The new copper smelter
is designed to process 1.2 million tonnes of concentrate to produce
over 300,000 tonnes of copper metal annually. The smelter is expected
to also produce 1.0 million tonnes of sulphuric acid as a by-product
at a low cost which will benefit Kansanshi by allowing the treatment
of high acid-consuming oxide ores and the leaching of some mixed
ores. The additional acid is also expected to optimize the expansion
of the oxide leach facilities and allow improved recoveries of
leachable minerals in material now classified and treated as mixed
ore. 
Detailed design works on the smelter are well progressed and all
major equipment packages have been ordered. On site, earthworks
construction is approximately 65% complete and concrete pouring is
underway. Structural and mechanical installation will be commencing
in early 2013. The project is scheduled for construction completion
in mid-2014 followed by commissioning and ramp up. 
Sentinel project, Zambia 
A mineral resource and reserve estimate for the Sentinel copper
project was released in March 2012. An estimated measured and
indicated resource of 1,027 Mt at 0.51% copper grade, containing 5.2
Mt of copper has been delineated, inclusive of an estimated
recoverable proven and probable mineral reserve of 774 Mt at 0.50%
copper grade, containing 3.9 Mt of copper. The life of mine strip
ratio is anticipated to be 2.2:1 and the estimated mine life is in
excess of 15 years. 
The project is expected to produce up to 280,000 to 300,000 tonnes of
copper in concentrate annually. 
Project construction activities ramped up in early Q2 2012 following
approval from the Company's Board of Directors. Significant progress
has been made to date including; advancement of detailed design
engineering, completion of process plant earthworks, construction of
a concrete batch plant with over 7,800 cubic metres of concrete
poured and 1,250 tonnes of structural steel fabrication completed. 
The key construction activities for the remainder of 2012 and into
2013 include; arrival of structural and mechanical packages at site,
construction of the tailings storage facility, commencement of tender
packages for the 330kV transmission line and substation, delivery of
first mining fleet and commencement of pre-operating mining works
including the installation of in-pit crushing and completion of
housing for over 200 staff. The Company will continue project
development with an ongoing commitment to social responsibility
within the complete license area. 
Project capital costs are estimated at approximately $1.7 billion
with project completion expected during 2014. 
Exploration 
Exploration programs continued at a high level in most districts with
major drilling campaigns active at Trident and Kansanshi. The Company
has recently entered into two new joint ventures in Peru and Turkey
which are both focused on early stage copper and gold porphyry
opportunities. 
Trident Exploration 
At Trident 10 drill rigs are active split between Enterprise resource
drilling and regional target testing within the Trident license area.
The resource definition drilling over the main Enterprise deposit was
completed during Q3 2012 and geological modelling and resource
estimation on the main Enterprise resource should be finalized in Q4
2012. Resource drilling has now moved on to the adjacent Enterprise
Southwest prospect which has now been broadly delineated but requires
better definition for resource classification. 
Several regional targets were drill tested during 
the quarter. The
best target to date is at 'Bream', approximately 20 kilometres ("km")
northeast of Enterprise, where low grade copper mineralization has
been intersected in several holes. 
Kansanshi 
At Kansanshi 14 core rigs continued operating on the project divided
between incremental resource and reserve additions immediately around
the existing pits and the district exploration program. These
programs are designed to provide enhanced definition of longer term
oxide and sulphide resource potential as well as to test the ultimate
extents of the mineral system. 
Several exploration drill rigs are focused on the final phase of
resource drilling on the Southeast Dome which is nearing completion
with the final resource estimation in process. Further rigs are
working on completing large scale regional cross sections and new
targets northwest and southeast of the current pits. 
A large scale magneto-telurics ("AMT") geophysical survey has been
completed over much of Kansanshi during the period. The majority of
the survey has been very successful in effectively mapping the broad
architecture of the 'Greater Kansanshi Dome'. In combination with the
regional drill transects this AMT survey will allow the delineation
of smaller scale structural domes that are now known to focus
mineralization into the presently defined deposits at Kansanshi.
Several new targets are already apparent that will be drill tested. 
Five rigs are active on resource development drilling around the
Kansanshi pits and continue to report vein intercepts beyond the
current reserve area, particularly around the North-West pit. These
areas continue to add incremental additions to the significantly
increased Kansanshi resource and reserve position. 
Finland 
Approximately 6,500 metres of near mine exploration drilling has been
completed over the last few months. The drilling largely focused on
the Satovaara intrusion which is thought to be a southerly extension
of the Kevitsa intrusive complex. 
Extensive programs of scout drilling and prospect mapping have been
completed over targets on the Kevitsa North and Moykelma projects
during the summer. Although many targets remain inaccessible due to
new government access permitting rules, several areas have been
highlighted for follow up. Diamond drilling is in progress on a
prospect north of Kevitsa where previous drilling has intersected
narrow zones of massive nickel-copper sulphide. A downhole
electro-magnetic survey has identified 'off-hole conductors' that may
represent thicker massive sulphide mineralization. These are the
target of current holes. 
Reconnaissance mapping and prospecting has been completed over
several districts in Scandinavia where conceptual studies have
indicated the potential for copper mineralization in sediments. Some
prospective stratigraphy was identified by the Company during the
mapping and geochemical results are awaited. 
Peru 
Exploration drilling at Haquira has been suspended since January.
Planned recommencement of drilling after the wet season has not been
possible due to delays in granting of drilling and environmental
permits. Although permits for drilling from the Environmental and
Mines departments have been received, a new layer of permitting for
'permission to commence exploration' requiring identification and
permission from local stakeholders has stalled any further drilling.
Soil sampling and general reconnaissance has continued and several
high priority new targets await follow up. 
Several new regional prospects are under evaluation in southern Peru.
Access to a large land package 40 kilometres east of Haquira was
secured via an agreement with Zincore Metals Inc. ("Zincore"). First
Quantum has acquired 19.9% of Zincore, and 60% of the invested
proceeds will be used for regional exploration. In addition, First
Quantum has taken an option to earn 75% of Zincore's early stage
Dolores copper porphyry prospect. The Company is now assisting in
operating the Dolores exploration program where approximately 7,500
meters of diamond core drilling has recently commenced. Geological
mapping plus airborne and ground geophysical surveys will be used to
focus the drilling on the extensive area of outcropping porphyry. 
Turkey 
The company has agreed to terms to enter into a placement and
option-joint venture agreement with Empire Mining Corporation
("Empire") who hold rights to a porphyry/skarn copper project at
Bursa in western Turkey. Company staff are currently working with
Empire to define a drilling and geophysics program over the project
which is expected to commence in Q4 2012. 
Mauritania & West Africa 
Two drill rigs are active on targets near Guelb Moghrein. A diamond
core drill programme is in progress on the Oriental Hill prospect
adjacent to the current open pit where historically defined oxide
copper-gold mineralization is being assessed for metallurgical
processing characteristics. 
Permit applications are still pending for new exploration projects
identified in Cote d'Ivoire and Burkina Faso. 
SALES REVENUES 


 
                                       ------------------------------------
Sales revenues (after realization      Three months ended Nine months ended
 charges)                                    September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Kansanshi           - copper               462.3    485.9  1,359.4  1,540.9
                    - gold                  44.8     35.7    126.2    101.7
Guelb Moghrein      - copper                64.1     72.3    194.2    178.2
                    - gold                  21.5     30.1     72.9     70.8
Ravensthorpe        - nickel                79.6        -    287.8        -
                    - cobalt                 1.7        -      5.6        -
Kevitsa             - nickel                 8.8        -      8.8        -
                    - copper                18.7        -     18.7        -
                    - gold, PGE and cobalt   8.1        -      8.1        -
Corporate and other                         15.2     27.0     94.1    124.6
---------------------------------------------------------------------------
Sales revenues                             724.8    651.0  2,175.8  2,016.2
---------------------------------------------------------------------------

 
Q3 2012 total sales revenues from continuing operations were 11%
higher than the prior year period due to the contribution of $81.3
million of revenues from Ravensthorpe and $35.6 million from Kevitsa,
offset by a 13% lower average copper price and lower corporate
revenues. 
The Company's revenues are recognized at provisional prices when
title passes to the customer. Subsequent adjustments for final
pricing are materially offset by derivative adjustments and shown on
a net basis in cost of sales (see "Hedging Program" for further
discussion). 


 
                                       ------------------------------------
                                       Three months ended Nine months ended
Copper selling price (per lb)                September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Average LME cash price                      3.50     4.02     3.60     4.12
Realized copper price                       3.45     3.84     3.53     4.04
Treatment/refining charges ("TC/RC")                                       
 and freight charges                       (0.26)   (0.30)   (0.26)   (0.26)
---------------------------------------------------------------------------
Net realized copper price                   3.19     3.54     3.27     3.78
---------------------------------------------------------------------------

 
The LME copper price averaged $3.50/lb for the quarter, a decrease of
$0.52/lb from the average for Q3 2011. Copper traded flat during July
and August ranging from $3.32/lb to $3.53/lb before appreciating in
early September achieving a high of $3.83/lb before closing at
$3.75/lb end of September prompted by the European Central Bank bond
purchase program and China infrastructure spending announcements. 


 
                                       ------------------------------------
                                       Three months ended Nine months ended
Nickel selling price (per lb)                September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Average LME cash price                      7.41    10.01     8.04    11.10
Realized nickel price per payable po
und     7.69        -     8.04        -
TC/RC charges                              (0.44)       -    (0.22)       -
---------------------------------------------------------------------------
Net realized nickel price per payable                                      
 pound                                      7.25        -     7.83        -
---------------------------------------------------------------------------

 
The LME nickel price averaged $7.41/lb for the quarter, a decrease of
$2.60/lb from the average for Q3 2011. Nickel prices traded downwards
during the first half of the quarter before rebounding mid-August and
September to close at a high of $8.40/lb stimulated by the European
Central Banks and US Federal Reserve's bond purchase program
announcements. 
SUMMARY FINANCIAL RESULTS 


 
                                       ------------------------------------
                                       Three months ended Nine months ended
                                             September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Gross profit                                                               
  Kansanshi                                223.8    266.7    691.4  1,000.9
  Guelb Moghrein                            24.3     52.4     70.2    124.3
  Ravensthorpe                              (1.6)       -     39.7        -
  Kevitsa                                   17.5        -     17.5        -
  Other                                     (3.0)     3.5    (12.8)     0.1
---------------------------------------------------------------------------
Total gross profit                         261.0    322.6    806.0  1,125.3
---------------------------------------------------------------------------
Exploration                                 (6.3)   (18.5)   (36.3)   (53.3)
General and administrative                 (22.5)   (24.8)   (55.6)   (58.0)
Other income                                (1.0)    18.1      0.7     11.1
Net finance income (costs)                   1.2     (1.4)     7.3     (4.5)
Gain on disposal of residual claim and                                     
 assets                                        -        -  1,217.9        -
Bond inducement costs                          -    (48.4)       -    (48.4)
Income taxes                               (99.7)  (127.1)  (277.3)  (411.2)
---------------------------------------------------------------------------
Net earnings for the period                132.7    120.5  1,662.7    561.0
---------------------------------------------------------------------------
Net earnings for the period                                                
 attributable to:                                                          
  Non-controlling interests                 25.4     29.6     76.5    108.1
  Shareholders of the Company              107.3     90.9  1,586.2    452.9
---------------------------------------------------------------------------
Comparative earnings                       107.3    139.3    368.3    501.3
---------------------------------------------------------------------------
Earnings per share                                                         
  basic                                    $0.23    $0.20    $3.35    $1.03
  diluted                                  $0.23    $0.20    $3.33    $1.03
---------------------------------------------------------------------------
Comparative earnings per share             $0.23    $0.30    $0.78    $1.14
---------------------------------------------------------------------------

 
Exploration costs decreased due to the capitalization of exploration
development costs at Enterprise from Q1, Q2 and Q3 2012 in the
current quarter, resulting in a recovery of $10.1 million in Q3 2012.
Other exploration costs in the period comprises primarily of; 


 
--  $6.8 million in Peru 
--  $2.2 million in Finland 
--  $2.4 million at Guelb Moghrein 
--  $2.4 million at Kansanshi 

 
General and administrative costs decreased from Q3 2011 as a
reduction in legal costs related to 2011 Republique democratique du
Congo ("RDC") matters were partially offset by an increase in
personnel costs driven by an increased complement of employees to
develop and manage the Company's expanded pipeline of projects. 
On January 5, 2012, the Company reached an agreement with ENRC to
dispose of its residual claims and assets in respect of the Kolwezi
Tailings project, and the Frontier and Lonshi mines and related
exploration interests, all located in the Katanga Province of the RDC
and to settle all current legal matters relating to these interests
for a total consideration of $1.25 billion. The transaction was
completed on March 2, 2012. The total consideration was comprised of
$750.0 million, paid on March 2, 2012, together with a deferred
consideration of $500.0 million in the form of a 3-year Promissory
Note with an interest coupon of 3% payable annually in arrears. Under
the terms of the acquisition, ENRC acquired, with certain limited
exceptions, all of First Quantum's assets and property either
physically located within the RDC or relating to the operations
formerly carried out by First Quantum and its subsidiaries in the
RDC. In connection with the transaction, First Quantum, ENRC, the RDC
Government, International Finance Corporation and Industrial
Development Corporation have also settled all disputes relating to
the companies being sold and their assets and operations in the RDC
and each of First Quantum, ENRC, the RDC Government, International
Finance Corporation and Industrial Development Corporation have
released one another in respect of all claims and judgments relating
to the foregoing or to any other matter arising in the RDC on or
before the date of closing. 
The $1,217.9 million gain recognized on the disposal includes the
fair value of proceeds received, net of transaction costs and the
underlying net liabilities of subsidiaries disposed of. 
The Q3 2012 effective income tax rate was 43% of earnings before
taxes. Following the completion of its tax holiday in Mauritania on
February 19, 2012, Guelb Moghrein is now subject to Mauritanian
income taxes at a rate of 25%. 
LIQUIDITY AND CAPITAL RESOURCES 


 
                                       ------------------------------------
                                       Three months ended Nine months ended
                                             September 30      September 30
                                       ------------------------------------
                                            2012     2011     2012     2011
---------------------------------------------------------------------------
Cash flows from operating activities                                       
  - before changes in working capital      282.5    327.0    846.1  1,116.0
  - after changes in working capital       (99.1)    97.8    272.3    417.5
Cash flows from investing activities                                       
  Payments for property, plant and                                         
   equipment                              (365.8)  (380.9)  (953.3)  (814.3)
  Proceeds from settlement of RDC                                          
   claims and sale of assets                   -        -    736.5        -
  Other investing activities                (0.1)       -    (13.7)     9.9
Cash flows from financing activities       (16.8)   (61.7)  (119.0)  (203.5)
---------------------------------------------------------------------------
Net cash flows                            (481.8)  (344.8)   (77.2)  (590.4)
Cash balance                               374.9    754.5    374.9    754.5
---------------------------------------------------------------------------
Cash flows from operating activities                                       
 per sh
are(1)                                                              
  before working capital (per share)       $0.60    $0.55    $1.79    $1.68
  after working capital (per share)       $(0.21)   $0.21    $0.57    $0.95
---------------------------------------------------------------------------
 
(1) Cash flows per share is not recognized under IFRS. See "Regulatory
Disclosures" for further information.

 
Operating cash flows before changes in working capital decreased from
the comparative quarter due to higher non-cash expenses in Q3 2011.
Changes in working capital during Q3 2012 resulted in a reduction of
cash of $481.8 million. The Company paid $183.7 million in Zambian
taxes during the period. Increases in accounts receivable and
inventory totaled $176.5 million during Q3 2012, resulting in part,
from the commencement of operations at Kevitsa. 
Cash flows from financing activities comprise primarily of dividend
payments made to shareholders of the Company of $29.6 million in Q3
2012. Cash flows from financing activities in Q3 2011 include
dividend payments of $25.8 million and bond inducement costs of $48.4
million. 
Capital expenditure increased significantly during Q3 2012 to $365.8
million as activity at the Company's key development projects
increased according to plan. Q3 2012 capital expenditure comprises
primarily of; 


 
--  $213.2 million at Kansanshi for the oxide circuit expansions, smelter
    project and mine pit development costs 
--  $104.1 million at Sentinel, including deposits, for site development and
    long-lead plant and mine equipment 
--  $15.8 million at Kevitsa for project completion and development costs
    incurred during the commissioning phase 

 
Proceeds from settlement of RDC claims and sale of assets represents
the net cash proceeds received during Q1 2012. The $500.0 million
promissory note is payable by ENRC on March 2, 2015. 
As at September 30, 2012, the Company had the following contractual
obligations outstanding: 


 
---------------------------------------------------------------------------
                                    less                                   
                                  than 1 1 - 2 2 - 3 3 - 4 4 - 5           
                           Total    year years years years years Thereafter
---------------------------------------------------------------------------
Debt                        55.4    40.7   5.1   4.8   4.8     -          -
Accounts payable and                                                       
 current taxes             441.6   441.6     -     -     -     -          -
Deferred payments            4.0     0.4   0.2     -     -     -        3.4
Finance leases              27.6     2.1   2.2   2.4   2.5   2.7       15.8
Commitments                965.1   965.1     -     -     -     -          -
Restoration provisions     258.5     1.3   1.3   1.3   1.3   1.3      252.0
---------------------------------------------------------------------------

 
Total commitments of $965.1 million comprise primarily of capital
expenditure for property, plant and equipment related to the
development of Sentinel, upgrades at Kansanshi and other projects. 
The significant capital expansion and development program is expected
to be funded using available cash, future cash flows from operations
and debt facilities. Currently the $250.0 million Kevitsa debt
facility and $1.0 billion Kansanshi senior term and revolving
facility are undrawn and available for drawdown. 
On October 10, 2012, the Company completed a senior notes offering
for gross proceeds of $350.0 million due 2019. Interest on the senior
notes will accrue at 7.25% per annum. The notes are senior
obligations of the Company, guaranteed on a subordinated basis by
Ravensthorpe and Kevitsa. 
Hedging program 
As at September 30, 2012, the following derivative positions were
outstanding: 


 
                                   ----------------------------------------
                                   Maturity    September 30,    December 31,
                                       2012            2012            2011
                                   ----------------------------------------
                                            Asset Liability Asset Liability
---------------------------------------------------------------------------
Foreign currency                                                           
USD/EUR extendible collarPrincipal        -     -         -     -      (0.2)
Strike price                              -                                
---------------------------------------------------------------------------
Copper (a)                                                                 
Futures sales contracts over                                               
 quotation period (tonnes)           52,888   1.1     (30.7)  1.9      (5.1)
Average contract price ($/tonne)     $7,853                                
Embedded derivative hedged by                                              
 future sales contracts (tonnes)     51,975     -         -     -         -
Average market price ($/tonne)       $8,268                                
---------------------------------------------------------------------------
Net provisional copper exposure                                            
 (tonnes)                              (913)                               
---------------------------------------------------------------------------
Gold (a)                                                                   
Futures sales contracts over                                               
 quotation period (ounces)           16,950     -      (1.9)  3.2         -
Average contract price ($/ounce)     $1,702                                
Embedded derivative hedged by                                              
 future sales contracts (ounces)     16,812     -         -     -         -
Average market price ($/tonne)       $1,779                                
---------------------------------------------------------------------------
Net provisional gold exposure                                              
 (ounces)                              (138)                               
---------------------------------------------------------------------------
Nickel (a)                                                                 
Futures sales contracts over                                               
 quotation period (tonnes)            2,565     -      (2.6)    -      (0.7)
Average contract price ($/tonne)    $17,228                                
Embedded derivative hedged by                                              
 future sales contracts (tonnes)      1,664     -         -     -         -
Average market price ($/tonne)      $18,520                                
---------------------------------------------------------------------------
Net provisional nickel exposure                                            
 (tonnes)                              (901)                               
---------------------------------------------------------------------------
Other                                                                      
Embedded derivative                             -      (0.1)    -      (2.4)
---------------------------------------------------------------------------
                                              1.1     (35.3)  5.1      (8.4)
---------------------------------------------------------------------------

 
a) Provisional pricing and derivative contracts 
A portion of the Company's metal sales is sold on a provisional
pricing basis whereby sales are recognized at prevailing metal prices
when title transfers to the customer and final pricing is not
determined until a subsequent date, typically two months later. The
difference between final price and provisional invoice price is
recognized in net earnings. In order to mitigate the impact of these
adjustments on net earnings, the Company e
nters into derivative
contracts to directly offset the pricing exposure on the
provisionally priced contracts. The provisional pricing gains or
losses and offsetting derivative gains or losses are both recognized
as a component of cost of sales. Derivative assets are presented in
other assets and derivative liabilities are presented in other
liabilities with the exception of copper, gold and nickel embedded
derivatives which are included within accounts receivable. 
As at September 30, 2012, substantially all of the Company's metal
sales contracts subject to pricing adjustments were hedged by
offsetting derivative contracts. 
EQUITY 
At the date of this report, the Company has 476,310,282 shares
outstanding. There were no changes in common shares outstanding
during Q3 2012. 
OTHER ITEMS 
Zambian taxation 
The Government of the Republic of Zambia ("GRZ") announced in January
2008 a number of proposed changes to the tax regime in the country in
relation to mining companies. The Company, through its Zambian
subsidiaries, is party to Development Agreements with the GRZ for its
existing operations which provide an express right to full and fair
compensation for any loss, damages or costs (including interest)
incurred by the Company by reason of the government's failure to
comply with the tax stability guarantees set out in the Development
Agreements and rights of international arbitration in the event of
any dispute. The Company's Zambian subsidiaries have complied with
the GRZ's new tax regime without prejudice to its rights under the
Development Agreement. 
Following the change of government in 2011, the first Budget of the
new government introduced a further increase in the mineral royalty
tax from 3% to 6%, effective April 2012, in breach of the Development
Agreements. 
In the 2013 Budget, delivered October 2012, the GRZ has decreased the
rate of Capital Allowances from 100% per annum to 25% per annum. This
will impact the timing of the tax benefit from the Company's
significant capital programs at Kansanshi and Sentinel. 
Until resolved differently with the GRZ, the Company is recognizing
and paying taxes in excess of the Development Agreement, resulting in
an effective tax rate of approximately 43% at Kansanshi. 
On Behalf of the Board of Directors of First Quantum Minerals Ltd. 
G. Clive Newall, President 
12g3-2b-82-4461 
Listed in Standard and Poor's 
Forward-Looking Statements 
Certain statements and information herein, including all statements
that are not historical facts, contain forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. These forward-looking statements are principally
included in the Development activities section and are also disclosed
in other sections of the document. The forward looking statements
include estimates, forecasts and statements as to the Company's
expectations of production and sales volumes, expected timing of
completion of project development at Kansanshi, Kevitsa and Sentinel,
the impact of ore grades on future production, the potential of
production disruptions, capital expenditure and mine production
costs, the outcome of mine permitting, the outcome of legal
proceedings which involve the Company, information with respect to
the future price of copper, gold, cobalt, nickel, PGE, and sulphuric
acid, estimated mineral reserves and mineral resources, our
exploration and development program, estimated future expenses,
exploration and development capital requirements, the Company's
hedging policy, and our goals and strategies. Often, but not always,
forward-looking statements or information can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate" or "believes" or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or "will"
be taken, occur or be achieved. 
With respect to forward-looking statements and information contained
herein, we have made numerous assumptions including among other
things, assumptions about the price of copper, gold, nickel, PGE,
cobalt and sulphuric acid, anticipated costs and expenditures and our
ability to achieve our goals. Although our management believes that
the assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that a forward-looking statement or information herein will prove to
be accurate. Forward-looking statements and information by their
nature are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements or
information. These factors include, but are not limited to, future
production volumes and costs, costs for inputs such as oil, power and
sulphur, political stability in Zambia, Peru, Mauritania, Finland and
Australia, adverse weather conditions in Zambia, Finland and
Mauritania, labour disruptions, mechanical failures, water supply,
procurement and delivery of parts and supplies to the operations, the
production of off-spec material. 
See our Annual Information Form for additional information on risks,
uncertainties and other factors relating to the forward-looking
statements and information. Although we have attempted to identify
factors that would cause actual actions, events or results to differ
materially from those disclosed in the forward-looking statements or
information, there may be other factors that cause actual results,
performances, achievements or events not to be anticipated, estimated
or intended. Also, many of these factors are beyond our control.
Accordingly, readers should not place undue reliance on
forward-looking statements or information. We undertake no obligation
to reissue or update forward-looking statements or information as a
result of new information or events after the date hereof except as
may be required by law. All forward-looking statements and
information made herein are qualified by this cautionary statement. 


 
First Quantum Minerals Ltd.
Consolidated Statements of Earnings
Unaudited
(expressed in millions of U.S. dollars, except where indicated and share
 and per share amounts)
 
---------------------------------------------------------------------------
                                   Three months ended     Nine months ended
                                         September 30          September 30
                               --------------------------------------------
                           Note       2012       2011       2012       2011
---------------------------------------------------------------------------
Sales revenues                9      724.8      651.0    2,175.8    2,016.2
Cost of sales                10     (463.8)    (328.4)  (1,369.8)    (890.9)
---------------------------------------------------------------------------
Gross profit                         261.0      322.6      806.0    1,125.3
                                                                           
Exploration                           (6.3)     (18.5)     (36.3)     (53.3)
General and administrative           (22.5)     (24.8)     (55.6)     (58.0)
Settlement of RDC claims                                                   
 and sale of assets          11          -          -    1,217.9          -
Bond inducement costs        8d          -      (48.4)         -      (48.4)
Other income (expense)                (1.0)      18.1        0.7       11.1
---------------------------------------------------------------------------
Operating profit                     231.2      249.0    1,932.7      976.7
                                                                           
Finance inc
ome                         6.5        0.5       17.2        4.0
Finance costs                12       (5.3)      (1.9)      (9.9)      (8.5)
---------------------------------------------------------------------------
Earnings before income                                                     
 taxes                               232.4      247.6    1,940.0      972.2
                                                                           
Income taxes                         (99.7)    (127.1)    (277.3)    (411.2)
---------------------------------------------------------------------------
Net earnings for the period          132.7      120.5    1,662.7      561.0
---------------------------------------------------------------------------
                                                                           
Net earnings for the period                                                
 attributable to:                                                          
Non-controlling interests             25.4       29.6       76.5      108.1
Shareholders of the Company          107.3       90.9    1,586.2      452.9
---------------------------------------------------------------------------
                                                                           
Earnings per share                                                         
  Basic                      8b       0.23       0.20       3.35       1.03
  Diluted                    8b       0.23       0.20       3.33       1.03
Weighted average shares                                                    
 outstanding (000's)                                                       
  Basic                      8b    473,776    456,865    473,960    438,145
  Diluted                    8b    476,310    456,865    476,310    438,145
Total shares issued and                                                    
 outstanding (000's)         8a    476,310    476,301    476,310    476,301
---------------------------------------------------------------------------
 
The accompanying notes are an integral part of these consolidated financial
statements. For a copy of the notes visit the Company's website at
www.first-quantum.com.
 
 
First Quantum Minerals Ltd.
Consolidated Statements of Comprehensive Income
Unaudited
(expressed in millions of U.S. dollars)
 
---------------------------------------------------------------------------
                                   Three months ended     Nine months ended
                                         September 30          September 30
                               --------------------------------------------
                                      2012       2011       2012       2011
---------------------------------------------------------------------------
Net earnings for the period          132.7      120.5    1,662.7      561.0
Other comprehensive income                                                 
 (loss)                                                                    
  Unrealized gain (loss) on                                                
   available-for-sale                                                      
   investments                         0.3       (0.5)      (5.1)      (0.8)
  Tax on unrealized (gain) loss                                            
   on available-for-sale                                                   
   investments                        (0.1)       0.1        1.0        0.2
---------------------------------------------------------------------------
Comprehensive income for the                                               
 period                              132.9      120.1    1,658.6      560.4
---------------------------------------------------------------------------
                                                                           
Total comprehensive income for                                             
 the period attributable to:                                               
  Non-controlling interests           25.4       29.6       76.5      108.1
  Shareholders of the Company        107.5       90.5    1,582.1      452.3
---------------------------------------------------------------------------
                                     132.9      120.1    1,658.6      560.4
---------------------------------------------------------------------------
 
The accompanying notes are an integral part of these consolidated financial
statements. For a copy of the notes visit the Company's website at
www.first-quantum.com.
 
 
First Quantum Minerals Ltd.
Consolidated Statements of Cash Flows
Unaudited
(expressed in millions of U.S. dollars)
 
---------------------------------------------------------------------------
                                   Three months ended     Nine months ended
                                         September 30          September 30
                               --------------------------------------------
                                      2012       2011       2012       2011
---------------------------------------------------------------------------
Cash flows from operating                                                  
 activities                                                                
  Net earnings for the period        132.7      120.5    1,662.7      561.0
    Items not affecting cash                                               
      Depletion and                                                        
       amortization                   45.0       30.2      118.8       74.9
      Unrealized foreign                                                   
       exchange (income) loss          1.0       (3.7)       1.8       (0.8)
      Deferred income tax             42.8       51.6       53.5       31.8
      Income tax expense              56.8       75.5      223.6      380.1
      Share-based compensation                                             
       expense                         4.9        2.5        9.9        6.4
      Bond inducement costs              -       48.4          -       48.4
      Net finance (income)                                                 
       costs                          (1.2)       1.9       (7.3)       8.5
      Settlement of RDC claims                                             
       and sale of assets                -          -   (1,217.9)         -
      Other                            0.5        0.1        1.0        5.7
---------------------------------------------------------------------------
                                     282.5      327.0      846.1    1,116.0
Taxes paid                          (183.7)    (224.6)    (373.7)    (504.1)
Change in non-cash operating                                               
 working capital                                                           
      (Increase) decrease in                                               
       trade, other receivables                                            
       and derivatives              (100.8)       1.6     (125.3)      67.2
      Increase in inventories        (75.7)     (19.7)    (134.8)    (144.8)
      Increase (decrease) in                                               
       trade and other payables       14.3       34.3       95.7      (96.0)
      Long term incentive plan                                             
       contributions                 (35.7)     (20.8)     (35.7)     (20.8)
---------------------------------------------------------------------------
                                     (99.1)      97.8      272.3      417.5
---------------------------------------------------------------------------
Cash flows from investing                                                  
 activities                                                                
Purchase of property, plant and                                            
 equipment                          (363.7)    (321.4)    (894.2)    (754.8)
Deposits on property, plant and             
                               
 equipment                            (2.1)     (59.5)     (59.1)     (59.5)
Proceeds from sale of property,                                            
 plant and equipment                   1.0          -        1.0          -
Acquisition of investments            (1.5)         -      (17.5)         -
Interest received                      0.4          -        2.8        9.9
Proceeds from settlement of RDC                                            
 claims and sale of assets               -          -      736.5          -
---------------------------------------------------------------------------
                                    (365.9)    (380.9)    (230.5)    (804.4)
---------------------------------------------------------------------------
Cash flows from financing                                                  
 activities                                                                
Net movement in trading                                                    
 facility                             15.2      (17.1)      (7.5)     (99.4)
Proceeds on issuance of common                                             
 shares                                  -       15.9          -       16.1
Cash paid on bond inducement             -      (48.4)         -      (48.4)
Restricted cash                          -       20.2          -       40.3
Dividends paid                       (29.6)     (25.8)     (91.0)     (79.3)
Dividends paid to non-                                                     
 controlling interests                   -       (3.3)     (15.8)     (10.8)
Finance lease payments                (0.9)      (0.9)      (2.8)      (2.8)
Interest paid                         (1.5)      (2.3)      (1.9)     (19.2)
---------------------------------------------------------------------------
                                     (16.8)     (61.7)    (119.0)    (203.5)
---------------------------------------------------------------------------
Decrease in cash and cash                                                  
 equivalents                        (481.8)    (344.8)     (77.2)    (590.4)
Cash and cash equivalents -                                                
 beginning of period                 856.7    1,099.3      452.1    1,344.9
---------------------------------------------------------------------------
Cash and cash equivalents - end                                            
 of period                           374.9      754.5      374.9      754.5
---------------------------------------------------------------------------
 
The accompanying notes are an integral part of these consolidated financial
statements. For a copy of the notes visit the Company's website at
www.first-quantum.com.
 
 
First Quantum Minerals Ltd.
Consolidated Balance Sheets
Unaudited
(expressed in millions of U.S. dollars)
 
---------------------------------------------------------------------------
                                                       September   December
                                                 Note   30, 2012   31, 2011
---------------------------------------------------------------------------
Assets                                                                     
Current assets                                                             
Cash and cash equivalents                                  374.9      452.1
Trade and other receivables                                373.3      238.1
Inventories                                         3      789.1      649.9
Current portion of other assets                     5       52.7       34.0
---------------------------------------------------------------------------
                                                         1,590.0    1,374.1
Non-current assets                                                         
Investments                                                 29.9       18.0
Property, plant and equipment                       4    4,508.1    3,824.4
Promissory note receivable                         11      479.8          -
Other assets                                        5      151.2       81.5
---------------------------------------------------------------------------
Total assets                                             6,759.0    5,298.0
---------------------------------------------------------------------------
Liabilities                                                                
Current liabilities                                                        
Trade and other payables                                   302.3      273.4
Current taxes payable                                      139.3      289.4
Current portion of debt                             6       40.7       48.1
Current portion of provisions and other                                    
 liabilities                                                38.6       11.0
---------------------------------------------------------------------------
                                                           520.9      621.9
Non-current liabilities                                                    
Debt                                                6       14.7       14.8
Provisions and other liabilities                           288.2      286.4
Deferred income tax liabilities                            263.8      206.4
---------------------------------------------------------------------------
Total liabilities                                        1,087.6    1,129.5
---------------------------------------------------------------------------
Equity                                                                     
Share capital                                            1,924.8    1,950.6
Retained earnings                                        3,219.0    1,723.8
Accumulated other comprehensive income (loss)               (2.9)       1.2
---------------------------------------------------------------------------
Total equity attributable to shareholders of the                           
 Company                                                 5,140.9    3,675.6
Non-controlling interests                                  530.5      492.9
---------------------------------------------------------------------------
Total equity                                             5,671.4    4,168.5
---------------------------------------------------------------------------
Total liabilities and equity                             6,759.0    5,298.0
---------------------------------------------------------------------------
                                                                           
Commitments                                        15                      
---------------------------------------------------------------------------
 
The accompanying notes are an integral part of these consolidated financial
statements. For a copy of the notes visit the Company's website at
www.first-quantum.com.
 
 
First Quantum Minerals Ltd.
Consolidated Statements of Changes in Shareholders' Equity
Unaudited
(expressed in millions of U.S. dollars)
 
---------------------------------------------------------------------------
                                   Three months ended     Nine months ended
                                         September 30          September 30
                               --------------------------------------------
                                                                           
                           Note       2012       2011       2012       2011
---------------------------------------------------------------------------
  Share capital                                                            
  Common shares                                                            
  Balance - beginning of                                                   
   period                          2,003.8    1,479.5    2,003.8    1,479.3
    Shares issued and share                                                
 
     options exercised                   -       15.9          -       16.1
    Conversion of                                                          
     convertible bonds       8d          -      508.3          -      508.3
---------------------------------------------------------------------------
  Balance - end of period          2,003.8    2,003.7    2,003.8    2,003.7
---------------------------------------------------------------------------
  Equity portion of                                                        
   convertible bonds                                                       
  Balance - beginning of                                                   
   period                                -       48.3          -       48.3
  Conversion of convertible                                                
   bonds                     8d          -      (48.3)         -      (48.3)
---------------------------------------------------------------------------
  Balance - end of period                -          -          -          -
---------------------------------------------------------------------------
Treasury shares                                                            
  Balance - beginning of                                                   
   period                            (67.6)     (56.8)     (68.0)     (57.1)
    Restricted and                                                         
     performance stock                                                     
     units vested                      5.9        9.0        6.3        9.3
    Shares purchased                 (35.7)     (20.8)     (35.7)     (20.8)
---------------------------------------------------------------------------
  Balance - end of period            (97.4)     (68.6)     (97.4)     (68.6)
---------------------------------------------------------------------------
  Contributed surplus                                                      
  Balance - beginning of                                                   
   period                             19.4       19.5       14.8       15.9
    Share-based                                                            
     compensation expense                                                  
     for the period                    4.9        2.5        9.9        6.4
    Restricted and                                                         
     performance stock                                                     
     units vested                     (5.9)      (9.0)      (6.3)      (9.3)
---------------------------------------------------------------------------
  Balance - end of period             18.4       13.0       18.4       13.0
---------------------------------------------------------------------------
  Total share capital              1,924.8    1,948.1    1,924.8    1,948.1
---------------------------------------------------------------------------
  Retained earnings                                                        
  Balance - beginning of                                                   
   period                          3,141.3    1,600.6    1,723.8    1,292.1
    Earnings for the period                                                
     attributable to                                                       
     shareholders of the                                                   
     Company                         107.3       90.9    1,586.2      452.9
    Dividends                8c      (29.6)     (25.8)     (91.0)     (79.3)
---------------------------------------------------------------------------
  Balance - end of period          3,219.0    1,665.7    3,219.0    1,665.7
---------------------------------------------------------------------------
  Accumulated other                                                        
   comprehensive income                                                    
  Balance - beginning of                                                   
   period                             (3.1)       0.8        1.2        1.0
    Other comprehensive                                                    
     income (loss) for the                                                 
     period                            0.2       (0.4)      (4.1)      (0.6)
---------------------------------------------------------------------------
  Balance - end of period             (2.9)       0.4       (2.9)       0.4
---------------------------------------------------------------------------
  Non-controlling interests                                                
  Balance - beginning of                                                   
   period                            528.3      448.8      492.9      377.8
    Earnings attributable                                                  
     to non-controlling                                                    
     interests                        25.4       29.6       76.5      108.1
    Disposal of                                                            
     subsidiaries                        -          -        0.1          -
    Dividends                        (23.2)      (3.3)     (39.0)     (10.8)
---------------------------------------------------------------------------
  Balance - end of period            530.5      475.1      530.5      475.1
---------------------------------------------------------------------------
 
The accompanying notes are an integral part of these consolidated financial
statements. For a copy of the notes visit the Company's website at
www.first-quantum.com.

  
Contacts:
First Quantum Minerals Ltd. - North American contact
Sharon Loung
Director, Investor Relations
(647) 346-3934 or Toll Free: 1 (888) 688-6577
(604) 688-3818 (FAX)
sharon.loung@fqml.com 
First Quantum Minerals Ltd. - United Kingdom contact
Clive Newall
President
+44 140 327 3484
+44 140 327 3494 (FAX)
clive.newall@fqml.com
www.first-quantum.com
 
 
Press spacebar to pause and continue. Press esc to stop.