First Quantum Minerals : Q1 2022 Consolidated Financial Statements

CONDENSED INTERIM

CONSOLIDATED

FINANCIAL STATEMENTS

FIRST QUARTER ENDED MARCH 31, 2022

(unaudited) (In U.S. dollars, tabular amounts in millions, except where indicated)

Interim Consolidated Statements of Earnings

(unaudited)

(expressed in millions of U.S. dollars, except where indicated and share and per share amounts)

Three months ended March 31

Notes	2022	2021(revised-
Note 10)
Sales revenues	13	2,163	1,622
Cost of sales	14	(1,255)	(1,082)
Gross profit	908	540
Exploration	(4)	(3)
General and administrative	(32)	(27)
Other income (expense)	17	(90)	3
Operating profit	782	513
Finance income	16	16
Finance costs	15	(169)	(187)
Adjustment for expected phasing of Zambian VAT	3c	(22)	8
Earnings before income taxes	607	350
Income tax expense	16	(155)	(156)
Net earnings	452	194
Net earnings attributable to:
Non-controlling interests	67	52
Shareholders of the Company	12	385	142
Earnings per share attributable to
the shareholders of the Company
Net earnings ($ per share)
Basic	12	0.56	0.21
Diluted	12	0.56	0.21
Weighted average shares outstanding (000's)
Basic	12	690,130	688,771
Diluted	12	692,630	691,812
Total shares issued and outstanding (000's)	11a	691,783	690,415
The accompanying notes are an integral part of these consolidated financial statements.

Interim Consolidated Statements of Comprehensive Income

(unaudited)

(expressed in millions of U.S. dollars)

Three months ended March 31

Note	2022	2021
452	194
5	(164)
(6)	102
7	(9)
458	123
67	52
391	71
458	123

Net earnings

Other comprehensive income

Items that have been/may subsequently be reclassified to net earnings:

Cash flow hedges reclassified to net earnings

Movements on unrealized cash flow hedge positions

Items that will not subsequently be reclassified to net earnings:

Fair value gain (loss) on investments

Total comprehensive income for the year

Total comprehensive income for the period attributable to:

Non-controlling interests

Shareholders of the Company

Total comprehensive income for the year

The accompanying notes are an integral part of these consolidated financial statements.

Interim Consolidated Statements of Cash Flows

(unaudited)

(expressed in millions of U.S. dollars)

Three months ended March 31

Note	2022	2021
Cash flows from operating activities
Net earnings	452	194
Adjustments for
Depreciation	14	295	286
Income tax expense	16	155	156
Share-based compensation expense	13	8
Net finance expense	153	171
Adjustment for expected phasing of Zambian VAT	22	(8)
Unrealized foreign exchange loss	54	9
Deferred revenue amortization	10	(22)	(23)
Share of profit in joint venture	17	(14)	(14)
Other	43	(13)
1,151	766
Taxes paid	(208)	(75)
Movements in non-cash operating working capital	(252)	92
Long-term incentive plans	(25)	(40)
Net cash from operating activities	666	743
Cash flows from (used by) investing activities
Purchase and deposits on property, plant and equipment	5,18	(279)	(180)
Interest paid and capitalized to property, plant and equipment	5	(4)	-
Other	-	17
Net cash used by investing activities	(283)	(163)
Cash flows from (used by) financing activities
Net movement in trading facility	8	177	(147)
Movement in restricted cash	36	(3)
Proceeds from debt	8	-	90
Repayments of debt	8	(330)	(220)
Net payments to joint venture (KPMC)	7,9b	(11)	(31)
Transactions with non-controlling interests	9c	4	-
Dividends paid to non-controlling interests	(16)	-
Interest paid	(153)	(193)
Other	(1)	(2)
Net cash used by financing activities	(294)	(506)
Increase in cash and cash equivalents and bank overdrafts	89	74
Cash and cash equivalents and bank overdrafts - beginning
of year	1,859	914
Exchange gain (losses) on cash and cash equivalents	-	-
Cash and cash equivalents and bank overdrafts - end of
year	1,948	988
Cash and cash equivalents and bank overdrafts comprising:
Cash and cash equivalents	1,948	1,058
Bank overdrafts	-	(70)
The accompanying notes are an integral part of these consolidated financial statements.

First Quantum Minerals Ltd. | Q1 2022 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 3