First Quantum Minerals : Q2 2022 Consolidated Financial Statements

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

S E C O N D Q U A R T E R E N D E D J U N E 3 0 , 2 0 2 2

(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		Six months ended
			June 30			June 30
	Note	2022	2021(revised-		2022	2021(revised-
			Note 10)			Note 10)
Sales revenues	13	1,904	1,782		4,067	3,404
Cost of sales	14	(1,275)	(1,157)		(2,530)	(2,239)
Gross profit		629	625		1,537	1,165
Exploration		(4)	(4)		(8)	(7)
General and administrative		(29)	(31)		(61)	(58)
Other income (expense)	17	260	(2)		170	1
Operating profit		856	588		1,638	1,101
Finance income		16	16		32	32
Finance costs	15	(161)	(186)		(330)	(373)
Adjustment for expected phasing of Zambian VAT	3c	(106)	(22)		(128)	(14)
Earnings before income taxes		605	396		1,212	746
Income tax expense	16	(137)	(182)		(292)	(338)
Net earnings		468	214		920	408
Net earnings attributable to:
Non-controlling interests		49	74		116	126
Shareholders of the Company	12	419	140		804	282
Earnings per share attributable to
the shareholders of the Company
Net earnings $ per share
Basic	12	0.61	0.20		1.16	0.41
Diluted	12	0.60	0.20		1.16	0.41
Weighted average shares outstanding (000's)
Basic	12	690,237	688,457		690,136	688,622
Diluted	12	692,783	692,025		692,708	691,851
Total shares issued and outstanding (000's)	11a	691,788	690,987		691,788	690,987

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

First Quantum Minerals Ltd. | Q2 2022 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 1

Interim Consolidated Statements of Comprehensive

Income

(unaudited)

(expressed in millions of U.S. dollars)

	Three months ended	Six months ended
		June 30		June 30
Note	2022	2021	2022	2021
Net earnings	468	214	920	408
Other comprehensive income
Items that have been/may subsequently be
reclassified to net earnings:
Cash flow hedges reclassified to net earnings	6	(137)	11	(301)
Movements on unrealized cash flow hedge	6	292	-	394
positions
Items that will not subsequently be reclassified to
net earnings:
Fair value gain (loss) on investments	(2)	-	5	(9)
Total comprehensive income for	478	369	936	492
the period
Total comprehensive income for the period
attributable to:
Non-controlling interests	49	74	116	126
Shareholders of the Company	429	295	820	366
Total comprehensive income for the period	478	369	936	492

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

First Quantum Minerals Ltd. | Q2 2022 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 2

Interim Consolidated Statements of Cash Flows

(unaudited)

(expressed in millions of U.S. dollars)

		Three months ended	Six months ended
			June 30			June 30
	Note	2022	2021	2022		2021
Cash flows from operating activities
Net earnings		468	214	920		408
Adjustments for
Depreciation	14	288	286	583		572
Income tax expense	16	137	182	292		338
Share-based compensation expense		8	8	21		16
Net finance expense		145	170	298		341
Adjustment for expected phasing of Zambian		106		128
VAT		22		14
Foreign exchange		(233)	2	(179)		11
Deferred revenue amortization	10	(27)	(27)	(49)		(50)
Share of profit in joint venture	17	(20)	(25)	(34)		(39)
Other		6	13	49		-
		878	845	2,029		1,611
Taxes paid		(224)	(165)	(432)		(240)
Movements in non-cash operating working capital		281	20	29		112
Long-term incentive plans		(31)	(21)	(56)		(61)
Net cash from operating activities		904	679	1,570		1,422
Cash flows used by investing activities
Purchase and deposits on property, plant and		(275)		(554)
equipment	5,18	(264)		(444)
Interest paid and capitalized to property, plant and		(5)		(9)
equipment	5	-		-
Other		(2)	1	(2)		2
Net cash used by investing activities		(282)	(263)	(565)		(442)
Cash flows from (used by) financing activities
Net movement in trading facility	8	(61)	(164)	116		(311)
Movement in restricted cash		5	(3)	41		(6)
Proceeds from debt	8	650	964	650		1,054
Repayments of debt	8	(1,193)	(312)	(1,523)		(532)
Net payments to joint venture (KPMC)	7, 9b	(16)	(19)	(27)		(34)
Transactions with non-controlling interests	9c	-	-	4		-
Dividends paid to shareholders of the Company		(3)	(3)	(3)		(3)
Dividends paid to non-controlling interests		(44)	(6)	(60)		(6)
Interest paid		(79)	(68)	(232)		(261)
Other		(2)	(1)	(3)		(3)
Net cash from (used by) financing activities		(743)	388	(1,037)		(102)
Increase (decrease) in cash and cash		(121)		(32)
equivalents		804		878
Cash and cash equivalents - beginning of		1,948		1,859
period		988		914
Exchange losses on cash and cash equivalents		(2)	-	(2)		-
Cash and cash equivalents - end of period		1,825	1,792	1,825		1,792

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

First Quantum Minerals Ltd. | Q2 2022 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 3