First Quantum Minerals : Q4 2021 Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

D E C E M B E R 3 1 , 2 0 2 1

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

Management's Responsibility for Financial Reporting

The consolidated financial statements of First Quantum Minerals Ltd. have been prepared by and are the responsibility of the Company's management. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and, where appropriate, reflect management's best estimates and judgments based on currently available information.

Management has developed and is maintaining a system of internal controls to obtain reasonable assurance that the Company's assets are safeguarded, transactions are authorized and financial information is reliable.

The Company's independent auditors, PricewaterhouseCoopers LLP, who are appointed by the shareholders, conduct an audit in accordance with Canadian generally accepted auditing standards. Their report outlines the scope of their audit and gives their opinion on the consolidated financial statements.

The Audit Committee of the Board of Directors meets periodically with management and the independent auditors to review the scope and results of the annual audit, and to review the consolidated financial statements and related financial reporting matters prior to approval of the consolidated financial statements.

Signed by	Signed by
Philip K.R. Pascall	Hannes Meyer
Chairman and Chief Executive Officer	Chief Financial Officer
February 15, 2022

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

First Quantum Minerals Ltd. | 31 December 2021 CONSOLIDATED FINANCIAL STATEMENTS 2

Independent auditor's report

To the Shareholders of First Quantum Minerals Ltd.

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of First Quantum Minerals Ltd. and its subsidiaries (together, the Company) as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

What we have audited

The Company's consolidated financial statements comprise:

• the consolidated statements of earnings (loss) for the years ended December 31, 2021 and 2020;
• the consolidated statements of comprehensive income (loss) for the years ended December 31, 2021 and 2020;
• the consolidated statements of cash flows for the years ended December 31, 2021 and 2020;
• the consolidated balance sheets as at December 31, 2021 and 2020;
• the consolidated statements of changes in equity for the years ended December 31, 2021 and 2020; and
• the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

PricewaterhouseCoopers LLP

PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2

T: [phone], F: [phone]

"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter

Goodwill impairment assessment

Refer to note 2 - Significant accounting policies, note 3 - Significant judgments, estimates and assumptions and note 7 - Goodwill to the consolidated financial statements.

Goodwill arising on business combinations is allocated to each of the Company's cash- generating units or groups of cash-generating units (CGUs) that is expected to benefit from the synergies of the combination. The recoverable amount of the cash-generating unit to which goodwill has been allocated is tested for impairment at the same time every year. Goodwill of $237 million was assigned to the Cobre Panama CGU. The annual impairment test has been performed as at December 31, 2021. For the purpose of the goodwill impairment test, the recoverable amount of Cobre Panama CGU has been determined by management using a fair value less costs of disposal method based on a discounted cash flow model over a period of

33 years, taking account of assumptions that would be made by market participants. The future cash flows used in this model are inherently uncertain and could materially change over time as a result of changes to the key assumptions which included: ore reserves and resources estimates, commodity prices, discount rate, future production costs and future capital expenditure. Ore reserves and resources are estimated based on the National Instrument 43-101 compliant

How our audit addressed the key audit matter

Our approach to addressing the matter included the following procedures, among others:

• Evaluated how management determined the recoverable amount of the Cobre Panama CGU, which included the following:
• • Tested the appropriateness of the fair value less costs of disposal method and the mathematical accuracy of the discounted cash flow model.
  • Tested the underlying data used in the discounted cash flow model.
  • The work of management's experts was used in performing the procedures to evaluate the reasonableness of the assumptions associated with the ore reserves and resources estimates. As a basis for using this work, the competence, capabilities and objectivity of management's experts was evaluated, the work performed was understood and the appropriateness of the work as audit evidence was evaluated. The procedures performed also included evaluation of the methods and assumptions used by management's experts, tests of the data used by management's experts and an evaluation of their findings.
  • Evaluated the reasonableness of key assumptions such as commodity prices and future production costs and future capital expenditure, by (i) comparing

	Key audit matter		How our audit addressed the key audit matter

report produced by qualified persons (management's experts).

We considered this a key audit matter due to the subjectivity and complexity in applying audit procedures to test the key assumptions used by management in determining the recoverable amount of the Cobre Panama CGU, which involved significant judgment from management. Professionals with specialized skill and knowledge in the field of valuation assisted in performing certain procedures.

Assessment of impairment indicators for property, plant and equipment

Refer to note 2 - significant accounting policies, note 3 - Significant judgments, estimates and assumptions and note 6 - Property, plant and equipment to the consolidated financial statements.

The Company's property, plant and equipment (PP&E) carrying value was $19,283 million as of December 31, 2021 covering multiple cash- generating units (CGUs) of the Company. Management applies significant judgment in assessing the CGUs and assets for the existence of indicators of impairment at the reporting date. Internal and external factors are considered in assessing whether indicators of impairment are present that would necessitate impairment testing. Factors regarding commodity prices, production, operating costs, capital expenditures and discount rates are used in determining whether there are any indicators of impairment.

commodity prices with external market and industry data; and (ii) comparing future production costs and future capital expenditure to recent actual production costs and actual capital expenditure incurred of the Cobre Panama CGU, and assessing whether these assumptions were consistent with evidence obtained in other areas of the audit, as applicable.

• • Professionals with specialized skill and knowledge in the field of valuation assisted in assessing the reasonableness of the discount rate.
• Tested the disclosures made in the consolidated financial statements.

Our approach to addressing the matter included the following procedures, among others:

• Evaluated the reasonableness of management's assessment of indicators of impairment, which included the following:
• • Assessed the completeness of external or internal factors that could be considered as indicators of impairment of the Company's PP&E, by considering evidence obtained in other areas of the audit.
  • Assessed commodity prices and discount rates, by comparing to external market and industry data and production, operating costs and capital expenditures by considering the current and past performance of the CGUs and evidence obtained in other areas of the audit, as applicable.