First Quantum Announces $1.0 Billion Gold Stream

2 hours ago 1

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Acceleration Options: First Quantum retains two options that will allow the Company to accelerate deliveries and reduce ongoing gold delivered to Royal Gold by up to 30% as follows:
- Option to reduce the stream rate and delivery thresholds by up to 20% at a value of up to $200 million at such time when First Quantum achieves the earlier of:
  (i) BB senior unsecured debt rating from Fitch or S&P Global; or
  
  (ii) Net leverage ratio³ of less than or equal to 2.25x over any 3 consecutive quarters commencing with the quarter
  ended March 31, 2026.
- Option to reduce the stream rate and delivery thresholds by up to a further 10% at a value of $100 million at such time when First Quantum achieves certain operational conditions and the earlier of:

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(i) BBB- senior unsecured debt rating from Fitch or S&P Global; or

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(ii) Net leverage ratio³ of less than or equal to 1.25x over any 4 consecutive quarters.

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Unsecured and Guaranteed: The stream is unsecured. The stream has guarantees from the Company and certain subsidiaries of the Company in the Kansanshi ownership chain.

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Advisors and Counsel:

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RBC Capital Markets is acting as financial advisor and Fasken LLP and Caledonian Consultants are acting as legal counsel to First Quantum in connection with this Transaction.

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For further information, visit our website at www.first-quantum.com or contact:

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Investor Relations:
Bonita To, Director, Investor Relations
(416) 361-6400
Toll-free: 1 (888) 688-6577
E-Mail: [email protected]

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Media Relations:
James Devas, Manager, Corporate Affairs
+44 207 291 6630
E-Mail: [email protected]

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CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

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Certain information contained in this news release constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and “forward-looking information” under applicable Canadian securities legislation. The forward-looking statements and forward-looking information in this news release include the impact of the Transaction on the Company’s long-term financial resilience, the effect that a ramp-up of the S3 Expansion at Kansanshi and a resolution of the situation in Panama are expected to have on the Company’s financial position, the expected uses of proceeds from the Transaction, the effect the Transaction is expected to have on the Company’s net debt to EBITDA ratio, the Company’s continued exposure to spot gold prices and the expected closing date for the Transaction. 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, the Company has made numerous assumptions including, among other things, assumptions about the timing of the closing of the Transaction and the ability to achieve the Company’s goals. 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 the 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, events generally impacting global economic, financial, political and social stability.

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See the Company’s Annual Information Form and other documents filed with the securities regulators or similar authorities in Canada (accessible under the Company’s profile on SEDAR+ at www.sedarplus.ca) for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has 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 the Company’s control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes 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 contained herein are expressly qualified by this cautionary statement.

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¹ Net debt is a supplementary financial measure; EBITDA is a non-GAAP financial measure. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers.
² Copper production is presented on a contained basis and is presented prior to processing through the Kansanshi smelter.
³ As defined in the Agreement.

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