First Quantum Minerals Ltd — Interim / Quarterly Report 2022

Jul 27, 2022

(in United States dollars, tabular amounts in millions, except where noted)

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First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 0

(in United States dollars, tabular amounts in millions, except where noted)

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INDEX

INDEX
SECOND QUARTER HIGHLIGHTS	2
ENVIRONMENT, SOCIAL AND GOVERNANCE	5
COVID-19	6
LOGISTICS AND SHIPPING	6
COST INFLATION	6
DEVELOPMENT PROJECTS	6
EXPLORATION	8
OTHER DEVELOPMENTS	8
GUIDANCE	9
SUMMARY OPERATIONAL RESULTS	13
OPERATIONS REVIEW	18
SUMMARY FINANCIAL RESULTS	29
LIQUIDITY AND CAPITAL RESOURCES	37
ZAMBIAN VAT	42
JOINT VENTURE	43
PRECIOUS METAL STREAM ARRANGEMENT	43
MATERIAL LEGAL PROCEEDINGS	45
REGULATORY DISCLOSURES	46
SUMMARY QUARTERLY INFORMATION	55
APPENDICES	56
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION	60

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 1

(in United States dollars, tabular amounts in millions, except where noted)

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First Quantum Minerals Ltd. (“First Quantum” or “the Company”) is engaged in the production of copper, nickel, gold and silver, and related activities including exploration and development. The Company has operating mines located in Zambia, Panama, Finland, Turkey, Spain, Australia and Mauritania, and a development project in Zambia. The Company is progressing the Taca Taca copper-gold-molybdenum project in Argentina and is exploring the Haquira copper deposit in Peru.

The Company’s shares are publicly listed for trading on the Toronto Stock Exchange.

This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the unaudited consolidated financial statements of First Quantum for the three and six months ended June 30, 2022. The Company’s results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to interim reporting, IAS 34 Interim Financial Reporting, and are presented in United States dollars, tabular amounts in millions, except where noted.

For further information on First Quantum, reference should be made to its public filings (including its most recently filed Annual Information Form) which are available on SEDAR at www.sedar.com. Information is also available on the Company’s website at www.first-quantum.com. This MD&A contains forward-looking information that is subject to risk factors, see “Cautionary statement on forward-looking information” for further discussion. Information on risks associated with investing in the Company’s securities and technical and scientific information under National Instrument 43-101 – Standards for Disclosure for Mineral Projects (“NI 43-101”) concerning the Company’s material properties, including information about mineral resources and mineral reserves, are contained in its most recently filed Annual Information Form. This MD&A was prepared as of July 26, 2022.

SECOND QUARTER HIGHLIGHTS

Cobre Panama achieved quarterly records in throughput and copper production. The Company reported significant increases in net earnings[1] attributable to shareholders and adjusted earnings[2] together with a notable reduction in net debt[2] , achieving its debt reduction target. Gross profit and EBITDA[2] remained robust and were at a similar level to the same quarter in 2021.

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• Financial results for the second quarter include net earnings[1] attributable to shareholders of the Company of $419 million ($0.61 net earnings per share) and adjusted earnings[2] of $337 million ($0.49 adjusted earnings per share[3] ), showing significant improvements over the comparable quarter in 2021 which had net earnings attributable to shareholders of the Company of $140 million ($0.20 net earnings per share) and adjusted earnings[2] of $173 million ($0.25 adjusted earnings per share[3] ). Results benefitted from higher realized metal prices[3] following the reduced hedge profile and a lower effective tax rate, together with lower finance costs.

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• Debt reduction: Net debt[2] decreased by $476 million during the quarter, bringing the net debt[2] balance down to $5,339 million as at June 30, 2022, a reduction of $2,319 million from $7,658 million at June 30, 2020. As at June 30, 2022, total debt was $7,164 million (March 31, 2022, total debt was $7,763 million). The Company has achieved its debt reduction target of $2 billion, from the peak in the second quarter of 2020, and continues to target a further $1 billion reduction in the medium term.

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• Total copper production for the second quarter was 193 thousand tonnes (“kt”), a 4% decrease from the comparative quarter, and is mainly attributable to lower grades at Kansanshi and Sentinel as well as reductions at shorter life operations. This was mitigated by Cobre Panama achieving record copper production in the quarter.

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• Cobre Panama delivered record copper production of 91kt for the quarter and achieved a record mill throughput of 21.2 million tonnes, attributable to increased plant stability and continuous improvement projects.

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• Kansanshi’s copper production of 40kt for the quarter was 11kt lower than the same quarter of 2021. Production was impacted by a reduction in grades with narrow-veined regions as well as high water levels.

1 Net earnings in the second quarter of 2022 includes foreign exchange gains of $239 million. Foreign exchange movements include realized and unrealized gains and losses, and also include the impact of an agreement reached in respect of the outstanding value-added tax receivable sum and an approach for repayment based on offsets against future corporate income taxes and mineral royalties in Zambia.

2 EBITDA and adjusted earnings are non-GAAP financial measures and net debt is a supplementary 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. Adjusted earnings and EBITDA were previously named comparative earnings and comparative EBITDA, respectively, and the composition remains the same. See “Regulatory Disclosures”.

3 Adjusted earnings per share and realized metal prices are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 2

(in United States dollars, tabular amounts in millions, except where noted)

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• Sentinel’s copper production of 52kt for the quarter was 2kt lower than the same quarter of 2021 as grades were impacted by a delay in stripping due to bench turnover rate and wet underfoot ground conditions, which delayed access to higher grade ore. Grades at Sentinel are expected to return to planned levels during the second half of the year.

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• Total copper sales volumes of 188kt were 5kt lower than the current quarter production due to continued shipping challenges and inland logistics.

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• Ravensthorpe’s nickel production of 5kt contained tonnes was comparable to the same quarter in 2021.

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• Total gold production for the quarter was 75koz, a 6koz decrease from the same quarter of 2021due to lower production at the Kansanshi and Guelb Moghrein operations.

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• Gross profit of $629 million and EBITDA[1] of $906 million for the second quarter were comparable to the same quarter in 2021, attributable to higher realized metal prices[2] following the reduced hedge profile offsetting lower sales volumes and the inflationary impact on costs.

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• Cost inflation : Various inputs and operational costs continued to increase further during the second quarter and impacted C1 cash costs[2] . These include costs for fuel, explosives, sulphur, freight, reagents and steel. Global inflationary pressures have been impacted by the ongoing COVID-19 pandemic, as well as supply chain disruptions. Energy costs were further impacted by the wide-reaching sanctions imposed upon Russia due to the conflict in Ukraine.

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• Copper C1 cash cost[2] of $1.74 per lb for the second quarter of 2022 was $0.45 per lb higher than the comparable quarter in 2021, attributable to inflationary pressures and lower production. Copper AISC[2] of $2.37 per lb for the quarter reflecting the higher copper C1 cash cost[2] .

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• Cash flows from operating activities of $904 million ($1.31 per share[2] ) for the quarter were $225 million higher than the same quarter of 2021 with a favourable movement in receivables working capital balance at the end of the quarter.

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• Note redemption : During the second quarter, the Company redeemed at par an aggregate of $1,000 million principal amount of the senior unsecured notes due 2023. $500 million was redeemed on each of April 5, 2022, and June 7, 2022. No senior unsecured notes due in 2023 remain outstanding post the redemptions.

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• Increasing cash returns to shareholders: The Board has commenced a cautious increase in shareholder dividends. The Board has adopted the Dividend policy, pursuant to which the Company intends to pay, on a semi-annual basis, a Performance Dividend that represents, in the aggregate, 15% of available cash flows generated after planned capital spending and distributions to non-controlling interests. It is expected that a minimum Annual Base Dividend of CDN$0.10 per share, consisting of semi-annual dividends of CDN$0.05 per share, will be part of the Performance Dividend. Dividend payments remain at the discretion of the Board.

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• Dividends: On July 26, 2022, the Company declared an interim dividend of CDN$0.16 per share, in respect of the financial year ended December 31, 2022 (July 27, 2021: CDN$0.005 per share), to be paid on September 20, 2022 to shareholders of record on August 29, 2022.

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• Development Projects: In May 2022, the Board approved the S3 Expansion at the Kansanshi mine and the Enterprise nickel project, and work on both projects started immediately. This follows the efforts of the New Dawn administration to enhance the investment climate for mining. The development timeline and capital commitments of both projects remains consistent with the three-year guidance provided by the Company on January 17, 2022. Furthermore, the Company reached an agreement with the Government Republic of Zambia (“GRZ”) for repayment of the outstanding VAT claims based on offsets against future corporate income tax and mineral royalty tax payments, which commenced July 1, 2022.

1 EBITDA is a non-GAAP financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. EBITDA was previously named comparative EBITDA and the composition remains the same. See “Regulatory Disclosures”.

2 Cash flows from operating activities per share, realized metal prices, C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios, and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 3

(in United States dollars, tabular amounts in millions, except where noted)

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CONSOLIDATED OPERATING HIGHLIGHTS

CONSOLIDATED OPERATING HIGHLIGHTS
	Three months ended		Six months ended
	June 30		June 30
	2022	2021	2022	2021
Copper production (tonnes)1	192,668	199,689	374,878	404,753
Copper sales (tonnes)8	187,642	203,790	384,344	414,524
Gold production (ounces)	74,959	81,375	145,316	159,423
Gold sales (ounces)2	69,998	85,291	146,193	162,682
Nickel production (contained tonnes)	4,853	4,543	9,975	9,185
Nickel sales (contained tonnes)	2,892	6,910	7,242	9,267

CONSOLIDATED FINANCIAL HIGHLIGHTS

CONSOLIDATED FINANCIAL HIGHLIGHTS
	Three months ended		Six months ended
	June 30		June 30
	2022	2021	2022	2021
Sales revenues3	1,904	1,782	4,067	3,404
Gross profit	629	625	1,537	1,165
Net earnings attributable to shareholders of the Company	419	140	804	282
Basic earnings per share	$0.61	$0.20	$1.16	$0.41
Diluted earnings per share	$0.60	$0.20	$1.16	$0.41
Cash flows from operating activities	904	679	1,570	1,422
Net debt6	5,339	6,751	5,339	6,751
EBITDA4,5	906	902	2,086	1,713
Adjusted earnings4	337	173	817	323
Adjusted earnings per share7	$0.49	$0.25	$1.18	$0.47
Cash cost of copper production (C1) (per lb)7,8	$1.74	$1.29	$1.67	$1.26
Total cost of copper production (C3) (per lb)7,8	$2.73	$2.21	$2.69	$2.15
Copper all-in sustaining cost (AISC) (per lb)7,8	$2.37	$1.91	$2.32	$1.81
Realized copper price (per lb)7	$4.19	$3.55	$4.32	$3.39
Net earnings attributable to shareholders of the Company		140		282
	419		804
Adjustments attributable to shareholders of the Company:
Adjustment for expected phasing of Zambian value- added tax (“VAT”) receipts		22		14
	106		128
Total adjustments to EBITDA4excluding depreciation5	(238)	28	(135)	40
Tax and minority interest adjustments	50	(17)	20	(13)
Adjusted earnings4	337	173	817	323

1 Production is presented on a contained basis, and is presented prior to processing through the Kansanshi smelter.

2 Excludes refinery-backed gold credits purchased and delivered under the precious metal streaming arrangement (see “Precious Metal Stream Arrangement”).

3 Delivery of non-financial items (refinery-backed gold and silver credits) into the Company’s precious metal stream arrangement have been netted within sales revenues rather than included in cost of sales. The periods ended June 30, 2021 have been revised to reflect this change. Sales revenues and cost of sales for the three and six months ended June 30, 2021 have been reduced by $65 and $121 million, respectively, compared to the previously reported values for the periods ended June 30, 2021 (see “Precious Metal Stream Arrangement”).

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 4

(in United States dollars, tabular amounts in millions, except where noted)

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4 EBITDA and adjusted earnings are non-GAAP financial measures, which do not have a standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings and EBITDA were previously named comparative earnings and comparative EBITDA, respectively, and the composition remains the same. Adjusted earnings have been adjusted to exclude items from the corresponding IFRS measure, net earnings attributable to shareholders of the Company, which are not considered by management to be reflective of underlying performance. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors and may not be comparable to similar financial measures disclosed by other issuers. The use of adjusted earnings and EBITDA represents the Company’s adjusted earnings metrics. See “Regulatory Disclosures”.

5 Adjustments to EBITDA in 2022 relate principally to foreign exchange revaluations and non-recurring costs relating to previously sold assets (2021 - foreign exchange revaluations).

6 Net debt is a supplementary financial measure, which does not have a standardized meaning under IFRS, and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

7 Adjusted earnings per share, realized metal prices, copper all-in sustaining cost (copper AISC), copper C1 cash cost (copper C1), and total cost of copper (copper C3) are non-GAAP ratios, which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

8 Excludes the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were 580 tonnes for the three and six months ended June 30, 2022 (nil for the three and six months ended June 30, 2021).

ENVIRONMENT, SOCIAL AND GOVERNANCE

Governance

At the Company’s Annual General Meeting on May 5, 2022, Clive Newall, co-founder of the Company, retired from the Board of Directors and Philip Pascall, co-founder and Chief Executive Officer (“CEO”) since 1996, retired from the CEO role. Philip Pascall will continue to serve as Chairman of the Board.

On May 6, 2022, the Board of Directors appointed Tristan Pascall to the role of CEO. Tristan Pascall has also joined the Board. In addition, the Board announced the appointment of Alison Beckett as an independent director of the Board of Directors.

Reporting

2021 ESG Report

In May 2022, the Company published its principal annual Environment, Social and Governance (“ESG”) report, the 2021 ESG Report, setting out the Company’s performance in a range of environmental, health and safety, social and governance metrics against the Global Reporting Initiative and Sustainability Accounting Standards Board frameworks.

The Company’s approach to sustainability in host communities is consistent with the United Nations Sustainable Development Goals and these are mapped against disclosures provided. The 2021 ESG Report provides further information on the range of social infrastructure and community development initiatives undertaken in the Company’s host communities.

2021 Tax Transparency and Contributions to Government Report

During the second quarter of 2022, the Company published the 2021 Tax Transparency and Contributions to Government Report. In 2021, the Company contributed $1.6 billion to host governments through taxes, royalties and other payments, an increase of 44% from 2020.

The Company strongly supports the various transparency initiatives which provide all stakeholders with clear information of the contributions which are made to host governments by the Company. The report is intended to meet Canada’s Extractive Sector Transparency Measures Act reporting obligations as well as Chapter 10 of the EU Accounting Directive.

The 2021 ESG Report, the 2021 Tax Transparency and Contributions to Government Report, policies and related programs, including the Taskforce on Climate-related Financial Disclosure-aligned Climate Change Report, can be found at: - https://www.first quantum.com/English/sustainability/default.aspx

Health & Safety

The health and safety of the Company’s employees and contractors is our top priority and the Company is focused on the continual strengthening and improvement of the safety culture at all of our operations. The Lost Time Injury Frequency Rates (“LTIFR”) is an area of continued focus and a key performance metric for the Company. Our rolling 12-month LTIFR is 0.05 per 200,000 hours worked as of June 30, 2022 (2021: 0.08).

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 5

(in United States dollars, tabular amounts in millions, except where noted)

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COVID-19

The Company’s priority remains the health and safety of the workforce and surrounding communities as the Company continues to work to manage the impacts of the COVID-19 pandemic. Although some operations are still experiencing some restrictions on labor and resources due to the COVID-19 pandemic, the Company is not currently impacted in any significant manner.

LOGISTICS AND SHIPPING

The Company managed various logistical challenges during the quarter, including those related to the worldwide constraints that have affected the global container shipping sector since late 2020 and have continued into 2022, albeit at a lesser level, as well as specific challenges relating to bottlenecks and other delays at border crossings and ports. Major challenges faced in the second quarter of 2022 include the recent flooding in parts of Kwazulu-Natal, South Africa, which affected port operations at Durban, the challenges posed by COVID-19 lockdowns in China, and the continued disruptions in marine traffic flow relating to the Ukraine conflict. The shipping environment and inland logistics remain challenging in general, and continue to impact sales volumes and freight costs.

Continuing port congestion at most Southern African ports, most particularly Durban but also others, and the tight availability of containers led to some delays and disruptions, impacting the sales and shipments of Zambian anode. This, coupled with increases in fuel prices, resulted in higher freight costs overall. In comparison, the bulk shipping of copper concentrates and inputs have been less affected, although the increases in fuel prices meant that freight costs remained high. These increases have been partially offset by a slight improvement in vessel availability. Concentrates from Cobre Panama, Guelb Moghrein and Çayeli are shipped in bulk. Nickel shipments from Ravensthorpe were impacted by COVID-19 lockdowns in China in various destination ports and regions during the quarter. The Company also experienced some minor disruptions and additional costs on freight shipments out of Asia for similar reasons.

The Company has been able to adequately manage road haulage in the regions where significant inputs and products are hauled by road. Road haulage costs have increased in the second quarter, primarily due to higher fuel prices.

COST INFLATION

Various inputs and operational costs continued to increase further during the second quarter and impacted C1 cash costs[1] . These include costs for fuel, explosives, sulphur, freight, reagents and steel. Global inflationary pressures have been impacted by the ongoing COVID-19 pandemic, as well as supply chain disruptions. Energy costs and explosives were further impacted by the wide-reaching sanctions imposed upon Russia due to the conflict in Ukraine.

1 C1 cash cost (C1) is a non-GAAP ratio, and does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

DEVELOPMENT PROJECTS

Brownfield Projects

CP100 Expansion

The CP100 Expansion project to achieve a throughput rate of 100 million tonnes per annum (“Mtpa”), including the addition of a sixth ball mill and other process plant facilities and infrastructure upgrades, is well underway. During the first half of 2022, the Company completed the commissioning of the eight additional ultra-class haul trucks. These units will support an additional rope shovel, which is expected to become operational during the fourth quarter of 2022. As part of the expansion plan, pre-strip work for the Colina pit and earthworks for the associated overland conveyor and in-pit crushing facility have commenced and are expected to continue throughout 2022 and 2023. Completion of construction works and commencement of commissioning is targeted for 2023 to allow for a ramp up of production over the course of the year and achieve a throughput rate of 100 Mtpa by the end of 2023. Negotiations for the third party supply of 60-80MW of renewable electricity for the CP100 Expansion continue.

S3 Expansion

The S3 Expansion project received Board approval in May 2022. As the Kansanshi pits expand, the volume of near-surface highgrade oxide ore continues to decrease, whilst the proportion of primary sulphide ores increases with depth. The S3 Expansion is expected to transition Kansanshi away from the current, more selective high-grade medium scale operation to a medium-grade,

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 6

(in United States dollars, tabular amounts in millions, except where noted)

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much larger scale mining operation. The NI 43-101 Technical Report filed on September 14, 2020 includes the plan for a 25 Mtpa expansion of the sulphide ore processing facility, increasing annual throughput to 53 Mtpa. The S3 Expansion would also involve a new larger mining fleet, and combined with the new standalone 25 Mtpa processing plant, is expected to create efficiencies and economies of scale. The majority of the capital spend on the S3 Expansion is proposed for 2023-2024. Following the Board approval, engineering contractors have been engaged and procurement of long-lead items commenced, including primary crusher, mills and mining fleet and expenditures on these items are within the Company’s expectations.

In July 2022, the Board approved the expansion of the Kansanshi smelter, which is included in the Company’s three year capital expenditure guidance issued in January 2022. In parallel with the S3 expansion of the mine and processing facilities, the Company plans to increase throughput capacity of the Kansanshi smelter to 1.6 Mtpa from the current capacity level of 1.38 Mtpa. The capacity increase would be achieved partly through enhancing copper concentrate grades by lowering the carbon and pyrite content of the Kansanshi and Sentinel concentrate feeds and de-bottlenecking the gas handling circuit, including modifications to the existing acid plant 5. Concentrate processing capacity is expected to be further expanded through modifications to the existing high-pressure leach circuit. In addition to increased capacity, the smelter expansion is expected to create greater flexibility should smelter capacity constraints in the Zambian Copperbelt arise, as well as reduce downstream Scope 3 greenhouse gas (“GHG”) emissions from the transport and refining of copper concentrate at third party smelters.

Enterprise

Enterprise is a nickel deposit located 12 kilometres away from Sentinel in the North Western Province of Zambia, with Proven and Probable Mineral Reserves amounting to 34.7 million tonnes (including 9.6 million tonnes of Proven Mineral Reserves and 25.1 million tonnes of Probable Reserves) at 0.99% nickel. It is expected to be a low-cost, high-grade nickel sulphide project. Due to the proximity of the project to Sentinel, the project benefits from shared existing infrastructure and a skilled workforce already in place at Sentinel. The Enterprise project received Board approval in May 2022, for a capital expenditure of $100 million. Prestripping of the Enterprise pit of $60 million is included in the three-year guidance provided earlier this year along with $40 million related to infrastructure and plant commissioning. Expected first nickel production of 5,000 to 10,000 tonnes of nickel in 2023 is included in the Company’s three-year guidance and remains unchanged.

The main workstream to bring Enterprise online, the pre-strip of the mine, is expected to take 12 months and commenced in May 2022. In parallel, mine facilities are being developed, including the satellite administration office, workshop, fuel storage, haul road upgrade, dewatering boreholes and other facilities. Plant refurbishment, completion and commissioning activities have begun and are aligned to the pre-stripping duration.

Las Cruces Underground Project

The Las Cruces Underground Project is awaiting Board approval, which is not expected before early 2023, and will take into consideration prevailing economic conditions.

The Company recently published an updated technical report dated January 17, 2022 with an updated Mineral Resource estimate of 41.2 million tonnes of Measured and Indicated Mineral Resources, which includes 5.02 million tonnes of Indicated Mineral Resources tabled as stockpiles. There is an additional 7.1 million tonnes of Inferred Mineral Resources. Further detailed technical work is being conducted to convert Mineral Resources to Mineral Reserves as part of the Las Cruces Underground Project.

In 2021, the Las Cruces mine transitioned from open-pit mining to the re-processing of high-grade tailings, which is expected to continue until 2023, while work on the Las Cruces Underground Project advances. The proposed underground project involves supplementing the existing copper facilities at Las Cruces with new processing capacity for zinc, silver and lead. These new facilities are required, as the underground project will mine the Polymetallic Primary Sulfide ore body, which is below the minedout secondary copper sulphide ore body.

Work in 2022 focused on advancing the design of the underground mine and plant, obtaining the water concession and release of an initial reserve. Given the work still required, the project is not included in guidance, however, management is planning for completion of all technical and permitting work in 2022.

Greenfield Projects

Taca Taca

Taca Taca, located in the Salta province of Argentina, is the more advanced of the Company’s two greenfield projects and is one of the largest, highest quality copper projects globally. It will consist of an open-pit copper mine and ore processing plant to

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 7

(in United States dollars, tabular amounts in millions, except where noted)

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produce up to 275,000 tonnes per year of copper along with gold and molybdenum by-products. With an initial mine life of 32 years and a large resource base, Taca Taca is projected to be both long-life and low-cost.

In addition to the mining and processing facilities, the project incorporates waste rock and tailings storage facilities, a new electrical transmission line of 125 kilometres, and planned water supply from regional borefields that are hydrologically separate from community water sources. Project infrastructure also includes new access roads and rehabilitation and upgrades to existing railway line. Power supply options are available to source up to 100 percent of the project’s electricity needs from renewable or from a combination of renewable and Argentinian natural gas. GHG emissions could be further reduced through the application of the Company’s industry-leading electric trolley assist for haul trucks.

The Company is continuing with the project pre-development and feasibility activities. The primary Environmental and Social Impact Assessment (“ESIA”) for the project, which covers the principal proposed project sites, was submitted to the Secretariat of Mining of Salta Province in 2019 and approval of the ESIA is anticipated in late 2022. Two additional environmental permits were filed with the relevant authorities during 2021, including one for the transmission line to connect the project to the national electrical grid, and another for the proposed bypass and access road construction for the project. These are expected to be along a similar timeline to the primary mine site ESIA.

The project will also require approval of a concession for borefield water supply and additional water supply studies and pump tests will be completed in 2022 in advance of the permit application.

A Board decision to advance the Taca Taca project is not expected before 2024.

Haquira

Haquira is located in the Apurímac region of Peru, and is a longer-dated greenfield project for the Company. Following a period of establishing environmental baseline monitoring processes, a two-year program of 35,000 metres of diamond drilling is planned, subject to signing land access agreements with communities. The program is intended to upgrade resource confidence and assist with mine planning and scheduling. In parallel with the drill planning, a dialogue with community leaders at Haquira has been underway for several months and will continue as drilling progresses.

EXPLORATION

The Company’s global exploration program is focused on identifying high-quality porphyry and sediment-hosted copper deposits in prospective belts around the world.

The Company is engaged in the assessment and early stage exploration of a number of properties around the world, particularly focused on the Andean porphyry belt of Argentina, Chile, Peru, Ecuador and Colombia, as well as specific targets in other jurisdictions including Finland and Australia. Near-mine exploration programs are restricted to Las Cruces in Spain, Çayeli in Turkey, as well as on satellite targets around Kansanshi in Zambia. Some encouraging targets have emerged from reconnaissance surveys around Las Cruces and Çayeli with follow-up drilling currently in progress.

During the quarter, reconnaissance surveys continued on greenfield porphyry targets in Peru, Chile, and Ecuador. More substantial drill programs are active on a copper-gold porphyry prospect in Argentina and a zinc project in Turkey. With the improved investment climate in Zambia, a ramp up of exploration activities in Zambia is now in progress. A number of regional and near mine exploration initiatives are under consideration together with two new early stage joint venture (“JV”) projects.

OTHER DEVELOPMENTS

Zambian VAT

During the quarter the Company reached an agreement with the GRZ for repayment of the outstanding VAT claims based on offsets against future corporate income tax and mineral royalty tax payments, which commenced July 1, 2022.

During the six months ended June 30, 2022, the Company was granted offsets of $38 million with respect to VAT receivable balances. In the same period of 2021, offsets of $33 million were granted. For a detailed summary of the VAT receivable balance due to the Company’s Zambian operations please see “Zambian VAT” on page 42.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 8

(in United States dollars, tabular amounts in millions, except where noted)

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Zambian Power Supply

Water levels at the Kariba Dam are 5% below last year with lower than average rainfall experienced during the rainy season, although the rainy season was extended into April.

Commissioning of the 750MW Kafue Gorge Lower Power Station is nearly complete, with four out of five 150MW units currently commissioned and running. The project is expected to be completed before the end of the year with the commissioning of the last 150MW unit.

The national energy balance is well under control and no power restrictions are expected for the Zambian mining operations.

Panama Law 9 Update

In July 2021, the Government of Panama (“GOP”) announced the appointment of a high-level commission of senior government ministers and officials, chaired by the Minister of Commerce, to discuss the Company’s concession contract. In September 2021, the Supreme Court upheld its ruling in respect of the clarification motions presented by the Company to the Court in relation to its Law 9 decision announced in September 2018 and the ruling was gazetted in the fourth quarter. The Company understands that the upholding of the unconstitutionality ruling against Law 9 of 1997 does not have retroactive effects, pursuant to article 2573 of the Code of Judicial Proceedings of Panama, therefore the approval of the mining concession contract which occurred in 1997 with the enactment of Law 9, remains unaltered, providing operational continuity as per status quo. In September 2021, the Ministry of Commerce publicly announced the culmination of the high-level formal discussions on two topics being environmental and labour matters. Subsequently, discussion on the economic and tax aspects was ensued and the GOP presented proposals which were unacceptable to Company. On December 22, 2021, the unconstitutionality ruling was gazetted, after the requests for clarification submitted by MPSA had been deemed inadmissible in July 2021.

During January 2022, the GOP tabled a new proposal and the commission reached an agreement in principle on certain items, namely that the GOP should receive $375 million in benefits per year from Cobre Panama and that the existing revenue royalty will be replaced by a gross profit royalty. The parties continue to finalize the details behind these principles, including the appropriate mechanics that would achieve the desired outcome, the necessary protections to the Company’s business for downside copper price and production scenarios and ensuring that the new contract and legislation are both durable and sustainable.

Once an agreement is concluded and the full contract is documented, it is expected that the newly drafted legislation would be put to the Panamanian National Assembly. The Company welcomes the transparency of the robust ministerial commission process and is hopeful that this matter can be concluded shortly.

In recent days, Panama has experienced civil unrest, largely focused on temporary blockades to transport routes in the main cities. Production at Cobre Panama has been undisrupted and the Company continues to monitor the situation closely. The Company remains in contact with the government regarding Law 9, but recognize that their attention is, quite properly, focused on resolving the civil disturbances. First Quantum and the GOP remain committed to a swift conclusion of the Law 9 discussions on the basis of the agreed principles and on ensuring that the new contract and legislation are both durable and sustainable with downside copper price and production scenarios.

GUIDANCE

Guidance provided below is based on a number of assumptions and estimates as of June 30, 2022, including among other things, assumptions about metal prices and anticipated costs and expenditures. Guidance involves estimates of known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different. The challenges presented by current inflationary pressures and constraints arising from the Ukraine conflict together with COVID-19 pose some additional risk to the accuracy of forward looking information.

Cobre Panama saw an improvement in truck availability and increased grades in the second quarter with record quarterly production and year to date production at the operation aligned to be within full year guidance levels. Sentinel’s mine production of ore and waste remained behind the planned schedule in the second quarter of 2022, due to wet underfoot ground conditions in the first quarter which delayed access to higher grade ore. Truck availability and a backlog of truck maintenance continued from the first quarter as well. This was a direct impact of labour restrictions and resources during the COVID-19 pandemic, which is now subsiding. Grades at Sentinel are expected to return to planned levels over the coming months with an improved grade profile in the second half of 2022 compared to the first six months, resulting in improved production levels over the course of the

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 9

(in United States dollars, tabular amounts in millions, except where noted)

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year. At Kansanshi, after an extended rainy season, higher than anticipated water levels in the M12 cutback of the mine restricted mine development which led to supplementary plant feed from low grade stockpiles. Water from this area is expected to be removed by the end of the third quarter of 2022, which will provide access to the scheduled oxide and mixed ore. During the second quarter, grades were also affected by a higher than normal proportion of sulphide feed that came from narrow-veined regions as a result of the current mine layout and mining sequence. Extensive work has been conducted on a new geological approach to narrower and lower mineralized veins, which is expected to improve optimization of the mine plan in the near term. Full year production at both Sentinel and Kansanshi is tracking towards the lower end of the guidance range.

Total copper production guidance and total gold production guidance remains unchanged.

Copper C1 cash cost[1] recorded for the second quarter and for first six months of the year at $1.74 per lb and $1.67 per lb respectively, are above the top end of current guidance. Costs for fuel, explosives, freight, mill balls, reagents and other consumables represent almost half of our operational production cost base and unit costs in these areas continued to increase throughout the second quarter, and rose above levels assumed in current guidance. Copper C1 cash costs[1] have also been impacted by lower production at both Zambian operations. Unit costs over the next six months will be dependent on market rates for fuel and other key supplies, the market price of gold and other by-products as well as production levels. Copper C1 cash cost[1] guidance range remains unchanged.

AISC[1] cost for the second quarter and first six months of the year at $2.37 per lb and $2.32 per lb, respectively, are above the top end of the guidance range of $2.15 per lb to $2.30 per lb. Royalties cost included within AISC[1] is dependent on the market price of copper and has therefore been relatively high for the first six months of the year. AISC[1] cost guidance range remains unchanged.

Ravensthorpe nickel production and nickel C1 cash cost[1] and AISC[1] remains unchanged. The spot price for sulphur has fallen sharply in July 2022 compared to levels experienced in the first six months of 2022.

Guidance for total capital expenditure remains unchanged at $1,250 million.

Expected capital expenditure for the full year 2022 includes spending on the CP100 Expansion, which includes a sixth ball mill, secondary screening, process water works and crusher relocation as well as a fifth rope shovel, mining fleet expansion at Sentinel, and a dewatering shaft and some S3 project costs at Kansanshi. Sustaining capital expenditure[1] is expected to be approximately $310 million.

Capital expenditure for the quarter ended June 30, 2022 was $275 million and for the first six months of the year was $554 million.

PRODUCTION GUIDANCE

PRODUCTION GUIDANCE
000’s	2022 Current Guidance
Copper (tonnes)	790 – 855
Gold (ounces)	285 – 310
Nickel (contained tonnes)	25 – 30

1 C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios, and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 10

(in United States dollars, tabular amounts in millions, except where noted)

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PRODUCTION GUIDANCE BY OPERATION[2]

PRODUCTION GUIDANCE BY OPERATION2
Copper production guidance (000’s tonnes)	2022 Current Guidance
Cobre Panama	330 – 360
Kansanshi	175 – 195
Sentinel	250 – 265
Other sites	35
Gold production guidance (000’s ounces)
Cobre Panama	135 – 150
Kansanshi	120 – 130
Other sites	30
Nickel production guidance (000’s contained tonnes)
Ravensthorpe	25 – 30

1 C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios, and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

2 Production is stated on a 100% basis as the Company consolidates all operations.

CASH COST[1] AND ALL-IN SUSTAINING COST[1]

CASH COST1AND ALL-IN SUSTAINING COST1
Copper	2022 Current Guidance
C11(per lb)	$1.45 – $1.60
AISC1(per lb)	$2.15 – $2.30
Nickel	2022 Current Guidance
C11(per lb)	$6.25 – $7.00
AISC1(per lb)	$7.50 – $8.50

At this stage, guidance assumes no change in royalties in Panama.

1 C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios, and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

PURCHASE AND DEPOSITS ON PROPERTY, PLANT & EQUIPMENT

PURCHASE AND DEPOSITS ON PROPERTY, PLANT & EQUIPMENT
	2022 Current Guidance
Capitalized stripping2	250
Sustaining capital2	310
Project capital2	690
Total capital expenditure	1,250

2 Capitalized stripping, sustaining capital and project capital are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 11

(in United States dollars, tabular amounts in millions, except where noted)

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Interest

Interest expense on debt for the quarter ended June 30, 2022 was $115 million and for the first six months of the year was $236 million. Interest expense on debt for the full year 2022 is expected to be approximately $450 million and excludes interest accrued on related party loans to Cobre Panama and Ravensthorpe, a finance cost accreted on the precious metal streaming arrangement, capitalized interest expense and accretion on asset retirement obligation (“ARO”).

In addition to interest expense on debt, finance costs in the income statement include interest accrued on related party loans to Cobre Panama and Ravensthorpe, a finance cost accreted on the precious metal streaming arrangement and ARO expense.

Cash outflow on interest paid for the three months ended June 30, 2022 was $79 million and for the first six months of the year was $232 million and is expected to be approximately $450 million for the full year 2022. This figure excludes interest paid on related party loans to Cobre Panama and Ravensthorpe and capitalized interest paid.

Capitalized interest for the quarter ended June 30, 2022 was $5 million and for the first six months of the year was $9 million. Capitalized interest is expected to be approximately $20 million for the full year 2022.

A significant proportion of the Company’s interest expense is incurred in jurisdictions where no tax credit is recognized.

Tax

The effective tax rate for the quarter ended June 30, 2022 was 21% and for the first six months of the year was 23%, which included the current Law 9 legislation.

The effective tax rate for the full year 2022, including interest expense, is expected to range between 20% - 25%, based on the current Law 9 legislation. Discussions with the GOP continued throughout the quarter.

Depreciation

Depreciation expense for the quarter ended June 30, 2022 was $288 million and for the first six months of the year was $583 million. The full year 2022 depreciation expense is expected to be between $1,200 million to $1,250 million.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 12

(in United States dollars, tabular amounts in millions, except where noted)

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SUMMARY OPERATIONAL RESULTS

Production

SECOND QUARTER

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----- Start of picture text -----

QUARTERLY COPPER PRODUCTION BY OPERATION
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QUARTERLY GOLD PRODUCTION BY OPERATION

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----- Start of picture text -----

81
78 78
205 200 210 202 1 1 1 75 75
193 70 1
16 14 12 10 182 13 11 8 7 9
10 7
10
60
58 54 60 52
52 28 33 32 35 28
33
49 50 51 52 40
42
82 82 87 80 78 91 36 36 37 33 30 37
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Cobre Panama Kansanshi Sentinel Other Cobre Panama Kansanshi Guelb Moghrein Other
'000 Tonnes '000 Ounces
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Total copper production in the second quarter of 2022 decreased by 4% to 192,668 tonnes compared to the same quarter of 2021. The decrease in total copper production was mainly attributable to lower grades at Kansanshi and Sentinel, as well as expected decreases at shorter life operations. This was offset by Cobre Panama achieving a record copper production in the quarter.

Cobre Panama achieved a record quarter in throughput of 21.2 million tonnes, attributable to increased plant stability and continuous improvement projects, resulting in record quarterly copper production of 90,778 tonnes, an 11% increase from the same quarter in 2021.

Kansanshi’s lower grades had an impact on recoveries, resulting in copper production being 21% lower than the same quarter in 2021. After an extended rainy season, higher than anticipated water levels in the M12 cutback restricted mining deployment, which led to supplementary plant feed from low grade stockpile. Water from this area is expected to be removed by the end of the third quarter of 2022, which will provide access to the scheduled oxide and mixed ore. Grades were also affected by a higher than normal proportion of sulphide feed that came from narrow-veined regions as a result of the current mine layout and mining sequence. Recent detailed updates of the geological model confirm that a relatively small proportion, 20% of the sulphide ores, comprise of vein-hosted areas. Ongoing reconciliation enhancements have elevated understanding of such areas, which will allow near-term mine plans and sequences to be improved and optimized.

Sentinel’s copper production of 52,447 tonnes was 3% lower than the comparable quarter in 2021. Feed grade was impacted by a delay in stripping due to bench turnover rate and wet ground conditions, which delayed access to higher grade ore. Low truck availability and a backlog of truck maintenance continued from the first quarter as well. This was a direct impact of labour restrictions and resources during the COVID-19 pandemic, which is now subsiding. Grades are expected to improve during the second half of the year.

Decreases in copper production at other short life operations were in line with expectations and were principally at Guelb Moghrein.

Gold production was 8% lower than the same quarter of 2021 due to lower production at Kansanshi and Guelb Moghrein operations.

Ravensthorpe produced 4,853 contained tonnes of nickel, a 7% increase from the comparable quarter of 2021, despite experiencing wet weather in the quarter.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 13

(in United States dollars, tabular amounts in millions, except where noted)

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SIX MONTHS

YEAR-TO-DATE COPPER PRODUCTION BY OPERATION

YEAR-TO-DATE GOLD PRODUCTION BY OPERATION

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----- Start of picture text -----

405
29 375 159
19 2 145
1
24
113
105 16
61
99 82 61
164 169 72 67
Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Jun 30, 2022
Cobre Panama Kansanshi Sentinel Other Cobre Panama Kansanshi Guelb Moghrein Other
'000 Tonnes '000 Ounces
----- End of picture text -----

Copper production in the six months ended June 30, 2022 was 7% lower than the comparable period of 2021, mainly due to lower grades at Kansanshi and Sentinel, as well as decreased production at our short life operations, offset by strong operational performance at Cobre Panama.

Cobre Panama showed strong operational performance with steadily improving plant availability and mill processing rates. In the six months ended June 30, 2022, Cobre Panama processed 41.8 million tonnes of ore, delivering a 3% increase in copper production compared to the same period in 2021.

Lower grades at Kansanshi had an impact on recoveries and resulted in copper production being 18% lower than the same period in 2021. After an extended rainy season, higher than anticipated water levels in the M12 cutback restricted mining deployment, which led to supplementary plant feed from low grade stockpile. Water from this area is expected to be removed by the end of the third quarter of 2022, which will provide access to the scheduled oxide and mixed ore. Grades were also affected by a higher than normal proportion of sulphide feed that came from narrow-veined regions as a result of the current mine layout and mining sequence. Recent detailed updates of the geological model confirm that a relatively small proportion, 20% of the sulphide ores, comprise of vein-hosted areas. Ongoing reconciliation enhancements have elevated understanding of such areas, which will allow near-term mine plans and sequences to be improved and optimized.

Copper production at Sentinel of 104,922 tonnes for the six months ended June 30, 2022 was 7% lower than the comparable period in 2021. Feed grade was impacted by a delay in stripping due to bench turnover rate and wet ground conditions, which delayed access to higher grade ore. Low truck availability and a backlog of truck maintenance continued from the first quarter as well. This was a direct impact of labour restrictions and resources during the COVID-19 pandemic, which is now subsiding. Grades are expected to improve during the second half of the year.

Expected decreases were seen at the shorter life operations, mainly at Guelb Moghrein and Las Cruces.

Total gold production was 9% lower than the comparable period in 2021 due to lower production at Cobre Panama and Guelb Moghrein.

Ravensthorpe produced 9,975 contained tonnes of nickel, a 9% increase from the comparable period in 2021, despite experiencing wet weather in the second quarter of 2022 and production being limited in early January by a plant shutdown between mid-December 2021 and mid-January 2022.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 14

(in United States dollars, tabular amounts in millions, except where noted)

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Sales Volumes

SECOND QUARTER

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QUARTERLY COPPER SALES BY OPERATION
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QUARTERLY GOLD SALES BY OPERATION
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----- Start of picture text -----

85
1 80 79
211 16 204 17 194 12 213 9 197 10 188 10 77 13 1 16 9 1 8 1 76 6 1 70 7 1
58
66 58 51 59 51 28 34 36
28 39 27
60
44 43 48 36
53
40
85 86 83 86 75 91 35 36 34 30 35
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Cobre Panama Kansanshi 1 Sentinel Other Cobre Panama Kansanshi Guelb Moghrein Other
'000 Tonnes '000 Ounces
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1 Copper sales include third-party sales of concentrate, cathode and anode attributable to Kansanshi (excluding copper anode sales attributable to Sentinel). Sales exclude the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were 580 tonnes for the three months ended June 30, 2022, (nil) for the three months ended June 30, 2021.

Total copper sales volumes of 187,642 tonnes for the second quarter of 2022 were 8% lower than the same quarter in 2021, while gold sales volumes of 69,998 ounces for the second quarter of 2022 were 18% less than the same quarter of 2021. This is due to lower production and prevailing shipping challenges (see “Logistics and Shipping”) experienced during the quarter, particularly out of Zambia.

Nickel sales volumes were 2,892 contained tonnes at Ravensthorpe, which was impacted by a shipping delay at the end of June 2022, resulting in the vessel leaving in early July.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 15

(in United States dollars, tabular amounts in millions, except where noted)

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SIX MONTHS

YEAR-TO-DATE COPPER SALES BY OPERATION

YEAR-TO-DATE GOLD SALES BY OPERATION

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----- Start of picture text -----

415 163
385
32 3 146
22 3
30
12
124
109
55
66
87 89
172 165 75 65
Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Jun 30, 2022
Cobre Panama Kansanshi 1 Sentinel Other Cobre Panama Kansanshi Guelb Moghrein Other
'000 Tonnes '000 Ounces
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1 Copper sales include third-party sales of concentrate, cathode and anode attributable to Kansanshi (excluding copper anode sales attributable to Sentinel). Sales exclude the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were 580 tonnes for the six months ended June 30, 2022 (nil) for the six months ended June 30, 2021.

Copper sales in the period were 7% lower compared to the same period in 2021. This reflects the decreases at Sentinel and Guelb Moghrein and Panama, due to lower production and prevailing shipping challenges (see “Logistics and Shipping”) experienced, particularly out of Zambia.

Gold sales volumes decreased by 10% compared to the same period in 2021, reflecting the decrease in gold production at Cobre Panama and Guelb Moghrein.

Nickel sales volumes were 7,242 contained tonnes at Ravensthorpe, which was impacted by a shipping delay at the end of June 2022, resulting in the vessel leaving in early July.

Cash Costs[1]

SECOND QUARTER

QUARTERLY COPPER C1 CASH COST[1]

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----- Start of picture text -----

2.10
1.90
1.70 1.61
1.74
1.50
1.29
1.30 1.39
1.10 1.24 1.26
0.90
0.70
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Cobre Panama Kansanshi
Sentinel Total
$ per lb
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QUARTERLY COPPER AISC [1]
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3.00
2.80
2.60
2.40
2.20 2.05 2.37
2.27
2.00
1.80
1.91 1.87
1.60
1.72
1.40
1.20
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Cobre Panama Kansanshi
Sentinel Total
$ per lb
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First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 16

(in United States dollars, tabular amounts in millions, except where noted)

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Total copper C1 cash cost[1] of $1.74 per lb for the second quarter of 2022 was $0.45 per lb higher than the same quarter of 2021 as prices continued to increase during the quarter for key consumables, including explosives, fuel and steel prices, along with higher freight and electricity charges. The increase in copper C1 cash cost[1] was also a result of lower copper production levels.

Cobre Panama’s copper C1 cash cost[1] of $1.54 per lb was $0.29 per lb higher than the comparable quarter of 2021 as a result of price increases for key consumables.

Kansanshi’s copper C1 cash cost[1] for the second quarter of $1.83 per lb was an increase of $0.70 per lb compared to the same quarter in 2021, while Sentinel’s copper C1 cash cost[1] was $0.38 per lb higher at $1.88 per lb, attributable to price increases in key consumables and lower copper production.

Total copper AISC[1] of $2.37 per lb was $0.46 per lb higher than the same quarter of 2021, reflecting the higher copper C1 cash cost[1] .

1 Copper C1 cash cost (copper C1), and copper all-in sustaining costs (copper AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

SIX MONTHS

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----- Start of picture text -----

YEAR-TO-DATE COPPER C1 CASH COST [1] YEAR-TO-DATE COPPER AISC [1]
1.80 2.80
1.67
1.70 2.60
1.60
2.40 2.32
1.50
2.20
1.40
2.00
1.30 1.26
1.81
1.80
1.20
1.10 1.60
1.00 1.40
Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Jun 30, 2022
Cobre Panama Kansanshi
Cobre Panama Kansanshi
Sentinel Total
Sentinel Total
$ per lb $ per lb
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Total copper C1 cash cost[1] of $1.67 per lb for the six months ended June 30, 2022 was $0.41 per lb higher than the same period in 2021, driven in particular by higher fuel, freight, steel and explosives costs, together with the impact of higher power costs at Cobre Panama in January and Las Cruces in the first quarter, as well as the impact of the lower overall production.

For these reasons, Kansanshi’s copper C1 cash cost[1] of $1.64 per lb increased by $0.48 per lb compared to the same period in 2021, while Sentinel’s was $0.31 per lb higher at $1.75 per lb.

Cobre Panama’s copper C1 cash cost[1] of $1.59 per lb was $0.39 per lb higher than the comparable period of 2021, which included electricity purchasing costs in January during the power plant shutdown.

Total copper AISC[1] of $2.32 per lb was $0.51 per lb higher than the same period in 2021, resulting from the higher copper C1 cash costs[1] and higher royalty costs arising from higher copper prices. Capitalized stripping costs[2] and sustaining capital expenditure[2] were also higher than the comparable period in 2021.

Please see the appendices from page 56 onwards for further details on production and sales volumes by operation as well as sales revenues and cash costs.

1 Copper C1 cash cost (copper C1), and copper all-in sustaining costs (copper AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

2 Sustaining capital expenditure and capitalized stripping are non-GAAP financial measures, which do not have standardized meanings prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 17

(in United States dollars, tabular amounts in millions, except where noted)

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OPERATIONS REVIEW

Cobre Panama

	Three months ended	Three months ended	Six months ended June 30	Six months ended June 30
	June 30
	2022	2021	2022	2021
Waste mined (000’s tonnes)	16,640	11,048	29,745	23,722
Ore mined (000’s tonnes)	25,799	22,406	50,849	47,223
Copper ore milled (000’s tonnes)1	21,156	19,719	41,811	39,347
Copper ore grade processed (%)	0.47	0.45	0.44	0.46
Copper recovery (%)	92	91	91	91
Concentrate grade (%)	26.7	26.7	26.9	26.7
Copper production (tonnes)	90,778	81,686	169,115	163,728
Copper sales (tonnes)	90,568	86,417	165,453	171,705
Gold production (ounces)	36,931	36,290	66,878	72,188
Gold sales (ounces)2	35,251	39,664	65,419	74,862
Silver production (ounces)	733,399	609,427	1,364,027	1,232,878
Silver sales (ounces)2	739,120	637,887	1,348,313	1,285,309
Copper all-in sustaining cost (AISC) (per lb)3	$1.88	$1.57	$1.94	$1.48
Copper cash cost (C1) (per lb)3	$1.54	$1.25	$1.59	$1.20
Total copper cost (C3) (per lb)3	$2.46	$2.14	$2.55	$2.05
Financial Results ($ millions)
Copper in concentrates	788	782	1,485	1,454
Gold – precious metal stream ongoing cash payments		12		24
	13		24
Gold – other cash	-	10	4	18
Silver – precious metal stream ongoing cash payments		2		5
	2		4
Silver – other cash	7	5	12	11
Gold and silver - non cash amortization	27	27	49	50
Total sales revenues4	837	838	1,578	1,562
Gross profit	359	422	660	754
EBITDA5	512	560	953	1,024

1 Measured in dry metric tonnes (“DMT”).

2 Excludes refinery-backed gold and silver credits purchased and delivered under the precious metal streaming arrangement (see "Precious Metal Stream Arrangement”).

3 Copper all-in sustaining costs (copper AISC), copper C1 cash cost (copper C1), and total copper cost (copper C3) are non-GAAP ratios, and do not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

4 Sales revenues and cost of sales for the three and six months ended June 30, 2021 have been reduced by $65 and $121 million, respectively, compared to previously reported values for the periods ended June 30, 2021 as refinery-backed gold and silver credits on the Company’s precious metal stream arrangement are now netted within sales revenues rather than included in cost of sales (see “Precious Metal Stream Arrangement”).

5 EBITDA is a non-GAAP financial measure, and does not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 18

(in United States dollars, tabular amounts in millions, except where noted)

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Second Quarter

During the second quarter of 2022, a record mill throughput of 21.2 million tonnes of ore with an average head grade of 0.47% were processed, achieving recoveries of 92% due to the higher feed grade and continuous improvement projects in flotation. The increase in ore milled compared to the same period in 2021 is driven by efficiency improvements in the comminution circuit, including higher mill operability and higher milling rates, attributable to the improved secondary and pebble crusher availability and utilization, as well as improvements to milling processes. Due to increased plant stability and continuous improvement projects, Cobre Panama achieved quarterly milestones such as, records in tonnes of copper ore milled, as well as copper production of 90,778 tonnes, and contained copper in concentrate shipped. A record of blasted and mined volumes were achieved in May, contributing to the higher ore and waste tonnes mined in the quarter, driven by the final commissioning of eight new T284 haul trucks, with 4.6 million tonnes of waste mined from the Colina pit (three months ended June 30, 2021: nil).

Copper AISC[1] and copper C1 cash cost[1] of $1.88 per lb and $1.54 per lb, respectively, were $0.31 per lb and $0.29 per lb higher than the same quarter in 2021. The main drivers of the increase were higher prices for key consumables including fuel, liners, freight, explosives and grinding media, and higher freight charges. A collar structure for coal purchases is currently in place with the ceiling price already exercised for July 2021 onwards, thereby limiting exposure to further increases in the coal price until the end of 2023. Capital costs in mining were higher due to the timing of mobile components replacement that are directly related to the age of ultra-class hauling fleet. In addition, higher stripping costs resulted from the increase in waste mined.

Sales revenues for the second quarter of 2022 were $837 million, comparable to $838 million during the same quarter of 2021.

Gross profit of $359 million for the quarter was $63 million, or 15%, lower than the same period in 2021, reflecting higher operating costs.

Six Months

Strong operational performance continues to be demonstrated throughout with steadily improving plant availability and mill processing rates. During the six months ended June 30, 2022, 41.8 million tonnes of ore with an average grade of 0.44% have been processed with recoveries of 91% achieved. This resulted in copper and gold production of 169,115 tonnes and 66,878 ounces, respectively. Additionally, higher mining volumes were driven by the final commissioning of eight new T284 haul trucks, with 6.9 million tonnes of waste mined from the Colina pit (six months ended June 30, 2021: nil).

Copper AISC[1] and copper C1 cash cost[1] were $1.94 per lb and $1.59 per lb, respectively, for the six months ended June 30, 2022, higher than the comparable periods in 2021 as a result of price increases for key consumables, including fuel, liners, electricity, explosives and grinding media, and higher freight charges, combined with the electricity purchasing in January during the power plant shutdown at market peak prices. A collar structure for coal purchases is currently in place with the ceiling price already exercised for July 2021 onwards, thereby limiting exposure to further increases in the coal price until the end of 2023.

Sales revenues for the six months ended June 30, 2022 were $1,578 million, comparable to $1,562 million during the same period in 2021.

Gross profit was $660 million for the six months ended June 30, 2022, a 12% decrease from the same period in 2021, reflecting higher operating costs.

Outlook

For 2022, Cobre Panama is expected to achieve between 85 million and 90 million tonnes of mill throughput and annual production of between 330,000 and 360,000 tonnes of copper and between 135,000 and 150,000 ounces of gold. Full year 2022 grades and recoveries are expected to be broadly consistent with 2021, with some fluctuation from quarter to quarter.

The operation continues to work towards improving throughput, haul cycle times, truck availability and drill and blast optimization, with a focus on managing costs and finding efficiencies. In addition, Cobre Panama has committed to invest in new facilities and accommodation upgrades to further improve conditions for staff.

1 Copper C1 cash cost (copper C1), and copper all-in sustaining costs (copper AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 19

(in United States dollars, tabular amounts in millions, except where noted)

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Kansanshi

Kansanshi
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Waste mined (000’s tonnes)	18,437	19,575	35,029	32,086
Ore mined (000’s tonnes)	6,931	7,969	14,940	15,488
Sulphide ore milled (000’s tonnes)1	3,310	3,417	6,733	6,693
Sulphide ore grade processed (%)	0.75	0.83	0.80	0.82
Sulphide copper recovery (%)	91	92	91	92
Sulphide concentrate grade (%)	24.1	24.0	23.4	23.6
Mixed ore milled (000’s tonnes)1	1,951	1,872	3,600	3,765
Mixed ore grade processed (%)	0.68	1.03	0.67	0.98
Mixed copper recovery (%)	73	81	76	84
Mixed ore concentrate grade (%)	16.4	20.3	18.1	21.6
Oxide ore milled (000’s tonnes)1	1,969	1,912	3,821	3,584
Oxide ore grade processed (%)	0.56	0.69	0.58	0.70
Oxide copper recovery (%)	70	67	68	71
Oxide concentrate grade (%)	11.7	16.1	12.7	17.8
Copper production (tonnes)2	39,719	50,340	81,618	99,233
Copper smelter
Concentrate processed3	312,788	240,895	650,140	570,757
Copper anodes produced (tonnes)3	70,171	58,458	147,485	140,143
Smelter copper recovery (%)	98	99	97	98
Acid tonnes produced (000’s)	306	229	634	557
Copper sales (tonnes)4	35,966	42,758	89,206	87,032
Gold production (ounces)	27,937	32,942	60,577	61,404
Gold sales (ounces)	26,775	27,572	65,603	55,082
Copper all-in sustaining cost (AISC) (per lb)5, 6	$2.85	$2.18	$2.65	$2.05
Copper cash cost (C1) (per lb)5, 6	$1.83	$1.13	$1.64	$1.16
Total copper cost (C3) (per lb)5, 6	$3.00	$2.09	$2.77	$2.11
Financial Results ($ millions)
Copper	340	410	864	780
Gold	48	48	119	96
Other	7	-	8	-
Total sales revenues	395	458	991	876
Gross profit	121	219	399	393
EBITDA5	167	262	501	483

1 Measured in dry metric tonnes (“DMT”).

2 Production presented on a copper concentrate basis, i.e. mine production only. Production does not include output from the smelter.

3 Concentrate processed in smelter and copper anodes produced are disclosed on a 100% basis, inclusive of Sentinel and third-party concentrate processed. Concentrate processed is measured in DMT.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 20

(in United States dollars, tabular amounts in millions, except where noted)

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4 Copper sales include third-party sales of concentrate, cathode and anode attributable to Kansanshi (excluding copper anode sales attributable to Sentinel). Sales exclude the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were 580 tonnes for the three and six months ended June 30, 2022 (nil for the three and six months ended June 30, 2021).

5 Copper all-in sustaining costs (copper AISC), copper C1 cash cost (copper C1), and total copper cost (copper C3) are non-GAAP ratios, and EBITDA is a non-GAAP financial measure, and do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

6 Excludes purchases of copper concentrate from third parties treated through the Kansanshi smelter.

Second Quarter

Kansanshi produced 39,719 tonnes of copper during the second quarter of 2022, which was 21% lower than the same quarter of 2021 due to lower grades across all three circuits and the resulting impacts on recovery. After an extended rainy season, higher than anticipated water levels in the M12 cutback restricted mining deployment, which led to supplementary plant feed from low grade stockpile. Water from this area is expected to be removed by the end of the third quarter of 2022, which will provide access to the scheduled oxide and mixed ore. During the quarter, grades were also affected by a higher than normal proportion of sulphide feed that came from narrow-veined regions as a result of the current mine layout and mining sequence. Recent detailed updates of the geological model confirm that a relatively small proportion, 20% of the sulphide ores, comprise of vein-hosted areas and 80% from dominant stratiform mineralization. Ongoing reconciliation enhancements have elevated understanding of such areas, which will allow near-term mine plans and sequences to be improved and optimized.

Gold production of 27,937 ounces for the second quarter of 2022 is 15% lower than the same period in 2021 due to the reduction in copper concentrate produced.

Copper C1 cash cost[1] of $1.83 per lb was $0.70 per lb higher than the comparable quarter in 2021, mainly due to lower production and underlying cost increases from higher fuel and explosive prices. Copper AISC[1] of $2.85 per lb was $0.67 per lb higher than the comparable quarter in 2021 due to higher capitalized stripping[2] , and higher copper C1 cash costs[1] in the quarter.

Sales revenues of $395 million were 14% lower than the same quarter of 2021, reflecting a decrease in copper sales volumes during the quarter.

Gross profit of $121 million was 45% lower than the comparable period in 2021, reflecting lower sales revenues and increases in costs.

Six Months

Kansanshi produced 81,618 tonnes of copper over the six months ended 30 June 2022, which was 18% lower than the first six months of 2021 due to lower mixed and oxide grades and the resulting impacts on recovery. After an extended rainy season, higher than anticipated water levels in the M12 cutback restricted mining deployment, which led to supplementary plant feed from low grade stockpile. Water from this area is expected to be removed by the end of the third quarter of 2022, which will provide access to the scheduled oxide and mixed ore. During the period, grades were also affected by a higher than normal proportion of sulphide feed that came from narrow-veined regions as a result of the current mine layout and mining sequence. Recent detailed updates of the geological model confirm that a relatively small proportion, 20% of the sulphide ores, comprise of vein-hosted areas and 80% from dominant stratiform mineralization. Ongoing reconciliation enhancements have elevated understanding of such areas, which will allow near-term mine plans and sequences to be improved and optimized.

Gold production for the six months ended June 30, 2022 of 60,577 ounces is comparable to the same quarter of 2021 despite an 18% decrease in copper production, mainly as a result of operational improvements on the gravity gold recovery circuit.

Copper C1 cash cost[1] of $1.64 per lb was $0.48 per lb higher than the same period in 2021, mainly due to lower production and underlying cost increases from higher fuel and explosive prices. Copper AISC[1] of $2.65 per lb was $0.60 per lb higher than the same period in 2021 due to higher copper prices driving an increase in the royalty rate, higher capitalized stripping[2] , and higher copper C1 cash costs[1] .

Sales revenues of $991 million were 13% higher than the same period in 2021 due to the sell down of inventory during the first quarter of 2022.

Gross profit for the six months ended June 30, 2022 of $399 million was comparable to the same period in 2021.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 21

(in United States dollars, tabular amounts in millions, except where noted)

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Kansanshi Copper Smelter

Second quarter

The smelter treated 312,788 DMT of concentrate during the quarter and produced 70,171 tonnes of copper anode and 306,000 tonnes of sulphuric acid. The concentrate grade treated in the quarter was 23%.

Six Months

The smelter treated 650,140 DMT of concentrate during the six months ended June 30, 2022 and produced 147,485 tonnes of copper anode and 634,000 tonnes of sulphuric acid. The concentrate grade treated during the period was 24%.

Outlook

Production in 2022 is expected to be towards the lower end of current guidance of between 175,000 and 195,000 tonnes of copper, and towards the lower end of current guidance of between 120,000 and 130,000 ounces of gold. Full year grades for copper are expected to be lower than the previous year.

1 Copper all-in sustaining costs (copper AISC) and Copper C1 cash cost (copper C1) are non-GAAP ratios, do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Capitalized stripping is a non-GAAP financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

Sentinel

Sentinel
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Waste mined (000’s tonnes)	24,249	26,098	47,820	50,416
Ore mined (000’s tonnes)	12,839	14,311	26,732	27,271
Copper ore milled (000’s tonnes)1	14,416	14,050	28,036	26,980
Copper ore grade processed (%)	0.41	0.44	0.42	0.47
Copper recovery (%)	89	88	90	88
Copper production (tonnes)	52,447	54,308	104,922	112,560
Concentrate grade (%)	28.5	27.4	28.5	27.4
Copper sales (tonnes)	50,912	57,951	109,462	123,633
Copper all-in sustaining cost (AISC) (per lb)2	$2.76	$2.26	$2.58	$2.14
Copper cash cost (C1) (per lb)2	$1.88	$1.50	$1.75	$1.44
Total copper cost (C3) (per lb)2	$2.94	$2.50	$2.80	$2.35
Financial Results ($ millions)
Sales revenues – Copper	453	525	1,008	1,056
Gross profit	160	246	401	483
EBITDA2	225	313	540	617

1 Measured in dry metric tonnes (“DMT”)

2 Copper all-in sustaining costs (copper AISC), copper C1 cash cost (copper C1), and total copper cost (copper C3) are non-GAAP ratios, and EBITDA is a non-GAAP financial measure, and do not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 22

(in United States dollars, tabular amounts in millions, except where noted)

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Second Quarter

Copper production of 52,447 tonnes for the second quarter of 2022 was 3% lower than the same quarter in 2021 despite a 3% increase in throughput, as grade was 7% lower. Feed grade was impacted by a delay in the Stage 2 North-wall stripping due to lower bench turnover rate and wet underfoot ground conditions, which delayed access to higher grade ore, and resulted in the substitution of ore feed with mineralized waste. Low truck availability and a backlog of truck maintenance continued from the first quarter as well. This was a direct impact of labour restrictions and resources during the COVID-19 pandemic, which is now subsiding. Record concentrate grades were achieved during the quarter.

C1 cash cost[1] was $0.38 per lb higher than the comparable period of 2021, reflecting lower copper production and higher employee, freight, fuel, explosives, and consumable costs. Copper AISC[1] of $2.76 per lb was $0.50 per lb higher than the same period of 2021 due to higher sustaining capital expenditure[2] as well as higher C1 cash cost[1] .

Sales revenues of $453 million were $72 million lower than the same period in 2021 reflecting a 12% decline in copper sales volumes. Sales revenues comprise sales of both concentrate and anode, with a higher proportion of revenue realized from copper anodes.

Gross profit of $160 million was $86 million lower than the comparable period in 2021 reflecting lower revenues and higher employee, freight, fuel, explosives and consumable costs.

Six Months

Copper production of 104,922 tonnes for the six months ended June 30, 2022 was 7% lower than the comparable period in 2021, despite a 4% increase in throughput, as grade was 11% lower. Feed grade was impacted by a delay in the Stage 2 North-wall stripping due to lower bench turnover rate and wet underfoot ground conditions, which has delayed access to higher grade ore, and resulted in the substitution of ore feed substituted with mineralized waste. Low truck availability and a backlog of truck maintenance continued from the first quarter into the second quarter as well. This was a direct impact of labour restrictions and resources during the COVID-19 pandemic, which is now subsiding.

C1 cash cost[1] of $1.75 per lb was $0.31 per lb higher than the same period in 2021, reflecting lower copper production and higher employee, freight, fuel, explosives and consumable costs. Copper AISC[1] of $2.58 per lb was $0.44 per lb higher than the same period of 2021 due to higher royalties associated with the higher copper prices, as well as higher C1 cash cost[1] .

Sales revenues of $1,008 million were $48 million lower than the same period in 2021 reflecting an 11% decline in copper sales volumes partially offset by higher realized copper prices[1] . Sales revenues comprise both concentrate and anode sales, with a higher proportion of revenue realized from copper anodes.

Gross profit of $401 million was $82 million lower than the comparable period in 2021, reflecting lower revenues and higher employee, freight, fuel, explosives and consumable costs.

Outlook

Copper production in 2022 is expected to be towards the lower end of current guidance of between 250,000 and 265,000 tonnes.

Grade is expected to improve in the second half of 2022 as the delayed stripping of the Stage 2 North-wall is expected to have been completed, providing access to high grade ore. The operational focus will be on mining fleet availability and productivity which will be assisted with a new trolley line and additional mining fleet as well as a focus on drill and blast performance and secondary crushing as the harder ore domains are accessed in the Stage 2 pit.

1 Copper all-in sustaining costs (copper AISC), copper C1 cash cost (copper C1), and realized metal prices are non-GAAP ratios, do not have standardized meanings under IFRS and might not be comparable to similar financial measures or measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Sustaining capital expenditure is a non-GAAP financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 23

(in United States dollars, tabular amounts in millions, except where noted)

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Ravensthorpe

Ravensthorpe
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Beneficiated ore tonnes processed (000’s)	570	598	1,205	1,230
Beneficiated ore grade processed (%)	1.19	1.07	1.17	1.06
Nickel recovery (%)	78	75	77	76
Nickel production (contained tonnes)	4,853	4,543	9,975	9,185
Nickel sales (contained tonnes)	2,892	6,910	7,242	9,267
Nickel production (payable tonnes)	4,348	3,789	9,091	7,632
Nickel sales (payable tonnes)	2,443	5,777	6,480	7,746
Nickel all-in sustaining cost (AISC) (per lb)1	$11.78	$9.52	$10.05	$8.57
Nickel cash cost (C1) (per lb)1	$10.08	$8.01	$8.33	$7.26
Total nickel cost (C3) (per lb)1	$12.05	$9.48	$10.13	$8.76
Financial Results ($ millions)
Sales revenues	63	107	195	146
Gross profit (loss)	(33)	(9)	20	(14)
EBITDA1	(24)	3	37	3

1 Nickel all-in sustaining cost (nickel AISC), nickel C1 cash cost (nickel C1), total nickel cost (nickel C3) are non-GAAP ratios, and EBITDA is a non-GAAP financial measure. These measures do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

Three and Six Months

Nickel production for the three and six months ended June 30, 2022 was 4,853 and 9,975 contained tonnes, respectively, a 7% and 9% increase from the comparable periods in 2021. Production in the second quarter was impacted by wet weather, especially during April when heavy rainfall was experienced, which impacted materials handling and reduced beneficiation throughput in addition to low pre-leach extractions and limestone availability. Production for the six months ended June 30, 2022 was also impacted by damage to the power plant high pressure steam header on December 18, 2021, which resulted in a plant shutdown for just over three weeks. Design changes were implemented to prevent reoccurrence. Repairs were completed successfully and production resumed on January 9, 2022.

The shortage of mining labour continues in Western Australia. Although COVID-19 cases have declined since the peak, mandatory quarantine requirements have resulted in additional labour shortages.

Sales revenues in the three months ended June 30, 2022 were $63 million, a decrease of 41% from the same quarter in 2021. The decrease in sales revenues was mainly due to a shipping delay at the end of June 2022, which resulted in the vessel leaving in early July and contributed to high finished goods on hand at the end of the second quarter. Sales revenues were also impacted in the second quarter by disruptions in demand due to the March closure of the LME and COVID-19 related lockdowns in China during the second quarter.

The net realized nickel price[1] for the three and six months ended June 30, 2022 was $10.09 per lb and $12.23 per lb, respectively, a 30% and 63% increase from the comparable periods in 2021. The LME price rose significantly in March when trading of nickel on the LME was suspended for six business days, and decreased during the second quarter. The LME price at the end of March was $15.15 per lb and closed at $10.48 per lb as at the end of the second quarter.

Nickel C1 cash cost[1] for the three and six months ended June 30, 2022 was $10.08 per lb and $8.33 per lb, respectively. This is an increase of 26% and 15% from the same periods in 2021, reflecting higher processing costs mainly due to increases in sulphur and fuel prices. AISC[1] of $11.78 per lb and $10.05 per lb for the three and six months ended June 30, 2022, respectively, are 24% and 17% higher than the same periods in 2021 driven by higher royalties and sustaining capital expenditures[2 ] as well as higher nickel C1 cash cost[1] .

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 24

(in United States dollars, tabular amounts in millions, except where noted)

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Gross loss of $33 million for the second quarter of 2022 was $24 million lower than the same quarter in 2021 due to lower sales revenues and higher sulphur and fuel prices. Gross profit of $20 million for the six months ended June 30, 2022 was $34 million higher than the loss of $14 million from the same period in 2021 due to higher sales revenues.

In March 2022, the Company filed an updated NI 43-101 Technical Report for Ravensthorpe.

Outlook

Production guidance for 2022 is expected to be at the lower end of current guidance of between 25,000 and 30,000 contained tonnes of nickel. Ravensthorpe nickel production and nickel C1 cash cost[1] and AISC[1] remains unchanged. The spot price for sulphur has fallen sharply in July 2022 compared to levels experienced in the first six months of 2022.

Mining continues to be focused on optimizing the Shoemaker Levy operation and conducting SAP trials. The focus for the plant remains on improving availability and refurbishment of chutes, conveyors and screens in the beneficiation plant and buffer pond optimization. Major shutdown and descale of one autoclave in the second half of 2022 is scheduled in October. Ravensthorpe continues to be labour constrained, due to the booming Western Australian mining industry and the impact of COVID-19 on staff availability, which is impacting costs and productivity.

1 Nickel all-in sustaining cost (nickel AISC), nickel C1 cash cost (nickel C1), and realized metal prices are non-GAAP ratios, and do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Sustaining capital expenditure is a non-GAAP financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

Guelb Moghrein

Guelb Moghrein
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Waste mined (000’s tonnes)	1,940	447	3,828	996
Ore mined (000’s tonnes)	42	728	69	1,735
Sulphide ore milled (000’s tonnes)1	795	1,046	1,509	1,983
Sulphide ore grade processed (%)	0.55	0.62	0.53	0.67
Sulphide copper recovery (%)	74	91	82	91
Copper production (tonnes)	3,264	5,915	6,496	12,166
Copper sales (tonnes)	3,299	8,298	5,457	14,733
Gold production (ounces)	9,060	11,118	15,972	23,705
Gold sales (ounces)	6,974	16,272	12,497	29,650
Magnetite concentrate production (WMT)2	167,171	93,986	320,164	195,606
Magnetite concentrate sales (WMT)2	138,867	135,715	280,386	180,603
Copper all-in sustaining cost (AISC) (per lb)3	$2.49	$0.95	$2.11	$0.93
Copper cash cost (C1) (per lb)3	$2.02	$0.77	$1.65	$0.69
Financial Results ($ millions)
Sales revenues	58	112	104	189
Gross profit	10	48	20	80
EBITDA3	13	61	24	103

1 Measured in dry metric tonnes (“DMT”)

2 Magnetite concentrate production and sales volumes are measured in wet metric tonnes (“WMT”).

3 Copper all-in sustaining costs (copper AISC), copper C1 cash cost (copper C1), are non-GAAP ratios, and EBITDA is a non-GAAP financial measure, and do not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 25

(in United States dollars, tabular amounts in millions, except where noted)

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Three and Six Months

Copper production for the three and six months ended June 30, 2022 was 45% and 47% lower, respectively, than the same periods in 2021 due to lower grade, recovery, and throughput due to the nature of the material fed from ore stockpile as the mine transitions to its next phase.

Gold production for the three and six months ended June 30, 2022 was 19% and 33% lower, respectively, compared to the same periods in 2021 as a result of lower throughput.

Magnetite production for the three and six months ended June 30, 2022 were 78% and 64% higher, respectively, compared to the same periods in 2021 due to higher feed grade.

Copper C1 cash cost[1] for the three and six months ended June 30, 2022 were $1.25 per lb and $0.96 per lb higher, respectively, than the same periods in 2021 due to lower copper production, higher fuel, contractor, maintenance and consumables costs. AISC[1] for the three and six months ended June 30, 2022 increased by $1.54 per lb and $1.18 per lb, respectively, compared to the same period in 2021, mainly due to higher C1 cash costs[1] and higher sustaining capital expenditure[2] .

Sales revenues for the three and six months ended June 30, 2022 were 48% and 45% lower, respectively, compared to the same periods in 2021, as a result of lower sales volumes driven by lower production. Gross profit for the three and six months ended June 30, 2022 were $38 million and $60 million lower, respectively, than the comparable periods in 2021, attributable to lower sales revenues and higher costs.

Outlook

Production in 2022 is expected to be between 12,000 and 13,000 tonnes of copper, 30,000 ounces of gold, and 450,000 WMT of magnetite concentrate.

The stripping of Cutback 4 in the main pit is progressing well. The project is expected to contribute an additional 3 million tonnes of plant feed over the next two to three years to supplement the feed from lower-grade ore stockpiles and is expected to extend mining operations to the end of 2025. Operations at Cutback 2 are also progressing well with the project already feeding ore to the plant. This project is expected to be completed in December 2022 and is expected to contribute 639kt of ore in total.

Production forecast includes approximately 312 remaining hours of planned plant shutdowns in 2022 relating to the SAG mill reline, a ball mill girth gear change out, the crusher rebuild and monthly planned maintenance.

1 Copper all-in sustaining costs (copper AISC) and copper C1 cash cost (copper C1) are non-GAAP ratios, do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Sustaining capital expenditure is a non-GAAP financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

Las Cruces

Las Cruces
	Three months ended		Six months ended
	June 30		June 30
	2022	2021	2022	2021
Copper cathode production (tonnes)	2,709	2,899	4,987	7,625
Copper cathode sales (tonnes)	3,067	2,893	4,988	8,174
Financial Results ($ millions)
Sales revenues	30	28	49	72
Gross profit (loss)	-	10	(5)	18
EBITDA1	-	10	(6)	30

1 EBITDA is a non-GAAP financial measure, and does not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 26

(in United States dollars, tabular amounts in millions, except where noted)

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Three and Six Months

After depletion of secondary ore reserves and the processing of ore stockpiles completed in February 2021, the operation has transitioned to the re-processing of high-grade tailings, which has extended the mine life and is expected to continue until the third quarter of 2023.

Copper production for the three and six months ended June 30, 2022 decreased compared to the same periods in 2021 due to lower grade ore feed and decline in recoveries from tailings.

Gross profit of nil for the second quarter of 2022 was $10 million less than the same quarter in 2021, which included care and maintenance costs of $5 million. Gross loss for the six months ended June 30, 2022 of $5 million is a $23 million reduction from the same period in 2021. Decreases are due to lower sales volumes, higher electricity prices, and higher operating costs, as well as care and maintenance costs of $9 million incurred in 2022.

Outlook

Copper production guidance for 2022 is 10,000 tonnes.

The technical and study work on the polymetallic refinery project is expected to continue, as well as work to obtain permits required to carry out the project. Environmental permits were received at the end of 2020 and a mine exploitation permit was granted in June 2021. The only outstanding licence, the water concession, is expected to be granted in the fourth quarter of 2022. An update of the NI 43-101 Technical Report was published in January 2022 with a Mineral Resources upgrade to 41.2 million tonnes of PPS, Measured and Indicated Mineral Resources, including 5 million tonnes of Indicated Mineral Resources as stockpile. Further detailed technical work is being conducted to convert Mineral Resources to Mineral Reserves as part of the Las Cruces Underground Project. Management is planning for completion of all technical and permitting work in 2022. The Company is also in the process of exploring commercial agreements with other mines in the region to further enhance the value of the project.

Çayeli

of the project. Çayeli
	Three months ended		Six months ended
	June 30		June 30
	2022	2021	2022	2021
Copper production (tonnes)	2,940	3,627	6,109	7,574
Copper sales (tonnes)	3,060	4,677	8,344	7,463
Zinc production (tonnes)	1,012	1,336	1,846	3,083
Zinc sales (tonnes)	-	-	2,192	1,685
Financial Results ($ millions)
Sales revenues	26	39	79	63
Gross profit	13	21	44	31
EBITDA1	16	26	53	40

1 EBITDA is a non-GAAP financial measure, and does not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

Three and Six Months

Copper and zinc production for the three and six months ended June 30, 2021 were lower compared to the same periods in 2021 due to production from lower grade areas, as well as lower throughput as the mine approaches the end of its mine life.

Gross profit for the three months ended June 30, 2022 was $8 million lower than the same period in 2021 due to decrease in sales revenue with lower sales volumes as a result of timing of shipments. Gross profit for the six months ended June 30, 2022 was $13 million higher than same period in 2021 due to an increase in sales revenues with higher realized metal prices[1] and sales volumes.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 27

(in United States dollars, tabular amounts in millions, except where noted)

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Outlook

Production for 2022 is expected to be 11,000 tonnes of copper and 2,500 tonnes of zinc, reflecting a declining number of work areas as the mine approaches reserve depletion in 2025.

1 Realized metal price is a non-GAAP ratio, does not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

Pyhäsalmi

Pyhäsalmi
	Three months ended		Six months ended
	June 30		June 30
	2022	2021	2022	2021
Copper production (tonnes)	811	915	1,631	1,868
Copper sales (tonnes)	769	796	1,433	1,784
Pyrite production (tonnes)	117,476	99,461	221,754	226,822
Pyrite sales (tonnes)	97,490	109,520	206,454	231,566
Financial Results ($ millions)
Sales revenues	12	14	24	27
Gross profit	5	7	10	12
EBITDA1	6	6	10	11

1 EBITDA is a non-GAAP financial measure, and does not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

Three and Six Months

Production levels reflect the nearly depleted mineral reserve and the constraint on available work areas at this stage of the mine life. Gross profit for the three and six months ended June 30, 2022 of $5 million and $10 million, respectively, were lower than the same periods in 2021.

Outlook

Production guidance for 2022 is between 1,500 and 2,000 tonnes of copper. The operation is expected to produce approximately 350,000 tonnes of pyrite. Mining is expected to continue into the fourth quarter of 2022.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 28

(in United States dollars, tabular amounts in millions, except where noted)

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SUMMARY FINANCIAL RESULTS

SUMMARY FINANCIAL RESULTS
	Three months ended		Six months ended
	June 30		June 30
	2022	2021	2022	2021
Sales revenues1	1,904	1,782	4,067	3,404
Gross profit (loss)
Cobre Panama	359	422	660	754
Kansanshi	121	219	399	393
Sentinel	160	246	401	483
Guelb Moghrein	10	48	20	80
Las Cruces	-	10	(5)	18
Çayeli	13	21	44	31
Pyhäsalmi	5	7	10	12
Ravensthorpe	(33)	(9)	20	(14)
Corporate	(6)	(339)	(12)	(592)
Total gross profit	629	625	1,537	1,165
Exploration	(4)	(4)	(8)	(7)
General and administrative	(29)	(31)	(61)	(58)
Other income (expense)	260	(2)	170	1
Net finance expense2	(145)	(170)	(298)	(341)
Adjustment for expected phasing of Zambian VAT	(106)	(22)	(128)	(14)
Income tax expense	(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	419	140	804	282
Adjusted earnings3	337	173	817	323
Earnings per share
Basic	$0.61	$0.20	$1.16	$0.41
Diluted	$0.60	$0.20	$1.16	$0.41
Adjusted3	$0.49	$0.25	$1.18	$0.47
Basic weighted average number of shares (in 000’s)	690,237	688,457	690,136	688,622

1 Delivery of non-financial items (refinery-backed gold and silver credits) into the Company’s precious metal stream arrangement have been netted within sales revenues rather than included in cost of sales. The periods ended June 30, 2021 has been revised to reflect this change. Sales revenues and cost of sales for the three and six months ended June 30, 2021 have been reduced by $65 and $121 million, respectively, compared to the previously reported values for the periods ended June 30, 2021 (see “Precious Metal Stream Arrangement”).

2 Net finance expense comprises finance income and finance costs.

3 Adjusted earnings is a non-GAAP financial measure and adjusted earnings per share is a non-GAAP ratio. Such measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings was previously named comparative earnings, and the composition remains the same. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 29

(in United States dollars, tabular amounts in millions, except where noted)

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Sales Revenues

SECOND QUARTER

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----- Start of picture text -----

QUARTERLY REVENUE BY COMMODITY QUARTERLY REVENUE BY OPERATION
1,904
1,782 78 1,782
35 55
99 101 1,904
299
123
221
525
453
1,525 1,670 458 395
838 837
Q2 2021 Q2 2022 (338) (2)
Q2 2021 Q2 2022
Copper Gold Nickel Other Cobre Panama Kansanshi Sentinel Hedge loss Other
$ millions $ millions
----- End of picture text -----

Sales revenues for the second quarter of 2022 of $1,904 million were 7%, or $122 million, higher than the comparable period of 2021, reflecting the increase in copper sales revenues partially offset by lower nickel and gold sales revenues.

Copper sales revenues for the second quarter of 2022 of $1,670 million were 10%, or $145 million, higher than the comparable period in 2021 reflecting the 19% higher net realized copper price[1] offset by lower copper sales volumes. Total copper sales volumes for the second quarter of 2022 were 8% lower than the same period in 2021 mainly attributable to Kansanshi and Sentinel, that were partially offset by higher sales volumes at Cobre Panama. With the reduction of the corporate sales hedge program, no hedge gain or loss was recognized in copper sales revenues, compared with a loss of $337 million, or $0.75 per lb, in the second quarter of 2021.

The net realized price[1] for copper of $4.02 per lb for the second quarter of 2022 was 19% higher than the same period in 2021 and benefitted from a reduced hedge profile. This compares to a decrease of 2% in the average LME price of copper for the same period to $4.31 per lb.

Nickel sales revenues of $55 million for the second quarter of 2022 were 44%, or $44 million, lower than the comparable period in 2021, reflecting lower sales volumes offset by higher realized metal prices[1] . Nickel sales volumes were 2,892 contained tonnes for the quarter, a 58% decrease to the comparable period of 2021. This was attributable to a shipping delay at the end of June 2022, resulting in the vessel leaving in early July. Nickel sales revenues include a $2 million loss on the nickel sales hedge program, or $0.44 per lb, compared with a $1 million loss in the comparative quarter, or $0.08 per lb.

The net realized price[1] for nickel of $10.09 per lb for the second quarter of 2022 was 30% higher than that for the same period in 2021.

Gold sales revenues for the second quarter of 2022 of $101 million were 18%, or $22 million, lower than the comparable period in 2021, arising from lower gold sales volumes, partially offset by higher net realized metal prices[1] . The lower gold sales revenues were primarily attributable to lower sales volumes from Cobre Panama and Guelb Moghrein whilst Kansanshi gold sales revenues remained in line with the second quarter of 2021. The cost for the purchase of refinery-backed gold and silver credits recognized within revenues was $67 million, $2 million higher than the comparable period in 2021.

1 Realized metal price is a non-GAAP ratio, does not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 30

(in United States dollars, tabular amounts in millions, except where noted)

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SIX MONTHS

YEAR-TO-DATE REVENUE BY COMMODITY

YEAR-TO-DATE REVENUE BY OPERATION

==> picture [445 x 172] intentionally omitted <==

----- Start of picture text -----

4,067
3,404 4,067
142
3,404 218 175 505 495
70
236
128 1,056 1,008
876 991
3,532
2,970
1,562 1,578
(595) (5)
Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Jun 30, 2022
Copper Gold Nickel Other
Cobre Panama Kansanshi Sentinel Hedge loss Other
$ millions $ millions
----- End of picture text -----

Sales revenues for the six months ended June 30, 2022 of $4,067 million were 19%, or $663 million, higher than the comparable period of 2021, reflecting the increases in copper and nickel sales revenues of $562 million and $47 million, respectively, partially offset by lower gold sales revenues of $18 million, or 8%, compared to the same period in 2021.

Copper sales revenues of $3,532 million were 19%, or $562 million, higher than the comparable period in 2021 reflecting the higher net realized copper price[1] offset by lower copper sales volumes. Copper sales revenues included a $1 million loss on the copper sales hedge program, compared with a loss of $587 million, or $0.64 per lb, in the comparable period in 2021.

The net realized price[1] for copper of $4.16 per lb for the first six months of 2022 was 28% higher than the same period in 2021 and benefitted from a reduced hedge profile. This compares to an increase of 8% in the average LME price of copper for the same period to $4.43 per lb.

Nickel sales revenues of $175 million were 37%, or $47 million, higher than the comparable period of 2021, reflecting higher net realized metal prices[1 ] throughout the period, partially offset by decreased nickel sales volumes. Nickel sales revenues include a $4 million loss on the nickel sales hedge program, or $0.32 per lb, compared with a $8 million loss in the first six months of 2021, or $0.45 per lb.

The net realized price[1] for nickel of $12.23 per lb for the first six months of 2022 was 63% higher than the comparable period in 2021.

Gold sales revenues for the first six months of 2022 of $218 million were 8%, or $18 million, lower than the comparable period in 2021, reflecting lower gold sales volumes offset by higher realized metal prices[1] . Kansanshi gold sales revenues increased by $23 million, attributable to higher sales volumes as well as higher prices which was offset by lower revenues at Cobre Panama and Guelb Moghrein arising from lower sales volumes. The cost for the purchase of refinery-backed gold and silver credits recognized within revenues for the first six months of 2022 was $121 million, in line with the comparable period in 2021.

1 Realized metal price is a non-GAAP ratio, does not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 31

(in United States dollars, tabular amounts in millions, except where noted)

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	Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
Copper selling price (per lb)	2022	2021	2022	2021
Average LME cash price	$4.31	$4.40	$4.43	$4.12
Realized copper price	$4.19	$3.55	$4.32	$3.39
Treatment/refining charges (“TC/RC”) (per lb)	($0.14)	($0.12)	($0.13)	($0.12)
Freight charges (per lb)	($0.03)	($0.04)	($0.03)	($0.02)
Net realized copper price1	$4.02	$3.39	$4.16	$3.25
	Three months ended June 30		Six months ended
			June 30
Gold selling price (per oz)	2022	2021	2022	2021
Average LBMA cash price	$1,872	$1,815	$1,874	$1,806
Net realized gold price1,2	$1,736	$1,670	$1,755	$1,666

	Three months ended June 30	Three months ended June 30	Six months ended	Six months ended
			June 30
Nickel selling price (per payable lb)	2022	2021	2022	2021
Average LME cash price	$13.13	$7.87	$12.54	$7.92
Net realized nickel price1	$10.09	$7.79	$12.23	$7.50

1 Realized metal price is a non-GAAP ratio, does not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information

2 Excludes gold revenues recognized under the precious metal stream arrangement.

Given the volatility in commodity prices, significant variances may arise between average market price and net realized prices due to the timing of sales during the period. Details of the Company’s hedging program and the contracts held are included on page 40.

Gross Profit

Second Quarter

Gross profit for the quarter of $629 million was $4 million higher than the second quarter of 2021, due to higher net realized metal prices[1] following the reduced hedge profile, offset by higher cash costs.

prices1following the reduced hedge profile, offset by higher cash costs.
Gross profit in Q2 2021	625
Higher net realized prices1	309
Lower sales volumes and change in sales mix	(59)
Lower by-product contribution	(18)
Higher cash costs	(214)
Higher royalty expense	(8)
Higher depreciation	(2)
Negative impact of foreign exchange on operating costs	(4)
Gross profit in Q2 20222	629

1 Realized metal price is a non-GAAP ratio, does not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Gross profit is reconciled to EBITDA by including exploration costs of $4 million, general and administrative costs of $29 million, share of profit in joint venture of $20 million, and adding back depreciation of $288 million and other expenses of $2 million (a reconciliation of EBITDA is included in “Regulatory Disclosures”).

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 32

(in United States dollars, tabular amounts in millions, except where noted)

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QUARTERLY GROSS PROFIT BY OPERATION

==> picture [196 x 161] intentionally omitted <==

----- Start of picture text -----

625
76
246 629
219 160
121
422 359
(9)
(338)
(2)
Q2 2021 Q2 2022
Cobre Panama Kansanshi Sentinel Hedge loss Other
$ millions
----- End of picture text -----

Gross profit for the second quarter of 2022 was $629 million, an increase of $4 million, or 1%, from the same period in 2021. The second quarter of 2022 benefitted from higher net realized metal prices[1] following the reduced hedge profile. These benefits were offset by higher prices for fuel, electricity, explosives, consumables, sulphur, freight together with lower sales volumes. A loss of $2 million was recognized in the quarter on the corporate sales hedge program, compared to a loss of $338 million in the comparative quarter of 2021.

Six months

Gross profit for the first six months of $1,537 million was $372 million higher than the comparable period of 2021 due to higher net realized metal prices[1] following the reduced hedge profile, offset by higher cash costs.

net realized metal prices1following the reduced hedge profile, offset by higher cash costs.
Gross profit first six months 2021	1,165
Higher net realized prices1	1,029
Lower sales volumes and change in sales mix	(177)
Lower by-product contribution	(21)
Higher cash costs	(414)
Higher royalty expense	(31)
Higher depreciation	(11)
Negative impact of foreign exchange on operating costs	(3)
Gross profit first six months of 20222	1,537

1 Realized metal price is a non-GAAP ratio, does not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Gross profit is reconciled to EBITDA by including exploration costs of $8 million, general and administrative costs of $61 million, share of profit in joint venture of $34 million, and adding back depreciation of $583 million and other expense $1 million (a reconciliation of EBITDA is included in “Regulatory Disclosures”).

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 33

(in United States dollars, tabular amounts in millions, except where noted)

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==> picture [170 x 15] intentionally omitted <==

----- Start of picture text -----

YEAR-TO-DATE GROSS PROFIT BY OPERATION
----- End of picture text -----

==> picture [195 x 176] intentionally omitted <==

----- Start of picture text -----

1,165
1,537
130
82
483
401
393
399
754 660
(595) (5)
Jun 30, 2021 Jun 30, 2022
Cobre Panama Kansanshi Sentinel Hedge loss Other
$ millions
----- End of picture text -----

Gross profit for the first six months of 2022 was $1,537 million, an increase of $372 million, or 32%, from the same period in 2021, and was driven by higher net realized prices[1] following the reduced hedge profile. Gross profit has been impacted by higher prices for fuel, electricity, explosives, consumables and freight together with lower sales volumes. A loss of $5 million was recognized in the six months ended June 30, 2022 on the corporate sales hedge program, compared to a loss of $595 million in the comparative period of 2021.

1 Realized metal price is a non-GAAP ratio, does not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information

Net Earnings

Second Quarter

Net earnings attributable to shareholders of the Company for the second quarter of 2022 were $419 million, $279 million higher than the same period in 2021. Basic earnings per share was $0.61 during the quarter compared to $0.20 earnings per share in the same quarter of 2021. Net finance expense of $145 million was $25 million lower than the second quarter of 2021 as debt levels continued to decrease. Net finance expense principally consists of interest on debt of $115 million, related party interest of $28 million, accretion of deferred revenue $16 million, offset by interest capitalized of $5 million and finance income of $16 million.

Other income of $260 million is $262 million higher than the other expense of $2 million incurred in the comparable period in 2021. Foreign exchange gains of $239 million include the impact of an agreement reached in respect of the outstanding VAT receivable, compared to a $23 million foreign exchange loss in the comparable period. A $20 million share of profit in Korea Panama Mining Corporation (“KPMC”) was recognized in the quarter, compared to $25 million recognized in the comparable period of 2021.

An expense of $106 million, reflecting the expected phasing of the Zambian VAT, was recognized in the quarter, compared with an expense of $22 million recognized in the comparable quarter of 2021.

An income tax expense of $137 million was recognized in the second quarter of 2022, compared with a $182 million expense recognized in the comparable period in 2021, reflecting applicable statutory tax rates that range from 20% to 30% for the Company’s operations. No tax credits were recognized with respect to losses of $338 million realized under the Company’s copper and nickel sales hedge program in the three months ended June 2021. The effective tax rate for the quarter was 23%, which included the current Law 9 legislation.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 34

(in United States dollars, tabular amounts in millions, except where noted)

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Six Months

Net earnings attributable to shareholders of the Company of $804 million for the first six months of 2022 was $522 million higher than the comparable period in 2021. Basic earnings per share was $1.16 during the first six months of 2022, compared to earnings per share of $0.41 in the same period of 2021. Net finance expense of $298 million was $43 million lower than the same period of 2021 as debt levels continued to decrease. Net finance expense principally consisted of interest on debt of $236 million, related party interest of $57 million, accretion of deferred revenue of $32 million, offset by capitalized interest of $9 million and finance income of $32 million.

Other income of $170 million is $169 million higher than that incurred in the comparable period in 2021. Foreign exchange gains of $183 million include the impact of an agreement reached in respect of the outstanding VAT receivable compared to a foreign exchange loss of $34 million in the comparable period. Other expenses for the first six months of 2022 include a charge of $40 million for non-recurring costs in connection with previously sold assets. A $34 million share of profit in KPMC was recognized in the six months to June 30, 2022, compared to $39 million recognized in the comparable period of 2021.

An expense of $128 million reflecting the expected phasing of the Zambian VAT, was recognized in the first six months of 2022, compared with an expense of $14 million recognized in the comparable period of 2021.

An income tax expense of $292 million was recognized in the first six months of 2022, compared to a $338 million expense recognized in the comparable period in 2021, reflecting applicable statutory tax rates that range from 20% to 30% for the Company’s operations. No tax credits were recognized with respect to losses of $595 million realized under the Company’s copper and nickel sales hedge program in the six months ended June 2021. The effective tax rate for the six months to date was 24%, which included the current Law 9 legislation.

Adjusted Earnings[1]

SECOND QUARTER

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----- Start of picture text -----

QUARTERLY ADJUSTED EARNINGS [1] QUARTERLY ADJUSTED EARNINGS PER SHARE [1]
173
$0.70
148 337
115
116
84
$0.49
324
278 $0.44
$0.29
(77)
(138)
$0.22
(2) $0.25
(338)
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Q2 2021 Q2 2022
Adjusted earnings per share
Cobre Panama Kansanshi Sentinel Other Hedge loss
$ millions $ per share
----- End of picture text -----

Adjusted earnings[1] for the quarter ended June 30, 2022 of $337 million is an increase of $164 million from the comparative period in 2021. Adjusted earnings per share[2] of $0.49 in the second quarter compares to adjusted earnings per share[2] of $0.25 in the same period of 2021. The principal items not included in adjusted earnings[1] in the quarter are foreign exchange gains of $239 million and the adjustment for expected phasing of Zambian VAT of $106 million. The effective tax rate, on an adjusted basis, for the quarter ended June 30, 2022 was 21%, which included the current Law 9 legislation. A reconciliation of adjusted metrics is included in “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 35

(in United States dollars, tabular amounts in millions, except where noted)

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SIX MONTHS

YEAR -TO -DATE ADJUSTED EARNINGS[1]

==> picture [193 x 173] intentionally omitted <==

----- Start of picture text -----

323
817
306
285
198
247
579 505
(165) (215)
(5)
(595)
Jun 30, 2021 Jun 30, 2022
Cobre Panama Kansanshi Sentinel Other Hedge loss
$ millions
----- End of picture text -----

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----- Start of picture text -----

YEAR-TO-DATE ADJUSTED EARNINGS PER SHARE [1]
$1.18
$0.47
Jun 30, 2021 Jun 30, 2022
Adjusted earnings per share
$ per share
----- End of picture text -----

Adjusted earnings[1] for the six months ended June 30, 2022 of $817 million is an increase of $494 million from the comparative period in 2021. Adjusted earnings per share[2] of $1.18 in the first six months compares to adjusted earnings per share[2] of $0.47 in the same period of 2021. The principal items not included in adjusted earnings[1] are foreign exchange gains of $183 million, the adjustment for expected phasing of Zambian VAT of $128 milllion and a charge of $40 million for non-recurring costs in connection with previously sold assets. The effective tax rate for the six months ended June 30, 2022, on an adjusted basis, was 23%, which included the current Law 9 legislation. A reconciliation of adjusted metrics is included in “Regulatory Disclosures”.

1Adjusted earnings is a non-GAAP financial measure, does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings was previously named comparative earnings, and the composition remains the same. See “Regulatory Disclosures”.

2Adjusted earnings per share is a non-GAAP ratio, do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 36

(in United States dollars, tabular amounts in millions, except where noted)

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LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Cash flows from operating activities	904	679	1,570	1,422
Cash flows used by investing activities	(282)	(263)	(565)	(442)
Cash flows from (used by) financing activities	(743)	388	(1,037)	(102)
Exchange losses on cash and cash equivalents	(2)	-	(2)	-
Net cash inflow (outflow)	(123)	804	(34)	878
Cash balance	1,825	1,792	1,825	1,792
Total assets	25,224	24,905	25,224	24,905
Total current liabilities	1,862	2,280	1,862	2,280
Total long-term liabilities	11,030	12,152	11,030	12,152
Net debt1	5,339	6,751	5,339	6,751
Cash flows from operating activities per share2	$1.31	$0.99	$2.27	$2.06

Cash Flows from Operating Activities

Cash flows from operating activities for the second quarter were $225 million higher than the same period in 2021, attributable to favourable movements on working capital partially offset by higher taxes paid.

Cash Flows Used by Investing Activities

Investing activities mostly comprise capital expenditures of $275 million which were $11 million higher than the same quarter of 2021, reflecting increased expenditure in Cobre Panama on the CP100 Expansion. This was offset partially by reduced capital expenditure in Ravensthorpe as a result of the completion of the commissioning works at Shoemaker Levy in the fourth quarter of 2021.

Cash Flows from Financing Activities

Cash flows used by financing activities of $743 million for the second quarter of 2022 included a net outflow of $604 million on gross debt associated with the $1,000 million redemption of all remaining 2023 Notes, and movement on Revolving Credit Facility and trading facilities.

$5 million has been reclassified in the quarter from restricted cash, offset by a dividend paid of $44 million to non-controlling interests.

Interest paid of $79 million is included within cash flows used by financing activities which excludes $5 million of capitalized interest, and is $11 million higher than the $68 million paid in the second quarter of 2021, reflecting a lower gross debt position offset by rising interest rates on the Company’s floating rate debt (excluding the Senior Notes). Net payments of $16 million were paid to KPMC, a 50:50 joint venture between the Company and Korea Mine Rehabilitation and Mineral Resources Corporation (“KOMIR”).

1 Net debt is a supplementary financial measure, does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

2 Cash flows from operating activities per share is a non-GAAP ratio, and does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 37

(in United States dollars, tabular amounts in millions, except where noted)

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Liquidity

SECOND QUARTER

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1 1 2 3 4 1
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• 1 EBITDA is a non-GAAP financial measure and net debt is a supplementary financial measure. These measures do not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

• 2 Includes $31 million outflow related to long-term incentive plans.

• 3 Interest paid includes $5 million of interest capitalized to property plant and equipment.

• 4 Other includes dividends paid to non-controlling interest of $44 million, net payments to joint venture of $16 million offset by restricted cash reclassification of $5 million, non-cash adjustments relating to amortization of gold and silver revenue of $27 million and share of profit in joint venture (“JV”) of $20 million.

Net debt[1] decreased by $476 million during the quarter to $5,339 million. At June 30, 2022, gross debt was $7,164 million.

During the quarter, the Company has redeemed at par an aggregate of $1,000 million principal amount of the senior unsecured notes due 2023. $500 million was redeemed on each of April 5, 2022, and June 7, 2022. No senior unsecured notes due in 2023 remain outstanding post the redemptions.

1Net debt is a supplementary 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. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 38

(in United States dollars, tabular amounts in millions, except where noted)

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SIX MONTHS

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1 2 3 4 1
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1 EBITDA is a non-GAAP financial measure and net debt is a supplementary financial measure. These measures do not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Includes $56 million outflow related to long-term incentive plans.

3 Interest paid includes $9 million of interest capitalized to property plant and equipment.

4 Other includes dividends paid to non-controlling interest of $60 million, net payments to joint venture of $27 million offset by restricted cash reclassification of $41 million, non-cash adjustments relating to amortization of gold and silver revenue of $49 million and share of profit in joint venture (“JV”) of $34 million.

Net debt[1] decreased by $714 million during the six months ended June 30, 2022 to $5,339 million. At June 30, 2022, gross debt was $7,164 million.

Following the upgrades by S&P Global Ratings (“S&P”) and Fitch Ratings (“Fitch”) in February to a B+ credit rating, the Company outlook has remained stable at S&P and has been upgraded from stable to positive at Fitch. Copper prices and demand continue to be robust. National policies and infrastructure plans supporting green energy across the world are expected to be passed, which are projected to drive the demand for copper, an essential component of both the transition to a low carbon economy and of the socioeconomic development of emerging economies.

The Company had previously entered into derivative contracts to ensure that the exposure to the price of copper on future sales was managed to ensure stability of cash flows until an appropriate level of de-leveraging had been achieved. At July 26, 2022, the Company had no outstanding copper or nickel derivatives designated as hedged instruments.

1 Net debt is a supplementary 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. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 39

(in United States dollars, tabular amounts in millions, except where noted)

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Based on the expected future cash flows, this supports the Company’s belief in its ability to meet current obligations as they become due and to have sufficient liquidity through the next 12 months to carry out its operating and capital expenditure plans. The Company was in full compliance with all its financial covenants at June 30, 2022, and expects to remain in compliance throughout the next 12 months. The Company continues to take action to manage operational and price risks and further strengthen the balance sheet, including through strategic initiatives.

At June 30, 2022, the Company had total commitments of $111 million, all of which is related to the 12 months following the period end.

Contractual and other obligations as at June 30, 2022 are as follows:

	Carrying Value	Contractual	< 1 year	1 – 3 years		Thereafter
					3 – 5 years
		Cash flows
Debt – principal repayments	7,017	7,053	483	3,110	1,960	1,500
Debt – finance charges	-	1,452	421	695	285	51
Trading facilities	147	147	147	-	-	-
Trade and other payables	909	909	909	-	-	-
Liability to joint venture1	1,252	2,052	-	-	-	2,052
Other loans owed to non-controlling interest2	184	266	27	-	-	239
Current taxes payable	100	100	100	-	-	-
Deferred payments	41	41	4	8	8	21
Leases	25	28	9	13	5	1
Commitments	-	111	111	-	-	-
Restoration provisions	717	1,144	3	47	57	1,037
	10,392	13,303	2,214	3,873	2,315	4,901

1Refers to distributions to KPMC, a joint venture that holds a 20% non-controlling interest in Minera Panama SA (“MPSA”), of which the Company has joint control, and not scheduled repayments.

2Refers to liability with POSCO, an entity that holds a 30% non-controlling interest in FQM Australia Holdings Pty Ltd (“Ravensthorpe”), of which the Company has full control.

Equity

As at June 30, 2022, the Company had 691,787,827 common shares outstanding.

Hedging Programs

The Company has hedging programs in respect of future copper and nickel sales and provisionally priced sales contracts. Below is a summary of the fair values of unsettled derivative financial instruments for commodity contracts recorded on the consolidated balance sheet.

As at June 30, 2022, the Company held no derivatives designated as hedged instruments. During the quarter ended June 30, 2022, a loss for settled hedges of $2 million was realized through sales revenues.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 40

(in United States dollars, tabular amounts in millions, except where noted)

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COMMODITY CONTRACTS

COMMODITY CONTRACTS
	June 30, 2022	December 31, 2021
Asset position	343	38
Liability position	-	(57)

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 to five 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 enters 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 and gold embedded derivatives, which are included within accounts receivable.

As at June 30, 2022, the following derivative positions in provisionally priced sales and commodity contracts not designated as hedged instruments were outstanding:

	Open Positions	Average Contract	Closing Market	Maturities
	(tonnes/oz)	price	price	Through
Embedded derivatives in provisionally priced sales contracts:
Copper	182,595	$4.50/lb	$3,74/lb	October 2022
Gold	54,869	$1,833/oz	$1,817/oz	August 2022
Commodity contracts:
Copper	182,600	$4.50/lb	$3,74/lb	October 2022
Gold	54,883	$1,833/oz	$1,817/oz	August 2022

As at June 30, 2022, substantially all of the Company’s metal sales contracts subject to pricing adjustments were hedged by offsetting derivative contracts.

Foreign Exchange

Foreign exchange risk arises from transactions denominated in currencies other than the U.S. Dollar (“USD”). The USD/ZMW exchange rate has had the greatest impact on the Company’s cost of sales, as measured in USD. A 10% movement in the USD/ZMW exchange rate would impact the Company’s cost of sales by approximately $25 million per year.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 41

(in United States dollars, tabular amounts in millions, except where noted)

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ZAMBIAN VAT

The Company has reached an agreement with the GRZ for repayment of the outstanding VAT claims based on offsets against future corporate income tax and mineral royalty tax payments, which commenced July 1, 2022.

The total VAT receivable accrued by the Company’s Zambian operations at June 30, 2022, was $730 million, of which $320 million relates to Kansanshi, $356 million relates to Sentinel, with the balance of $54 million attributable to other Zambian subsidiaries providing supporting services.

Offsets of $38 million against other taxes due have been granted during the six months ended June 30, 2022. In the six months ended June 30, 2021, offsets of $33 million were granted.

The Company considers that the outstanding VAT claims are fully recoverable and has classified all VAT balances due to the Zambian operations based on the expected recovery period. As at June 30, 2022, amounts totaling $136 million are presented as current.

An $106 million expense adjustment for Zambian VAT receipts was recognized in the quarter ended June 30, 2022, representing the expected phasing of recoverability of the receivable amount. An expense of $22 million had previously been recognized in the quarter ended June 30, 2021. A foreign exchange adjustment of $221 million was recognized against the receivable in the quarter ended June 30, 2022 as a result of the agreement with GRZ on the receivable amount to be paid.

ZAMBIAN VAT

VAT receivable by the Company’s Zambian operations

ZAMBIAN VAT VAT receivable by the Company’s Zambian operations
	June 30, 2022
Balance at beginning of the year	644
Movement in claims, net of foreign exchange movements	214
Adjustment for expected phasing for non-current portion	(128)
At June 30, 2022	730

AGING ANALYSIS OF VAT RECEIVABLE FOR THE COMPANY’S ZAMBIAN OPERATIONS

	< 1 year	1-3 years	3-5 years	5-8 years	> 8 years	Total
Receivable at the period end	211	371	220	57	142	1,001
Adjustment for expected phasing	(49)	(134)	(46)	(18)	(24)	(271)
Total VAT receivable from Zambian operations	162	237	174	39	118	730

Pre-February 2015 VAT Receivable

ZMW 357 million (equivalent to $21 million as at June 30, 2022) of the KMP VAT refunds for the pre-February 2015 period were noted as under dispute in the previous quarter. The previously disputed amounts have been agreed with the GRZ during the quarter.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 42

(in United States dollars, tabular amounts in millions, except where noted)

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JOINT VENTURE

On November 8, 2017, the Company completed the purchase of a 50% interest in KPMC from LS-Nikko Copper Inc. KPMC is jointly owned and controlled with Korea Mine Rehabilitation and Mineral Resources Corporation (“KOMIR”) and holds a 20% interest in Cobre Panama. The purchase consideration of $664 million comprised the acquisition consideration of $635 million and the reimbursement of cash advances of $29 million with $179 million paid on closing. The final consideration of $100 million was paid in November 2021.

A $653 million investment in the joint venture representing the discounted consideration value and the Company’s proportionate share of the profit or loss in KPMC to date. For the six months ended June 30, 2022, the profit attributable to KPMC was $68 million (June 30, 2021: $78 million). The profit in KPMC relates to the 20% equity accounted share of profit reported by Minera Panama S.A. (“MPSA”), a subsidiary of the Company. The material assets and liabilities of KPMC are an investment in MPSA of $486 million, shareholder loans receivable of $1,252 million from the Company and shareholder loans payable of $1,254 million due to the Company and its joint venture partner KOMIR.

At June 30, 2022, the Company’s subsidiary, MPSA, owed to KPMC $1,252 million (December 31, 2021: $1,310 million and December 31, 2020: $1,327 million). Interest is accrued at an annual interest rate of 9%; unpaid interest is capitalized to the outstanding loan on a semi-annual basis. The loan matures on June 30, 2029.

PRECIOUS METAL STREAM ARRANGEMENT

Arrangement Overview

The Company, through MPSA, has a precious metal streaming arrangement with Franco-Nevada Corporation (“Franco-Nevada”). The arrangement comprises two tranches. Under the first phase of deliveries under the first tranche (“Tranche 1”) Cobre Panama is obliged to supply Franco-Nevada 120 ounces of gold and 1,376 ounces of silver for each 1 million pounds of copper produced, deliverable within 5 days of eligible copper concentrate sales. Under the first phase of deliveries under the second tranche (“Tranche 2”) Cobre Panama is obliged to supply Franco-Nevada a further 30 ounces of gold and 344 ounces of silver for each 1 million pounds of copper produced, deliverable within 5 days of eligible copper concentrate sales.

Tranche 1 was amended and restated on October 5, 2015, which provided for $1 billion of funding to the Cobre Panama project. Under the terms of Tranche 1, Franco-Nevada, through a wholly owned subsidiary, agreed to provide a $1 billion deposit to be funded on a pro-rata basis of 1:3 with the Company’s 80% share of the capital costs of Cobre Panama in excess of $1 billion. The full Tranche 1 deposit amount has been fully funded to MPSA. Tranche 2 was finalized on March 16, 2018, and $356 million was received on completion. Proceeds received under the terms of the precious metals streaming arrangement are accounted for as deferred revenue.

In all cases, the amount paid is not to exceed the prevailing market price per ounce of gold and silver.

The Company commenced the recognition of delivery obligations under the terms of the arrangement in September 2019 following the first sale of copper concentrate. Deferred revenue will continue to be recognized as revenue over the life of the mine, which is expected to be 33 years. The amount of precious metals deliverable under both tranches is indexed to total copperin-concentrate sold by Cobre Panama.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 43

(in United States dollars, tabular amounts in millions, except where noted)

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GOLD STREAM

	TRANCHE 1	TRANCHE 2
Delivered (oz)	0 to 808,000	0 to 202,000
Delivery terms	120 oz of gold per one million pounds of copper	30 oz of gold per one million pounds of copper
Threshold	First 1,341,000 oz	First 604,000 oz
Ongoing cash payment	$443.93/oz (+1.5% inflation)	20% market price

SILVER STREAM

	TRANCHE 1	TRANCHE 2
Delivered (oz)	0 to 9,842,000	0 to 2,460,500
Delivery terms	1,376 oz of silver per one million pounds of copper	344 oz of silver per one million pounds of copper
Threshold	First 21,510,000 oz	First 9,618,000 oz
Ongoing cash payment	$6.66/oz (+1.5% inflation)	20% market price

Under the first threshold of deliveries, the above Tranche 1 ongoing cash payment terms are for approximately the first 20 years of expected deliveries, thereafter the greater of $443.93 per oz for gold and $6.66 per oz for silver, subject to an adjustment for inflation, and one half of the then prevailing market price. Under the first threshold of deliveries, the above Tranche 2 ongoing cash payment terms are for approximately the first 25 years of production, and thereafter the ongoing cash payment per ounce rises to 50% of the spot price of gold and silver.

Accounting

Gold and silver produced by the mine, either contained in copper concentrate or in doré form, are sold to off-takers and revenue recognized accordingly. Cobre Panama gold and silver revenues consist of revenues derived from the sale of metals produced by the mine, as well as revenues recognized from the amortization of the precious metal stream arrangement.

Gold and silver revenues recognized under the terms of the precious metal streaming arrangement are indexed to copper sold from the Cobre Panama mine, and not gold or silver production. Gold and silver revenues recognized in relation to the precious metal streaming arrangement comprise two principal elements:

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the non-cash amortization of the deferred revenue balance.

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the ongoing cash payments received, as outlined in the above section.

Obligations under the precious metal streaming arrangement are satisfied with the purchase of refinery-backed gold and silver credits, the cost of which is recognized within revenues. Refinery-backed credits purchased and delivered are excluded from the gold and silver sales volumes disclosed and realized price calculations.

C1[1] and AISC[1] include the impact of by-product credits, which include both gold and silver revenues earned under the precious metal stream arrangement and revenues earned on the sales of mine production of gold and silver. Also included is the cost of refinery-backed gold and silver credits, purchased at market price, to give a net gold and silver by-product credit.

1 Copper C1 cash cost (copper C1) and copper all-in sustaining costs (copper AISC) are non-GAAP ratios, do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 44

(in United States dollars, tabular amounts in millions, except where noted)

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The Company has amended its accounting in respect of the delivery of non-financial items (refinery-backed gold and silver credits) into its precious metal stream arrangement, from presenting as a cost of sale to net within sales revenues. The years ended December 31, 2021 and December 31, 2020, were revised for this change. Sales revenues and cost of sales have both been reduced for the three and six months ended June 30, 2021 by $65 million and $121 million, respectively, compared to the previous reported values.

	Three months ended June 30	Three months ended June 30	Six months ended	Six months ended
			June 30
	2022	2021	2022	2021
Gold and silver revenue – ongoing cash payments	15	14	28	29
Gold and silver revenue – non cash amortization	27	27	49	50
Total gold and silver revenues – precious metal stream	42	41	77	79
Cost of refinery-backed credits for precious metal stream included in revenue		(65)	(121)	(121)
	(67)

MATERIAL LEGAL PROCEEDINGS

Panama Constitutional Proceedings

In February 1996, the Republic of Panama and MPSA, now a subsidiary of the Company, entered into a mining concession contract in respect of the Cobre Panama project (“Concession Contract”).

On February 26, 1997, Contract-Law No. 9 (“Law 9”) was passed by the Panamanian National Assembly. Law 9 granted the status of national law to the Concession Contract, establishing a statutory legal and fiscal regime for the development of the Cobre Panama project. On December 30, 2016, the Government of Panama signed and issued Resolution No. 128 by which it extended the Concession Contract held by MPSA for a second 20-year term commencing March 1, 2017 up to February 28, 2037. The Company remains eligible for consideration of a third 20-year term of the Concession Contract commencing March 1, 2037.

In September 2018, the Company became aware of a ruling of the Supreme Court of Panama (“Supreme Court”) in relation to the constitutionality of Law 9. The Company understands that the ruling of the Supreme Court with respect to the constitutionality of Law 9 relates to the enactment of Law 9 and does not affect the legality of the Concession Contract itself, which remains in effect, and allows continuation of the development and operation of the Cobre Panama project by MPSA.

In respect of the Supreme Court ruling on Law 9, the Company notes the following:

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• The Supreme Court decision was in respect of ongoing legal filings made since 2009 with regard to specific environmental petitions.

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• In reviewing the process of approval of Law 9 of 1997, the Supreme Court found that the National Assembly had failed to consider whether Law 9 complied with applicable legislation at the time, namely Cabinet Decree 267 of 1969.

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• The applicable Cabinet Decree of 1969, which was repealed in 1997 by Law 9, required the Ministry of Commerce and Industry (“MICI”) to issue a request for proposals before awarding the Law 9 mining concession.

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• The Attorney General of Panama provided two formal opinions favourable to the constitutionality of Law 9 as required in this type of proceedings by Panamanian law.

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The Supreme Court ruling did not make a declaration as to the annulment of the MPSA Concession Contract.

In 2018, MPSA submitted filings to the Supreme Court for ruling, prior to the ruling in relation to the constitutionality of Law 9 taking effect. On September 26, 2018, the Government of Panama issued a news release affirming support for Cobre Panama. The release confirmed that MICI considers that the MPSA Mining Concession contract, and its extension, remains in effect in all its parts (The MICI release is available at www.twitter.com/MICIPMA/status/1044915730209222657). In July 2021, the Supreme Court responded to the requests for clarifications submitted by MPSA, ruling them inadmissible. This means that the original ruling that Law 9 is unconstitutional has been upheld. The unconstitutionality ruling was published in the Official Gazette on

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 45

(in United States dollars, tabular amounts in millions, except where noted)

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December 22, 2021. The Company understands that the ruling’s effects are non-retrospective, pursuant to the Code of Judicial Proceedings, which means that the enactment of the contract in 1997 and its extension in 2017 granted until the year 2037, remain unaffected. As of the date of this report, the Cobre Panama project continues steady and uninterrupted operations.

The current Government of Panama (“GOP”), inaugurated on July 1, 2019, established a multidisciplinary commission including the Minister of Commerce and Industries (mining regulator), Minister of Environment, and Minister of Employment to discuss the Law 9 matter and seek resolution. In July 2021, the GOP announced the appointment of a high-level commission of senior government ministers and officials, chaired by the Minister of Commerce, to discuss the Company’s concession contract. In September 2021, the Ministry of Commerce publicly announced the culmination of the high-level formal discussions on two topics being environmental and labour matters.

During January 2022, the GOP tabled a new proposal, namely that the GOP should receive $375 million in benefits per year from Cobre Panama and that the existing revenue royalty will be replaced by a gross profit royalty. The parties continue to finalize the detail behind these principles, including the appropriate mechanics that would achieve the desired outcome, the necessary protections to the Company’s business for downside copper price and production scenarios and ensuring that the new contract and legislation are both durable and sustainable.

Once an agreement is concluded and the full contract is documented, it is expected that newly drafted legislation would be put to the National Assembly. The Company welcomes the transparency of the robust ministerial commission process and it is hopeful that this matter can be concluded shortly.

Kansanshi Development Agreement

On May 19, 2020, KMP filed a Request for Arbitration against the GRZ with the International Centre for Settlement of International Disputes (“ICSID”). This arbitration is confidential. KMP’s claims concern breaches of certain contractual provisions of a development agreement between GRZ and KMP (the “Development Agreement”) and international law. The amount in dispute is to be quantified at a later stage, however it is believed to be material. The Tribunal is now fully constituted and has held its first Case Management Conference. KMP submitted its Memorial and corresponding documents on January 25, 2021. GRZ filed its Memorial on Jurisdiction and Counter-Memorial of Defence and Counterclaim on July 9, 2021. The parties have exchanged requests for production of documents. The parties produced documents ordered by the Tribunal on November 1, 2021. KMP submitted its Reply Memorial on February 11, 2022. The hearing in this matter is scheduled for January 2023. Pursuant to the wider reset arrangements recently concluded between FQM and GRZ, the parties have entered into a conditional settlement agreement in respect of this arbitration. The settlement agreement contains several conditions precedent that must be satisfied before the settlement becomes effective. The parties have therefore jointly agreed to a 3-month extension to the deadline for GRZ to submit its Rejoinder (originally June 16, 2022). The intention is that all conditions precedent to the settlement agreement can be satisfied within the extension period.

REGULATORY DISCLOSURES

Seasonality

The Company’s results as discussed in this MD&A are subject to seasonal aspects, in particular the wet season in Zambia. The wet season in Zambia generally starts in November and continues through to April, with the heaviest rainfall normally experienced in the months of December, January, February and March. As a result of the wet season, pit access and the ability to mine ore is lower in the first quarter of the year than other quarters and the cost of mining is higher.

Off-Balance Sheet Arrangements

The Company had no off-balance sheet arrangements as of the date of this report.

Non-GAAP Financial Measures and Ratios

This document refers to cash cost (C1), all-in sustaining cost (AISC) and total cost (C3) per unit of payable production, operating cash flow per share, realized metal prices, EBITDA, net debt and adjusted earnings, which are not measures recognized under IFRS, do not have a standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers. These measures are used internally by management in measuring the performance of the Company’s operations and serve to provide additional information which should not be considered in isolation to measures prepared under IFRS.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 46

(in United States dollars, tabular amounts in millions, except where noted)

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C1, AISC and C3 are non-GAAP financial measures based on production and sales volumes for which there is no directly comparable measure under IFRS, though a reconciliation from the cost of sales, as stated in the Company’s financial statements, and which should be read in conjunction with this Management’s Discussion and Analysis, to C1, AISC and C3 can be found on the following pages. These reconciliations set out the components of each of these measures in relation to the cost of sales for the Company as per the consolidated financial statements.

The calculation of these measures is described below, and may differ from those used by other issuers. The Company discloses these measures in order to provide assistance in understanding the results of the operations and to provide additional information to investors.

Calculation of Cash Cost, All-In Sustaining Cost, Total Cost, Sustaining Capital Expenditure and Deferred

Stripping Costs Capitalized

The consolidated cash cost (C1), all-in sustaining cost (AISC) and total cost (C3) presented by the Company are measures that are prepared on a basis consistent with the industry standard definitions by the World Gold Council and Brook Hunt cost guidelines but are not measures recognized under IFRS. In calculating the C1 cash cost, AISC and C3, total cost for each segment, the costs are measured on the same basis as the segmented financial information that is contained in the financial statements.

C1 cash cost includes all mining and processing costs less any profits from by-products such as gold, silver, zinc, pyrite, cobalt, sulphuric acid, or iron magnetite and is used by management to evaluate operating performance. TC/RC and freight deductions on metal sales, which are typically recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of finished metal.

AISC is defined as cash cost (C1) plus general and administrative expenses, sustaining capital expenditure, deferred stripping, royalties and lease payments and is used by management to evaluate performance inclusive of sustaining expenditure required to maintain current production levels.

C3 total cost is defined as AISC less sustaining capital expenditure, deferred stripping and general and administrative expenses net of insurance, plus depreciation and exploration. This metric is used by management to evaluate the operating performance inclusive of costs not classified as sustaining in nature such as exploration and depreciation.

Sustaining capital expenditure is defined as capital expenditure during the production phase, incurred to sustain and maintain the existing assets to achieve constant planned levels of production, from which future economic benefits will be derived. This includes expenditure for assets to retain their existing productive capacity, and to enhance assets to minimum reliability, environmental and safety standards.

Deferred stripping costs capitalized are defined as waste material stripping costs in excess of the strip ratio, for the production phase, and from which future economic benefits will be derived from future access to ore. Deferred stripping costs are capitalized to the mineral property, and will be depreciated on a units-of-production basis.

	Three months ended June 30	Three months ended June 30	Six months ended	Six months ended
			June 30
	2022	2021	2022	2021
Purchase and deposits on property, plant and equipment	275	264	554	444
Sustaining capital expenditure and deferred stripping	129	125	245	210
Project capital expenditure	146	139	309	234
Total capital expenditure	275	264	554	444

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 47

(in United States dollars, tabular amounts in millions, except where noted)

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Non-GAAP Reconciliations

The following tables provide a reconciliation of C1[2] , C3[2] and AISC[2] to the consolidated financial statements:

For the three months ended June 30,2022	Cobre			Guelb	Las				Corporate
	Panama	Kansanshi	Sentinel	Moghrein	Cruces	Çayeli	Pyhäsalmi	Copper	& other	Ravensthorpe	Total
Cost of sales1	(478)	(274)	(293)	(48)	(30)	(13)	(7)	(1,143)	(36)	(96)	(1,275)
Adjustments:
Depreciation	155	48	66	3	-	4	1	277	1	10	288
By-product credits	49	55	-	31	-	1	7	143	-	5	148
Royalties	16	38	47	2	1	3	-	107	-	3	110
Treatment and refining charges	(34)	(6)	(12)	(2)	-	(1)	-		-	-
								(55)			(55)
Freight costs	-	1	(10)	-	-	(2)	-	(11)	-	-	(11)
Finished goods	(3)	(32)	(15)	1	3	(3)	(2)	(51)	-	(25)	(76)
Other4	3	13	7	(1)	5	(1)	(1)	25	35	4	64
Cash cost (C1)2,4	(292)	(157)	(210)	(14)	(21)	(12)	(2)	(708)	-	(99)	(807)
Adjustments:
Depreciation (excluding depreciation in finished goods)	(156)	(56)	(68)	(3)	-	(4)	(1)		-	(12)
								(288)			(300)
Royalties	(16)	(38)	(47)	(2)	(1)	(3)	-	(107)	-	(3)	(110)
Other	(3)	(4)	(2)	(1)	1	-	-	(9)	-	(1)	(10)
Total cost (C3)2,4	(467)	(255)	(327)	(20)	(21)	(19)	(3)	(1,112)	-	(115)	(1,227)
Cash cost (C1)2,4	(292)	(157)	(210)	(14)	(21)	(12)	(2)	(708)	-	(99)	(807)
Adjustments:
General and administrative expenses	(11)	(6)	(8)	-	-	(1)	-		-	(3)
								(26)			(29)
Sustaining capital expenditure and deferred stripping3	(38)	(41)	(42)	(1)	-	-	-		-	(7)
								(122)			(129)
Royalties	(16)	(38)	(47)	(2)	(1)	(3)	-	(107)	-	(3)	(110)
Lease payments	(1)	-	-	-	-	-	-	(1)	-	-	(1)
AISC2,4	(358)	(242)	(307)	(17)	(22)	(16)	(2)	(964)	-	(112)	(1,076)
AISC (per lb) 2,4	$1.88	$2.85	$2.76	$2.49	$3.78	$2.46	$0.74	$2.37	-	$11.78
Cash cost – (C1) (per lb) 2,4	$1.54	$1.83	$1.88	$2.02	$3.53	$1.86	$0.81		-	$10.08
								$1.74
Total cost – (C3) (per lb) 2,4	$2.46	$3.00	$2.94	$2.81	$3.61	$2.96	$1.25		-	$12.05
								$2.73

1 Total cost of sales per the Consolidated Statement of Earnings in the Company’s unaudited condensed interim consolidated financial statements.

2 C1 cash cost (C1), total costs (C3), and all-in sustaining costs (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

3 Sustaining capital and deferred stripping are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

4 Excludes purchases of copper concentrate from third parties treated through the Kansanshi Smelter.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 48

(in United States dollars, tabular amounts in millions, except where noted)

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For the three months ended June 30,2021	Cobre			Guelb	Las				Corporate
	Panama	Kansanshi	Sentinel	Moghrein	Cruces	Çayeli	Pyhäsalmi	Copper	& other	Ravensthorpe	Total
Cost of sales1,2	(416)	(239)	(279)	(64)	(18)	(18)	(7)	(1,041)	-	(116)	(1,157)
Adjustments:
Depreciation	140	46	68	14	-	5	1	274	-	12	286
By-product credits2	55	48	-	39	-	3	7	152	-	7	159
Royalties	17	42	51	3	-	2	-	115	-	5	120
Treatment and refining charges	(27)	(6)	(14)	(3)	-	(2)	-	(52)	-	-	(52)
Freight costs	(2)	-	(12)	-	-	(3)	-	(17)	-	-	(17)
Finished goods	8	(17)	7	9	1	2	(2)	8	-	25	33
Other	10	2	3	(1)	-	1	-	15	-	1	16
Cash cost (C1)3	(215)	(124)	(176)	(3)	(17)	(10)	(1)	(546)	-	(66)	(612)
Adjustments:
Depreciation (excluding depreciation in finished goods)	(134)	(53)	(66)	(10)	-	(6)	(1)	(270)	-	(8)	(278)
Royalties	(17)	(42)	(51)	(3)	-	(2)	-	(115)	-	(5)	(120)
Other	(2)	(3)	(2)	(1)	(1)	-	-	(9)	-	(1)	(10)
Total cost (C3)3	(368)	(222)	(295)	(17)	(18)	(18)	(2)	(940)	-	(80)	(1,020)
Cash cost (C1)3	(215)	(124)	(176)	(3)	(17)	(10)	(1)	(546)	-	(66)	(612)
Adjustments:
General and administrative expenses	(11)	(6)	(9)	-	(1)	(1)	-	(28)	-	(3)	(31)
Sustaining capital expenditure and deferred stripping4	(26)	(59)	(32)	(1)	-	(1)	-	(119)	-	(6)	(125)
Royalties	(17)	(42)	(51)	(3)	-	(2)	-	(115)	-	(5)	(120)
Lease payments	(1)	-	-	-	(1)	(1)	-	(3)	-	(1)	(4)
AISC3	(270)	(231)	(268)	(7)	(19)	(15)	(1)	(811)	-	(81)	(892)
AISC (per lb)3	$1.57	$2.18	$2.26	$0.95	$2.94	$1.82	$0.27	$1.91	-	$9.52
Cash cost – (C1) (per lb)3	$1.25	$1.13	$1.50	$0.77	$2.68	$1.28	$0.17	$1.29	-	$8.01
Total cost – (C3) (per lb)3	$2.14	$2.09	$2.50	$1.77	$2.80	$2.22	$0.47	$2.21	-	$9.48

1 Total cost of sales per the Consolidated Statement of Earnings in the Company’s unaudited condensed interim consolidated financial statements.

2 Delivery of non-financial items (refinery-backed gold and silver credits) into the Company’s precious metal stream arrangement have been netted within sales revenues rather than included in cost of sales. Sales revenues and cost of sales for the three months ended June 30, 2021has been reduced by $65 million compared to the previously reported values (see “Precious Metal Stream Arrangement”).

3 C1 cash cost (C1), total costs (C3) and all-in sustaining costs (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

4 Sustaining capital and deferred stripping are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 49

(in United States dollars, tabular amounts in millions, except where noted)

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For the six months ended June 30,2022	Cobre			Guelb	Las				Corporate
	Panama	Kansanshi	Sentinel	Moghrein	Cruces	Çayeli	Pyhäsalmi	Copper	& other	Ravensthorpe	Total
Cost of sales1	(918)	(592)	(607)	(84)	(54)	(35)	(14)	(2,304)	(51)	(175)	(2,530)
Adjustments:
Depreciation	297	107	143	5	-	10	2	564	1	18	583
By-product credits	93	127	-	57	-	11	13	301	-	15	316
Royalties	31	92	103	3	1	5	-	235	-	8	243
Treatment and refining charges	(62)	(13)	(25)	(3)	-	(4)	(1)		-	-
								(108)			(108)
Freight costs	-	-	(20)	-	-	(6)	-	(26)	-	-	(26)
Finished goods	(13)	(18)	-	(7)	-	2	(3)	(39)	-	(41)	(80)
Other4	9	16	11	1	10	-	(1)	46	50	4	100
Cash cost (C1)2,4	(563)	(281)	(395)	(28)	(43)	(17)	(4)	(1,331)	-	(171)	(1,502)
Adjustments:
Depreciation (excluding depreciation in finished goods)	(302)	(110)	(135)	(6)	-	(9)	(2)		-	(23)
								(564)			(587)
Royalties	(31)	(92)	(103)	(3)	(1)	(5)	-	(235)	-	(8)	(243)
Other	(7)	(6)	(4)	(1)	-	-	-	(18)	-	(2)	(20)
Total cost (C3)2,4	(903)	(489)	(637)	(38)	(44)	(31)	(6)	(2,148)	-	(204)	(2,352)
Cash cost (C1)2,4	(563)	(281)	(395)	(28)	(43)	(17)	(4)	(1,331)	-	(171)	(1,502)
Adjustments:
General and administrative expenses	(23)	(12)	(16)	(1)	(1)	(1)	-		-	(7)
								(54)			(61)
Sustaining capital expenditure and deferred stripping3	(68)	(84)	(74)	(2)	-	(1)	-		-	(16)
								(229)			(245)
Royalties	(31)	(92)	(103)	(3)	(1)	(5)	-	(235)	-	(8)	(243)
Lease payments	(2)	-	-	-	(1)	-	-	(3)	-	-	(3)
AISC2,4	(687)	(469)	(588)	(34)	(46)	(24)	(4)	(1,852)	-	(202)	(2,054)
AISC (per lb)2,4	$1.94	$2.65	$2.58	$2.11	$4.21	$1.82	$0.71	$2.32	-	$10.05
Cash cost – (C1) (per lb)2,4	$1.59	$1.64	$1.75	$1.65	$3.92	$1.34	$0.67		-	$8.33
								$1.67
Total cost – (C3) (per lb)2,4	$2.55	$2.77	$2.80	$2.40	$4.01	$2.33	$1.16		-	$10.13
								$2.69

1 Total cost of sales per the Consolidated Statement of Earnings in the Company’s unaudited condensed interim consolidated financial statements.

2 C1 cash cost (C1), total costs (C3) and all-in sustaining costs (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

3 Sustaining capital and deferred stripping are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

4 Excludes purchases of copper concentrate from third parties treated through the Kansanshi Smelter.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 50

(in United States dollars, tabular amounts in millions, except where noted)

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For the six months ended June 30,2021	Cobre			Guelb	Las				Corporate
	Panama	Kansanshi	Sentinel	Moghrein	Cruces	Çayeli	Pyhäsalmi	Copper	& other	Ravensthorpe	Total
Cost of sales1,2	(808)	(483)	(573)	(109)	(54)	(32)	(15)	(2,074)	(5)	(160)	(2,239)
Adjustments:
Depreciation	274	95	137	24	13	10	1	554	1	17	572
By-product credits2	107	96	-	66	-	8	11	288	-	10	298
Royalties	30	82	97	6	1	4	-	220	-	7	227
Treatment and refining charges	(56)	(12)	(28)	(6)	-	(3)	(1)	(106)	-	-	(106)
Freight costs	(3)	-	(19)	-	-	(4)	-	(26)	-	-	(26)
Finished goods	26	(31)	29	6	2	-	(1)	31	-	2	33
Other	16	4	4	2	-	-	1	27	4	2	33
Cash cost (C1)3	(414)	(249)	(353)	(11)	(38)	(17)	(4)	(1,086)	-	(122)	(1,208)
Adjustments:
Depreciation (excluding depreciation in finished goods)	(261)	(106)	(127)	(20)	(10)	(11)	(1)	(536)	-	(17)	(553)
Royalties	(30)	(82)	(97)	(6)	(1)	(4)	-	(220)	-	(7)	(227)
Other	(6)	(5)	(4)	(1)	(1)	-	-	(17)	-	(2)	(19)
Total cost (C3)3	(711)	(442)	(581)	(38)	(50)	(32)	(5)	(1,859)	-	(148)	(2,007)
Cash cost (C1)3	(414)	(249)	(353)	(11)	(38)	(17)	(4)	(1,086)	-	(122)	(1,208)
Adjustments:
General and administrative expenses	(20)	(12)	(17)	-	(2)	(1)	-	(52)	-	(6)	(58)
Sustaining capital expenditure and deferred stripping4	(48)	(85)	(65)	(1)	-	(2)	-	(201)	-	(9)	(210)
Royalties	(30)	(82)	(97)	(6)	(1)	(4)	-	(220)	-	(7)	(227)
Lease payments	(2)	-	-	-	(1)	(1)	-	(4)	-	(1)	(5)
AISC3	(514)	(428)	(532)	(18)	(42)	(25)	(4)	(1,563)	-	(145)	(1,708)
AISC (per lb)3	$1.48	$2.05	$2.14	$0.93	$2.48	$1.57	$1.05	$1.81	-	$8.57
Cash cost – (C1) (per lb)3	$1.20	$1.16	$1.44	$0.69	$2.26	$1.08	$0.95	$1.26	-	$7.26
Total cost – (C3) (per lb)3	$2.05	$2.11	$2.35	$1.69	$2.96	$2.01	$1.10	$2.15	-	$8.76

1 Total cost of sales per the Consolidated Statement of Earnings in the Company’s unaudited condensed interim consolidated financial statements.

2 Delivery of non-financial items (refinery-backed gold and silver credits) into the Company’s precious metal stream arrangement have been netted within sales revenues rather than included in cost of sales. Sales revenues and cost of sales for the six months ended June 30, 2021 has been reduced by $121 million, respectively, compared to the previously reported values (see “Precious Metal Stream Arrangement”).

3 C1 cash cost (C1), total costs (C3) and all-in sustaining costs (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

4 Sustaining capital and deferred stripping are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 51

(in United States dollars, tabular amounts in millions, except where noted)

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Realized Metal Prices

Realized metal prices are used by the Company to enable management to better evaluate sales revenues in each reporting period. Realized metal prices are calculated as gross metal sales revenues divided by the volume of metal sold in lbs. Net realized metal price is inclusive of the treatment and refining charges (TC/RC) and freight charges per lb.

EBITDA and Adjusted Earnings

EBITDA and adjusted earnings, which are non-GAAP financial measures, and adjusted earnings per share, which is a non-GAAP ratio, are the Company’s adjusted earnings metrics, and are used to evaluate operating performance by management. These measures do not have a standardized meaning under IFRS and might not be comparable to similar measures disclosed by other issuers. The Company believes that the adjusted metrics presented are useful measures of the Company’s underlying operational performance as they exclude certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period. These include impairment and related charges, foreign exchange revaluation gains and losses, gains and losses on disposal of assets and liabilities, one-time costs related to acquisitions, dispositions, restructuring and other transactions, revisions in estimates of restoration provisions at closed sites, debt extinguishment and modification gains and losses, the tax effect on unrealized movements in the fair value of derivatives designated as hedged instruments, and adjustments for expected phasing of Zambian VAT receipts.

Calculation of Operating Cash Flow per Share and Net Debt

Cash flows from operating activities per share is a non-GAAP ratio and is calculated by dividing the operating cash flow calculated in accordance with IFRS by the basic weighted average common shares outstanding for the respective period.

Net debt is comprised of bank overdrafts and total debt less unrestricted cash and cash equivalents.

NET DEBT

NET DEBT
	Q2 2022	Q1 2022	Q4 2021	Q2 2021
Cash and cash equivalents	1,825	1,948	1,859	1,792
Current debt	630	491	313	707
Non current debt	6,534	7,272	7,599	7,836
Net debt	5,339	5,815	6,053	6,751

EBITDA

EBITDA
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Operating profit	856	588	1,638	1,101
Depreciation	288	286	583	572
Other adjustments:
Foreign exchange (gain) loss	(239)	23	(183)	34
Other expense	2	4	481	4
Revisions in estimates of restoration provisions at closed sites		1		2
	(1)		-
Total adjustments excluding depreciation	(238)	28	(135)	40
EBITDA	906	902	2,086	1,713

1Other expenses includes a charge of $40 million for non-recurring costs in connection with previously sold assets.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 52

(in United States dollars, tabular amounts in millions, except where noted)

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	Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
	2022	2021	2022	2021
Net earnings attributable to shareholders of the Company	419	140	804	282
Adjustments attributable to shareholders of the Company:
Adjustment for expected phasing of Zambian VAT	106	22	128	14
Total adjustments to EBITDA excluding depreciation	(238)	28	(135)	40
Tax and minority interest adjustments	50	(17)	20	(13)
Adjusted earnings	337	173	817	323
Basic earnings per share as reported	$0.61	$0.20	$1.16	$0.41
Adjusted earnings per share	$0.49	$0.25	$1.18	$0.47

Significant Judgments, Estimates and Assumptions

Many of the amounts disclosed in the financial statements involve the use of judgments, estimates and assumptions. These judgments and estimates are based on management’s knowledge of the relevant facts and circumstances at the time, having regard to prior experience, and are continually evaluated. The significant judgements, estimates and assumptions applied in the preparation of the Company’s interim financial statements are consistent with those disclosed in the Company’s annual MD&A for the year ended December 31, 2021.

Financial instruments risk exposure

The Company’s activities expose it to a variety of risks arising from financial instruments. These risks, and management’s objectives, policies and procedures for managing these risks in the interim period are consistent with those disclosed in the Company’s annual MD&A for the year ended December 31, 2021.

Market risks

The Company is subject to commodity price risk from fluctuations in the market prices of copper, gold, nickel, zinc and other elements, interest rate risk and foreign exchange risk. These market risks are consistent with those disclosed in the Company’s annual MD&A for the year ended December 31, 2021.

Disclosure Controls and Procedures

The Company’s disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is communicated to senior management, to allow timely decisions regarding required disclosure.

An evaluation of the effectiveness of the Company’s disclosure controls and procedures, as defined under the rules of the Canadian Securities Administrators, was conducted as of December 31, 2021, under the supervision of the Company’s Audit Committee and with the participation of management. Based on the results of the evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report in providing reasonable assurance that the information required to be disclosed in the Company’s annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported in accordance with the securities legislation.

The Company’s controls and procedures remain consistent with those disclosed in the Company’s annual MD&A for the year ended December 31, 2021.

Internal Control Over Financial Reporting (“ICFR”)

Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of financial statements in compliance with IFRS. The Company’s internal control over financial reporting includes policies and procedures that:

==> picture [6 x 8] intentionally omitted <==

pertain to the maintenance of records that accurately and fairly reflect the transactions of the Company;

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 53

(in United States dollars, tabular amounts in millions, except where noted)

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• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS;

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• ensure the Company’s receipts and expenditures are made only in accordance with authorization of management and the Company’s directors; and

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• provide reasonable assurance regarding prevention or timely detection of unauthorized transactions that could have a material effect on the annual or interim financial statements.

An evaluation of the effectiveness of the Company’s internal control over financial reporting was conducted as of December 31, 2021 by the Company’s management, including the Chief Executive Officer and Chief Financial Officer, based on the Control - Integrated Framework (2013) established by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Based on this evaluation, management has concluded that the Company’s internal controls over financial reporting were effective.

The Company’s transactions with its related parties are disclosed in note 16 of the Company’s annual financial statements for the year ended December 31, 2021.

There were no changes in the Company’s business activities during the interim period ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.

Limitations of Controls and Procedures

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, believe that any disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and operated, can provide only reasonable and not absolute assurance that the objectives of the control system are met. Further, the design of a control system reflects the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any systems of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 54

(in United States dollars, tabular amounts in millions, except where noted)

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SUMMARY QUARTERLY INFORMATION

The following unaudited tables set out a summary of certain quarterly and annual results for the Company:

Consolidated operations	Q3 20	Q4 20	2020	Q1 21	Q2 21	Q3 21	Q4 21	2021	Q1 22	Q2 22	2022
Sales revenues1
Copper	1,150	1,348	4,377	1,445	1,525	1,513	1,849	6,332	1,862	1,670	3,532
Gold	124	114	424	113	123	120	114	470	117	101	218
Nickel	61	68	159	29	99	64	62	254	120	55	175
Other	29	32	110	35	35	50	36	156	64	78	142
Total sales revenues	1,364	1,562	5,070	1,622	1,782	1,747	2,061	7,212	2,163	1,904	4,067
Cobre Panama1	402	471	1,326	724	838	777	821	3,160	741	837	1,578
Kansanshi	423	416	1,539	418	458	505	633	2,014	596	395	991
Sentinel	340	526	1,353	531	525	449	527	2,032	555	453	1,008
Guelb Moghrein	71	84	300	77	112	69	55	313	46	58	104
Ravensthorpe	62	75	156	39	107	71	69	286	132	63	195
Sales hedge program loss	(49)	(114)	(48)	(257)	(338)	(204)	(103)	(902)	(3)	(2)	(5)
Other	115	104	444	90	80	80	59	309	96	100	196
Total sales revenues	1,364	1,562	5,070	1,622	1,782	1,747	2,061	7,212	2,163	1,904	4,067
Gross profit	346	443	1,077	540	625	613	784	2,562	908	629	1,537
EBITDA4	641	725	2,152	811	902	886	1,085	3,684	1,180	906	2,086
Net earnings (loss) attributable to shareholders of the Company	29	9	(180)	142		303	247	832	385
					140					419	804
Adjusted earnings (loss)4	64	53	(46)	150	173	197	306	826	480	337	817
Net debt4	7,545	7,409	7,409	7,062	6,751	6,302	6,053	6,053	5,815	5,339	5,339
Basic earnings (loss) per share	$0.04	$0.01	($0.26)	$0.21	$0.20	$0.44	$0.36	$1.21	$0.56	$0.61	$1.16
Adjusted earnings (loss) per share5	$0.09	$0.08	($0.07)	$0.22	$0.25	$0.29	$0.44	$1.20	$0.70	$0.49	$1.18
Diluted earnings (loss) per share	$0.04	$0.01	($0.26)	$0.21	$0.20	$0.44	$0.36	$1.20	$0.56	$0.60	$1.16
Dividends declared per common share (CDN$ per share)	$0.005	-	$0.010	$0.005		$0.005	-	$0.010	$0.005
					-					-	$0.005
Cash flows per share from operating activities5	$0.66	$0.77	$2.34	$1.08		$1.02	$1.10	$4.19	$0.97
					$0.99					$1.31	$2.27
Basic weighted average shares (000’s)3	688,806	688,939	688,469	688,771		688,852	688,691	688,674	690,130
					688,457					690,237	690,136
Copper statistics
Total copper production (tonnes)	211,396	203,171	778,911	205,064	199,689	209,859	201,823	816,435	182,210	192,668	374,878
Total copper sales (tonnes)7	197,533	217,041	764,471	210,734	203,790	194,278	213,087	821,889	196,702	187,642	384,344
Realized copper price (per lb)5	$2.77	$2.97	$2.74	$3.25	$3.55	$3.68	$4.08	$3.64	$4.45	$4.19	$4.32
TC/RC (per lb)	(0.10)	(0.11)	(0.10)	(0.12)	(0.12)	(0.11)	(0.11)	(0.12)	(0.12)	(0.14)	(0.13)
Freight charges (per lb)	(0.03)	(0.04)	(0.04)	(0.02)	(0.04)	(0.04)	(0.03)	(0.03)	(0.04)	(0.03	(0.03)
Net realized copper price (per lb)5	$2.64	$2.82	$2.60	$3.11	$3.39	$3.53	$3.94	$3.49	$4.29	$4.02	$4.16
Cash cost – copper (C1) (per lb)5,6	$1.07	$1.28	$1.21	$1.24	$1.29	$1.26	$1.39	$1.30	$1.61	$1.74	$1.67
All-in sustaining cost (AISC) (per lb)5,6	$1.48	$1.77	$1.63	$1.72	$1.91	$1.87	$2.05	$1.88	$2.27	$2.37	$2.32
Total cost – copper (C3) (per lb)5,6	$1.97	$2.20	$2.11	$2.10	$2.21	$2.22	$2.39	$2.23	$2.65	$2.73	$2.69
Gold statistics
Total gold production (ounces)	72,926	68,747	265,112	78,048	81,375	78,124	74,945	312,492	70,357	74,959	145,316
Total gold sales (ounces)2	78,013	70,905	277,291	77,391	85,291	79,773	79,403	321,858	76,195	69,998	146,193
Net realized gold price (per ounce)5	$1,766	$1,771	$1,662	$1,661	$1,670	$1,683	$1,677	$1,673	$1,772	$1,736	$1,755
Nickel statistics
Nickel produced (contained tonnes)	5,113	5,603	12,695	4,642	4,543	4,248	3,385	16,818	5,122	4,853	9,975
Nickel produced (payable tonnes)	4,102	4,534	10,215	3,843	3,789	3,531	2,855	14,018	4,743	4,348	9,091
Nickel sales (contained tonnes)	4,986	5,343	12,120	2,357	6,910	4,055	3,756	17,078	4,350	2,892	7,242
Nickel sales (payable tonnes)	4,016	4,342	9,787	1,969	5,777	3,392	3,175	14,313	4,037	2,443	6,480
Net realized price (per payable lb)5	$6.88	$7.11	$7.37	$6.67	$7.79	$8.50	$8.88	$8.05	$13.52	$10.09	$12.23

1 Delivery of non-financial items (refinery-backed gold and silver credits) into the Company’s precious metal stream arrangement have been netted within sales revenues rather than included in cost of sales. The periods ended June 30, 2021 has been revised to reflect this change. Sales revenues and cost of sales for the three and six

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 55

(in United States dollars, tabular amounts in millions, except where noted)

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months ended June 30, 2021 have been reduced by $65 and $121 million, respectively, compared to the previously reported values for the periods ended June 30, 2021 (see “Precious Metal Stream Arrangement”). 2 Excludes refinery-backed gold credits purchased and delivered under the precious metal streaming arrangement. See “Precious Metal Stream Arrangement”. 3 Fluctuations in average weighted shares between quarters reflects shares issued and changes in levels of treasury shares held for performance share units. 4 EBITDA and adjusted earnings (loss) are non-GAAP financial measures and net debt is a supplementary financial measure. These measures do not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. Adjusted earnings (loss) and EBITDA were previously named comparative earnings (loss) and comparative EBITDA, respectively, and the composition remains the same. See “Regulatory Disclosures” for further information.

5 All-in sustaining costs (AISC), copper C1 cash cost (copper C1), and total copper cost (C3), realized metal prices, adjusted earnings (loss) per share and cash flows from operating activities per share are non-GAAP ratios. These measures do not have standardized meanings under IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

6 Excludes purchases of copper concentrate from third parties treated through the Kansanshi Smelter.

7 Sales of copper anode attributable to anode produced from third-party purchased concentrate are excluded.

APPENDICES

PRODUCTION

PRODUCTION
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Copper production (tonnes)1
Cobre Panama	90,778	81,686	169,115	163,728
Kansanshi cathode	3,619	8,813	12,262	18,720
Kansanshi concentrate	36,100	41,527	69,356	80,513
Kansanshi total	39,719	50,340	81,618	99,233
Sentinel	52,447	54,308	104,922	112,560
Guelb Moghrein	3,264	5,915	6,496	12,166
Las Cruces	2,709	2,899	4,987	7,625
Çayeli	2,940	3,627	6,109	7,574
Pyhäsalmi	811	914	1,631	1,867
Total copper production (tonnes)	192,668	199,689	374,878	404,753
Gold production (ounces)
Cobre Panama	36,931	36,290	66,878	72,188
Kansanshi	27,937	32,942	60,577	61,404
Guelb Moghrein	9,060	11,118	15,972	23,705
Other sites2	1,031	1,025	1,889	2,126
Total gold production (ounces)	74,959	81,375	145,316	159,423
Nickel production (contained tonnes) – Ravensthorpe	4,853	4,543	9,975	9,185

1 Production is presented on a contained basis, and is presented prior to processing through the Kansanshi smelter.

2 Other sites include Çayeli and Pyhäsalmi.

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(in United States dollars, tabular amounts in millions, except where noted)

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SALES

SALES
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Copper sales volume (tonnes)
Cobre Panama	90,568	86,417	165,453	171,705
Kansanshi cathode	4,428	9,365	15,068	18,624
Kansanshi anode3	31,538	33,393	74,138	68,408
Kansanshi total3	35,966	42,758	89,206	87,032
Sentinel anode	34,681	33,099	77,821	83,779
Sentinel concentrate	16,231	24,852	31,641	39,854
Sentinel total	50,912	57,951	109,462	123,633
Guelb Moghrein	3,299	8,298	5,457	14,733
Las Cruces	3,067	2,893	4,988	8,174
Çayeli	3,060	4,677	8,344	7,463
Pyhäsalmi	770	796	1,434	1,784
Total copper sales (tonnes)3	187,642	203,790	384,344	414,524
Gold sales volume (ounces)
Cobre Panama	35,251	39,664	65,419	74,862
Kansanshi	26,775	27,572	65,603	55,082
Guelb Moghrein	6,974	16,272	12,497	29,650
Other sites1	998	1,783	2,674	3,088
Total gold sales (ounces)2	69,998	85,291	146,193	162,682
Nickel sales volume (contained tonnes) – Ravensthorpe	2,892	6,910	7,242	9,267

1 Other sites include Çayeli and Pyhäsalmi.

2 Excludes refinery-backed gold credits purchased and delivered under precious metal streaming arrangement.

3 Copper sales include third-party sales of concentrate, cathode, and anode attributable to Kansanshi (excluding copper anode sales attributable to Sentinel). Sales exclude the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were 580 tonnes for the three and six months ended June 30, 2022, (nil for the three and six months ended June 30, 2021).

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(in United States dollars, tabular amounts in millions, except where noted)

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SALES REVENUES

SALES REVENUES
	Three months ended		Six months ended June 30
	June 30
	2022	2021	2022	2021
Cobre Panama1 - copper	788	782	1,485	1,454
- gold	37	45	71	86
- silver	12	11	22	22
Kansanshi - copper cathode	42	88	148	166
- copper anode	298	322	716	614
- gold	48	48	119	96
- other	7	-	8	-
Sentinel - copper anode	320	315	742	735
- copper concentrate	133	210	266	321
Guelb Moghrein - copper	27	73	47	123
- gold	12	28	22	51
- magnetite	19	11	35	15
Las Cruces - copper	30	28	49	72
Çayeli - copper	25	37	67	56
- zinc, gold and silver	1	2	12	7
Pyhäsalmi - copper	7	7	13	16
- zinc, pyrite, gold and silver	5	7	11	11
Ravensthorpe -nickel	57	100	179	136
-cobalt	6	7	16	10
Corporate2	30	(339)	39	(587)
Sales revenues1	1,904	1,782	4,067	3,404
Copper	1,670	1,525	3,532	2,970
Gold	101	123	218	236
Nickel	55	99	175	128
Silver	12	13	25	25
Other	66	22	117	45
	1,904	1,782	4,067	3,404

1 Delivery of non-financial items (refinery-backed gold and silver credits) into the Company’s precious metal stream arrangement have been netted within sales revenues rather than included in cost of sales. The periods ended June 30, 2021 has been revised to reflect this change. Sales revenues and cost of sales for the three and six months ended June 30, 2021 have been reduced by $65 and $121 million, respectively, compared to the previously reported values for the periods ended June 30, 2021 (see “Precious Metal Stream Arrangement”).

2 Corporate sales include sales hedges (see “Hedging Programs” for further discussion).

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(in United States dollars, tabular amounts in millions, except where noted)

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UNIT CASH COSTS (PER LB)[1,2]

UNIT CASH COSTS (PER LB)1,2
	Three months ended June 30		Six months ended June 30
	2022	2021	2022	2021
Cobre Panama
Mining	$0.46	$0.36	$0.44	$0.36
Processing	0.89	0.61	0.97	0.57
Site administration	0.07	0.29	0.07	0.28
TC/RC and freight charges	0.37	0.29	0.36	0.28
By-product credits	(0.25)	(0.30)	(0.25)	(0.29)
Copper cash cost(C1) (per lb)	$1.54	$1.25	$1.59	$1.20
Copper all-in sustainingcost(AISC) (per lb)	$1.88	$1.57	$1.94	$1.48
Total copper cost(C3) (per lb)	$2.46	$2.14	$2.55	$2.05
Kansanshi
Mining	$1.09	$0.49	$0.95	$0.57
Processing	0.88	0.72	0.86	0.66
Site administration	0.12	0.12	0.11	0.11
TC/RC and freight charges	0.17	0.14	0.16	0.14
By-product credits	(0.67)	(0.50)	(0.63)	(0.49)
Total smelter costs	0.24	0.16	0.19	0.17
Copper cash cost(C1) (per lb)	$1.83	$1.13	$1.64	$1.16
Copper all-in sustainingcost(AISC) (per lb)	$2.85	$2.18	$2.65	$2.05
Total copper cost(C3) (per lb)	$3.00	$2.09	$2.77	$2.11
Sentinel
Mining	$0.71	$0.47	$0.61	$0.45
Processing	0.70	0.60	0.67	0.58
Site administration	0.14	0.12	0.13	0.10
TC/RC and freight charges	0.26	0.25	0.26	0.24
Total smelter costs	0.07	0.06	0.08	0.07
Copper cash cost(C1) (per lb)	$1.88	$1.50	$1.75	$1.44
Copper all-in sustainingcost(AISC) (per lb)	$2.76	$2.26	$2.58	$2.14
Total copper cost(C3) (per lb)	$2.94	$2.50	$2.80	$2.35
Ravensthorpe
Mining	$1.62	$2.00	$1.56	$2.14
Processing	8.20	5.48	6.77	4.74
Site administration	0.76	0.77	0.70	0.69
TC/RC and freight charges	0.58	0.32	0.38	0.31
By-product credits	(1.08)	(0.56)	(1.08)	(0.62)
Nickel cash cost(C1) (per lb)	$10.08	$8.01	$8.33	$7.26
Nickel all-in sustainingcost(AISC) (per lb)	$11.78	$9.52	$10.05	$8.57
Total nickel cost(C3) (per lb)	$12.05	$9.48	$10.13	$8.76
Guelb Moghrein
Copper cash cost(C1) (per lb)	$2.02	$0.77	$1.65	$0.69
Copper all-in sustainingcost(AISC) (per lb)	$2.49	$0.95	$2.11	$0.93
Total copper cost(C3) (per lb)	$2.81	$1.77	$2.40	$1.69
Las Cruces
Copper cash cost(C1) (per lb)	$3.53	$2.68	$3.92	$2.26
Çayeli
Copper cash cost(C1) (per lb)	$1.86	$1.28	$1.34	$1.08
Pyhäsalmi
Copper cash cost(C1) (per lb)	$0.81	$0.17	$0.67	$0.95

1 All-in sustaining costs (AISC), C1 cash cost (C1), C3 total cost (C3) are non-GAAP ratios, and do not have standardized meaning prescribed by IFRS and might not be comparable to similar measures disclosed by other issuers. See “Regulatory Disclosures” for further information.

2 Excludes purchases of copper concentrate from third parties treated through the Kansanshi Smelter.

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(in United States dollars, tabular amounts in millions, except where noted)

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CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

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. The forward-looking statements include estimates, forecasts and statements as to the Company’s expectations of production and sales volumes, and expected timing of completion of project development at Enterprise and post-completion construction activity at Cobre Panama and are subject to the impact of ore grades on future production, the potential of production disruptions, potential production, operational, labour or marketing disruptions as a result of the COVID-19 global pandemic, capital expenditure and mine production costs, the outcome of mine permitting, other required permitting, the outcome of legal proceedings which involve the Company, information with respect to the future price of copper, gold, nickel, silver, iron, cobalt, pyrite, zinc and sulphuric acid, estimated mineral reserves and mineral resources, First Quantum’s exploration and development program, estimated future expenses, exploration and development capital requirements, the Company’s hedging policy, and goals and strategies; plans, targets and commitments regarding climate change-related physical and transition risks and opportunities (including intended actions to address such risks and opportunities), greenhouse gas emissions, energy efficiency and carbon intensity, use of renewable energy sources, design, development and operation of the Company’s projects and future reporting regarding climate change and environmental matters; the Company’s expectations regarding increased demand for copper; the Company’s project pipeline and development and growth plans. 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 continuing production at all operating facilities, the price of copper, gold, nickel, silver, iron, cobalt, pyrite, zinc and sulphuric acid, anticipated costs and expenditures, the success of Company’s actions and plans to reduce greenhouse gas emissions and carbon intensity of its operations, 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, future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Panama, Zambia, Peru, Mauritania, Finland, Spain, Turkey, Argentina and Australia, adverse weather conditions in Panama, Zambia, Finland, Spain, Turkey, Mauritania, and Australia, labour disruptions, potential social and environmental challenges (including the impact of climate change), power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, the production of off-spec material and events generally impacting global economic, political and social stability. For mineral resource and mineral reserve figures appearing or referred to herein, varying cut-off grades have been used depending on the mine, method of extraction and type of ore contained in the orebody.

See the Company’s Annual Information Form 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 as anticipated, estimated or intended. Also, many of these factors are beyond First Quantum’s control. Accordingly, readers should not place undue reliance on forwardlooking 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 made and information contained herein are qualified by this cautionary statement.

First Quantum Minerals Ltd. | Q2 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS 60