First Quantum Minerals : 2024 Tax Transparency and Economic Contributions Report

Published: 2025-05-15 09:45:12 ET FM.TO

Published on 05/15/2025 at 09:45

Tax Transparency and Economic Contributions Report

2024

First Quantum Minerals

Tax Transparency and Economic Contributions Report 2024

‌Contents

About this report 1

Message from our Chief Financial Officer 2

First Quantum at a glance - 2024 4

About First Quantum 5

Our global direct economic contributions in 2024 p6

$3.5 billion

Our global direct economic contribution 6

in 2024

Our direct contribution to government revenue 7

in 2024

Our direct economic

contributions to Zambia p11

2024 Tax Transparency and Economic 8

Contributions Report

Our direct economic contributions to Panama 10

Our direct economic contributions to Zambia 11

Our tax policy 12

2024 ESTMA Annual Report 14

B

Basis of report 21

First Quantum Minerals

Tax Transparency and Economic Contributions Report 2024

‌About this report

First Quantum Minerals Ltd. ("First Quantum" or the "Company") makes significant contributions to the public finances of the countries in which we operate. We strongly support the various transparency initiatives which provide all stakeholders with clear information of the contributions which First Quantum makes to our host governments.

The 2024 Tax Transparency and Economic Contributions Report highlights First Quantum's direct contributions

to our host governments which helps to illustrate the positive impact we strive to create in the countries where we operate.

This report is intended to meet Canada's Extractive Sector Transparency Measures Act ("ESTMA") reporting obligations as well as Chapter 10 of the European Union ("EU") Accounting Directive as noted in page 21 of this report.

All amounts in this report are expressed in U.S. dollars ("USD") unless otherwise noted.

1

‌Message from our Chief Financial Officer

"The past year demonstrated the importance of maintaining a strong financial foundation and close cooperation with our host governments.

I am pleased to present First Quantum's Tax Transparency and Economic Contributions Report for 2024. This report highlights our unwavering commitment to

transparency in both our tax payments and broader economic contributions across the regions where we operate. These contributions are vital for supporting local economies and fostering sustainable development.

2024: A year of resilience and strategic focus

In 2024, First Quantum faced significant challenges, most notably the continued suspension of operations at our Cobre Panamá mine. In response, we implemented a series of decisive measures to stabilize our balance sheet and support the company's long-term financial health. At the same time, our Zambian operations demonstrated remarkable resilience and the Kansanshi S3 Expansion remains on track, positioning us well for future growth.

agreement, a $1.6 billion bond offering, a $1.15 billion equity issuance, and an extension of our $2.2 billion corporate bank facility. We also reduced operating and capital expenditures, suspended our dividend, and initiated a copper price hedging program.

In early 2025, we further strengthened our balance sheet with the issuance of $1 billion in senior notes due 2033 and a partial tender of our 2027 notes.

We supplemented the prepay agreement by increasing the amount by an additional $500 million on broadly the same commercial terms. These actions ensure

we can continue to meet fiscal obligations and deliver consistent contributions to host governments. We are also evaluating strategic initiatives, including potential asset sales, partnerships, and financial instruments to enhance flexibility.

The suspension of operations at Cobre Panamá marked a significant challenge for both First Quantum and

the Republic of Panama. Throughout 2024, our focus remained on the responsible stewardship of the site and transparent engagement with stakeholders.

We submitted a Preservation and Safe Management ("P&SM") plan, including the export of stored copper concentrate, reactivation of the power plant, and essential infrastructure maintenance to uphold environmental and operational integrity. While the plan remains under review by the Panamanian government, we continue to safeguard the site

and perform vital environmental monitoring.

We also expanded outreach efforts in Panama in 2024, reaching tens of thousands of citizens through site visits and public events to promote transparency and awareness of Cobre Panamá's contributions.

We remain committed to dialogue with the Government of Panama and are focused on achieving a sustainable, long-term resolution that benefits all parties.

In 2024, First Quantum directly contributed a total of $3.5 billion across our mining jurisdictions."

RYAN MACWILLIAM

Chief Financial Officer

First Quantum Minerals

Tax Transparency and Economic Contributions Report 2024

2

Message from our Chief Financial Officer - continued

Zambia remains the cornerstone of the Company. In Zambia, we achieved annual copper production of 402 thousand tonnes in 2024, exceeding the guidance range of 375 to 395 thousand tonnes. Kansanshi and Sentinel achieved their highest output in years, and Enterprise, Africa's largest nickel mine, commenced commercial production ahead of schedule.

We also successfully navigated national power challenges by securing alternative energy imports to maintain stable operations, while collaborating on longer-term renewable energy partnerships

to support Zambia's broader energy resilience.

A 430 MW solar and wind project and new hydropower initiatives are on schedule for commissioning by 2028.

The Kansanshi S3 Expansion is a pivotal investment in First Quantum's growth and in the future of Zambia's mining sector. The S3 Expansion remains on track for completion in mid-2025, with production expected in the second half of 2025.

This expansion will significantly enhance Zambia's copper output and strengthen our capacity to sustain and grow fiscal contributions to the country. Our hiring, onboarding, and training efforts progressed well in 2024, supporting local job creation and skills development in Zambia.

Our economic contributions in 2024

The past year demonstrated the importance of maintaining a strong financial foundation and close cooperation with our host governments. In 2024, First Quantum directly contributed a total of

$3.5 billion across our mining jurisdictions,

composed of the following:

$800 million

in taxes, royalties and other

payments to government

$426 million

in salaries and wages

$2 265 million

in local procurement

$28 million

in community investment, social outreach

and communication

Through taxes, royalties, wages, local procurement, and social investment, First Quantum remains

committed to creating broad-based, sustainable growth.

Our operations rely on a robust local supply chain, and we prioritize working with domestic suppliers whenever possible. First Quantum spent over $2.2 billion on goods and services in its countries of operation.

In Zambia alone, more than $1.7 billion was spent with Zambian-registered businesses, representing 84% of our spending on goods and services in the country.

This is equivalent to around 6% of Zambia's GDP.

In Panama, more than $224 million was spent with Panamanian-registered businesses in 2024, supporting over 1,100 local suppliers. In 2023, when the Cobre Panamá mine was operating, the mine contributed more than 7,000 direct jobs and $888 million in local purchases. Export sales of Cobre Panamá were equivalent to approximately 5% of Panama's GDP.

Had Cobre Panamá been operating in 2024, at least

First Quantum Minerals

Tax Transparency and Economic Contributions Report 2024

$1.7 billion would have been contributed to the Panamanian economy, including over $500 million of taxes and royalties, over $250 million of salaries and wages and almost $1 billion in local purchases1.

These figures represent foregone revenue and economic contributions in Panama.

Globally, we supported over 6 000 local suppliers. These partnerships are central to our strategy of creating shared value. By prioritizing local sourcing, we strengthen industrial capacity, foster entrepreneurship, and build resilient supply networks that generate long-lasting economic benefits for our host communities.

Please refer to page 10 of this report for more details on our direct economic contributions to Panama, and to page 11 for those related to Zambia.

As this report demonstrates, our contributions extend far beyond our mine sites. We are proud to play a central role in driving economic growth and national development through tax contributions, local

investment, and employment. Our path forward is one of growth and shared progress, underpinned by our commitment to responsible mining and contributing to the prosperity of the regions where we operate.

We are grateful for the trust and support of our stakeholders as we continue to build a lasting legacy of value creation.

Ryan MacWilliam

Chief Financial Officer

1 These figures provided are based on an estimated scenario as an illustration of the economic contribution assuming the full operation of Cobre Panamá in 2024. 3

Disclaimer

First Quantum Minerals Ltd. published this content on May 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 15, 2025 at 13:44 UTC.