Cobre Panama Audit Result Favorable for Most Evaluated Aspects

Research evidence excerpt

Cobre Panama Audit Result Favorable for Most Evaluated Aspects

as financial advisor to First Quantum Minerals Ltd. (TSX: FM) in connection with the sale of the Çayeli copper mine in Turkey to Cengiz Insaat, a

subsidiary of Cengiz Holding A.S. BMO CM will be paid a fee. BMO CM follows information control procedures which prevent its research analysts

who are issuing research from having access to non-public information received by BMO CM investment banking personnel in connection with

the transaction. Accordingly, it is possible that individual employees at BMO CM may have material non-public information or opinions which

are not included in, and may not be consistent with, the information and advice in this research report.

Methodology and Risks to Target Price/Valuation for First Quantum Minerals (FM-TSX)

Methodology: We value our mining companies with detailed asset-level discounted cash flow models, aggregated to the corporate level, and

then adjusted for net corporate assets/liabilities. Our target prices also take into account near-term earnings. Our stock recommendations are

based on returns to target plus yield on a one-year forward basis, as well as recognition of catalysts.

Risks: Downside to FM's stock price vs. our target price could arise from either adverse movements in NAV, negative revisions to forward

earnings, or erosion of multiples. This could be driven by adverse macro factors including falling commodity prices, corporate risks such as

overpayment for assets or dilutive M&A, diversion from capital allocation frameworks, failures to meet guidance or execute on plans, issues

with mine plans and geological models, insufficient social engagement driving permitting delays or local opposition, underspending on