KRS Mining Limited

105 Trelowarren Street, Camborne, Cornwall TR14 8AW, UK

emails: krs.mining@gmx.com or krs.mining@engineer.com
Skype: kseecharran Phones: +44 75 0303 4457 or +91 88282 08843 or +91 960 515 3056
Company registration number: 8764893

THE UNP RECEDENTED FALL IN FIRST QUANTUMs SHARE P RICE

A ROADMAP FOR SUCCESS
The recent steep fall in the share price of First Quantum Minerals, Figure 1, in London and Toronto
has shaken investors confidence in the company. This is contrary to expectations.

Figure 1: Kansanshis 18-month share price trend

The commissioning of the new smelter at Kansanshi was meant to reverse this trend by:
Reducing the transportation cost of concentrate to external smelters
Eliminate treatment cost at downstream smelters, and
Produce cheap acid to leach high gangue-acid consuming ore
With this in mind, a paradigm shift in operating principles is necessitated. The following measures
are essential to restore shareholders assurance in FQML:
Aggressively procure supplies such as grinding media, mining chemicals, pump spares and
conveyor belting from China, and possibly, India. The devalued currencies in those countries
could lead to significant cost savings
Place all workers on a quarterly profit-sharing bonus scheme. This will instill a sense of
dedication and commitment in the entire work force. In addition, such scheme will reduce
theft and wastage
Introduce a suggestion scheme. Such scheme will be based on suggestions to reduce
costs. The proposed suggestion will be adjudicated by a technical panel. If adopted, 25% of
the first years savings will be paid as a cash bonus to the originator. A scheme of this nature
will encourage all employees to develop a sense of cost curtailment and get them thinking
Should plant capacity tolerate it, marginal ore (high-grade waste), should be fed through the
circuit. Such feedstock has an intrinsic value to it since it has already been mined and
trammed out of the pit. Figure 2 shows typical recoveries obtained from such material
mined in the Lufilian Belt and processed through a flotation plant.

Mining consultancy around the world

Advice on efficiency enhancement, process optimisation, plant troubleshooting and
debottlenecking, process design and feasibility studies....Application of superior processing skills
learnt by study, practice and observation

KRS Mining Limited

105 Trelowarren Street, Camborne, Cornwall TR14 8AW, UK
emails: krs.mining@gmx.com or krs.mining@engineer.com
Skype: kseecharran Phones: +44 75 0303 4457 or +91 88282 08843 or +91 960 515 3056
Company registration number: 8764893

WASTE ROCK TREATMENT LOW GRADE - LUFILIAN ARC, DR

CONGO and ZAMBIA
90.0

RECOVERY (%)

85.0

80.0
75.0
70.0
65.0

60.0
0.14

0.19

0.24

0.29

GRADE (%Cu)

0.34

0.39

0.44

Figure 2: Copper recoveries to be expected from the treatment of low grade resource

Conduct an audit of the operation and highlight all areas of possible cost savings. Based on
an estimate of the magnitude of savings to be expected. Prepare recommendations for a
blitz on the top three areas of cost savings

Repeat the audit three months later. Achievements made are dropped from the initial list
and replaced by the next significant area to keep the active list of three areas to be focused
on
Negotiate with suppliers for an extended period of credit in order to conserve cash, and
Have regular dialogue with the Zambian technical staff. There could be a possibility that
there is resentment by the Zambian staff towards their expat colleagues. It is only a person
who can empathise with the capable Zambian staff, and understands the psyche of the
Zambian worker who can implement this. The Zambian technical staff is at the forefront of
the operation and has a significant contribution to make.

Once the roadmap has been approved, make a press release to the London and Toronto stock
exchanges.
Indications are that copper price could remain low for quite a while, Figure 3. Every cent saved in
unit production cost translates to profit for the company.

Mining consultancy around the world

Advice on efficiency enhancement, process optimisation, plant troubleshooting and
debottlenecking, process design and feasibility studies....Application of superior processing skills
learnt by study, practice and observation

KRS Mining Limited

105 Trelowarren Street, Camborne, Cornwall TR14 8AW, UK
emails: krs.mining@gmx.com or krs.mining@engineer.com
Skype: kseecharran Phones: +44 75 0303 4457 or +91 88282 08843 or +91 960 515 3056
Company registration number: 8764893

Figure 3: Five-year copper price chart

The author has undergone three such cycles in the copper price. Each time, through his innovation,
his company has emerged leaner and meaner and better poised for the next downturn in copper
price.

For and on behalf of KRS Mining Limited.

Yours sincerely,

Ramoutar (Ken) Seecharran

Director

Mining consultancy around the world

Advice on efficiency enhancement, process optimisation, plant troubleshooting and
debottlenecking, process design and feasibility studies....Application of superior processing skills
learnt by study, practice and observation