Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Platts Steel Market Asia Conference (November 2017)
25 slides from Fortescue's conference presentation, Nov 10, 2017
Slide 1: Platts Steel Market Asia Conference
For personal use only Platts Steel Market Asia Conference
Slide 2: Forward looking statements
Forward looking statements For personal use only Disclaimer Important Notice Additional Information The purpose of this presentation is to provide general information about This presentation should be read in conjunction with the Annual Report at 30 Fortescue Metals Group Limited ("Fortescue"). It i
Slide 3: Building a world class company
Building a world class company For personal use only Culture of engagement, empowerment and innovation Shipped over Core supplier to Asia 935mt Low cost 170mt producer Production rate
Slide 4: Our Vision: The safest, lowest cost, most profitable iron ore producer
Our Vision: The safest, lowest cost, most profitable iron ore producer Safety Family Empowerment Frugality Stretch targets Ww Fortescue wm orageand F Integrity Enthusiasm determination Generating ideas Humility The New Force in Iron Ore
Slide 5: Corporate Video
For personal use only • CORPORATE VIDEO 5
Slide 6: Generating shareholder value
Generating shareholder value Focus on safety, productivity and efficiency For personal use only Market strategy Operational performance Long life resources Capital discipline Shareholder returns 6
Slide 7: Operating and financial performance
For personal use only Operating and financial performance
Slide 8: FY18 Q1 on track
FY18 Q1 on track For personal use only Operational performance delivering financial results and cashflows Safety 3.0 TRIFR Production 44.0mt Shipped for the quarter C1 Cost $12.15/wmt On target to US$11-12 8
Slide 9: Sustainable cost improvements
Sustainable cost improvements For personal use only Initiatives delivering long term low cost outcomes US$/wmt Structural improvements 48 44 Solomon + Blending + Processing 34 Productivity and Efficiency 27 Utilisation, Recoveries, Maintenance 15 12.82 11-12 Innovation and Technology Autonomy, Gas,
Slide 10: Maintaining position on the cost curve
Maintaining position on the cost curve For personal use only China's Iron Ore Supply CFR Costs (including royalties & ocean freight) 2012 2018 Source: Metalytics – October 2017
Slide 11: Fortescue: The New Force in Iron Ore
Fortescue The New Force in Iron Ore
Slide 12: Core supplier to Asia
Core supplier to Asia For personal use only Well established market share of imported iron ore to China Low impurity 58% Fe average Competitive Large diverse value in use customer base Responsive Proximity to market needs to high growth region 12
Slide 13: Developing and emerging Asia
Developing and emerging Asia For personal use only Asian economies generating two thirds of global growth Source: IMF Source: IMFWorld WorldEconomic EconomicDatabase DatabaseOctApril 20162017 13
Slide 14: Iron ore inventory levels
For personal use only 20 40 60 80 0 100 120 140 160 180 Mt Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 Iron ore inventory levels May-13 Jul-13 Sep-13 Nov-13 Jan-14 High iron ore inventory levels impacting price Mar-14 May-14
Slide 15: Customers and our product
For personal use only Customers and our product
Slide 16: Product and Processing strategy
Product and Processing strategy For personal use only Maximising value from asset base 16
Slide 17: Ore Processing Facilities
Ore Processing Facilities For personal use only Enhancing the sintering properties of Fortescue products Wet processing Improving Improving Enhanced • Drum scrubbers Fortescue grade of textural sintering • Deslime cyclones Products • Up-flow classifiers material characteristics performance • Up-flow
Slide 18: Versatile coarse sinter fines products
Versatile coarse sinter fines products For personal use only Unique sintering properties • Scrubbing and beneficiation – coarser particle sizing • Low impurities • Improved sinter productivity • Lower reduction degradation index • Increase consumption fine concentrates • Positive metallurgical and f
Slide 19: Iron Ore Products
Iron Ore Products For personal use only Blended at Port to ensure quality control and product consistency Fortescue Blend Super Special Kings Fines Fortescue Lump • Christmas Creek and • Cloudbreak and • Kings • Cloudbreak Firetail Kings • Coarse particle sizing • 20% -6.3mm content • Versatile and
Slide 20: Focussed strategy
For personal use only Focussed strategy
Slide 21: FY18 guidance
FY18 guidance For personal use only Sustainable performance driven by innovation 170mt US$11-12/wmt 70-75% shipped C1 cost Price realisation US$3/wmt Depreciation Dividend policy Sustaining capital US$7.40/wmt 50-80% pay-out of NPAT 21
Slide 22: Key strategic focus
Key strategic focus For personal use only Ensuring our communities benefit from the growth and development of Fortescue Debt repayment and capital flexibility Long term sustainability Low cost growth options Returns to shareholders 22
Slide 23: Sustainable low cost producer
For personal use only Sustainable World class Low cost producer Assets and people Customer focus Unique culture Reliable and competitive Drives performance 23
Slide 24: For personal use only
For personal use only www.fmgl.com.au @FortescueNews Proudly supporting:
Slide 25: Glossary
Glossary For personal use only C1: Operating costs of mining, processing, rail and Underlying EBITDA: Earnings before interest, tax, depreciation and port on a per tonne basis, including allocation of amortisation, exploration, development and other direct administration charges and production expen
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