Fortescue Ltd · ASX:FMG

Fortescue — Fortescue Metals Group — Shareholder Meeting (November 2008)

20 slides from Fortescue's shareholder meeting presentation, Nov 21, 2008

  1. Slide 1: Results of 2008 Annual General Meeting

    20 November 2008 For personal use only The Companies Officer Australian Securities Exchange Ltd. Exchange Plaza 2 The Esplanade Perth WA 6000 Dear Sir Results of 2008 Annual General Meeting Fortescue Metals Group Ltd (“Fortescue” “FMG:ASX”) is pleased to advise the results of the 2008 Annual General

  2. Slide 2: Schedule: Proxies Held

    Page: 2 Schedule Proxies Held Resolution Subject For Against Abstain Open For personal use only 1. Adoption of Remuneration Report 1,586,630,757 9,950,370 507,639 7,273,120 2. Election of Mr Owen L Hegarty 1,589,667,635 7,484,984 250,358 6,958,909 3. Election of Dr Ian F Burston 1,596,159,729 948,82

  3. Slide 3: Annual General Meeting 2008

    For personal use only Annual General Meeting 2008

  4. Slide 4: Resolution 1: Adoption of the Remuneration Report

    Resolution 1: For personal use only Adoption of the Remuneration Report FOR AGAINST ABSTAIN OPEN 1,586,630,757 9,950,370 507,639 7,273,120

  5. Slide 5: Resolution 2: Election of Mr Owen Hegarty

    Resolution 2: For personal use only Election of Mr Owen Hegarty FOR AGAINST ABSTAIN OPEN 1,589,667,635 7,484,984 250,358 6,958,909

  6. Slide 6: Resolution 3: Election of Dr Ian Burston

    Resolution 3: For personal use only Election of Dr Ian Burston FOR AGAINST ABSTAIN OPEN 1,596,159,729 948,826 274,247 6,979,084

  7. Slide 7: Resolution 4: Re-election of Mr Joseph Steinberg

    Resolution 4: For personal use only Re-election of Mr Joseph Steinberg FOR AGAINST ABSTAIN OPEN 1,590,910,521 6,163,364 285,529 7,002,472

  8. Slide 8: Resolution 5: Re-election of Mr Graeme Rowley

    Resolution 5: For personal use only Re-election of Mr Graeme Rowley FOR AGAINST ABSTAIN OPEN 1,534,594,473 63,786,223 210,136 6,991,202

  9. Slide 9: 2008 in review

    2008 in review For personal use only Herb Elliott Port Port COMPLETE 2006 2008 Fortescue Rail Railway COMPLETE 2007 2008 Cloudbreak Mine Minesite COMPLETE 2006 2008

  10. Slide 10: State of the art port operations

    State of the art port operations For personal use only Target: lowest cost transport in the Pilbara • Significant expansion area • Highly automated • Extensive use of conveyers • Largest shiploaders in Australia • Second wharf being commissioned

  11. Slide 11: State of the art rail operations

    State of the art rail operations For personal use only Target: lowest cost transport in the Pilbara • Clean sheet design captures best of existing technology - Bigger carrying capacity, electronic braking system, aerodynamics • 40 tonne axle loads • Low centre of gravity, long wheel base and automat

  12. Slide 12: State of the art mining operations

    State of the art mining operations For personal use only Target: lowest cost, highest efficiency in the Pilbara Overburden trucks Surface miner in action Excavator in action OVERBURDEN ORE BODY ORE BODY

  13. Slide 13: Seaborne trade operating costs

    personal For$US/dry terms only tonne in real use 10 20 30 40 50 60 70 80 90 0 0 *Kumba Iron Ore *CSN Fuel Labour 100 Royalty Supplies Transport Electricity Port Loading *CVRD Maintenance 200 300 *Fortescue Metals 400 *Rio Tinto 500 600 *BHP Billiton *SNIM 700 *CVG Ferrominera Cumulative Production C

  14. Slide 14: Benchmark iron ore price versus Australian dollar 2003-8

    Benchmark iron ore price versus Australian dollar 2003 - 2008 For personal use only 100 100 90 95 US$/AU$ exchange rate 80 90 70 85 US$ per tonne 60 80 50 75 Iron Ore 40 70 Price 30 65 Australian 20 60 Dollar 10 55 0 50 2003 2004 2005 2006 2007 2008

  15. Slide 15: Where to from here?

    For personal use only Where to from here?

  16. Slide 16: It's all about China

    It’s all about China For personal use only • Chinese growth rate of nine per cent is still very strong; • Strong demand for Fortescue’s high “value in use” product; • Fortescue’s market profile is well regarded; • China Advisory Board brings depth of relationship and market intelligence; • Stayed aw

  17. Slide 17: Supply demand dynamics

    Supply demand dynamics For personal use only • China’s US$586 billion stimulus package; • 60 per cent directed toward infrastructure; • Steel production forecast 500 mta for 2009 - same as 2007/08 and up 20 per cent on 2006; • China produces 400 mta iron ore but predominately high cost pellet at c.U

  18. Slide 18: Quarterly update and financial position

    Quarterly update and For personal use only financial position • Trading Profit to end Sept A$360 million; • Cash as at end Sept A$624 million; • Long Term Debt Maturity Profile; • Unhedged FX position gaining maximum benefit from devalued AU$

  19. Slide 19: Business as usual

    Business as usual For personal use only Resource upgrade • Solomon Group Affirmation of product • Expanded 2009 offtake contract Opportunities abound • Debt buy back at 32 per cent discount

  20. Slide 20: Summary

    Summary For personal use only • The Chinese market is currently tight but product is still moving; • Fortescue’s product mix is suited to the current conditions; • Strong cash position and trading profit history; • Low end of the cost curve offers the best protection in volatile markets; • Expect Ch

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