Fortescue Ltd · ASX:FMG

Fortescue — AJM Global Iron Ore & Steel Forecast Conference 2012

37 slides from Fortescue's conference presentation, Mar 20, 2012

  1. Slide 1: AJM Global Iron Ore & Steel Forecast Conference

    For personal use only AJM Global Iron Ore & Steel Forecast Conference 20th March 2012

  2. Slide 2: Fortescue – Closing in on 155mtpa

    For personal use only Fortescue – Closing in on 155mtpa 2

  3. Slide 3: Fully integrated – large scale efficiency

    For personal use only Fully integrated – large scale efficiency 3

  4. Slide 4: Clear strategy

    For personal use only Clear strategy 155mtpa June 2013 Herb Elliott Port Port Hedland Fortescue Infrastructure Dampier Fortescue Rail Karratha Rio Tinto Rail BHP Rail Solomon Hub Chichester Hub BCI JV Tom Price 4

  5. Slide 5: A near term growth story

    For personal use only A near term growth story Value creation through early delivery 160 Solomon Brockman 140 Solomon CID BCI JV 120 Christmas Creek Cloudbreak Million Tonnes 100 Consensus 80 60 40 20 0 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 5

  6. Slide 6: $3bn of EBITDA growth on the table

    For personal use only $3bn of EBITDA growth on the table It’s all about execution 10,000 Potential FMG results - EBITDA 9,216 Broker consensus - EBITDA 8,000 6,000 EBITDA 5,563 (US$m) 6,226 3,906 4,639 4,000 3,827 2,000 0 FY12 FY13 FY14 The above chart uses broker consensus operating costs and conse

  7. Slide 7: Company overview

    For personal use only 8 Company overview

  8. Slide 8: Core Competencies

    For personal use only Core Competencies Innovation and rapid execution • A new exploration model • Fastest ramp up in the history of the Pilbara • Successful development of surface mining • Heaviest haul rail system in the world • Highest port out-load rates in Australia • Largest ore processing pla

  9. Slide 9: Resource portfolio sets expansion platform

    For personal use only Resource portfolio sets expansion platform 14,000 Annualised growth of 1.5bt 12,000 3,236 10,000 Mineral Resources (Mt) 2,465 8,000 per annum 2,013 1,032 1,230 624 624 6,000 1,230 3,070 3,070 4,000 2,224 2,860 1,715 695 695 695 695 695 2,000 2,266 2,227 2,143 2,550 2,550 0 2008

  10. Slide 10: Nyidinghu – Demonstrating the potential of the Pilbara

    Nyidinghu – Demonstrating the potential of the Pilbara For personal use only First Exploration – August 2010 – 2bn tonnes announced September 2011 • Low 2:1 low strip ratio = low cost Herb Elliott Port Port Hedland • Ideal for Chichester blending • Leverage existing infrastructure Fortescue tenement

  11. Slide 11: Consistent sustainable growth

    For personal use only Consistent sustainable growth Mining Rail Port Ore Processed (wmt) Ore Railed (wmt) Ore Shipped (wmt) 30.0 30.0 30.0 Third Party Ore… Third Party Ore… 25.0 Fortescue Ore… 25.0 Fortescue Ore… 25.0 20.0 20.0 20.0 15.0 15.0 15.0 10.0 10.0 10.0 5.0 5.0 5.0 0.0 0.0 0.0 2H08 1H09 2H0

  12. Slide 12: Ending Disparity

    For personal use only Ending Disparity June 2011 – Newman V-Tech Feb 2012 – Roebourne V-Tech 13

  13. Slide 13: Development Overview

    For personal use only Development Overview 14

  14. Slide 14: Expansion of 100mtpa announced Nov 2010 – completion June 2013

    Expansion of 100mtpa announced Nov 2010 – For personal use only completion June 2013 Herb Elliott Port Port Hedland Fortescue Infrastructure 155 Dampier Fortescue Rail Karratha Rio Tinto Rail BHP Rail Solomon Hub Chichester 60 40 Hub 5 BCI JV 50 Tom Price 15

  15. Slide 15: 155mtpa – The Budget

    For personal use only 155mtpa The Budget Budget US$ billions Committed to date Infrastructure Port 2.4 1.7 capital intensity Rail 2.2 1.5 Chichester Hub Solomon 1.1 2.7 0.7 2.3 $84 per tonne Sub Total 8.4 6.2 Mine Fleet 1.6 1.2 Total 10.0 7.4 as at 14 February 2012 16

  16. Slide 16: Port Expansion

    For personal use only Port Expansion $2.4bn 1,200 people > 15 contractors Mar 2012 Mar 2013 Berth 3 Sept 2012 Dec 2012 Berth 4 Train Unloader 2 Train Unloader 3 Shiploader 2 Shiploader 3 17

  17. Slide 17: Port access – the key to success in the Pilbara

    For personal use only Port access – the key to success in the Pilbara Fortescue 18

  18. Slide 18: Berth (AP3)

    For personal use only Berth 3 (AP3) • Extension of existing wharf with a third berth and second shiploader • FOOS 1 February 2012 • Second reclaimer • 7 cargos scheduled for April from 2nd shiploader 19

  19. Slide 19: Train Unloaders

    For personal use only Train Unloaders Increasing inload capacity at Herb Elliott Port • 2 new train unloaders • Over 900,000 m3 of earth moved • 15,800 m3 of concrete (76% complete) 20

  20. Slide 20: Berth (AP4) South West Creek

    For personal use only Berth 4 (AP4) South West Creek • New berth and third shiploader AP4 • Third reclaimer • Dredging complete • Piling underway 22

  21. Slide 21: Rail Expansion

    For personal use only Rail Expansion $2.2bn 1,500 people > 10 contractors Sept 2012 Nov 2012 Feb 2013 Mainline upgraded Rail to Solomon Expansion complete 95mtpa 120mtpa 155mtpa Rail capacity 23

  22. Slide 22: Mainline Duplication

    For personal use only Mainline Duplication Increasing Fortescue’s rail capacity to 13 trains a day • 120 kilometres of rail • 50 turnouts, 6 catchpoints • 1 bridge 24

  23. Slide 23: Solomon Spur

    For personal use only Solomon Spur Connecting Solomon to Fortescue’s mainline • 130 kilometres of rail • 16 turnouts, 5 catchpoints • 4 bridges • More than 10 million m3 of earthworks • Multiple contractors and work fronts 25

  24. Slide 24: Rowley Yard Construction

    For personal use only Rowley Yard Construction Increasing Fortescue’s rail maintenance capacity • Pilbara’s first automated wheel shop • New administration building • New locomotive provisioning facility • New fuelling facilities • 32 turnouts, 2 catchpoints 26

  25. Slide 25: Forging Ahead - Rail

    For personal use only Forging Ahead - Rail Increasing Fortescue’s rolling stock Increasing fleet by • 1,764 ore cars (to 3,000) • 18 locomotives (to 47) to service 155mtpa production 27

  26. Slide 26: Christmas Creek Phase

    For personal use only Christmas Creek Phase 2 $1.1bn 1,500 people > 11 contractors Mar 2012 Sept 2012 Dec 2012 Feb 2013 Pre-strip mining First ore to CCP2 100% Jig plant commences stockpile CCP2 22mtpa – CC1 28mtpa – CC2 5mtpa - BCI 28

  27. Slide 27: Christmas Creek Phase

    For personal use only Christmas Creek Phase 2 Increasing Chichester Hub output to 95mtpa • Second OPF (28mtpa) • Remote crushing hub • Overland conveyor system • Airstrip • All major fixed equipment on site 29

  28. Slide 28: Kandarma Camp – Christmas Creek

    For personal use only Kandarma Camp – Christmas Creek Christmas Creek Permanent Camp • 1,600 rooms in permanent resort style camp • Additional 1,320 rooms in CC construction camps 31

  29. Slide 29: Cloudbreak Wet Plant

    For personal use only Cloudbreak Wet Plant • On target for production in Nov 2012 32

  30. Slide 30: Solomon Hub

    For personal use only Solomon Hub $2.7bn 3,000 people > 30 contractors Jun 2013 Mar 2012 Oct 2012 Jan 2013 Solomon at Pre-strip mining Firetail first ore Kings first ore production commenced on stockpile on stockpile capacity 60mtpa 33

  31. Slide 31: Solomon Earthworks

    For personal use only Solomon Earthworks Defying all odds, since August 2011 One of the Southern Hemisphere’s largest earthworks construction efforts 30 million tonnes moved to date 8 mining fleets, over 350 people Majority bulk earthworks complete 34

  32. Slide 32: Inbound for Solomon

    For personal use only Inbound for Solomon Local and global sourcing strategy Transport of materials via: • 45 sea vessels • 400 oversized trailers • 3000 conventional trailers Modules up to 350 tonnes. 36

  33. Slide 33: Kangi Camp

    For personal use only Kangi Camp Solomon’s permanent camp • 1,750 rooms in permanent resort style camp • Complete by July 2012 • Additional 1,900 rooms in construction camps 37

  34. Slide 34: Solomon Power Station

    For personal use only Solomon Power Station Powering up from September, 2012 Two Duel fuel power station units 1. 2 x Relocatable Titan 130 (26MW) 2. 2 x GE LM 6000 (80MW) Enabling an assured and flexible supply to meet future needs. 38

  35. Slide 35: Mining Fleet – T155

    For personal use only Mining Fleet – T155 • 243 Trucks • 33 Excavators • 38 Surface miners • 20 Drill Rigs • 26 Loaders • 46 Dozers • 26 Graders 39

  36. Slide 36: 2012 and beyond – delivering on promises

    For personal use only 2012 and beyond – delivering on promises Pure iron ore company leveraged to Asia • Culture is our differentiator • 55mtpa production base sets the platform • Growth to 155mtpa June 2013 • Further development options through aggressive exploration • Nyidinghu + Western Hub = opt

  37. Slide 37: Forging Ahead

    For personal use only Forging Ahead Sign up to alerts online www.fmgl.com.au

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