Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — 13th China International Steel & Raw Materials Conference (September 2013)
18 slides from Fortescue's conference presentation, Sep 25, 2013
Slide 1: Rising Fortescue
Rising Fortescue For personal use only Nev Power, Chief Executive Officer 13th China International Steel & Raw Materials Conference September 25, 2013
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice The purpose of this presentation is to provide general information about Fortescue Metals Group Limited ("Fortescue"). It is not recommended that any person makes any investment decision in relation to Fortescue based on this presentation. This prese
Slide 3: World class operation in 10 years
World class operation in 10 years For personal use only 3
Slide 4: See our operations in the Pilbara
See our operations in the Pilbara Corporate DVD For personal use only 4
Slide 5: 2013 a landmark year
2013 a landmark year For personal use only First ore FY2013 2008 shipped 80.9mt December 2013 Kings Mine completion 155 mtpa Export capacity FY2010 FY2012 40.1mt 57.5mt 5
Slide 6: The path to 155mtpa
For personal use only 6 The path to 155mtpa
Slide 7: Flexible port design for future growth
Flexible port design for future growth Fourth berth commissioned with fifth berth approved For personal use only AP1 AP2 AP3 AP4 August 2013 AP5 2014 7
Slide 8: Delivering consistent quality ore to our customers
Delivering consistent quality ore to our customers Improved grade profile and value in use For personal use only Bonnie Fines 6mtpa Super Special Fines 30mtpa Fortescue Blend Rocket 70mtpa 10mtpa Kings CID 40mtpa Revised product at 155mtpa – average grade 58% 8
Slide 9: Tonnages growth across all operations
Tonnages growth across all operations World’s fourth largest seaborne iron ore exporter For personal use only Mining Processing Port Ore Mined (wmt) Ore Processed (wmt) Total Ore Shipped (wmt) 40 25 30 35 25 20 Third Party Ore 30 20 Million tonnes Million tonnes Million tonnes 25 15 20 15 15 10 10 1
Slide 10: Building financial strength
Building financial strength FY13 summary For personal use only • Record revenue US$8.1bn 21% higher than FY12 • EBITDA of US$3.6bn and NPAT of US$1.7bn • Average realised CFR sales price of US$114/dmt • Capital expenditure of US$6.2bn • Net debt of US$9.9bn* • Fully franked final dividend A$0.10 per
Slide 11: Moving down the global cost curve
Moving down the global cost curve Targeting bottom quartile For personal use only CFR equivalent Cost of China's Iron Ore Supply: March 2013 US$/dry tonne Domestic Chinese Ore 150 Australia Brazil India South Africa Other 100 50 Fortescue Fortescue 0 0 100 200 300 400 500 600 700 800 900 1,000 1,100
Slide 12: CAPEX historic shift
CAPEX historic shift 2014 spend declines rapidly; production climbs For personal use only 12
Slide 13: Simplified debt capital structure
Simplified debt capital structure Voluntary repayment or refinancing options over US$7.7bn of facilities For personal use only US$/bn 5.0 4.5 4.0 NO DEBT MATURITY Repayable at until November 2015 Fortescue’s option 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 CY2012 CY2013 CY2014 CY2015 CY2016 CY2017 CY2018 CY20
Slide 14: Future expansion potential
Future expansion potential FMG has the dominant Pilbara land position For personal use only Fortescue: 85,000km2 Rio: 14,230km2 BHP: 8,195km2 Solomon Hub Chichester Western Hub Hub 14
Slide 15: Future development - Iron Bridge Project
Future development - Iron Bridge Project US $1.2bn joint venture arrangement with Formosa Group (Taiwan) For personal use only • North Star and Glacier Valley deposits, 100km south of Port Hedland • Resource 5.2 billion tonnes • Stage 1 – 1.5mtpa 66% magnetite-hematite ore • New technology to delive
Slide 16: Year partnership delivering growth
10 year partnership delivering growth 270Mt of iron ore exported to China since 2008 For personal use only Four way trade: • Offtake agreements with 50 steel mills in China • Major share of rail, port and mining equipment purchased from Chinese manufacturers • Investments – Hunan Valin shareholding
Slide 17: Long term confidence in China
Long term confidence in China For personal use only • Leadership committed to medium-high rates of growth • Urbanisation and infrastructure driving steel demand • Lower growth rates but still strong in absolute volumes • FMG is now an established, reliable, mainstream supplier to the Chinese steel i
Slide 18: For personal use only
For personal use only Sign up to alerts online: www.fmgl.com.au Proudly supporting: