Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — AusIMM Iron Ore Conference 2019
19 slides from Fortescue's conference presentation, Jul 23, 2019
Slide 1: AusIMM Iron Ore Conference
For personal use only AusIMM Iron Ore Conference Greg Lilleyman, Chief Operating Officer 23 July 2019 Together we are Fortescue
Slide 2: Forward looking statement Disclaimer
Forward looking statement For personal use only Disclaimer Important Notice This presentation should be read in conjunction with the Annual Report at 30 June 2018 together with any announcements made by Fortescue in accordance The purpose of this presentation is to provide general information about
Slide 3: Delivering on our strategy
Delivering on our strategy For personal use only How Fortescue’s operations have changed with the market to optimise value 3
Slide 4: Integrated mining and infrastructure operations
Integrated mining and infrastructure operations For personal use only Focus on safety, production and cost 4
Slide 5: A world class company
A world class company For personal use only >1.2 billion ~170mtpa tonnes shipped Production rate Core supplier Low cost to China producer 5
Slide 6: Innovation agenda
Innovation agenda For personal use only World first AHS on Industrial commercial scale autonomous >29 million km mobility safely travelled LV trials on site Energy strategy Hydrogen Renewable energy, Technology, operations, reduced emissions and domestic industry, global increased connectivity suppl
Slide 7: Fully integrated supply chain
Fully integrated supply chain For personal use only 7
Slide 8: Integrated operations and marketing
Integrated operations and marketing For personal use only Direct customer Collaborative engagement operations and driving deep market marketing insights to capitalise on market opportunities Co-location of key Margin decision makers optimisation enabling rapid response to through rapid product marke
Slide 9: Close collaboration with customers drives value
Close collaboration with customers drives value For personal use only Fortescue products are successfully used at Direct engagement benefits the up to 75% of the sinter blend supplier and the customer 80% • Delivering the right product at the right time to the right customer 60% • Sustainable, long
Slide 10: Increase in crude steel production driving demand
Increase in crude steel production driving demand For personal use only Strong steel production underpinned by resilient property and infrastructure demand $140 95 90 $120 85 $100 80 $/dmt CFR $80 75 Mt $60 70 65 $40 60 $20 55 $0 50 China Crude Steel Production Platts 62% index price 10 Source: Nati
Slide 11: Chinese steel mill profits driving iron ore price spreads
Chinese steel mill profits driving iron ore price spreads For personal use only US$/t 250 90 % China steel 200 8380 margins moderated 150 Focus moved to 100 70 input costs 54 50 60 Increasing demand 0 20 for lower Fe products Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 -50 50 HRC Margin Rebar Margin Profitab
Slide 12: Iron ore price
Iron ore price For personal use only Price spreads have narrowed due to lower steel margins 160% 150% 140% 130% % Mysteel 62 Port Index 120% 110% 100% 90% 80% 70% 60% 50% 40% 12 FBF - Mysteel SSF - Mysteel Mysteel - 65 Index Mysteel - 62 Index
Slide 13: West Pilbara Fines
West Pilbara Fines For personal use only Typical grade WPF Platts First shipments in Dec 2018 IODEX 62 Iron content (Fe) 60.1 62.0 8-10mt in FY19 Alumina (Al2O3) 2.3 2.25 Growing to ~40mtpa for 20+ years Silica (SiO2) 4.7 4.0 on completion of Eliwana Phosphorous (P) 0.075 0.09 Offtake commitments wi
Slide 14: Eliwana Mine and Rail Project
Eliwana Mine and Rail Project For personal use only US$1.275bn 143km rail First ore on capital investment 30mtpa dry OPF train Dec 2020 Underpins the Detailed On target for future of West design led by delivery on time Pilbara Fines in-house team and budget 14
Slide 15: Iron Bridge Magnetite Project
Iron Bridge Magnetite Project For personal use only US$2.6bn investment in Stage 2 underpinned by Fortescue’s track record in development and operations 22 wmtpa* 67% Fe, low Low capital First ore impurity intensity and 1H CY22 premium product operating cost Delivering Stage 1 pilot and Industry-lea
Slide 16: Achieving our strategy to deliver majority of product over 60% Fe
Achieving our strategy to deliver majority of product over 60% Fe For personal use only Increases Fortescue’s average grade • Competitively positioned across all product segments • Flexibility to optimise margins through iron ore market cycles • Highest grade Australian product with global scale in
Slide 17: Strategic mine plan to 2050
Strategic mine plan to 2050 For personal use only Integrated operations and marketing to optimise value West Pilbara Flexible product Exploration Fines at mix ~40mtpa Western Hub Nydinghu Long mine lives Stage 2 potential prospects 17
Slide 18: Fortescue's Values
Fortescue’s Values For personal use only Our Vision: The safest, lowest cost, most profitable mining company. 18
Slide 19: Fortescue The New Force in Iron Ore
For personal use only Fortescue The New Force in Iron Ore www.fmgl.com.au Ww FortescueNews
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