Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Investor Presentation (October 2017)
21 slides from Fortescue's investor presentation, Oct 27, 2017
Slide 1: WA Annual Resources Overview
For personal use only WA Annual Resources Overview October 2017
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 Fortescue Metals Group Limited ("Fortescue"). It is n
Slide 3: Building a world class company
Building a world class company For personal use only Safety focus: engagement, empowerment, leadership Shipped over Core supplier to China 880mt Low cost 170mt producer Production rate 3
Slide 4: 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 4
Slide 5: For personal use only
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Slide 6: 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 7: 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 8: 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 2017 Source: Metalytics – March 2017 8
Slide 9: 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 9
Slide 10: The New Force in Iron Ore
¢; Fortescue The New Force in Iron Ore
Slide 11: Core supplier to Asia
Core supplier to Asia For personal use only Well established market share of imported iron ore to China Total 2016 global steel production 1,629mt Low impurity 58% Fe average Competitive Large diverse value in use customer base 541 808 Responsive Proximity 79 to market needs to high growth 96 105 re
Slide 12: 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 12
Slide 13: Innovation
For personal use only Innovation
Slide 14: Generating ideas for future innovation
Generating ideas for future innovation For personal use only People, processes and techniques are all catalysts for innovation 14 14
Slide 15: World class autonomous haulage operation
World class autonomous haulage operation For personal use only Building on our success and expanding to the Chichester Hub Improved safety + 56 Operating at Solomon productivity +12 to be converted Chichester Expansion 100 trucks 420mt Material moved at over 3 years Solomon 15
Slide 16: Early adopters and future opportunities
Early adopters and future opportunities For personal use only Innovation to drive safety, productivity and efficiency Early adopter Current plans Solomon Autonomous haulage Dewatering telemetry Complete autonomous Hub Autonomous drilling haulage Future thinking Dewatering telemetry Data analytics Ch
Slide 17: Iron ore projects
Iron ore projects For personal use only Creating low cost future optionality • Firetail Replacement – Within next three years – Capital estimate $1-1.5 billion – Development works and environmental approvals underway • Decision on Iron Bridge expected in FY18 17 17
Slide 18: Focussed strategy
For personal use only Focussed strategy
Slide 19: 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 19
Slide 20: Sustainable low cost producer, world class assets and people
For personal use only Sustainable World class Low cost producer Assets and people Customer focus Unique culture Reliable and competitive Drives performance 20
Slide 21: For personal use only
For personal use only www.fmgl.com.au @FortescueNews Proudly supporting:
Fortescue Metals Group — Investor Presentation (October 2017) on 6ix