Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Diggers & Dealers Mining Forum 2021
23 slides from Fortescue's conference presentation, Aug 4, 2021
Slide 1: ASX cover letter: Presentation – Diggers & Dealers Mining Forum 2021
For personal use only 4 August 2021 The Companies Officer Australian Securities Exchange Ltd Level 40, Central Park 152-158 St Georges Terrace Perth WA 6000 Dear Madam or Sir PRESENTATION – DIGGERS & DEALERS MINING FORUM 2021 Fortescue Metals Group Ltd (ASX: FMG) advises that Elizabeth Gaines, Chief
Slide 2: Positioning for the future
For personal use only Positioning for the future Elizabeth Gaines, CEO Diggers & Dealers 4 August 2021 1
Slide 3: Important Notice
Important Notice Forward The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd (“Fortescue”). It is not recommended that any person makes any investment decision in relation For personal use only Looking to Fortescue based on this presentation. This pres
Slide 4: Rapidly evolving into a resources and renewable energy company
Fortescue Rapidly evolving into a resources and renewable energy company For personal use only Flywheel 3
Slide 5: Safety and unique culture
Safety and unique culture For personal use only Unwavering focus on health and safety of the Fortescue family Values and culture Total Recordable Injury Frequency Rate Empowering all team members to take 9.2 control and look out for their mates 7.6 Led by leaders 6.0 5.1 Setting up their teams for s
Slide 6: Providing a safe and supportive workplace
Providing a safe and Zero tolerance approach to bullying, For personal use only harassment or intimidation supportive workplace Strong culture Built on integrity and respect Speak Up Empowering team members to speak up via well-established processes Workplace Integrity Review Enhancing existing secu
Slide 7: June 2021 quarter highlights
June 2021 quarter For personal use only highlights 2.0 TRIFR US $168 /dmt 17% improvement from Average revenue of 2.4 at 30 June 2020 US$135/dmt in FY21 US 49.3 mt $15.23 /wmt Record annual shipment C1 cost of US$13.93/wmt of 182.2mt for FY21 in FY21 US $4.3bn US $2.7bn Gross debt Net cash at 30 Jun
Slide 8: Global steel demand recovers
Global steel demand recovers For personal use only Demand for iron ore remains resilient Global crude steel production (mt) 110 11.8% increase 100 China crude steel production in first half 2021 90 Rest of world 80 Steel production recovered to pre-COVID levels 70 China port inventories 60 Iron ore
Slide 9: Strong realisations
Fortescue’s Q4 average realised price Strong US$168/dmt, 84% of the Platts 62% CFR index For personal use only realisations 250 (US$/dmt) 200 150 100 50 0 Jan 19 Mar 19 May 19 Jul 19 Sep 19 Nov 19 Jan 20 Mar 20 May 20 Jul 20 Sep 20 Nov 20 Jan 21 Mar 21 May 21 92% 91% 89% 86% 86% 86% 86% 83% 84% 82%
Slide 10: Eliwana operations
Eliwana Ramp up and integration For personal use only operations contributing to record performance in FY21 30 mtpa dry OPF First ore in December 2020 143km rail First east-west line through Hamersley Ranges Ore processing facility Constructed in 10 months 9
Slide 11: Iron Bridge Magnetite Project
Completion of 12-week technical Iron Bridge and commercial assessment in For personal use only Magnetite Project May 2021 US$3.3 – US$3.5bn Capital estimate 67% Fe High grade magnetite concentrate product 22 mtpa First production by December 2022 US$33 – US$38/wmt Competitive C1 cost Photo: Iron Bri
Slide 12: Iron Bridge progress
Iron Bridge For personal use only progress 4,500,000m3 41,000t bulk earthworks steel 77,000m³ 1,433km concrete power cables >3,000 30 countries contracts 170 contracting partners 11
Slide 13: Automated mining
Automated Investment in autonomy contributing For personal use only mining to ongoing improvements >2 billion tonnes Material moved since 2012 193 AHS trucks >70 million kilometres travelled 30 per cent Improvement in productivity Training opportunities Re-training existing team members Offering ent
Slide 14: Approach to sustainability
Approach to sustainability For personal use only We are a global force, committed to empowering thriving communities Setting Safeguarding the Creating positive high standards environment social change ▪ Employee health and safety ▪ Climate change action and ▪ Creating employment and disclosure busin
Slide 15: Joining the battle against climate change
Joining the battle An ambitious, industry leading against climate change For personal use only emissions reduction target Carbon neutrality by 2030 Decarbonisation pathway Energy infrastructure to increase use of renewables Technology and innovation Hydrogen and battery electric solutions Fortescue
Slide 16: Investing in renewable energy
Investing in For personal use only renewable energy Australia’s largest hybrid renewable energy network Chichester Solar Gas Hybrid Project 60MW of solar generation Pilbara Energy Connect 150MW of solar PV and battery storage 25 per cent Stationary energy supplied by solar power 15
Slide 17: Assessing renewable energy and green industry opportunities
100 per cent renewable For personal use only green energy and industry company Assessing Global portfolio of renewable energy and green industry opportunities Maintaining Fortescue’s disciplined capital allocation framework and dividend policy Project funding Separately secured without recourse to F
Slide 18: Global demand for green hydrogen
Global demand Accelerated global commitment to emissions reduction, increasing for green For personal use only future demand for green hydrogen hydrogen Net zero targets >80% of global GDP located in countries with net zero ambition >30 countries Hydrogen roadmaps 18 per cent Total global energy dem
Slide 19: Fortescue Future Industries Flywheel
Fortescue Future Industries Flywheel For personal use only 18
Slide 20: Heavy industry decarbonisation development
Heavy industry decarbonisation Green fleet initiatives underway at Fortescue For personal use only development Future Industries Haul trucks Testing of battery cells; design and construction of hydrogen powered truck Drill rigs Design and construction of hydrogen powered drill rig Locomotives Succes
Slide 21: FY22 guidance
FY22 guidance For personal use only 180 – 185 mt Iron ore shipments US$15.00 – US$15.50/wmt C1 cost based on assumed exchange rate of AUD:USD 0.75 US$2.8 – US$3.2 billion Capital expenditure, excluding Fortescue Future Industries 20
Slide 22: Our Purpose and Values
For personal use only Our Purpose Thriving communities | Global force Fortescue’s Values
Slide 23: Fortescue website
ait Fortescue w Fortescue iy ’ www.fmgl.com.au a ( oe 1 W FortescueNews ' ie _A 7 ec al
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