Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Investor Presentation (November 2019)
20 slides from Fortescue's investor presentation, Nov 28, 2019
Slide 1: Building world-class mines: An integrated approach to marketing, operations and infrastructure
For personal use only Building world-class mines: An integrated approach to marketing, operations and infrastructure Greg Lilleyman, COO 28 November 2019
Slide 2: Important Notice
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 presentation contains certain statemen
Slide 3: A world class company
For personal use only A world class company >1.3 billion ~170mtpa Shipped Wholly owned, fully integrated supply chain Core supplier Low cost to China producer 3
Slide 4: Track record of embracing innovation
For personal use only Track record of embracing innovation Approach to Financing and exploration marketing Remote Autonomous operations haulage 4
Slide 5: Culture of innovation
Culture of innovation For personal use only People and process Data analytics Assets 5
Slide 6: Automated mining
Automated mining For personal use only Innovation delivering safety and productivity improvements AHS operation Autonomous drills >37 million km safely travelled 8 drills in operation AHS conversion Relocatable conveyor 147 trucks in operation Operating at full capacity 6
Slide 7: Clear strategic focus
For personal use only Clear strategic focus Core Leadership Product Team strategy Appointed in February 2018 Majority over 60% Fe Deliberate strategy for dynamic Structure of Fully future growth business integrated Operations and marketing Supply chain 7
Slide 8: Fully integrated supply chain
Fully integrated supply chain For personal use only Supported by a culture of innovation 8
Slide 9: Integrated operations and marketing
Integrated operations For personal use only and marketing Direct customer engagement Co-location of key decision driving deep market insights makers enabling rapid response to market trends Collaborative operations Agile product mix adjustments and marketing to optimise to meet customers’ needs mark
Slide 10: Shipping and towage fleet
Shipping and towage fleet For personal use only Designed to optimise efficient port infrastructure Eight ore carriers Towage fleet Completed over 180 journeys Maximise efficiencies of operations 14% of Fortescue’s annual volume Additional towage capacity 10
Slide 11: China port sales
China port sales For personal use only Enhanced sales channel offering, supporting marketing strategy of direct customer engagement More flexibility Greater choice Established in April 2019 Purchase smaller lot sizes Trading in RMB Sales volume Expedited delivery ~5% of Fortescue China sales 11
Slide 12: Investment in growth
Investment in growth For personal use only Unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara 12
Slide 13: Eliwana project
Eliwana project For personal use only US$1.275 billion capital investment Progressing on schedule and budget Infrastructure Latest technology 143km rail; 30mtpa dry OPF Driving low cost operation First ore on train West Pilbara Fines December 2020 Increasing production and mine life 13
Slide 14: Ore processing facility overview
Ore processing facility overview For personal use only Significantly smaller footprint compared to Firetail Fortescue integrated design team Firetail 30mtpa dry processing Low height structure designed to support onsite construction Eliwana Optimised, highly efficient design Low capital intensity Mo
Slide 15: Iron Bridge Magnetite Project
Iron Bridge Magnetite Project For personal use only Integrated mine to port solution US$2.6 billion 22 mtpa Investment delivering value First ore scheduled mid-2022 67% Fe Low capital Low impurity premium product intensity and operating cost 15
Slide 16: Innovative process and design
Innovative process and design For personal use only US$0.5 billion invested in Stage 1 to reduce process technical risk Stage 1 pilot plant OPF process flow Rigorous process validation Dry grinding and crushing circuit Magnetite recovery Energy efficient Efficiently handle by-product Industry leadin
Slide 17: Diverse product offering
Diverse product offering For personal use only Aligned with customer requirements Competitively positioned across all key segments Flexibility to optimise product mix to meet customer requirements Highest grade Australian product with global scale in magnetite 17
Slide 18: Delivering on our strategy
Delivering on our strategy For personal use only Driven by innovation, our culture and values Supply chain Fully integrated from pit to port Optimise value Integrated operations and marketing Product strategy Majority over 60% Fe 18
Slide 19: Our values
ae > a om ~ J Our 7 } atd he f\ e °@ - Ni S re] n 7 << 4 Renesas ~The safest, lowest “cost, most profitable / ¢ } | f it —nining company. S (©) “Fortescue’s Values =e
Slide 20: Fortescue
Fortescue ‘Xgio ogni : oe
Fortescue Metals Group — Investor Presentation (November 2019) on 6ix