Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Corporate Update (June 2004)
7 slides from Fortescue's corporate update, June 2004
Slide 1: Beneficial Effects of Declaration of the BHP Billiton Railway Line
Beneficial Effects of Declaration of the BHP Billiton Railway Line ¾ Unconstrained capacity in the medium term ¾ Regaining Australia’s lost China market share / was 60% now 40% The Declaration of BHP Billiton’s (“BHPB”) railway line has the potential to result in a looped railway system with a capac
Slide 2: Headlines: capacity, market share, exports, royalties, jobs
Page: 2 Headlines: Unrestrained capacity in the medium term Regains Australia’s lost market share Additional Exports – A$9bn per year Additional Royalties – A$400m per year Jobs – up to 15,000 permanent jobs • Iron Ore demand in China is set to continue its exponential growth for the foreseeable fut
Slide 3: Proposed Fortescue railway line and rail loop map
Port Port Hedland Hedland Upper Upper endend of of proposed proposed rail rail loop loop (subject (subject to to declaration) declaration) Karratha Karratha Port Port Hedland Hedland to to Newman Newman railway railway line line 0 50 100 kilometers Proposed Proposed Fortescue Fortescue Metals Metals
Slide 4: Shared facilities and rail line crossing diagram
79 FACILITIES ‘SHARED, BHPB Id RAIL LINE 94 CROSSING AT GRADE ~~ SWITCH THROUGH . BHP RAIL LINES
Slide 5: The Pilbara, the lowest supply costs
The Pilbara, the lowest supply costs Cost difference of US$8.00 to $10.00 in additional shipping cost per tonne from Brazil (CVRD) to growth markets
Slide 6: Iron ore shipments and Australian lost market share
Iron Ore Shipments Australian % lost market share % Increase since 1990 Source: DoIR/JP Morgan
Slide 7: Chinese imports of iron ore by country, showing effect of the Pilbara bottleneck
Chinese imports of iron ore by Country, showing effect of the Pilbara bottleneck 50 45 40 35 30 Australia 25 Brazil % India 20 15 South Africa 10 5 0 Source: GSJBWere 1998 1999 2000 2001 2002 2003 “Compared with major iron exporting countries in the world, our self- produced concentrate is obviously
Fortescue Metals Group — Corporate Update (June 2004) on 6ix