Fortescue Ltd · ASX:FMG
Fortescue — BMO Global Metals, Mining & Critical Minerals Conference 2024
23 slides from Fortescue's conference presentation, Feb 26, 2024
Slide 1: Presentation - BMO Global Metals, Mining & Critical Minerals Conference
26 February 2024 PRESENTATION - BMO GLOBAL METALS, MINING & CRITICAL MINERALS CONFERENCE Fortescue Ltd (Fortescue, ASX: FMG) advises that Dino Otranto, Chief Executive Officer Fortescue Metals is presenting at the BMO Global Metals, Mining & Critical Minerals Conference 2024 on Monday, 26 February 2
Slide 2: BMO Global Metals, Mining & Critical Minerals Conference
BMO Global Metals, Mining & Critical Minerals Conference 26 FEBRUARY 2024 © 2024 FORTESCUE FORTESCUE | 1
Slide 3: Forward Looking Statements Disclaimer
Forward Looking Important Notice The purpose of this presentation is to provide general information about Fortescue Ltd and its Statements subsidiaries (“Fortescue”). It is not recommended that any person makes any investment decision in relation to Fortescue based on this presentation. This present
Slide 4: Safety and unique culture
Safety and unique culture 1.8 TRIFR 23% 14% Total Recordable Injury Female employment rate First Nations employment rate Frequency Rate, Metals across Pilbara operations FORTESCUE | 3
Slide 5: Focused on becoming the number one integrated green technology, energy and metals company
Focused on becoming the number one integrated green technology, energy and metals company FORTESCUE | 4
Slide 6: Pilbara operations
Pilbara operations Integrated mine to and energy infrastructure market infrastructure Solar locations Wind location Anticipated infrastructure > 1GW ~ 1GW ~ 4GWh storage > 750 km Chichester Solar Transmission lines Gas Hybrid Operational Commissioned Under development Future development Note: Solar
Slide 7: Shipments
Shipments Nine consecutive years of meeting or exceeding guidance Million tonnes 200 190 180 170 160 150 140 130 120 110 100 90 80 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Guidance Shipments FORTESCUE | 6
Slide 8: H1 FY24 production highlights
H1 FY24 production highlights 94.6Mt Total iron ore shipments US$17.77/wmt C1 cost US$108/dmt Average revenue 89% Average revenue realisation C1 cost and revenue for Pilbara Hematite. FORTESCUE | 7
Slide 9: H1 FY24 financial highlights
H1 FY24 financial highlights US$9.5bn US$5.9bn US$3.3bn Revenue Underlying EBITDA Net profit after tax 62% US$73/dmt US$1.08 Underlying EBITDA margin Metals Underlying EBITDA Earnings per share (A$1.66) per tonne FORTESCUE | 8
Slide 10: H1 FY24 financial highlights
H1 FY24 financial highlights US$4.2bn US$2.7bn US$4.7bn Net operating cash flow Free cash flow Cash on hand US$5.3bn US$0.6bn 22% Gross debt Net debt Gross gearing FORTESCUE | 9
Slide 11: FY24 guidance
FY24 guidance 192 - 197Mt US$2.8 - US$3.2bn Iron ore shipments Metals capital expenditure US$18.00 - US$19.00/wmt US$800m C1 cost for Pilbara hematite Energy net operating expenditure US$500m Energy capital expenditure and investments Guidance is based on an assumed FY24 exchange rate of AUD:USD 0.6
Slide 12: Price realisations
Price realisations H1 FY24 average revenue of US$108/dmt Average price realisation of the Platts 62% CFR Index (%) Platts 62% CFR Index (US$/dmt) 180 91 88 87 87 87 85 160 78 140 70 120 100 80 60 40 20 0 Jan-22 Apr-22 Jan-23 Apr-23 Jul-22 Jul-23 Dec-23 Oct-22 Oct-23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q
Slide 13: Longstanding relationship with China
Unlocking value Longstanding at Iron Bridgewith relationship China 1.9 billion tonnes Iron ore shipments to China since 2008 Hunan Valin Steel Group Substantial shareholder since 2009 China Baowu Cooperative low-carbon technology development Boao Forum for Asia Strategic Partner Central South Univer
Slide 14: Unlocking value at Iron Bridge
Unlocking value at Iron Bridge Unique process flow Four international and national patents High grade product Supports lowering steelmaking emissions Portfolio improvement Product and market diversification FORTESCUE | 13
Slide 15: Minerals exploration
Minerals exploration Pilbara Mindy South, Wyloo North and White Knight Australia WA, NSW, SA and QLD International Argentina, Chile, Brazil, Peru and Kazakhstan FORTESCUE | 14
Slide 16: Belinga Iron Ore Project, Gabon
Belinga Iron Ore Project, Gabon Exploration Major exploration drilling campaign underway Studies advancing For a potential large-scale development First shipment Achieved in December 2023 FORTESCUE | 15
Slide 17: Decarbonisation animation
Decarbonisation animation FORTESCUE | 16
Slide 18: Eliminating emissions
Eliminating emissions Real Zero by 2030 Scope 1 and 2 terrestrial emissions target across Australian iron ore operations Net Zero Scope 3 Emissions target by 2040 No voluntary offsets To be purchased for Scope 1 and 2 emissions The Green Pioneer in Dubai for COP28 FORTESCUE | 17
Slide 19: Fortescue Energy
Fortescue Energy Green Energy Green energy production Fortescue WAE Technology development Fortescue Hydrogen Systems Electrolysers and hydrogen production systems Fortescue Capital Green energy investment platform FORTESCUE | 18
Slide 20: Global footprint
Global footprint FORTESCUE | 19
Slide 21: Disciplined capital allocation
Disciplined capital allocation Delivering Maintaining Investing in returns to balance sheet growth and shareholders strength development 50-80% payout BB+/Ba1 Value creation of Underlying NPAT, Committed to targeting Across Energy dividend policy strong credit ratings and Metals FORTESCUE | 20
Slide 22: Delivering returns to our shareholders
Delivering returns to our shareholders Dividend policy to pay out 50-80% of Underlying NPAT Dividends (A$/share) and payout ratio 80% 78% 77% 4 75% 80 3.58 62% 65% 65% 70 60 52% 2.07 38% 36% 1.76 1.75 40 21% 30 21% 1.14 1.08 17% 16% 20 0.45 0.20 0.15 0.23 10 0.07 0.08 0.10 0.05 0 0 FY11 FY12 FY13 FY
Slide 23: We are Fortescue
We are Safety Integrity Fortescue Family Enthusiasm Empowerment Courage and determination Frugality Generating ideas Stretch targets Humility FORTESCUE | 22
Fortescue — BMO Global Metals, Mining & Critical Minerals Conference 2024 on 6ix