Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — BofA Securities Global Metals, Mining & Steel Virtual Conference 2021
19 slides from Fortescue's conference presentation, May 18, 2021
Slide 1: Presentation – BofA Securities Global Metals, Mining & Steel Virtual Conference 2021
For personal use only 18 May 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 – BOFA SECURITIES GLOBAL METALS, MINING & STEEL VIRTUAL CONFERENCE 2021 Fortescue Metals Group Ltd (ASX: FMG) advi
Slide 2: BofA Securities Conference
For personal use only BofA Securities Conference Elizabeth Gaines, CEO 18 May 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: World class company rapidly evolving into a resources and renewable energy company
World class Rapidly evolving into a resources and renewable energy company For personal use only company 3
Slide 5: Safety and unique culture
Safety and For personal use only unique culture 2.2 TRIFR Total Recordable Injury Frequency Rate at 31 March 2021 8% improvement Compared to 30 June 2020 Hazard identification Assisting in journey to zero harm 4
Slide 6: March 2021 quarter highlights
March 2021 quarter For personal use only highlights 2.2 TRIFR US $143 /dmt 8% improvement from Average revenue, 2.4 at 30 June 2020 86% of 62% Fe index US 42.3 mt shipped $14.90 /wmt In line with Q3 FY20 C1 cost US$13.45/wmt YTD US $1.5bn US $1.0bn Issue of Unsecured Senior Net debt Notes to refinan
Slide 7: Global steel demand recovers
Global steel demand recovers For personal use only Resulting in higher steel prices and incentivising crude steel production Global HRC prices Global crude steel production China monthly pig iron output USD/t (mt) 1,500 (mt) 100 80 95 1,300 75 90 1,100 85 70 80 65 900 75 70 60 700 65 55 60 500 55 50
Slide 8: Robust demand for iron ore
Robust demand for iron ore For personal use only Increasing port stocks supported by steel destocking and crude steel production rates China monthly iron ore imports by origin (mt) China port stocks by product (mt) China import iron ore inventory (mt) 120 180 170 180 160 100 160 140 160 140 80 120 1
Slide 9: Fortescue's Q3 average realised price
Fortescue’s Q3 average realised price Strong US$143/dmt, 86% of the Platts 62% CFR index For personal use only realisations $166.9 $133.7 $118.2 $102.0 $93.3 $89.0 $82.7 Jan 19 Apr 19 Jul 19 Oct 19 (US$/t) Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 62% CFR Platts Quarterly Platts Price SSF (Portside) FB (Po
Slide 10: Iron Bridge Magnetite Project
Technical and commercial Iron Bridge assessment scheduled for completion in late May 2021 For personal use only Magnetite Project Focus areas Concentrate transport solution, utilisation of port and rail infrastructure, contractor strategy, logistics infrastructure Critical path works ongoing Approva
Slide 11: 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 12: 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 13: Pathway to decarbonisation
Pathway to decarbonisation Underpinned by practical initiatives that will deliver goals in an For personal use only economically sustainable manner Chichester solar gas Pilbara Energy Connect Green fleet hybrid project f ▪ US$100 million investment by ▪ Australia’s largest remote ▪ A$32m Christmas C
Slide 14: Renewable energy driving new green industries
Renewable energy driving For personal use only new green industries Global leader Driving the green energy and product industry to transition away from fossil fuels Developing Renewable energy and green industry opportunities globally Funding Allocating 10% of net profit after tax to FFI, project fi
Slide 15: Fortescue Future Industries Flywheel
Fortescue Future Industries Flywheel For personal use only 14
Slide 16: FY21 guidance
FY21 guidance For personal use only 178 – 182 mt Iron ore shipments US$13.50 – US$14.00/wmt C1 cost based on assumed exchange rate of AUD:USD 0.75 US$3.5 – US$3.7 billion Capital expenditure 15
Slide 17: Our strategic focus
Our strategic focus For personal use only Underpinned by operational excellence Sustainability and balance sheet strength ✓ Ensuring communities benefit from Fortescue’s success Optimising ✓ Returns and growth from our operations Diversifying ✓ Commodities that support decarbonisation Pursuing ✓ Gre
Slide 18: Our Purpose and Values
For personal use only Our Purpose Thriving communities | Global force Fortescue’s Values
Slide 19: For personal use only
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