Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — CISA Conference 2019
18 slides from Fortescue's conference presentation, Sep 26, 2019
Slide 1: CISA Conference
For personal use only CISA Conference Greg Lilleyman Chief Operating Officer 26 September 2019 Global force Thriving communities
Slide 2: Important Notice
Important Notice 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 to Fortescue based on this presentation. This presentation contains certain statements w
Slide 3: Delivering value for our customers
For personal use only Delivering value for our customers 3
Slide 4: A world class company
For personal use only A world class company Wholly owned, >1.3 billion tonnes ~170mtpa fully integrated Shipped Shipping rate supply chain Core supplier Low cost to China producer 4
Slide 5: Sustainable low cost producer
Sustainable low cost For personal use only producer Industry leading cost position Structural improvements C1 US$/wmt Solomon + blending + processing 60 50 Productivity and efficiency 48 Utilisation, recoveries, maintenance 40 44 30 34 Innovation and technology 20 27 Autonomy, conveyor, ore carriers
Slide 6: Fully integrated supply chain
Fully integrated supply chain For personal use only Supported by a culture of innovation 6
Slide 7: Direct customer engagement driving deep market insights
For personal use only Direct customer engagement driving deep market insights Integrated Co-location of key decision operations makers enabling rapid and response to market trends marketing Agile product mix adjustments to meet customers’ needs Collaborative operations and marketing to optimise mark
Slide 8: China port sales
China For personal use only port sales Enhanced sales channel offering, supporting FMG’s marketing strategy of direct customer engagement Established in April 2019 to provide greater flexibility Customers have greater choice: • Purchase in smaller lot sizes • Renminbi • From multiple regional ports
Slide 9: Enhanced product mix
Enhanced product mix For personal use only FY2020 product mix optimisation delivers value Product mix iron grade increasing Introduction of West Pilbara Fines Production of Fortescue Lump Reduced Super Special Fines FY18 FY19 FY20 Fortescue Blend Super Special Fines Kings Fines Fortescue Lump West P
Slide 10: Fortescue product attributes
Fortescue product attributes For personal use only Physical characteristics of products deliver value Coarse grain sizing promotes sinter productivity Granulation benefits blending with higher Fe fine grain ores Lower melt temperature than Brazilian and other Australian ores requires less coke Well
Slide 11: Iron ore growth projects: Eliwana and Iron Bridge
For personal use only Iron ore growth projects Eliwana and Iron Bridge 11
Slide 12: Significant Pilbara footprint
Significant Pilbara footprint For personal use only Maintaining mine life and sustaining product quality 12
Slide 13: Eliwana project
Eliwana project US$1.275 billion capital investment, For personal use only 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 Growing volumes to 40mtpa 13
Slide 14: Iron Bridge Magnetite Project
Iron Bridge Magnetite Project For personal use only US$2.6 billion investment delivering expanded product suite to customers 22 mpta 67% Fe First ore scheduled mid-2022 Low impurity premium product Low capital intensity and Energy efficient operating cost Industry leading, proven design 14
Slide 15: Diverse product aligned with customer requirements
Diverse product 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 15
Slide 16: FY20 Guidance
FY20 Guidance For personal use only 170-175mt Shipments US $13.25-13.75 C1 cost / wmt US $2.4 billion Capital investment 16
Slide 17: Our Vision and Fortescue's Values
Our : ! | | Vi Ss i on sy f Fortescue <The safest, lowest { “cost, most profitable —mining company (©) “Fortescue’s Values ——— 17
Slide 18: For personal use only
For personal use only www.fmgl.com.au FortescueNews