Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Australian Journal of Mining Global Iron Ore and Steel Forecast Conference 2015
17 slides from Bhp's conference presentation, Mar 10, 2015
Slide 1: ASX cover letter: AJM Global Iron Ore and Steel Forecast Conference
For personal use only BHP Billiton Limited BHP Billiton Plc 171 Collins Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1LH UK GPO BOX 86 Tel +44 20 7802 4000 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilliton.com bhpbil
Slide 2: News Release: Delivering exceptional returns from installed capacity
NEWS RELEASE For personal use only Release Time IMMEDIATE Date 10 March 2015 Number 03/15 DELIVERING EXCEPTIONAL RETURNS FROM INSTALLED CAPACITY BHP Billiton will today reaffirm its ongoing commitment to safely maximising returns on installed capacity at its Western Australia Iron Ore business (WAIO
Slide 3: News release continued and media/investor contacts
“With this strategy we are maintaining Australia’s competitive position in the global market and providing the revenue, royalties, employment and innovation that is so important for this country’s future.” WAIO achieved record production of 124 million tonnes in the first half and is on track to For
Slide 4: Safely delivering exceptional returns
Jimblebar For personal use only Safely delivering exceptional returns Jimmy Wilson President – Iron Ore 10 March 2015
Slide 5: Disclaimer
Disclaimer For personal use only Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certa
Slide 6: Key themes
Key themes For personal use only • We value safe and sustainable operations above all else • Low-cost seaborne iron ore is replacing high-cost supply and flattening the cost curve • Our relentless focus on capacity utilisation, supply excellence, people productivity and project excellence will endur
Slide 7: We continue to deliver on our commitments
We continue to deliver on our commitments For personal use only Western Australia Iron Ore …what we’ve delivered in H1 FY15 Safe and sustainable operations above all else TRIF FY14 of 5.3 to 4.0 Full-year guidance for FY15 is 245 Mt1 124 Mt produced with ~23% lump 1 FOB unit costs of less than
Slide 8: Low-cost supply continues to replace high-cost iron ore units
Low-cost supply continues to replace high-cost iron ore units For personal use only Short-term drivers Capacity utilisation responding to declining prices (%) (US$/t) • Iron ore prices are likely to remain subdued 100 200 over the short to medium term as low-cost supply continues to rise 80 165 60 1
Slide 9: Our increase in volume, for value, has resulted in no growth in our market position
Our increase in volume, for value, has resulted in no growth in our market position For personal use only • BHP Billiton has maintained share of iron ore Share of iron ore exports1 exports through a disciplined program of (%) investment 100 Rest of World • We approved our last major investment at 80
Slide 10: The characteristics of our orebodies support consistently low-cost, high-margin operations
The characteristics of our orebodies support consistently low-cost, high-margin operations For personal use only • Our world-class orebodies will enable us to WAIO strip ratio position as the lowest-cost supplier of iron ore 3 to China Jimblebar ramp-up – stable strip ratio at an average of 1.3x 2 o
Slide 11: Continuous optimisation ensures a reliable and robust fully integrated supply chain
Continuous optimisation ensures a reliable and robust fully integrated supply chain Integrated Remote Operations Centre For personal use only Synchron- Flow Balance isation Focus at Mines Focus at Rail Focus at Port Enable SL1 utilisation – Target the Enable SL1 utilisation – Target the Lifting SL1
Slide 12: Focus on availability, utilisation and rate has raised port capability
Focus on availability, utilisation and rate has raised port capability For personal use only • Availability of car dumpers and shiploaders (SL) SL unscheduled equipment downtime per tonne has increased (index, January 2014 = 100) 100 – approaching target of 90% with upside 80 potential of 92% 60 • U
Slide 13: A substantive and sustainable reduction in costs with more to come
A substantive and sustainable reduction in costs with more to come For personal use only • We continue to systematically target cost WAIO unit cash costs have decreased significantly savings across the supply chain (unit cash cost, US$/t1) 30 • Our pathway to deliver unit cash costs below US$20/t1 i
Slide 14: WAIO continues to deliver exceptional returns
WAIO continues to deliver exceptional returns For personal use only • Exceptional returns for H1 FY15 WAIO financial performance (Underlying EBIT3, US$ billion) (Underlying EBITDA margin, %) – Underlying EBITDA margin1 of 58% 30 80 – US$4 billion of Underlying EBIT – Underlying EBIT1 margin of 49% –
Slide 15: Significant value and improved reliability through debottlenecking to 290 Mtpa
Significant value and improved reliability through debottlenecking to 290 Mtpa For personal use only • Our relentless focus on productivity will deliver Re-rating our hub capacity beyond 245 Mtpa2 volume growth from installed infrastructure (Mtpa) No fixed Low 300 – improving reliability will delive
Slide 16: Key themes
Key themes For personal use only • We value safe and sustainable operations above all else • Low-cost seaborne iron ore is replacing high-cost supply and flattening the cost curve • Our relentless focus on capacity utilisation, supply excellence, people productivity and project excellence will endur
Slide 17: BHP Billiton: resourcing the future
cdl bhpbilliton resourcing the future