Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Macquarie Conference 2009
16 slides from Bhp's conference presentation, May 6, 2009
Slide 1: Iron Ore Update
Iron Ore Update Ian Ashby President Iron Ore 6 May 2009
Slide 2: Important Notices
Important Notices Reliance on Third Party Information The views expressed here contain information that have been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the informatio
Slide 3: Today's Discussion
Today’s Discussion Safety Market Performance Growth Ian Ashby, President Iron Ore, 6 May 2009 Slide 3
Slide 4: Iron Ore is Committed to Improving Safety
Iron Ore is Committed to Improving Safety Our safety performance in the Pilbara has been unacceptable to the company A very challenging time for the business and our people given five fatal accidents since July 2008 An extensive, independent expert review of all WA Iron Ore operations has been
Slide 5: Rapid Evolution to Transparent Pricing
Rapid Evolution to Transparent Pricing Seaborne Iron Ore Spot Transacted (mt) Transparent and regular pricing allows CAGR 36% customers to mitigate risks on short, 180 medium and long term contracts. 160 Developments since the start of 2008: 140 54% YoY • Increased liquidity 120 • Three internat
Slide 6: BHP Billiton is an Active Market Participant
BHP Billiton is an Active Market Participant Transparency Regular and transparent market encourages the most efficient producers pricing is consistent with BHP Billiton’s strategy. Financial swaps enable Liquidity & Transparency ‘price risk’ to be managed separately from ‘supply risk’ BHP Billit
Slide 7: Stable Sales Despite Market Conditions
Stable Sales Despite Market Conditions Iron Ore Production & Shipments China Pig Iron Production (mt, Western Australia Iron Ore 100%) (mt) 60 160 BHP Billiton Western Australia Iron Ore Production BHP Billiton Western Australia Iron Ore Shipments 140 50 China Pig Iron Production 120 40 100 30 80 60
Slide 8: Long Term Fundamentals are Solid
Long Term Fundamentals are Solid Seaborne Iron Ore Demand (mt) 2,000 1,800 Short to medium term uncertainty will always exist 1,600 1,400 Steel is a critical input as nations industrialise and 1,200 urbanise 1,000 China and other emerging 800 economies are expected to continue to drive long te
Slide 9: Industry Leading Cost Position
Industry Leading Cost Position Seaborne Iron Ore Cost Delivered to China – 2015 (US cents/dmtu, CFR) 300 Low operating costs driven by: 250 Large, Tier 1 high grade ore bodies concentrated around key 200 infrastructure and developed as integrated mining hubs 150 First class infrastructure BHP Bi
Slide 10: Able to Invest for Tomorrow
Able to Invest for Tomorrow BHP Billiton’s Capital & Exploration Expenditure Strong balance sheet (US$bn) Current gearing ratio of 9.5% 12 FY 2010F EBITDA/Interest cover of Exploration 87 times 10 Sustaining Capex Growth Expenditure Strong credit rating 8 Target a solid “A” credit rating S&P
Slide 11: Iron Ore Growth Projects Well Underway
Iron Ore Growth Projects Well Underway Western Australia Iron Ore Growth Path (mtpa, 100% basis) 145 Mtpa 350 Mtpa Planning Construction Completed 50 Mtpa 26 Mtpa 129 Mtpa Installed Capacity RGP4 RGP5 Studies (a) (a) All studies and estimated capacity remain under review until they are approved for
Slide 12: RGP4 Construction Update
RGP4 Construction Update RGP 4: 155mtpa by 2010 Jimblebar crushing plant & train load out commissioned Newman Hub car dumper close to completion New rail between the Newman Hub & Jimblebar New stockyard facilities at the Newman Hub Ian Ashby, President Iron Ore, 6 May 2009 Slide 12
Slide 13: Newman Hub Construction, Late April 2009
Newman Hub Construction, Late April 2009 Ian Ashby, President Iron Ore, 6 May 2009 Slide 13
Slide 14: RGP5 Construction Update
RGP5 Construction Update RGP5: 205mtpa by 2011 Earthworks to support Yandi expansion underway Work on the new seawall at Port Hedland Marillana construction camp Construction of the seawall is progressing Ian Ashby, President Iron Ore, 6 May 2009 Slide 14
Slide 15: In Conclusion
In Conclusion Safety Iron Ore is committed to improving its safety performance Market Proactive participation in industry evolution towards a transparent and regular market clearing price is a strategic advantage Evolution towards a liquid index-based market enables customers and producers to
Slide 16: bhpbilliton
édl bhpbilliton ourcing the future