Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Melbourne Mining Club February 2009
12 slides from Fortescue's conference presentation, Feb 5, 2009
Slide 1: Melbourne Mining Club - Fortescue Fact Sheet 1
For personal use only Melbourne Mining Club February 2009 Fortescue Fact Sheet 1 • Industry sector – Direct Ship haematite iron ore • Industry record – most profitable in resources sector • Industry members – large player domination >80% Rio, BHP, Vale, FMG • World’s largest iron ore province – Pilb
Slide 2: Fortescue Fact Sheet 2
Fortescue Fact Sheet 2 For personal use only • Company started in July 2003 • Amount invested over US$3.5billion • Integrated Mine, Rail & Port completed mid 2008 • Total employees >1,500 • EBITDA to 31 Dec 08 A$641m • FY09 forecast – 39mt mined, 30.7mt shipped Tenement portfolio
Slide 3: Ore processing plant at Cloudbreak
Ore processing For personal use only plant at Cloudbreak Desand plant at Cloudbreak
Slide 4: Overburden system at Cloudbreak and rolling stock
For personal use only Overburden system at Cloudbreak FMG’s new rolling stock, ballast and fuel cars
Slide 5: Herb Elliott Port and economic resilience
For personal use only FMG’s second berth at Herb Elliott Port Australia is well-managed for a free democratic society • Strong government, and strong opposition • Fiscal stimulus the key • Monetarism has much less impact at this point of the cycle China is even better able to handle a crisis…..
Slide 6: It's (still) all about China
It’s (still) all about China For personal use only • Metals consumption is most closely correlated to the health of the Chinese economy than those of the OECD Share of global consumption China US China US China US China US China US Source: J.P. Morgan Research Beijing Airport From approval to comple
Slide 7: Recovery? China provides comfort
Terminal 5 – Heathrow For personal use only Took longer to consult than Beijing took to build • 13 years of planning followed by 4 years of public inquiry • 6 Years to construct • Opened March 2008 • 35 million people Recovery? China provides comfort • Recovery is already on the horizon with many ec
Slide 8: Recovery? China provides comfort; short-term outlook
Recovery? China provides comfort For personal use only • China’s major driver is internal investment, not consumer expenditure, therefore they will not suffer recession. • China’s recovery will be rapid as demand for mineral resources for urbanisation and industrialisation returns • Steel demand wil
Slide 9: Short-term outlook for Chinese iron ore imports
Short-term outlook for Chinese For personal use only iron ore imports • Stimulus measures weighted towards steel intensive activity – Rural infrastructure – Roads / railways / airports • China expected to consume 500Mt of steel in 2009 cf 451Mt in 2008 Short-term outlook for Chinese iron ore imports
Slide 10: Longer-term outlook for Chinese iron ore imports
Longer-term outlook for Chinese For personal use only iron ore imports • Chinese population forecast to increase to around 1.5 billion by 2025 • Steel intensity conservatively forecast to reach around 500kg/capita by 2025 = 750Mtpa steel • Meeting this need is expected to require at least 800Mtpa of
Slide 11: What is the Australian Employment Covenant
What is the Australian Employment Covenant For personal use only • A national industry-led initiative to break the vicious cycle of unemployment and poverty amongst Indigenous Australians. • A three-way covenant between Employers, the Australian Government and Indigenous people. The framework Govern
Slide 12: Changing the nation
Changing the nation For personal use only Developing an Indigenous workforce • Welfare must not be a lifestyle of choice • Indigenous people to participate in the real economy to the extent of their capacity • Training to employer specifications • The guarantee of a job • One on one mentoring For re
Fortescue Metals Group — Melbourne Mining Club February 2009 on 6ix