Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Shareholder Meeting (November 2004)
19 slides from Fortescue's shareholder meeting presentation, November 2004
Slide 1: Microplaty Hematite (MpH) The New Force in Iron Ore
Fortescue Metals Group Ltd Fortescue Metals Group Ltd Fortescue House 50 Kings Park Road West Perth Western Australia 6005 PO Box 910 West Perth Western Australia 6827 Telephone: + 61 8 9266 0111 Facsimile: + 61 8 9266 0188 Website: www.fmgl.com.au Email: jmorrin@fmgl.com.au Microplaty Hematite (MpH
Slide 2: China's Iron Ore import future - a calculation
China’s Iron Ore import future - a calculation Population Assume - 1,500m people; only if population control policy holds Steel intensity Assume - 450kg/capita; Korea [750] Japan [590] USA [400] Recycling scrap metal Assume - 20%; currently 16%, growth will exceed scrap potential Fe content of impor
Slide 3: And then there is India…
And then there is India… - Population > 1 billion - May exceed China by 2040 - GDP doubling every 10-12 yrs - Steel intensity currently - 26 kg/capita If India matched only current Chinese levels of steel use (per capita) its steel use would be up by 150Mtpa = 250Mtpa extra iron ore demand on its ow
Slide 4: The Pilbara, the lowest supply costs
The Pilbara, the lowest supply costs Australia is the closest to China, able to serve it the most competitively 4
Slide 5: Fortescue, Rio Tinto and BHPB
Fortescue*, Rio Tinto and BHPB *Area length of FMG tenements in the Pilbara: 550km 5
Slide 6: Meeting the demand for major independent supply
Meeting the demand for major independent supply Wholly owned Iron Ore Regions West Pilbara Chichesters Central Pilbara 6
Slide 7: Chichesters is a new multiple project iron ore region
Chichesters is a new multiple project iron ore region 7
Slide 8: FMG has two basic >60% Fe ore types
FMG has two basic >60% Fe ore types • Direct ship (or high grade) requires little or no beneficiation, is already >60% Fe with low impurities • Beneficiated ore is processed (in common Pilbara practice) through a beneficiation plant to achieve >60% Fe • High moisture content is removed in the steel
Slide 9: Christmas Creek Calcined Ore Types: Iron (Fe) against known products
Christmas Creek Calcined Ore Types Competitive Iron (Fe) against known products 69.00 68.00 67.00 66.00 % Fe 65.00 Beneficiation Grade FMG - Potential 64.00 High Grade Zone HI - Premium BHPB - Premium BHPB - MM HI - MM FMG - 63.00 HI - Y BHPB - Y 62.00 J (RR) Mesa 61.00 9
Slide 10: Christmas Creek Calcined Ore Types: Phosphorous (P) against known products
Christmas Creek Calcined Ore Types Competitive Phosphorous (P) against known products 0.09 0.08 0.07 0.06 FMG - High Grade Zone FMG - Potential Beneficiation 0.05 BHPB - Premium %P HI - Premium 0.04 BHPB - MM HI - MM Grade Mesa J (RR) 0.03 HI - Y BHPB - Y 0.02 0.01 0.00 10
Slide 11: Third Contract Signed: Ping Xiang Iron & Steel
Third Contract Signed Ping Xiang Iron & Steel Co. Ltd www.fmgl.com.au 2million tonnes iron ore per annum Life of contract 22 years Prepayment of US$20million • US$10million prior to financial close • US$10million during construction Piang Xiang – a large mill - 4million tonnes per annum, 13,000 empl
Slide 12: International Corporate Support for The New Force in Iron Ore
International Corporate Support for The New Force in Iron Ore Binding Contract Signed & First Subcontractor Appointed Balance of Project : Discussions advancing The New Force in Iron Ore 12
Slide 13: The Binding China Rail Contract
The Binding China Rail Contract Mr Andrew Forrest, Chairman of Board of Directors of FMG & Mr Qin Jiaming Chairman of Board of Directors for CREC signed a binding contract with support of NDRC, SASAC & Ministry of Commerce 13
Slide 14: CREC has US$13 billion work in hand
CREC has US$13 billion work in hand 14
Slide 15: CREC is a competent infrastructure provider
CREC is a competent infrastructure provider 15
Slide 16: Fortescue Corporate Summary
Fortescue Corporate Summary Ticker: FMG.AX 218m Shares & Options @ recent placement price $1.00 ~ A$218m Market Cap Shareholder Fully Diluted Fully Diluted Percentage Shares (m) Directors and Management 118.2 54.3% Steel Mills & Institutions: 37.7 17.3% MLC JF Capital Partners JP Morgan Jiangsu Feng
Slide 17: The Pilbara Infrastructure (TPI) Port & Rail
The Pilbara Infrastructure (TPI) Port & Rail 17
Slide 18: Fortescue Development Timeline
Fortescue Development Timeline Current Status: Prefeasibility complete Final Feasibility on track Ship Commission Construction Tender Process Engineering Design Approvals Finance Definitive Feasibility Cash Flow Line Prefeas Study Interim Prefeas Study Scoping Study 18
Slide 19: FMG: The New Force in Iron Ore
FMG: The New Force in Iron Ore Distance equivalent: Los Angeles to San Francisco 19
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