Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Investor Presentation (June 2017)
14 slides from Fortescue's investor presentation, Jun 29, 2017
Slide 1: Mining's Energy Challenges and Strategic Options
For personal use only Mining’s Energy Challenges and Strategic Options
Slide 2: Forward looking statements
Forward looking statements For personal use only Disclaimer Important Notice Additional Information The purpose of this presentation is to provide general information about This presentation should be read in conjunction with the Annual Report at 30 Fortescue Metals Group Limited ("Fortescue"). It i
Slide 3: Delivering on targets
Delivering on targets For personal use only Focus on safety, productivity and efficiency ✓ Safety ✓ 165-170mt shipped ✓ Productivity + efficiency ✓ Lowest cost producer ✓ Debt repayments ✓ Consistent dividend policy 3
Slide 4: Moving down the global cost curve
Moving down the global cost curve For personal use only China's Iron Ore Supply CFR Costs (including royalties & ocean freight) 2012 2016 Source: Metalytics 4
Slide 5: Building strong communities
Building strong communities For personal use only Creating opportunities through training, employment and business development 5
Slide 6: WA's natural gas potential
For personal use only WA’s natural gas potential
Slide 7: The gas opportunity
The gas opportunity For personal use only Recognise renewables and storage role in future energy solutions • Gas critical transition fuel and good for our economy • Switch from imported diesel and enable integrated NWIS • A grid with gas base load enables Pilbara renewables 7
Slide 8: Mining is an energy-intensive business
Mining is an energy-intensive business For personal use only Sensitivity to energy Solomon Chichesters Fortescue's C1 costs Port Rail Energy Mining Fleet
Slide 9: Domestic Gas Production Capacity
Domestic Gas Production Capacity For personal use only Nameplate Capacity of Existing Domgas Plants 2,500 2,000 Red Gully Capacity (TJ per day) Xyris Beharra Springs 1,500 Dongara Wheatstone Gorgon 1,000 Macedon Devil Creek Varanus Island 500 KGP 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 S
Slide 10: AEMO scenario highlights domgas market risk
AEMO scenario highlights domgas market risk For personal use only Continued development of reserves crucial to post-2021 supply to avoid the cliff 1,800 1,600 1,400 1,200 TJ per day 1,000 800 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Base scenario gas demand Base scenario poten
Slide 11: Drilling rates at historic lows
Drilling rates at historic lows For personal use only Concern about what this means for future supply 200 180 Bonaparte Browse Carnarvon Canning Perth 160 Number of wells drilled 140 120 100 80 60 40 20 0 Source: GSOO 2016, AEMO
Slide 12: The Retention Lease bulge
The Retention Lease bulge For personal use only Significant number of RLs mature ahead of possible domgas cliff Retention Lease Expiry Schedule (NOPTA) and Initial Date of Grant 2016 19921993 20002001 2011 2017 1994 1995 1996 2006 2007 2012 Year of RL expiry 2018 2006 2013 2019 1994 2003 2014 2020 1
Slide 13: Gas important in transition to renewables
Gas important in transition to renewables For personal use only More domestic gas fields need to be developed • Policy settings to enable transition • Maintain competitive advantage • “Use it, or lose it” tension needed 13
Slide 14: For personal use only
For personal use only www.fmgl.com.au @FortescueNews Proudly supporting:
Fortescue Metals Group — Investor Presentation (June 2017) on 6ix