Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Corporate Update (February 2009)
19 slides from Fortescue's corporate update, Feb 24, 2009
Slide 1: Project Update Slides cover letter
Fortescue Metals Group Ltd T elephon e: + 6 1 8 6 2 1 8 8 8 8 8 ACN: 002 594 872 Facs imile: + 6 1 8 6 2 1 8 8 8 8 0 87 Adelaide T err ace E ast Perth Webs ite: w w w . f m g l . c o m . a u Wester n Austr alia 6004 PO Box 6915, East Perth, Western Au str alia 6892 24 February 2009 For personal use
Slide 2: Market update – February 2009
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS For personal use only Market update – February 2009 1
Slide 3: Disclaimer - Important Notice
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Fortescue Metals Group For personal use only DISCLAIMER - Important Notice The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd ("Fortescue"). It
Slide 4: Update of strategic discussions and proposed capital raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Update of strategic discussions For personal use only and proposed capital raising • Very strong interest to invest in FMG from China and others • Advanced negotiation with Hunan Valin Iron & S
Slide 5: Outlook for Chinese iron ore imports
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Outlook for Chinese iron ore For personal use only imports • Chinese fiscal stimulus packages to keep strong economic growth – RMB4 trillion (c.US$590 billion) announced in November – Six more
Slide 6: Outlook for Chinese iron ore imports
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Outlook for Chinese iron ore For personal use only imports • Consolidation in steel industry foreseen, but will be exceeded by new efficient capacity coming on stream over next 2-3 years • Inef
Slide 7: Outlook on iron ore pricing
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Outlook on iron ore pricing For personal use only • Spot market firming up since December 2008 • Strong China interest in FMG settlements • Destocking process in China largely complete • Restoc
Slide 8: Summary - FMG
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Summary - FMG For personal use only • A world-class iron ore producer in the Pilbara region of Western Australia • Continued strong sales and high product acceptance - Off-take agreements in pl
Slide 9: Summary - FMG
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Summary - FMG For personal use only • Large scale, low cost operations • State-of-the-art port and rail infrastructure • Reserves and resources of 5 billion tonnes base • Growth plans to 120Mtp
Slide 10: Ramping up to 55Mtpa
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Ramping up to 55Mtpa For personal use only • Production at Cloudbreak currently approaching 3.5Mt (mined ore) / 3.0Mt (shipped ore) per month • Expected to achieve CY09 production of ~38Mt (shi
Slide 11: State of the art mining operations
State of the art mining operations For personal use only Target: The lowest cost, highest efficiency in the Pilbara Overburden trucks Surface miner in action Excavator in action OVERBURDEN ORE BODY ORE BODY 10 Source: Company
Slide 12: State of the art rail operations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS State of the art rail operations For personal use only Target: lowest cost transport in the Pilbara • FMG rail system represents the fastest, heaviest rail haulage system in the world • Clean s
Slide 13: State of the art port operations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS State of the art port operations For personal use only Target: lowest cost transport in the Pilbara • 2 fully operating bulk material wharfs • Significant expansion area • Highly automated • Ex
Slide 14: Dominant land position
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNTDominant land OR BENEFIT OF, U.S. position PERSONS FMG: 73,000 km2 For personal use only 13 13 Source: Company
Slide 15: Exploration
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Exploration For personal use only 5 billion tonnes in 4 years • Christmas Creek drilling commenced May 2004 • Cloudbreak drilling commenced November 2004 • Solomon drilling commenced June 2007
Slide 16: Expansion opportunities map
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Expansion opportunities map For personal use only Port Hedland Point Samson Dampier LEGEND FMG Tenements Ore Processing Plant FMG Rail Glacier Glacier Valley Valley Other Rail FMG Rail Extensio
Slide 17: Product acceptance
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Product acceptance For personal use only • Certain mills can use up to 50% (and more) of FMG product in its iron ore blend compared to 15% max for MAC and 35% Pilbara blend • Product performanc
Slide 18: Liquidity
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Liquidity For personal use only • Cash position at end of December 2008 of A$439m • Operations generating significant cash flows on a per tonne basis • Cash operating margins improve as volumes
Slide 19: For regular email alerts register online
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS For personal use only For regular email alerts register online www.fmgl.com.au 18
Fortescue Metals Group — Corporate Update (February 2009) on 6ix