Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — IMARC 2015
25 slides from Fortescue's conference presentation, Nov 12, 2015
Slide 1: Delivering results through innovation
Delivering results through innovation IMARC, 12 November 2015
Slide 2: Forward Looking Statements
Forward Looking Statements 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 Financial Fortescue Metals Group Limited ("Fortescue"). It is not recommended that Re
Slide 3: Building a world class company
Building a world class company Core supplier to Asia’s growth Founded First ore Low cost in 2003 in 2008 producer Shipped over 165mt 580mt Production rate Unique culture 3
Slide 4: World class assets: Pilbara
World class assets Core supplier to Asia’s growth World’s best Pilbara address for Western Australia iron ore
Slide 5: Our Vision: The safest, lowest cost, most profitable iron ore producer
Our Vision: The safest, lowest cost, most profitable iron ore producer 4: Ww Fortescue Integrity Determination Set yourself Enthusiasm Empowerment Generating ideas Frugality
Slide 6: Safety is at the heart of Fortescue's values
Safety is at the heart of Fortescue’s values My brothers’ / sisters’ keeper • Safety Priorities 1 Look after yourself 2 Look after your mates • Engagement active participation • Empowerment to make decisions • Encouragement to speak up • Leadership strong and visible 6
Slide 7: Mining industry productivity declining…
Mining industry productivity declining… Productivity in mining compared to Australian Industry Labour Productivity Capital Productivity 150 110 130 100 90 110 80 90 70 70 60 50 50 Mining Australian Industry Mining Australian Industry Australian Industry comprises: Agriculture, Forestry & Fishing; Mi
Slide 8: Culture of innovation
Innovation focus Across every area of the business Product Culture of Cost journey innovation Costs Mine life Products matched Exploration Community customer needs and future engagement projects 8
Slide 9: Built on innovation
NG roresce Built on innovation
Slide 10: Solomon Hub discovery
Solomon Hub discovery The (unconventional) wisdom of Solomon Current Drainage GSWA 1: 250,000 geology
Slide 11: Fortescue's innovation story
Unlocking the Chichesters “A bucket of rusty nails” • Mining the un-mine-able ore body • Surface miners core to Fortescue’s innovation story • Pre-condition blasting to improve productivity • Opening the door for continuous improvement
Slide 12: Product and Processing strategy
Product and Processing strategy Maximising value from asset base Solving to maximise • Matching product to orebody • Fortescue Blend Product • Beneficiation of ore Mine • Lower cut-off grades Life Costs 12
Slide 13: Leveraging a hidden strength
Leveraging a hidden strength Blending with Firetail + wet processing, product grade 57.5% Strip ratio reduced from 5.4 to 2.3 New pit limit + + = Production inventory at cut off grade of 54% 13
Slide 14: Robot trucks: Autonomous Haulage System
Robot trucks Autonomous Haulage System (AHS) 109mt to date 41 autonomous trucks enhanced 38%productivity Safety improvement 14
Slide 15: Iron Bridge – a new approach to Magnetite
Iron Bridge – a new approach to Magnetite Harvesting ideas from across industries Dry separation Low energy process technology upgrade Low capital Lowest quartile magnetite global operating cost cost 15
Slide 16: Capturing ideas from our people
Capturing ideas from our people Using our brains not a cheque book • Have a crack
Slide 17: Marketing innovation
Marketing innovation
Slide 18: Marketing innovation
Marketing innovation Delivered an 18% market share imported iron ore to China • Low impurity 58% Fe average • High value in use • Margin versus throughput • Targeting growth • Proximity to high growth region 18
Slide 19: Delivering the results
ING oresce Delivering the results....
Slide 20: Delivery of sustainable cost improvements
Delivery of sustainable cost improvements Strategy Efficiency Innovation C1 US$/wmt 1 Solomon operations 60 50 48 2 Blending strategy 58% Fe 44 40 34 3 Processing, wet plants + de-sands 30 27 18 4 Operational efficiencies 20 Exit FY16 10 at $15 5 Fx and fuel decreases 0 FY12 FY13 FY14 FY15 FY16 Guid
Slide 21: Moving down the global cost curve
Moving down the global cost curve China's Iron Ore Supply CFR Costs (including royalties & ocean freight) Source: Metalytics
Slide 22: Social and community value
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Slide 23: Ending Aboriginal disparity in the Pilbara
Ending Aboriginal disparity in the Pilbara Creating opportunities through training, employment and business opportunity 23
Slide 24: The new force in iron ore
The new force in iron ore A culture of innovation Sustainable low cost World class producer assets People + 165mt unique culture Production rate drive performance
Slide 25: www.fmgl.com.au
www.fmgl.com.au @FortescueNews Proudly supporting: