Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Macquarie 12th Annual Australia Conference (May 2011)
14 slides from Fortescue's conference presentation, May 5, 2011
Slide 1: Macquarie 12th Annual Australia Conference
For personal use only Macquarie 12th Annual Australia Conference 5 May 2011 Disclaimer Important Notice The purpose of this presentation is to provide general information about Fortescue Metals Group Ltd ("Fortescue"). It is not recommended that any person makes any investment decision in relation t
Slide 2: Integrated Business > 100mt shipped
Integrated Business > 100mt shipped For personal use only Ownership of infrastructure is the key 3 Growth without parallel Innovation at all levels • Fastest ramp up of any Pilbara mine • Surface miners optimise grade control • Largest ore processing plant in the Pilbara • Fastest heaviest haul rail
Slide 3: Recent milestones
Recent milestones For personal use only • Commissioning of Christmas Creek ore processing facility • Environmental approval pp for Solomon Project • 10 billion tonnes of resources – 1,000 tenements – 100 million tonnes shipped • Port works for new wharf facility and out- load circuit underway • Expa
Slide 4: Unprecedented resources growth up to 2btpa
Unprecedented resources growth up to 2btpa For personal use only 12,000 10,000 8,000 Million Tonnes Western Hub 6,000 Nyidinghu Resource Magnetite Resource Solomon Resource 4,000 Chichester Resource Chichester Reserve 2,000 0 2004 2005 2006 2007 2008 2009 2010 2011 Year • Maiden resource statement o
Slide 5: Proven project development skills - records
Proven project development skills - records For personal use only From concept To reality Christmas Mining Creek 2010 Minesite 2011 Solomon Mining Minesite 2011 2013 Nyidinghu Mining g Mi Minesite it 2012 2014 FACT: Fortescue built its infrastructure faster than any other Australian mining company F
Slide 6: Finance and Operations
Fortescue – forging ahead For personal use only 11 Finance and Operations 12
Slide 7: Financial snapshot
Financial snapshot For personal use only • Record HY2011 earnings - $1.3bn EBITDA • Continuing strong sales prices – March Qtr CFR average of US$162/tn • Cash costs rising but C1 margins also growing with March Qtr >US$110/tn • Forecast FY2011 revenues of ~US$5.5bn • Flexible funding structure follo
Slide 8: The Market
For personal use only The Market 15 Marketing – index pricing transition Benchmark regime - FOB Index pricing - CFR 180 160 Average CFR selling price per dry tonne 162 150 US$ per dry tonne 140 Average C1 costs per dry tonne 130 125 120 100 80 83 72 69 70 60 66 49.5 40 41.5 32.3 34.8 26.2 26.6 27.4
Slide 9: Fortescue product overview
Fortescue product overview For personal use only • Customer “value in use” created through high calcined Fe and fast sintering speeds • Rocket fines used at levels 20-45% 20 45% in many Chinese customer sinter blends (vs. 12% for other similar fines) • Rocket fines product spec at 64.5% Fe calcined
Slide 10: Rocket Fines has favourable coarse size
Rocket Fines has favourable coarse size Fine Ore Size - % >1.0 mm For personal use only 70.0% 60.0% 50.0% % Retained 40.0% BHPBIO - Premium ndicoogina 30.0% bara Blend cket Fines BHPBIO - Yandi BHPBIO arajas 20.0% FSC FCJ JF HG Indian n Rio - Yan Vale - Ca FMG Roc Vale - SF Rio - Pilb Vale - PF Vale
Slide 11: Capturing the opportunity - 155mtpa
Capturing the opportunity - 155mtpa For personal use only • Culture and track record delivers: • NOW: Chichester 55mtpa currently in ramp up mode following commissioning • SHORT TERM: 155mtpa Port and Rail expansion underway and Solomon advancing rapidly • MEDIUM TERM: Remaining Solomon and Anketell
Slide 12: Two Ports Three Hubs - 355mtpa strategy
Two Ports Three Hubs - 355mtpa strategy For personal use only Chichester, Solomon and Western Hubs New 1Bt Nyidinghu discovery provides expansion flexibility and blending opportunities with Chichester mines 23 200mtpa - 2004 vision delivers efficient layout Fortescue Port Hedland 24
Slide 13: Anketell Port – the FMG path to 355mtpa
Anketell Port – the FMG path to 355mtpa For personal use only Shiploaders St Strong Government G t supportt as a key State asset Planned Port Precinct Conveyors Rail Loops Dampier/Karratha Cape Lambert 25 Short to medium term value catalysts • Delivering the 55mpta ramp-up • Rapid progress to 155mtp
Slide 14: Forging Ahead
For personal use only Forging Ahead Sign up to alerts online www.fmgl.com.au f l
Fortescue Metals Group — Macquarie 12th Annual Australia Conference (May 2011) on 6ix