Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Investor Presentation (August 2010)
105 slides from Fortescue's investor presentation, Aug 10, 2010
Slide 1: Fortescue Investor Presentation and Site Visit
For personal use only Fortescue Investor Presentation and Site Visit 10-11 August 2010
Slide 2: Disclaimer
Disclaimer For personal use only 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 to Fortescue based on this presentation. This presentat
Slide 3: Welcome
For personal use only Welcome Rod Campbell
Slide 4: Agenda
For personal use only Agenda 1. Company Overview 2. Operational Update 3. Marketing, Shipping and Metallurgy 4. Development Strategy 5. Financial Snapshot 6. BC Iron Joint Venture
Slide 5: Company Overview
For personal use only Company Overview Andrew Forrest
Slide 6: Fortescue has a dominant Pilbara land position
Fortescue has a dominant Pilbara land position For personal use only Fortescue: 71,400km2 Rio: 11,000km2 (Robe 4,200km2) BHP: 6,500km2
Slide 7: Integrated Business – over 72Mt shipped
For personal use only Integrated Business – over 72Mt shipped Ownership of infrastructure is the key
Slide 8: Proven skills in Construction – Completion Records
For personal use only Proven skills in Construction – Completion Records From concept To reality Herb Elliott Port Port 2006 2008 Fortescue Rail Railway 2007 2008 Mine Cloudbreak Minesite 2006 2008 FACT: Fortescue built its infrastructure faster than any other mining company FACT: Fortescue ramped u
Slide 9: Innovation at work
For personal use only Innovation at work • New exploration model applied • Surface miners optimise grade control • Automated overburden removal systems • Largest ore processing plant in the Pilbara • Fastest heaviest haul rail system • Port out-load rates highest in Australia • Energised and flat st
Slide 10: Innovation: 4200 Surface Miner
For personal use only Innovation 4200 Surface Miner
Slide 11: Innovation: Automated overburden removal system
Innovation Automated overburden For personal use only removal system – in operation mid September
Slide 12: Innovation: Largest Ore Processing Facility in the Pilbara
For personal use only Innovation The largest Ore Processing Facility (OPF) in the Pilbara
Slide 13: Innovation: Fastest heaviest haul rail
For personal use only Innovation Fastest heaviest haul rail Guinness Book of Records
Slide 14: Innovation: Australia's largest shiploader
For personal use only Innovation Australia’s largest shiploader Herb Elliott Port – Over 72Mt Shipped
Slide 15: Fortescue – forging ahead
For personal use only Fortescue – forging ahead
Slide 16: Operational Update
For personal use only Operational Update Paul Hallam
Slide 17: Key Points
Key Points For personal use only • Significantly improved safety performance. • Improved and Solid FY10 operational performance. • June Qtr 2010 was best sustained operational performance to date. • 40Mtpa rate until Christmas Creek expansion. • FY11 Exciting & Challenging Year; – Commissioning of o
Slide 18: Safety
Safety For personal use only • Management led focus on reducing safety incidents and injuries. • Significantly improved safety outcomes across all operational areas. • Hazard Management Program
Slide 19: Lost Time Injury Frequency Rate - LTIFR
Lost Time Injury Frequency Rate - LTIFR For personal use only
Slide 20: Total Recordable Injury Frequency Rate - TRIFR
Total Recordable Injury Frequency Rate - TRIFR For personal use only
Slide 21: Growth story without Parallel
Growth story without Parallel For personal use only • Fastest ramp up of any Pilbara mine. • Surface miners optimise grade control. • Largest ore processing plant in the Pilbara. • Fastest Heaviest haul rail system. • Port out-load rates highest in Australia. • Energised management team. • Soon to b
Slide 22: Ramp up without Parallel
Ramp up without Parallel 50,000 For personal use only 45,000 Fortescue 40,000 Cloudbreak 35,000 30,000 Annual Production (kt) 25,000 20,000 15,000 Fortescue Christmas Creek 10,000 5,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 RIO Hope Downs RIO IOC (pellets and concentrate) RIO R
Slide 23: Operational update – June Qtr 2010
Operational update – June Qtr 2010 For personal use only Mining • Ore production combined rate of >45Mtpa. • Christmas Creek >6Mt in first year of operation. • Commencement of mobile equipment upscaling. Processing • Processing at Cloudbreak at rate of 42Mtpa. • New oversized crusher to commission i
Slide 24: Mining – Chichester
Mining – Chichester For personal use only Ore Mined 12 10 8 6 4 2 Total Movement 0 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 70 60 50 40 30 20 10 0 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Slide 25: Processing
For personal use only Processing Ore Processed 12 10 8 Million Tonnes 6 4 2 0 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Slide 26: Rail
Rail Ore Railed For personal use only 12 10 8 Million Tonnes 6 4 2 0 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Slide 27: Port
Port Ore Shipped For personal use only 12 10 8 Million Tonnes 6 4 2 0 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 FMG Ore 3rd Party Ore
Slide 28: Production forecast
Production forecast For personal use only • Production and shipments to be maintained at rate of around 40Mtpa until the Christmas Creek OPF is commissioned. • Wet commissioning of Christmas Creek OPF to commence February 2011. • Expansion to 55Mtpa run rate for June Qtr 2011.
Slide 29: Efficiency Improvements
For personal use only Efficiency Improvements • Reduce rehandle • Overburden handling equipment • Next generation surface miners • Larger scale trucks & shovels • Permanent primary crusher • Ore conveyor system • OPF enhancements (FY12) – CB: Wet Front End; – CC: Additional Scrubbers
Slide 30: Marketing & Shipping
For personal use only Marketing & Shipping Russell Scrimshaw
Slide 31: Chinese steel industry and economy
For personal use only Chinese steel industry and economy • Current forecast of around 620-630Mt of steel production for 2010. • Year on Year rise of over 10 per cent (2009 568Mt) • China cooling construction and inflation (above average two per cent). • Real economy still growing at over 10 per cent
Slide 32: Shanghai spot rebar v 62% ore spot index
For personal use only Shanghai spot rebar v 62% ore spot index (10 Aug) Source: GFI
Slide 33: Market Pricing for Iron Ore
For personal use only Market Pricing for Iron Ore • Big 3 migrated market in June Qtr 2010 to lagging ‘Index average’ for majority of shipments • BHPB offering customers choice of the previous 30, 60, or 90 day average of the Platts Index for each subsequent quarter. Vale and Rio offering 90 days. S
Slide 34: China Spot Ore & Shipping Prices
For personal use only China Spot Ore & Shipping Prices (10 Aug) Source: GFI
Slide 35: Non China Iron Ore demand
Non China Iron Ore demand For personal use only • Japan and Korea are back to pre-GFC production levels • Many large European and Asian steel makers are keen for a supply relationship as a result of Fortescue market credibility, proposed BHBP/Rio iron ore merger and expiring current LTAs • Fortescue
Slide 36: For personal use only
100 ; 250 90 4 80 4 200 70 - g g a 604 150 2 5 a ~ —) = 504 3 2 a ° 40 100 $ 2 a a” oa” 30 20 50 10 0 0 Jan07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May09 Sep-09 Jan-10 May-10 E=Shend of Month Stocks (Mt) =——=SpotPrice = 4 Days of BF Production Days of Imports Notes: Spot iron ore CFR price 63.5%
Slide 37: China's iron ore imports to June 2010
For personal use only China's iron ore imports to June 2010 Imports, Jan - Imports, Jun M-o-m Y-o-y change Country Jun ('000 ('000 tons) change (%) (%) tons) Australia 21,033.78 -6.12 128,020.52 5.17 Brazil 8,419.56 1.01 59,625.25 -1.9 India 8,293.91 -21 64,883.43 3.83 South Africa 2,211.15 -31.5 14
Slide 38: Fortescue current market status
For personal use only Fortescue current market status • Market demand for Fortescue ore remains very healthy. Shipped to over 45 steel mill customers; including 3 from outside China (expect this will more than double in this half year) • Policy of CFR shipments to optimise port throughput • Pricing
Slide 39: China Forecast: Iron Ore Supply by Country
China Forecast: Iron Ore Supply by Country For personal use only Domestic vs. Imported Ores (Mt) 1400 1200 1000 Volume (Mt) 800 600 400 200 0 2004 2006 2008 2010 2012 2014 2016 2018 2020 Contained Fe: Dom. Contained Fe: Imp. *Grade of Chinese Domestic Production is Source: AME
Slide 40: Seaborne Iron Ore growth
Seaborne Iron Ore growth For personal use only 2010 2011 2012 2013 2014 2015 2015 Target Cumulative New 82 131 205 303 456 615 870 Capacity Source: Citi Investment Research & Analysis
Slide 41: Fortescue creating Quality 'Index' to underpin our price
For personal use only Fortescue creating Quality ‘Index’ to underpin our price We are developing an “Iron Quality Index” to replace “Fe Content” to better correlate the market price of different ore types. This index would also be used as true determination of quality within Fortescue • The quality
Slide 42: Link to customer Value in Use (VIU)
For personal use only Link to customer Value in Use (VIU) • Market price for a given quality is a function of the VIU of the product and Market positioning/ strategy • The Iron Quality Index is a simplified correlation to the complex calculation of value in use. It is less accurate but valid for sma
Slide 43: Shipping
For personal use only Shipping Mark Davidson
Slide 44: Load Port Characteristics
For personal use only Load Port Characteristics • 20 nautical mile, draft restricted entry channel into Port Hedland • 2 berth, 1 shiploader; continuous loading while full vessel waits to sail • 19.7m available draft at Fortescue AP2 berth • Sailing draft 14.1m + Tide – Under Keel Clearance. Average
Slide 45: Freight Market $/Mt Rate Shipping Cost
For personal use only Freight Market $/Mt Rate Shipping Cost Western Australia to China • High volatility due to short term vessel 25.00 supply/demand imbalance • Recent $/t Port Hedland to China (C5) 20.00 fluctuated between US$6-US$24.36 pwmt. This volatility must be managed 15.00 • Fast growing d
Slide 46: CFR Sales Policy
CFR Sales Policy For personal use only • Implemented to drive efficiency of port and rail AND move to Index pricing • 55Mtpa requires 27 capesize shipments per month • Fortescue control of vessel schedules necessary to target 1-2 day loading slots • Specific vessel configurations targeted to maximis
Slide 47: Shipping Contracts
For personal use only Shipping Contracts • Pre financial crisis, Fortescue concluded long term COA and Time Charter contracts to take advantage of lower forward rates compared to all time high spot rates • GFC changed everything and certain contracts were suspended and subsequently renegotiated for
Slide 48: Shipping Strategy
For personal use only Shipping Strategy • Strategy to implement flexible arrangements that maximise ore throughput while building profitable shipping book. Key principles: • Suite of flexible contracts with rolling expiration; • Specific vessels targeted to take advantage of load port infrastructure
Slide 49: Technical Marketing
For personal use only Technical Marketing John Clout
Slide 50: Target versus Actual Grades – Rocket Fines
Target versus Actual Grades – Rocket Fines For personal use only Chemical Analysis dry weight % Product Totals Free Target Grade LOI (Wt Moisture and Limits Fe SiO2 Al2O3 TiO2 Mn CaO P S MgO K2O Na2O Total %) (Wt %) Rocket Fines 59.0 4.4 1.9 0.080 0.50 0.08 0.054 0.030 0.09 0.030 0.030 8.5 100.29 10
Slide 51: How does Rocket Fines grade compare with BHPB, Rio?
How does Rocket Fines grade compare with BHPB, Rio? For personal use only Uncalcined (Wt %) Calcined* (Wt %) SiO2 Al2O3 P Mn LOI Total SiO2+ Brand Fe Fe SiO2* Al2O3 P Mn Al2O3 RM 57.0 5.7 2.7 0.040 0.08 9.2 62.8 6.3 3.0 0.044 0.09 9.2 BY 58.5 5.1 1.3 0.037 0.03 9.4 64.6 5.6 1.5 0.041 0.03 7.1 RY 58.
Slide 52: Rocket Fines Fe with Pilbara competitor fines
Rocket Fines Fe with Pilbara competitor fines For personal use only Uncalcined Fine Iron Ores Calcined Fine Iron Ores Iron Iron 68.0 70.0 67.0 69.0 66.0 68.0 65.0 64.0 67.0 63.0 66.0 <2.6% Fe dif f erence 7.0% Fe dif f erence 62.0 65.0 61.0 64.0 % Fe % Fe 60.0 63.0 59.0 FMG - Rocket Fines Rio-Pilbar
Slide 53: Al2O3, SiO2 and P in Rocket Fines is low
% SiO2 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 For personal use only Vale -PF HG Indian Fines <1.2% SiO2 dif f erence Rio-Pilbara Blend BHPB - MAC %P 0.000 0.010 0.020 0.030 0.040 0.050 0.060 0.070 0.080 0.090 0.100 Silica BHPB - Premium Vale -Itabira Rio- Yandicoogina Calcined Fine Iron Ores Vale -PF FMG -
Slide 54: Rocket Fines has favourably coarse size
Rocket Fines has favourably coarse size Fine Ore Size - % >1.0 mm For personal use only 70.0% 60.0% 50.0% % Retained 40.0% BHPBIO - Premium Rio - Yandicoogina 30.0% Rio - Pilbara Blend FMG Rocket Fines BHPBIO - Yandi MAC - BHPBIO Vale - Carajas 20.0% Vale - SFSC Vale - PFCJ Vale - CJF HG Indian 10.0
Slide 55: Proven Value in Use for Customers
Proven Value in Use for Customers Summary: For personal use only 1. Very good sintering properties – fast sintering speed 2. Can be used in large per cent of customer blends - used at 20-45 per cent level in many Chinese customer sinter blends (vs 12 per cent for other MM fines) 3. 64.5 per cent Fe
Slide 56: Proposed Product Mix for Solomon
Proposed Product Mix for Solomon For personal use only Designing for: • ~40Mtpa CID fines only product with Fe ~58%, similar to Yandi but ~1.9-2.0% Al2O3. Competitive with existing Rio/BHPB CID products • ~20Mtpa Brockman fines only product from mixing higher P Firetail BID with low P Detrital (DID)
Slide 57: Development: Important Notice
For personal use only Development 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 to Fortescue based on this presentation. Target produc
Slide 58: Execution Strategy
Execution Strategy For personal use only Implementation Plan Peter Meurs • Production to 55Mtpa Board Approved • Production beyond 55Mtpa still subject to Board Approval
Slide 59: Three Hub Mining Strategy
Three Hub Mining Strategy Chichester, Solomon and Western Fortescue Infrastructure For personal use only Fortescue Rail New Pilbara Port Port (Anketell) Hedland Proposed Fortescue Rail Dampier API Joint Venture Karratha Rio Tinto Rail BHP Rail Solomon Hub Chichester Western Hub Hub Tom Price Solomon
Slide 60: Execution Strategy – Production – June 2010
Execution Strategy – Production – June 2010 Chichester, Solomon and Western For personal use only 40 Port Fortescue Infrastructure Hedland Fortescue Rail Dampier Rio Tinto Rail Karratha BHP Rail Chichester Hub 32 8 Tom Price Paraburdoo Newman
Slide 61: Execution Strategy – Production – June 2011
Execution Strategy – Production – June 2011 Chichester, Solomon and Western At Capacity For personal use only Port Fortescue 55 Infrastructure Hedland Fortescue Rail Dampier Rio Tinto Rail Karratha BHP Rail Chichester Hub 3 BCIJV Hopper 5 36 Jaw Crusher 16 OPF 1 Expanded Mine Tom Price Paraburdoo Ne
Slide 62: Execution Strategy – Production – June 2012
Execution Strategy – Production – June 2012 Chichester, Solomon and Western For personal use only Berth 3 80 Port Fortescue Infrastructure Shiploader 2 Hedland Train Unloader 2 Fortescue Rail Dampier Stockyard 2 Rio Tinto Rail Karratha BHP Rail Solomon Hub Chichester BCIJV Hub 5 Expanded 12 Wet Plan
Slide 63: Execution Strategy – Production – June 2013
Execution Strategy – Production – June 2013 Chichester, Solomon and Western For personal use only Berth 4 (SW Creek) 120 Port Fortescue Infrastructure Shiploader 3 Hedland Dampier Train Unloader 3 Fortescue Rail Stockyard 3 Rio Tinto Rail Karratha BHP Rail Solomon Hub Chichester BCIJV Hub 5 Expanded
Slide 64: Execution Strategy – Production – June 2014
Execution Strategy – Production – June 2014 Chichester, Solomon and Western Berth 5 (SW Creek) For personal use only New Pilbara Port Fortescue 155 Infrastructure Port (Anketell) Hedland Fortescue Rail Dampier 20 Rio Tinto Rail Karratha BHP Rail Solomon Hub Chichester Hub 5 BCIJV 35 20 60 Solomon 2
Slide 65: Execution Strategy – Production – June 2015
Execution Strategy – Production – June 2015 Chichester, Solomon and Western For personal use only New Pilbara Port Fortescue 155 Infrastructure Port (Anketell) Hedland Fortescue Rail Dampier Rio Tinto Rail Karratha 80 BHP Rail Solomon Western Hub Chichester Hub Hub 5 BCIJV 35 60 60 20 55 Early Expan
Slide 66: Execution Strategy – Production – June 2016
Execution Strategy – Production – June 2016 Chichester, Solomon and Western For personal use only New Pilbara Port Fortescue 155 Infrastructure Port (Anketell) Hedland Fortescue Rail Dampier Rio Tinto Rail Karratha 150 BHP Rail Solomon Western Hub Chichester Hub Hub 5 BCI 35 60 100 50 55 Tom Price P
Slide 67: Execution Strategy – Production – June 2017
Execution Strategy – Production – June 2017 Chichester, Solomon and Western For personal use only New Pilbara Port Fortescue 155 Infrastructure Port (Anketell) Hedland Fortescue Rail Dampier Rio Tinto Rail Karratha 200 BHP Rail Solomon Western Hub Chichester Hub Hub 5 BCI 35 60 100 100 55 Tom Price
Slide 68: Brownfield Expansion
For personal use only Brownfield Expansion Peter Thomas Port / Rail 55mtpa – 155mtpa Eamon Hannon Solomon Phase 1 60mtpa Brownfield Expansion Bryan Pearce Chichester Development 55mtpa – 95mtpa (+3mtpa BCI)
Slide 69: Progress 40Mtpa – 55Mtpa
For personal use only Progress 40Mtpa – 55Mtpa Bryan Pearce
Slide 70: T55 Progress - Rail
For personal use only T55 Progress - Rail • Signaling design is 85 per cent complete • Communication design is 75 per cent complete • Track Construction: • 44/44 km formation completed and handed over • 23/44 km of sleepers have been laid • 4/44km of rail has been completed
Slide 71: T55 Progress - OPF
For personal use only T55 Progress - OPF • The Christmas Creek Ore Processing Facility (OPF) is on schedule with work being undertaken in all areas of the plant. Construction work is 30 per cent complete.
Slide 72: T55 Progress - OPF
For personal use only T55 Progress - OPF Major works being undertaken are as follows: • All long lead equipment has been purchased with no delivery issue to date; • Primary Crusher concrete works are well progressed with the tunnel complete and concrete poured up to the crusher support level. Struct
Slide 73: Hopper T55 Progress
For personal use only Hopper 5 T55 Progress
Slide 74: T55 Progress – Hopper
For personal use only T55 Progress – Hopper 5 • Fabrication of the ROM bin has been completed and installation commenced • Mechanical fit out of the tunnel has commenced (apron feeder on site) • Mechanical fit out of conveyor CV004 is well advanced • The additional switchroom has been installed and
Slide 75: Chichester Expansion 55Mtpa – 95Mtpa
For personal use only Chichester Expansion 55Mtpa – 95Mtpa Bryan Pearce
Slide 76: T95 Progress
For personal use only T95 Progress • Christmas Creek current work areas: • Mine planning (5 year plan plus “life of mine”) • Hydrology • Materials handling • Process plant • Approvals road map • Risk identification This information will be integrated into the final Feasibility Study. • Christmas Cre
Slide 77: Christmas Creek 60Mtpa LOM
Christmas Creek 60Mtpa LOM For personal use only
Slide 78: T95 Progress
For personal use only T95 Progress Cloudbreak current work areas: • Work activities for the Cloudbreak wet scrubbing are well progressed with final control estimates and schedules are currently being validated.
Slide 79: Cloudbreak 35Mtpa LOM
Cloudbreak 35Mtpa LOM For personal use only
Slide 80: Solomon Project 60Mtpa
For personal use only Solomon Project 60Mtpa Eamon Hannon
Slide 81: Solomon Momentum
Solomon Momentum DFS completion December Qtr 2010, engineering and design For personal use only commenced. • Exploration success 2.8 billion tonnes and growing. 1 billion 5km tonnes in Solomon 20 Mtpa BID Stage 1; • Land Access and 40 Mtpa CID Environmental consents / approval well advanced; and • M
Slide 82: Project Targets – 60Mtpa
Project Targets – 60Mtpa • Early ore production (Firetail North and South) – June 2012 For personal use only • Project completion of Stage 1 (Firetail and Kings Production) – June 2013
Slide 83: Study & Development Progress
Study & Development Progress For personal use only • Capital budget for release with DFS in December Qtr 2010. • Ore body development continuing. Mine planning and metallurgy progressing • Design and engineering progressing. Rail well advanced, OPF flowsheets established. • Contracting and procureme
Slide 84: Solomon competitive advantages
Solomon competitive advantages For personal use only • Firetail deposit less than 1:1 strip ratio and above water table • Kings CID less than 2.5:1 in part below water table, but fresh water • Traditional low cost mining methodology • Established and well accepted product type • 50 per cent explorat
Slide 85: Port 55Mtpa – 155Mtpa
For personal use only Port 55Mtpa – 155Mtpa Peter Thomas
Slide 86: Port Expansion
For personal use only Port Expansion • Expansion to 95Mtpa (3 berths) then 155Mtpa (5 berths) • 2nd outload circuit project commenced • 3rd berth • 2nd shiploader • 2nd reclaimer • WorleyParsons team re-engaged as EPCM team • ThyssenKrupp re-activated • Detailed engineering re-activated and midway •
Slide 87: Port Expansion
For personal use only Port Expansion • 2nd and 3rd inload circuits work also underway • 2nd and 3rd train unloaders • South West Creek dredging environmental approvals progressing well • Expected approval in June Qtr 2011 • Dredging is critical path and certain early works dredging can commence in N
Slide 88: Current Port infrastructure
2 Berths For personal use only 1 Shiploader 2 Stackers 1 Reclaimer 1 Train Unloader Current Port infrastructure
Slide 89: 95 Port infrastructure
3 Berths For personal use only 2 Shiploaders 2 Stackers 2 Reclaimers 2 Train Unloaders 95 Port infrastructure
Slide 90: 155 Port infrastructure
5 Berths For personal use only 3 Shiploaders 4 Stackers 3 Reclaimers 3 Train Unloaders 155 Port infrastructure
Slide 91: Port infrastructure
Port infrastructure Capacity (mtpa) 55 95 155 For personal use only Berths 2 3 5 Shiploaders 1 2 3 Capacity (mtpa) 55 95 155 Stackers 2 2 4 Reclaimers 1 2 3 Capacity (mtpa) 55 95 155 Train Unloaders 1 2 3
Slide 92: Rail Expansion
For personal use only Rail Expansion Peter Thomas
Slide 93: Rail Expansion
For personal use only Rail Expansion • Expansion to 95Mtpa then 155Mtpa • Effective duplication of rail to 129km mark with multiple additional crossing loops beyond 129km • New train control system • Additional rolling stock • Switch to AC locos • Expanded maintenance yard • Train cycle times expect
Slide 94: New Train Control System
New Train Control System For personal use only Wayside Signal System Existing Communication Tower Interlocking Control Axle Counters + Wayside Signals Communication-Based Signalling
Slide 95: The old way
The old way For personal use only Full Capability of: 6 Routes 4 Signals 4 Shunting Signals 2 Point Machines Hundreds of meters of cabling and power
Slide 96: The new way
The new way For personal use only Communication based TCS minimizes wayside equipment
Slide 97: Anketell Port
For personal use only Anketell Port
Slide 98: Two ports for three hubs
Two ports for three hubs For personal use only Anketell Port 350+ Mtpa Staged Multi-user port • 3 Foundation Companies together with Government – Fortescue, API & MCCSJ • Major Project Status • Approvals & Land access commenced • Operational target of 2014 • First stage estimate A$4B
Slide 99: Financial Snapshot
For personal use only Financial Snapshot Stephen Pearce
Slide 100: 2010 Financial Highlights
For personal use only 2010 Financial Highlights • Strong cashflow from Operations. • Cash on hand at 30 June 2010 US$1.235Bn. • Leucadia accrued payments made in full July 2010. • Increased production/margins/cashflows in June Qtr 2010.
Slide 101: FY2010 Production costs
For personal use only FY2010 Production costs Cash costs per FY10 Q1FY10 Q2FY10 Q3FY10 Q4FY10 tonne US$/t Average Mining and processing 21.24 22.04 24.37 27.20 23.81 Rail and port 5.36 5.39 5.06 5.05 5.21 Total Direct Costs 26.20 27.43 29.43 32.25 29.02 Increase in cost pressures: Improvements to ef
Slide 102: Sales Revenue and EBITDA
For personal use only Sales Revenue EBITDA 3,500 1,600 3,000 1,400 Indicative Indicative Range 1,200 Range 2,500 Millions (USD) Millions (USD) 1,000 2,000 800 1,500 600 1,000 400 500 200 0 0 2008 2009 2010 2008 2009 2010
Slide 103: CFPS, EPS and ROE
CFPS EPS For personal use only 0.40 40.00 0.35 30.00 Indicative Indicative 0.30 20.00 Range Range 0.25 10.00 Centrs (USD) 0.00 Cents (USD) 0.20 (10.00) 0.15 (20.00) 0.10 (30.00) 0.05 (40.00) 0.00 (50.00) -0.05 (60.00) -0.10 2008 2009 2010 2008 2009 2010 ROE 80% 60% Indicative 40% Range 20% 0% -20% -
Slide 104: BC Iron
For personal use only BC Iron Mike Young
Slide 105: Sign up to alerts online
For personal use only Sign up to alerts online www.fmgl.com.au
Fortescue Metals Group — Investor Presentation (August 2010) on 6ix