Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Shareholder Meeting (November 2010)
25 slides from Fortescue's shareholder meeting presentation, Nov 19, 2010
Slide 1: Cover letter to ASX: 2010 AGM Chairman's Speech and Presentation
For personal use only 19 November 2010 The Companies Officer Australian Securities Exchange Ltd. Exchange Plaza 2 The Esplanade Perth WA 6000 Dear Sir 2010 Annual General Meeting – Chairman’s Speech and Presentation Fortescue Metals Group Ltd (Fortescue) (FMG:ASX) is pleased to lodge Chairman Herb E
Slide 2: Chairman's Address
For personal use only Fortescue AGM 2010 Chairman’s Address 2010 marked a major turning point for Fortescue. This was the year your company truly matured into a strong and sustainable iron ore production company. Our years of planning, building and ramping up our mines and infrastructure paid off wi
Slide 3: Chairman's Address (continued)
cent from $4.30 to $6.71. While we are not yet in a position to pay dividends, we believe this is a significant return to our shareholders. In another key event after the end of the financial year, we resolved the last of our shipping disputes with a judgement in our favour in the matter with Armada
Slide 4: Chairman's Address (continued)
Construction will kick off in the June quarter next year and we plan for the first Solomon ore to leave Port Hedland by late 2012. We are also in the final stages of completing our Chichester Hub expansion to 55Mtpa with commissioning scheduled for next February. For personal use only Along with Sol
Slide 5: Annual General Meeting 19th November 2010
For personal use only Annual General Meeting 19th November 2010
Slide 6: Fortescue Forging Ahead
Fortescue Forging Ahead For personal use only
Slide 7: 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 8: Integrated business - over 85Mt shipped
Integrated business - over 85Mt shipped For personal use only Ownership of infrastructure is the key
Slide 9: Growth story without parallel
Growth story without parallel For personal use only 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 system • Port out-load rates highest in Australia • Energised managem
Slide 10: Proven project development skills
Proven project development skills Completion records For personal use only 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 Australian mining company FACT: Forte
Slide 11: Unparalleled production ramp up
Unparalleled production ramp up For personal use only
Slide 12: Three Hub – Two Ports Expansion Strategy
Three Hub – Two Ports Fortescue Expansion Strategy Infrastructure Fortescue Rail Chichester, Solomon and For personal use only Port Proposed Western Hubs Hedland New Pilbara Fortescue Rail Dampier Port (Anketell) API Joint Venture Karratha Rio Tinto Rail BHP Rail Solomon Hub Chichester Western Hub H
Slide 13: Fortescue has a dominant Pilbara land position
Fortescue has a dominant Fortescue: Pilbara land position 85,000km2 Rio: 14,230km2 For personal use only BHP: 8,195km2
Slide 14: Reserves and Resources
Reserves and Resources For personal use only (Mt) Reserves Resources Proved Probable Total Measured Indicated Inferred Total Cloudbreak / 98 1,441 1,540 167 1,588 389 2,143 Christmas Creek Chichester Other -- -- -- -- 222 473 695 Solomon Stage 1 -- -- -- 108 750 986 1,845 Solomon Stage 2 -- -- -- --
Slide 15: Forging Ahead: Development
Forging Ahead For personal use only Development
Slide 16: The path to 155Mtpa
The path to 155Mtpa For personal use only Note: BCI JV is 50% Fortescue owned
Slide 17: Progress update – 55Mtpa
Progress update 40 – 55Mtpa For personal use only Doing what we said we would do, again • 50km rail extension to Christmas Creek completion mid December 2010 • New construction camp for 1,340 people fully commissioned • Stacker on site and being assembled • CSI Ore Processing Facility (OPF) will be
Slide 18: 155Mtpa Expansion
55 – 155Mtpa Expansion For personal use only Truly transformative program • Bigger What this • Faster means for • Lower cost Fortescue • Safer • More innovative
Slide 19: Production to increase 180%
Production to increase 180% For personal use only • 55Mtpa rocket + 35Mtpa rocket = 90Mtpa • + 5Mtpa BC Iron Brockman • + 20Mtpa Solomon Brockman BID + DID • + 40Mtpa Solomon Channel Iron CID BID – Bedded Iron Deposit CID – Channel Iron Deposit DID – Detrital Iron Deposit
Slide 20: US$8.4Bn Capital spend
Capital spend For personal use only US$8.4Bn Over 30 Months
Slide 21: Capital spend by program
Capital spend by program For personal use only US$Bn Mine Port and Rail 1 Total 2 Chichester Hub $1.5 $1.5 $3.0 Solomon Hub $2.3 $3.1 $5.4 Total $3.8 $4.6 $8.4 1 Includes allocation of shared infrastructure across mining hubs. 2 The strategy for contractor versus owner mining has yet to be finalised
Slide 22: Rail: 550km of track
Rail For personal use only 550km From 300km existing of track 80% • 300km existing + 120km of duplication + 130km new track • 5 existing consists + 7 new consists = 12 (+140%) • 5 existing trains per day + 10 new trains per day = 15
Slide 23: New major infrastructure
New major infrastructure For personal use only • 1 Train loader • 3 OPFs • 2 Train unloaders • 3 Stockyards • 4 Stackers • 2 Airports • 4 Reclaimers • ~ 300km of roads • 2 Shiploaders • ~ 45km of conveyors • 3 ROM Pads • ~ 300km of pipelines Fortescue to triple in size
Slide 24: Mining fleet
Mining fleet For personal use only 333 Mining fleet items (from 220) • From 16 to 35 Excavators • From 26 to 33 Surface miners • From 178 to 265 Trucks
Slide 25: Forging Ahead
For personal use only Forging Ahead Sign up to alerts online: www.fmgl.com.au
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