Annual Report, Including the Financial Report, for the Year Ended 30 June 2018
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APPENDIX 4E For the year ended 30 June 2018 This information should be read in conjunction with Fortescue’s Annual Report, including the Financial Report, for the year ended 30 June 2018. Name of entity Fortescue Metals Group Limited ABN 57 002 594 872 Results for announcement to the market US$ million Revenue from ordinary activities down 18% to 6,887 Profit from ordinary activities after tax attributable to members down 58% to 879 Net profit attributable to members down 58% to 879 Amount Franked amount Dividends per security per security Financial year ended 30 June 2018: Interim – ordinary A$0.11 A$0.11 Final – ordinary A$0.12 A$0.12 Previous corresponding period: Interim – ordinary A$0.20 A$0.20 Final – ordinary A$0.25 A$0.25 Ex-dividend date of final dividend 31 August 2018 Record date of final dividend 3 September 2018 Payment date of final dividend 2 October 2018 Dividend Reinvestment Plan Net tangible asset backing The Company operates a Dividend Reinvestment Plan (the Plan) which Net tangible asset backing per ordinary shares: US$3.12 (previous allows eligible shareholders to elect to invest dividends in ordinary corresponding period: US$3.12). shares which rank equally with the ordinary shares of the Company. The allocation price for shares under the Plan will be calculated as the average Previous corresponding period of the daily volume weighted average market price of all Fortescue shares traded on the Australian Securities Exchange during the period of ten The previous corresponding period is the 12 months ended 30 June 2017. trading days commencing on the second day after the record date of 3 September 2018, being 5 September 2018. Audit This report is based on financial statements which have been audited. The last date for receipt of applications to participate in or to cease or vary participation in the Plan is by 5:00pm (WST) on 4 September 2018. The Commentary on results for the period Directors have determined that no discount shall apply to the allocation A commentary on the results for the period is contained within the price and the Plan will not be underwritten. Shares to be allocated under Annual Report, including the Financial Report that accompany this the Plan will be acquired on market and transferred to participants on announcement. 2 October 2018. A broker will be engaged to assist in this process. A copy of the Plan Rules is available at www.fmgl.com.au/investors/share-registry-and-dividend- reinvestment-plan www.fmgl.com.au I @FortescueNews Fortescue Metals Group Ltd Ltd Metals Group Fortescue Annual ReportAnnual FY18 Annual Report FY18 Together we are Fortescue ABN 57 002 594 872 THE DREAM 2003 BEGINS 04 Cloudbreak identified 04 S&P/ASX 200 index 05 06 Port Hedland groundbreaking 06 07 08 FIRST ORE ON SHIP 08 09 27mtpa shipped 10 Christmas Creek expanded 10 Inside 11 Solomon 11 construction begins 01 Overview 02 Operating and Financial Review 57.5mtpa shipped 12 03 Ore Reserves and Mineral Resources 04 Corporate Social Responsibility 13 Firetail opened 05 Corporate Governance at Solomon 13 80.9mtpa shipped 06 Fortescue’s response to climate change 155MTPA SUSTAINABLE 07 Financial Report 14 PRODUCTION 08 Remuneration Report Kings Valley project 14 opened at Solomon 09 Corporate Directory • Anderson Point Berth 5 completion 15 • Fortescue River Gas Pipeline completion 15 • 500 millionth tonne of ore shipped • 165mtpa shipped sustainable production • US$2.9 billion debt repaid in FY16 • 169.4mt shipped in FY16 • Fortescue celebrates arrival of first ore carrier, 16 FMG Nicola into Port Hedland • Fortescue recognised as lowest cost iron ore supplier into China 17 • Achieved lowest ever TRIFR of 2.9 • 170.4mt shipped in FY17 FORTESCUE CELEBRATES: 18 • 1 billion tonnes of iron ore • 10 years since first ore 18 Core Leadership team appointed shipped to China • 15 years since the Company’s inception THE JOURNEY CONTINUES This report is printed on recycled paper. The year at a glance Total Recordable Injury Production C1 costs Frequency Rate US$ 3.7 170 mt 12.36/wmt Revenue Total taxes paid Total number of Fortescue ore carriers delivered to date US$ A$ 6.9 bn 1. 2 bn 7 01 About Fortescue Fortescue Metals Group is a global leader in the iron ore industry, recognised for its unique culture, innovation and industry-leading development of world class infrastructure and mining assets in the Pilbara, Western Australia. Since it was founded in 2003, Fortescue As the first Company in Western Australia The Company continues to assess has discovered and developed major iron to control a railway from outside the exploration and development opportunities ore deposits and constructed some of the region of operation and the first Company throughout South America including most significant mines in the world. The in the world to use CAT autonomous Ecuador, Colombia and Argentina. Company is focussed on its vision of being haulage technology on a commercial scale, Fortescue is committed to its strategic goals the safest, lowest cost, most profitable Fortescue is continuing to introduce cutting of ensuring balance sheet strength and mining company. edge technology across the business. flexibility, investing in the core long term Now consistently producing 170 million The world-leading Eliwana mine and sustainability of the business while pursuing tonnes of iron ore per annum (mtpa), rail project will build on Fortescue’s growth options and delivering returns to Fortescue has grown to be one of the development and construction capability, shareholders. largest global iron ore producers and utilising the latest technology, autonomous As a proud West Australian Company, has been recognised as the lowest cost trucks and design efficiency. Fortescue values its relationship with provider of seaborne iron ore into China Innovation in exploration, process and key stakeholders by working together to based on Metalytics Resource Sector design is a key component of Fortescue’s positively manage and create opportunities Economics analysis. strategy to efficiently and effectively deliver for Aboriginal people, support communities, Fortescue owns and operates integrated products from mine to market. protect the environment and strengthen the operations spanning three mine sites in the broader Australian economy. Fortescue’s longstanding relationships Pilbara, the five berth Herb Elliott Port in with customers in China have grown from Port Hedland and the fastest, heavy haul the first commercial shipment of iron ore railway in the world. A natural extension of in 2008, to now being a core supplier of Fortescue’s supply chain, the fleet of eight China’s seaborne iron ore and expanding Fortescue Ore Carriers were designed to into markets including Japan, South Korea complement the industry best practice and India. efficiency of Fortescue’s port. Fortescue Metals Group Ltd Annual Report FY18 01 Overview 03 01 | Overview Chairman's message Andrew Forrest AO In its short history, Fortescue has achieved what many people thought was impossible: to build a company from a start up to a global leader in the mining industry without losing its heritage, identity and never, ever give up family culture. A decade ago, when we shipped our first Directors. The appointment of two Deputy long-term engagement with our Chinese 180,000 tonnes of ore to China, I said it was Chairs further strengthens the overall customers has played a critical role in the a phenomenal achievement of sheer hard independence of the Board, supporting the company’s growth. work, of guts and grind over scepticism, of interests of all shareholders. We are proud of our contribution to China’s character over doubt. The same can be said During the year Fortescue moved from remarkable urban development and our role today, as we continue to set records, achieve its traditional leadership focus with the in supporting trade relations between China stretch targets and grow as a company. appointment of our new Core Leadership and Australia which has been vital to driving From one of Australia’s most successful team, with Chief Executive Officer, Ms economic growth in both nations. explorers we have transitioned through Elizabeth Gaines, Chief Financial Officer, It was a pleasure to once again co-host planning, construction and commissioning Mr Ian Wells, Chief Operating Officer, Mr the Australia-China Senior Business to build truly global scale operations. Greg Lilleyman and Deputy Chief Executive Leaders Forum which, since inception, has We have gone on to demonstrate our Officer, Ms Julie Shuttleworth. provided a unique platform to strengthen excellent operational capability and are now This team brings together a group of the comprehensive strategic partnership recognised as the world’s lowest cost provider incredible individuals who are ingrained between our two countries. of seaborne iron ore to China based on with Fortescue’s culture, and who all Metalytics Resource Sector Economic analysis. Nicola and I founded the Minderoo possess the experience, talent and personal Foundation with the belief in the power of During the year Lord Sebastian Coe returned values required to lead our company’s new giving a hand up, rather than a hand out. It to Fortescue’s Board, bringing his unique direction. Collectively, they will champion gives me great pride to see this philosophy perspective through his experience in Fortescue’s unique family values, and have lived at Fortescue every day. Perhaps there business, marketing and politics across the the courage and determination to set is no greater demonstration of this innate European Union, India and other markets. immensely challenging stretch targets and to belief than our Vocational Training and We also farewelled Mr Cao Huiquan and deliver against them. Employment Centre (VTEC). welcomed Dr Cao Zhiqiang, who brings Fortescue is now rapidly evolving and When we started VTEC at Fortescue 12 extensive experience in technology and through product diversification and asset years ago, I was determined it would end steel mill management along with a deep development, we are exploring growth the cycle of jobless training once and for background in international cooperation.