Ann: Management and Organisational Update, page-99

Cheers Wes, much appreciated!

Re the Roadrunner and Europa heavy haul trucks, they were just "test trucks". New ones are onsite now.

Net operating cost savings of US$818 million per annum from 2030, at prevailing market prices of diesel, gas and Australian Carbon Credit Units.

Cumulative operating cost savings of US$3 billion by 2030 and payback of capital by 2034, at prevailing market prices.

That will mean that their US$6.2bn capex will only cost them US$3bn thereabouts.

Also note.... "this investment includes the deployment of an additional 2-3 GW of renewable energy generation and battery storage and the estimated incremental costs associated with a green mining fleet and locomotives. The capital expenditure to purchase the fleet will be aligned with the scheduled asset replacement life cycle and included in Fortescue’s sustaining capital expenditure. Studies are underway to optimise the localised wind and solar resources."

Reference:

https://fortescue.com/news-and-media/news/2022/10/03/fortescue-announces-execution-plan-for-industry-leading-decarbonisation

In in FY22 Fortescue avoided 78m litres of diesel usage at their Chichester Hub. That was two years ago. How much have they avoided to date?

Did you also know that in FY23, Fortescue spent over US$560 million on diesel and gas.

Now doesn't this in-house full decabronisation plan make perfect business financial sense? The naysayers are going to be left with their mouths open without uttering a single word

So US$3bn all up, then we need to pay close attention to what is going to offset that CAPEX considerably between FY24-28 as that's when the bulk of their spend is going to take place. My thoughts I think most of you already know "very short term" will be... Fortescue Zero - Liebherr/Fortescue, Battery technology, Intelligent battery management (SAAS), Fortescue Hydrogen Systems (which encoppasses electrolyser products, systems and services).

Fortescue Energy Revenue for FY23 came in at US$107 million.

Revenue fell under the sub-category 'manufacturing & engineering services revenue'. Most if not all of this fell under the WAE umbrella (now renamed Fortescue Zero). A lot has taken place since, but having said that I don't believe we'll see a significant jump in revenue (hope I'm wrong) this FY24. FY25 will be a whole different story imv.

I posted this a while ago, I found this an interesting piece of information re former WAE CEO.

Craig Beresford Wilson stepped down from his role as Chief Executive Officer at Williams Advanced Engineering ("WAE") last year, on 7 November 2023. The news piece below mentions WAE grew annual revenues from £6m to £180m (or just over US$227m) in the 10 years he was CEO at WAE. He stepped down November last year, I wonder if revenue has increased even more since? Either way, this figure is now vèry interesting, as the JLR deal isn't even factored in or any other Fortescue Zero projects.

https://www.transense.com/news/transense-technologies-appointment-of-independent-non-executive-director-and-planned-director-retirement

Tony