Ann: Quarterly Production Report, page-3

BALANCE SHEET

1. Cash on hand was US$1.1 billion at 31 March 2019.
2. Gross debt remained at US$4.0 billion at 31 March 2019 with net debt of US$2.9 billion.
3. Total capital expenditure for the quarter was US$196 million inclusive of sustaining capital, exploration and development expenditure.
4. Iron ore prepayments reduced to US$619 million at 31 March 2019. Amortisation for the quarter was US$129 million bringing year to date amortisation to US$178 million. Remaining FY19 amortisation is expected to be US$133 million with the balance amortising in FY20.

HIGHLIGHTS

• Safety TRIFR of 3.6, an improvement of 10 per cent compared to 31 December 2018

• Average price received increased to US$71 per dry metric tonne (dmt) compared to the December quarter of US$48/dmt representing a 47 per cent increase and outperforming the benchmark increase

  of 16 per cent

• Total shipments of 38.3mt including 3.8mt of West Pilbara Fines

• Impact of Tropical Cyclone Veronica limited to 2.5mt of shipments lost due to closure of the Port

  Hedland Port for five days

• C1 cost of US$13.51/wmt

• Approval of the development of Stage 2 of the Iron Bridge Magnetite Project announced on 2 April

• Eliwana Mine and Rail Project progressing on schedule and budget

• Fortescue Future of Mobility Centre launched in Karratha, Western Australia