Points taken - Demand for iron ore was strong in the quarter...

Points taken

- Demand for iron ore was strong in the quarter with high levels of crude steel and pig iron production persisting through the first half of the calendar year.

- Demand - limited inventory build at Chinese ports and mills maintaining low inventory levels.

- Demand for Fortescue’s suite of products have been strong with price realisations remaining above 85 per cent. Demand for the company's products has remained strong all year.

- Decarbonisation - Later this year, Fortescue will have their first green hydrogen fuel cell haul truck on site for testing together with their battery electric haul truck prototype.

- Fortescue are commissioning a first prototype three-megawatt fast charger, which they are on track to begin testing on site this quarter. This is exciting not only in terms of what they are progressing within their decarbonisation strategy but also in terms of the technology IP.

- Offtakers - key customers in Australia, Singapore, Korea, the USA, and Europe. Gibson Island on track with their first hydrogen production facility. Fortescue are in advanced negotiations with domestic off-take partners and they hope to provide an update as soon as possible.

- Hydrogen Headstart strategy was announced over the quarter by the Australian Government. Expressions of interest applications are being brought forward to this October. Fortescue Energy have green hydrogen projects in the pipeline.

- Arizona - Phase One of the Phoenix Hydrogen Hub is well advanced and Fortescue anticipate the project to go to the Board for Final Investment Decision this year. This project is going to supply hydrogen to the mobility sector.

- Brazil & Kenya - both projects remain on track.

- Norway - the European Commission has selected their green hydrogen and green ammonia project in Holmaneset. They are finalising details with the European Climate, Infrastructure and Environment Executive Agency as this is subject to finalisation of the Grant Agreement.

- Gibson Island - is on schedule. FEED process is on track. Power supply discussions are advanced. Supply agreements for electrical and water to site are progressing well with Queensland State-owned and Brisbane City Council organisations. Completed - Project Development Approval and is being finalised. Final Investment Decision by the end of this calendar year.

- Iron Bridge high grade magnetite product - they will sell it as a standalone. In terms of that first shipment, on specification and it was sold in alignment with the Platts 65% Fe Index pricing. Also the 7 million tonnes is mostly contracted as opposed to spot sales and they've got lots of demand at this early stage.

- **on project - they are aiming for first shipment to be in the order of 50,000 tonnes by the end of the calendar year.

- China market - unsold inventory levels in Chinese ports remaining low, Fortescue are seeing solid demand.

- Fortescue Energy - FID's progressing. They've guaranteed that over the next few months we'll hear a lot more about these. They are on track to do five by the end of the year.

- One of the questions asked was if the 15 million tonne target was going to have an equity target, or a total Fortescue participation target? Good question. The five projects are just going to be the start. They're all going to have different phases. There will be smaller ones then bigger. These are complex projects so a lot of learnings are going to come from those first five. They have some larger projects in the pipeline coming behind. There's going to be a mix of partnerships and a mix of the company developing projects themselves. They're not looking to finance all the projects 100 per cent with equity. There's capital waiting for their projects. As mentioned in one of the previous calls, most companies have just one or two projects in the works, Fortescue are going to have several and every year the intention of expanding upon these. Sovereigns are very interested in pipelines. Green capital waiting.

- There’s no intention to spin off the energy company or to list it separately. Always what I hoped. Build this bigger for longer term value and that's what they intend to do.

- There’s a three-megawatt charger developed by WAE and it's going to get bigger. It's only the first prototype which they are developing with a third party. This point caught my attention - significant proportion of the IP will be theirs. They are pursuing several technologies for example other than their own in-house Infinity Train. They'll be able to sell that to other companies if they so choose.

Tony