Grange Resources (GRR) H1 2024 earnings summary

Executive summary

• Delivered strong operational performance with 1.26MT concentrate produced year to date and maintained a robust balance sheet with A$290M in cash and liquid investments.

• Statutory profit after tax for H1 2024 was $26.5 million, down from $70.4 million in H1 2023, on revenues of $234.0 million versus $278.4 million year-over-year.

• Underground transition project progressing, targeting an 80% reduction in carbon emissions and up to 30% reduction in operating costs at Savage River mine.

• Environmental and planning permits secured for underground project, supporting long-term mine life and sustainability goals.

• Achieved over 400 days lost time injury free and completed key maintenance and improvement projects.

Financial highlights

• EBITDA and NPAT have shown sustained performance over the years, with profits being reinvested to support the next phase of growth.

• Revenue from operations was $234.0 million, down 16% year-over-year.

• Gross profit from operations fell to $25.6 million from $105.5 million year-over-year.

• Dividends paid totaled $23.1 million, unchanged from the prior year.

• Pellet product continues to attract a premium price in the market.

Outlook and guidance

• Underground project (NPUG) aims to deliver 28MT of concentrate with an IRR of 34%, payback period of 6.4 years, and significant cost and emission reductions.

• Southdown project optimization ongoing, targeting high-quality magnetite concentrate and potential expansion up to 10MTPA; seeking equity investors for development.

• Board recommended a fully franked interim dividend of 0.50 cents per share, to be paid 30 September 2024.

• Ongoing focus on decarbonization, with plans to phase out coal use at Port Latta over the next three years.

• Emission reduction targets include 50% CO2-e reduction by 2030 and zero Scope 1 and 2 emissions by 2035.