Grange Resources (GRR) H2 2024 earnings summary

Executive summary

• Achieved profit after tax of $58.5 million, down from $150.1 million in the prior year, on revenues of $520.8 million (2023: $614.7 million), reflecting lower iron ore prices and sales volumes.

• Maintained strong safety performance with over 600 days Lost Time Injury Free and a TRIFR of 2.0, outperforming industry standards.

• Pellet production increased to 2.47 million tonnes (2023: 2.34 million tonnes), while total iron ore product sales declined to 2.53 million tonnes (2023: 2.64 million tonnes).

• Cash and liquid investments rose to $298.05 million (2023: $282.6 million), supporting ongoing and future projects.

• Completed the Definitive Feasibility Study for North Pit Underground, but paused development in December 2024 due to softening prices and pending long-term funding.

Financial highlights

• Revenue from operations: $520.8 million, down from $614.7 million year-over-year.

• Profit after tax: $58.5 million, compared to $150.1 million in 2023.

• Average realised product price: $182.94 per tonne (2023: $212.83 per tonne).

• C1 cash operating costs: $146.14 per tonne (2023: $136.65 per tonne).

• Dividends paid: $28.9 million, including a 0.5 cent interim and 2.0 cent final dividend per share.

• Net cash inflow from operating activities: $239.9 million (2023: $267.1 million).

• Net assets: $1,061.3 million at year-end (2023: $1,031.3 million).

Outlook and guidance

• Anticipates continued iron ore price volatility in 2025 due to global trade tensions and weak Chinese demand.

• Long-term sector outlook remains positive, with a focus on safety, innovation, and decarbonisation.

• Strategic priorities include optimising the transition from open cut to underground mining, producing high-grade ore from Centre Pit, and maintaining critical infrastructure.

• Southdown Magnetite Project remains a key growth opportunity, with ongoing search for joint venture partners.