Grange Resources (GRR) Q3 2024 TU earnings summary

Executive summary

• Achieved over 500 days Lost Time Injury free, with no lost time injuries during the quarter.

• Pellet sales rose to 647kt, up 33.9% from 483kt in the June quarter, aided by delayed shipments.

• Concentrate production slightly decreased to 668kt from 675kt in the previous quarter.

• Severe weather in late August and early September caused operational disruptions and impacted mine movement rates.

• CEO Weidong Wang commenced on 15 July 2024, bringing extensive steel industry experience.

Financial highlights

• Cash and liquid investments stood at A$249.47 million, down from A$289.55 million in June.

• Trade receivables were A$24.63 million, compared to trade payables of A$5.37 million in June.

• Unit cash operating cost increased marginally to A$146.37/t from A$145.05/t due to lower concentrate output.

• Average realised product price fell 11.34% to US$121.64/t (A$182.74/t) from US$134.69/t (A$206.11/t) in June.

• A$24.5 million was spent on capital projects, including underground exploration and equipment rebuilds.

Outlook and guidance

• Early works for the North Pit Underground project are progressing, with a final investment decision expected in coming months.

• Southdown Magnetite Project feasibility review continues alongside search for equity partners.