Rana Gruber (RANA) Q4 2024 earnings summary

Executive summary

• Achieved record annual concentrate production of 1,848,000 mt in 2024, with Q4 output at 478,000–479,000 mt and all-time high magnetite volumes; strong safety performance with no Q4 production-related injuries and top-tier TSM sustainability scores.

• Advanced preparations for Stensundtjern open-pit, targeting production start in H2 2025.

• Announced phase-out of Colorana product line by end of 2025 to focus on high-grade iron ore transformation.

• Continued emphasis on shareholder returns, distributing NOK 1.80 per share in Q4, totaling over NOK 1.4bn in dividends since 2021.

• Agreement reached with Saltfjellet reindeer district for future operations, supporting sustainable coexistence.

Financial highlights

• Q4 2024 revenue was NOK 443.2 million, down 28.5–29% year-over-year due to lower iron ore prices despite strong volumes.

• EBITDA for Q4 was NOK 147 million, a 59% decrease from NOK 358.5 million in Q4 2023; EBITDA margin fell to 33% from 58%.

• Adjusted net profit for Q4 was NOK 95.2 million, down from NOK 215 million last year; net profit was NOK 57.1 million.

• Adjusted EPS for Q4 was NOK 2.57 (Q4 2023: NOK 5.80); Q4 EPS was NOK 1.54 (Q4 2023: NOK 4.71).

• Q4 cash flow from operations was NOK 85–85.4 million; capex at NOK 37.9–38 million.

Outlook and guidance

• Confident in maintaining cash cost within the USD 50–55/mt target, with Q4 at USD 46/mt (NOK 521/mt); magnetite production expected to increase, reducing revenue volatility and offsetting hematite decline.

• Stensundtjern open-pit project progressing, with production start planned for H2 2025.

• First Fe65 index-linked shipment targeted for H2 2025 as plant upgrade nears completion.

• Stable offtake agreement with Cargill and increased magnetite sales expected to support future revenues.

• Colorana product line to cease by end of 2025, with focus shifting to high-grade magnetite and hematite.