Grange Resources Boosts Production and Cash Reserves Amid Underground Project Progress

Operational Resilience and Production Gains

Grange Resources has reported a solid performance for the quarter ended 31 December 2024, demonstrating operational resilience following weather disruptions in the previous quarter. The company achieved a Lost Time Injury free status, marking over 600 days without such incidents, underscoring a strong safety culture at its Savage River operations in Tasmania.

Production metrics showed encouraging improvements with pellet sales rising to 668,085 tonnes, up 3.3% from the prior quarter, and concentrate production increasing to 683,117 tonnes. These gains were supported by a higher weight recovery rate of 41.1%, reflecting enhanced processing efficiency. Meanwhile, unit cash operating costs declined to A$133.65 per tonne, benefiting from the increased output and operational efficiencies.

Financial Position Strengthened

Grange’s financial position strengthened notably, with cash and liquid investments climbing to A$298.05 million from A$249.47 million in the September quarter. Trade receivables decreased significantly, indicating improved collections and cash flow management. The average realised iron ore price remained stable at US$118.91 per tonne (A$180.59/t FOB Port Latta), reflecting steady market conditions despite some weather-related shipment delays.

Advancing the North Pit Underground Project

Capital expenditure of approximately A$31.2 million was directed towards key projects, notably the North Pit Underground Project (NPUG). The quarter saw the successful completion of the first raise bore hole for the primary ventilation circuit, a critical milestone in underground development. Preparations for the second raise bore and geotechnical drilling are underway, alongside infrastructure upgrades for power and material handling systems.

To support the NPUG’s next phase, Grange appointed BurnVoir Corporate Finance to arrange flexible and value-maximising financing. BurnVoir’s track record with mining sector financings adds confidence to the funding strategy for this transformative project, which aims to extend mine life and diversify ore sources.

Strategic Mine Plan and Project Pipeline

Alongside underground development, Grange is evaluating an extension of the Centre Pit mine plan to provide complementary feedstock and operational flexibility. This parallel approach is designed to mitigate risks and enhance the overall robustness of the Savage River operations.

Meanwhile, the Southdown Magnetite Project remains under review, with ongoing efforts to secure equity partners and finalize environmental approvals. Maintaining tenements and project assets in good standing signals Grange’s commitment to advancing this longer-term growth opportunity.

CEO Commentary and Market Context

CEO Weidong Wang highlighted the team’s efforts in overcoming weather-related setbacks and noted improved steel margins and Chinese stimulus measures as supportive factors for iron ore prices. The company’s operational improvements and financial discipline position it well to capitalize on market opportunities and fund its growth projects.