How Grange Resources Boosted Production and Slashed Costs in Q4 2025
Grange Resources delivered a robust quarter with increased concentrate output and reduced unit costs at Savage River, while advancing financing for its North Pit Underground project.
- 967 days without lost time injury, underscoring strong safety culture
- Concentrate production rose to 623kt, lowering unit cash costs to A$140.57/t
- Pellet sales dipped slightly due to shipping delays caused by pilot shortages
- A$12.4 million capital expenditure focused on maintenance and development
- Technical due diligence progressing for North Pit Underground project financing
Strong Operational Momentum at Savage River
Grange Resources Limited (ASX, GRR) closed out 2025 with a solid quarterly performance, highlighted by increased concentrate production and improved cost efficiency at its flagship Savage River mine in Tasmania. The company reported concentrate output of 623,000 tonnes for the December quarter, up from 583,000 tonnes in the previous quarter, while unit cash operating costs fell significantly to A$140.57 per tonne from A$163.37 per tonne. This improvement was largely driven by higher production volumes and operational efficiencies.
Despite a slight dip in pellet sales to 570,000 tonnes, down from 591,000 tonnes in the September quarter, this was attributed to a shipping delay caused by a shortage of Tasports pilots, which postponed vessel berthing until early January. Nonetheless, Grange maintained steady average realised prices at A$193.04 per tonne, reflecting stable market conditions for its premium magnetite pellets.
Safety and Capital Investment Remain Priorities
Safety remains a cornerstone of Grange’s operations, with the company celebrating an impressive 967 consecutive days without a lost time injury. This milestone underscores the company’s commitment to maintaining a safe working environment amid ongoing production ramp-ups.
Capital expenditure for the quarter was approximately A$12.4 million, focused on essential maintenance and development projects such as replacement of dock fenders, tailings dam stabilisation, and equipment rebuilds. These investments aim to sustain operational reliability and support future production growth.
Advancing the North Pit Underground Project
Looking ahead, Grange is making steady progress on its North Pit Underground project, a critical development expected to extend the mine’s life and enhance ore quality. Technical due diligence reviews are advancing, supporting ongoing negotiations to finalise project financing. Engineering efforts continue on ventilation and dewatering systems, laying the groundwork for the transition to underground mining methods.
Meanwhile, the Southdown Magnetite Project in Western Australia remains in a holding pattern as the company seeks suitable equity investors to unlock its potential. All tenements and approvals are being actively maintained, preserving the option for future development.
Outlook
Grange’s strong finish to 2025, marked by operational improvements and disciplined capital management, positions it well to navigate the challenges ahead. The company’s ability to secure financing for the North Pit Underground project will be a key catalyst to watch, alongside how it manages shipping logistics and market dynamics in the coming quarters.
Bottom Line?
Grange’s operational gains and financing progress set the stage for a pivotal year ahead, with market and project developments to closely monitor.
Questions in the middle?
- When will Grange finalise financing terms for the North Pit Underground project?
- How will shipping delays impact pellet sales volumes in early 2026?
- What strategic moves will Grange pursue to advance the Southdown Magnetite Project?
