Grange Resources delivered a steady first quarter in 2026 with solid production at Savage River, no lost time injuries for nearly three years, and progressing financing for its North Pit Underground project.
- 1057 days without lost time injury
- Concentrate production steady at 607kt
- Lower unit cash costs at A$136.56/t
- Cash reserves rise to A$284 million
- North Pit Underground financing advances
Safety Record Extends Beyond 1000 Days Without LTI
Grange Resources (ASX:GRR) has maintained an exceptional safety record at its Savage River operations, reaching 1057 consecutive days without a Lost Time Injury (LTI). This milestone underscores the company’s commitment to operational discipline and workforce wellbeing amid ongoing production activities.
Production Holds Firm Despite Maintenance Shutdowns
The March quarter saw concentrate production slightly dip to 607,436 tonnes from 622,870 tonnes in December 2025, reflecting scheduled common equipment maintenance. Pellet sales also eased to 555,439 tonnes, down 2.5% from the previous quarter. Despite this, Grange achieved a lower unit cash operating cost of A$136.56 per tonne, down from A$140.57 per tonne, helped by the timing of maintenance projects and efficient processing. The company’s pellet production outpaced plan, supported by favourable ore grades and consistent pelletising plant performance.
Mining activities aligned with plans, notably with the completion of ore recovery at Centre Pit and ongoing progress at North Pit, where stripping rates remain focused to secure high-grade ore. Concentrator throughput was strong, buoyed by stockpiled ore grades. These operational details build on the company’s earlier report of a strong mineral base amid modest depletion, confirming the robustness of the Savage River asset.
Stable Pricing Tempered by Stronger Australian Dollar
Grange’s average realised sales price remained stable in US dollar terms at US$126.29 per tonne FOB Port Latta but declined 5.4% in Australian dollar terms to A$182.61 per tonne, primarily due to a stronger AUD against the USD. The company continued to fulfil secured term offtake agreements alongside spot shipments, maintaining market presence throughout the Asia Pacific region.
Capital Expenditure and Cash Position Strengthen
Growth capital expenditure during the quarter totalled approximately A$9.4 million, covering key projects such as power pack rebuilds, Cobber Bin replacement, underground mine planning, and stabilisation berm development. Cash and liquid investments rose to A$284.13 million, up from A$275.15 million at the end of December, while trade receivables decreased, reflecting improved collections. This financial resilience comes after a period of profit pressure highlighted in the company’s recent profit drop and steady dividend stance, suggesting effective cost management in a volatile market.
North Pit Underground Project Advances Financing
Significant progress was made on the North Pit Underground Project, with independent technical and legal due diligence now complete. Grange is actively engaging with lenders to secure project financing, a critical step before a Final Investment Decision can be made. Maintenance on underground assets continues, with mining services tenders under review in preparation for development commencement. This financing momentum follows earlier updates on North Pit financing progress and cost reductions, reflecting the project's strategic importance to Grange’s future growth.
Southdown Magnetite Project Remains in Strategic Holding
Separately, Grange’s Southdown Magnetite Project in Western Australia remains in a holding pattern as the company continues to seek suitable equity investors. Existing tenements and approvals are maintained, preserving optionality for this potentially large-scale development, which could double the output of Savage River once advanced.
Bottom Line?
Grange’s steady quarter and advancing North Pit financing highlight operational resilience, but market and funding uncertainties remain key to watch.
Questions in the middle?
- Will lender engagement for North Pit lead to a timely Final Investment Decision?
- How will fluctuating exchange rates affect Grange’s realised prices in coming quarters?
- What progress will be made in securing equity partners for the Southdown project?