Grange Reports 587kt Concentrate Output and A$13.3m Capex in Q2 2026
Grange Resources delivered steady production and sales at its Savage River operation in Q2 2026 despite higher operating costs driven by fuel price spikes. The North Pit Underground Project passed a key technical review, while the company continues to refine its development strategy and seek equity partners for Southdown.
- Concentrate production slightly down to 587kt
- Pellet sales rose 4.5% to 580kt
- Unit cash costs increased to A$157.69/t due to fuel and energy
- North Pit Underground Project confirmed technically robust
- Cash reserves declined modestly to A$267.9 million
Production and Sales Hold Firm Despite Cost Pressures
Grange Resources (ASX:GRR) maintained strong output at its Savage River mine in Tasmania during the June quarter, producing 587,000 tonnes of concentrate, a slight dip from 607,000 tonnes in March. Pellet sales, however, climbed 4.5% to 580,000 tonnes, supported by steady pellet plant performance and increased concentrate availability. This resilience came amid a challenging cost environment, with unit cash operating costs rising sharply to A$157.69 per tonne from A$136.56 per tonne in the previous quarter, primarily due to surging diesel fuel and energy prices linked to geopolitical tensions in the Middle East.
Safety and Operational Highlights
The quarter was marked by a lost time injury, ending Grange’s run without such incidents, but the affected employee has returned to work following treatment. Mining operations progressed largely on plan, with over 3.3 million bank cubic metres mined and ongoing waste stripping in the North Pit to enable access to future ore zones. Ore grades continued to reconcile favourably, while concentrator throughput exceeded expectations despite a planned reduction in weight recovery as part of ore blend management.
North Pit Underground Project Advances Technical and Legislative Milestones
The Independent Technical Expert review reaffirmed the North Pit Underground Project’s technical robustness, identifying no fatal flaws in design, operations, or permitting. This milestone complements recent progress in the Tasmanian Parliament, where legislation to extend Grange’s mining tenure advanced, securing long-term operational certainty. The company is actively optimising the project’s development strategy to reduce capital requirements amidst uncertain commodity markets, aiming to protect shareholder value while advancing underground asset maintenance and planning.
Southdown Project and Financial Position
Grange continues to seek suitable equity investors for its Southdown magnetite project in Western Australia, which promises to double current production capacity once developed. Meanwhile, the company’s cash and liquid investments decreased slightly to A$267.9 million, down from A$284.1 million in the prior quarter, reflecting ongoing capital expenditure of approximately A$13.3 million on growth projects including equipment rebuilds and infrastructure upgrades.
Pricing and Market Conditions
The average realised sales price fell to US$114.32 per tonne (A$160.30/t) FOB Port Latta, down from US$126.29 per tonne in the March quarter. This decline reflects broader commodity price volatility and market uncertainty, factors that Grange’s CEO Weidong Wang cited as influencing the company’s cautious approach to project funding and development strategy.
Bottom Line?
Grange’s operational steadiness under cost pressure and technical progress on North Pit set the stage for critical financing decisions ahead.
Questions in the middle?
- How will sustained high fuel costs impact Grange’s unit economics in coming quarters?
- What financing structure will Grange pursue to advance the North Pit Underground Project amid market uncertainty?
- Can Grange secure equity partners to unlock the Southdown project’s potential?
