- Grange Resources (GRR) reveals a decrease in quarterly sales revenue on the back of sinking iron ore prices
- The company says it increased iron ore production over the September quarter compared to the quarter before, but both sales volumes and prices slipped
- While sales volumes decreased only slightly, Grange says average iron ore pellet prices dropped by almost 45 per cent to US$153.09 (A$206.8) per tonne
- Still, Grange says it ended the September quarter with $554.6 million worth of cash and liquid investments, up from $416.4 million at the end of June
- Company shares are up 2.59 per cent and trading at 59.5 cents each
Grange Resources (GRR) has reported a decrease in quarterly sales revenue on the back of sinking iron ore prices.
Grange said while production increased over the September quarter to 687,000 tonnes compared to 677,000 tonnes during the June quarter, iron ore pellet sales slipped.
Grange sold 651,000 tonnes of iron ore pellets over the three months to the end of September compared to the 653,000 pellets sold the quarter before.
However, while sales volumes decreased only slightly, the company’s average sale price fell by almost 45 per cent: average pellet prices topped US$153.09 (A$206.8) per tonne over the September quarter compared to US$287.15 (A$373.72) per tonne for the June quarter.
Further, operating costs rose from $90.16 per tonne for the June quarter to $95.01 per tonne for the September quarter.
Grange CEO Honglin Zhao said the third quarter of 2021 saw a “significant correction” in iron ore prices from their record levels the quarter before.
“Despite the sharp drop in the 62 per cent iron and 65 per cent iron indices, the pellet premiums have remained strong supporting the strong demand for our high-grade, low impurity iron ore pellets,” Mr Zhao said.
“Our team continued to focus on the optimisation of our life-of-mine plan at Savage River and completion of the pre-feasibility study on the Southdown project in Western Australia.”
Grange said it ended the September quarter with $554.6 million worth of cash and liquid investments, up from $416.4 million at the end of June.
Grange process and development work
Speaking to its development projects, Grange said the pre-feasibility study for the North Pit Underground project was nearing completion, with final documentation and optimisation work now completed.
The company said study cases and schedules from the study are now being assessed to help determine the most effective mining sequence for the project.
Meanwhile, the company is working to reduce carbon emissions at the project by trialling four diesel/electric trucks at its flagship project.
Shares were up 2.59 per cent and trading at 59.5 cents each at 12:42 pm AEDT. The company has a $671.2 million market cap.