- GWR Group’s (GWR) third shipment of iron ore lump has departed the port of Geraldton aboard the cargo ship MV Ballard
- Under its offtake agreement with Pacific Minerals, the company has shipped a combined 156,068 tonnes across three shipments
- After renegotiating terms of the agreement, GWR received an improved iron ore lump premium for its latest shipment
- The company has secured the MV Banasol for its fourth shipment, which is expected to depart around May 15, 2021
- GWR Group is down 7.46 per cent and trading at 31 cents per share
GWR Group’s (GWR) third shipment of iron ore lump has departed the port of Geraldton, aboard the cargo ship MV Ballard.
The third shipment carried 52,265 wet metric tonnes (WMT) of iron ore lump. Under the company’s offtake agreement with Hong Kong trader Pacific Minerals, GWR Group has now shipped a combined total of 156,068 tonnes of iron ore lump across three shipments.
The company renegotiated certain terms of its offtake agreement with Pacific Minerals after the first two shipments were completed. As a result, the terms for subsequent shipments have improved, and allowed GWR to receive a greater portion of the lump premium available in the market.
These improved terms come during a time of near-record iron ore prices and premiums for high-grade lump ore, which GWR is benefitting from. The company received an average iron ore price of US$170 (A$219) per tonne for its first three shipments, with an average of US$194.66 (A$251) per tonne for the third shipment alone.
GWR Group’s Chairman, Gary Lyons, was pleased to update shareholders about the company’s latest shipment.
“Despite a delay in the April shipment due to the impacts of cyclone Seroja on port activity, GWR is confident the financial metrics for the June 2021 quarter will begin to reflect an improving financial operation as costs begin to move in line with pre-production forecasts,” he said.
“Haulage remains GWR’s biggest challenge in the current environment, however we have moved to expand our network of contractors and expect to see continued improvement in haulage metrics ahead of stage two negotiations, which have progressed to the stage where contractors have now been selected and contracts are being finalised for the haulage and mining elements,” he added.
Looking forward, GWR Group has already secured the cargo ship MV Banasol for its fourth shipment of premium high-grade lump and fines. The ship is expected to depart on or around May 15, 2021.
In related news, the Mid West Ports Authority has granted the company an extended tenure on the port storage shed in Geraldton, securing it until December 31, 2021.
GWR Group is down 7.46 per cent, trading at 31 cents per share at 10:09 am AEST.