Grange Resources (ASX:GRR) - Executive Director and CEO, Honglin Zhao
Executive Director and CEO, Honglin Zhao
Source: Grange Resources
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  • Grange Resources (GRR) continues to enjoy the rewards of a buoyant iron ore market, closing the half-year with a 213 per cent spike in statutory profits
  • Statutory profits after tax clocked in at $205.3 million as mining revenues grew from $231 million to $449.6 million
  • Sales were boosted by record-high iron ore prices, with free onboard average realised product prices fetching $339.21
  • The company says the report reflects the market’s recognition of “high quality, low impurity iron ore products”
  • Grange Resources shares are trading 0.77 per cent in the red at 64.5 cents

Grange Resources (GRR) has continued to enjoy the rewards of a buoyant iron ore market after closing the half-year with a 213 per cent spike in statutory profits.

Statutory profits after tax for the six months ended 30 June 2021 clocked in at $205.3 million compared to $65.6 million on the same period in 2020, with pallet sales and production both bearing modest increases.

The company recapped activities over the period, which were primarily focused on mining processing and selling iron ore from its Tasmanian operations and examining the potential of the Southdown Magnetite Project near Albany, Western Australia.

Grange’s free onboard average realised product price fetched $339.21 compared to $176.75 on the prior corresponding period.

The half-yearly reflects a period that saw record iron ore prices, which included a peak of around US$218 per tonne in May, fuelled by aggressive global infrastructure spending.

Iron ore prices continued to remain around this mark throughout June and July but have since cooled down amid mixed speculations surrounding export forecasts.

“Despite continued volatility and uncertainty as to the future direction of iron ore prices, the market continues to recognise the quality value in use premium for high quality, low impurity iron ore products sold by Grange,” the company said in a statement.

Grange reported a cash and equivalents balance of $397.03 million and have elected to pay a fully franked dividend of 2 cents per share.

Grange Resources shares were trading 0.77 per cent in the red at 64.5 cents at 3:33 pm AEST.

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