- Shares in Grange Resources (GRR) have experienced a healthy bump this morning after the company reported a strong fourth-quarter performance
- Pellet sales for the December quarter grew to 754,000 tonnes despite a drop in production to 479,000 tonnes
- The company received an average price of $236.77 per tonne, representing a 29.74 per cent increase from $182.49 per tonne in the September quarter
- A higher price trend is expected to continue with all of the company's 2021 production allocated through off-take agreements at a premium of 65 per cent compared to iron fines and pellet indices
- Grange Resources is up 7.35 per cent to $0.36 per share
Shares in Grange Resources (GRR) have experienced a healthy bump this morning after the company reported a strong fourth-quarter performance.
Most significantly, pellet sales grew substantially to 754,000 tonnes compared to just 422,000 in the September quarter and 642,000 tonnes in the June quarter.
Such strong figures come despite a drop in production from 639,000 tonnes in the September quarter to 479,000 tonnes as a result of scheduled maintenance work in November, which included the installation, commissioning and operation of a new steel pan conveyor.
In addition to the increase in sales, the average price per tonne sold grew to $236.77 from $182.49 per tonne in the September quarter, representing a 29.74 per cent climb.
Grange said it expects this higher price trend to continue, with all of the company's 2021 production allocated through off-take agreements at an additional 65 per cent premium to iron fines and pellet indices, an achievement the Tasmania-based iron ore producer said speaks to its high quality and low impurity products.
"Grange management are happy with the very strong fourth quarter that completes a strong 2020, particularly delivering exceptional sales volume figures in combination with record sales prices in recent years," said Honglin Zhao, CEO of Grange Resources.
Honglin also noted the successful installation of the steel pan conveyor system, which allows for "higher quality pellets with higher compression strength to be produced, reduced downtime and less maintenance and more effective use of energy."
At the end of the quarter, Grange had approximately $202.93 million in cash and liquid investments, as well as $79.32 million in trade receivables. This compares to $175.53 million and $13.15 million at the end of the September quarter, respectively.
Grange Resources is up 7.35 per cent to $0.36 per share at 10:39 am AEDT.