Total
0
Shares
Grange Resources (ASX:GRR) - CEO, Honglin Zhao - The Market Herald
CEO, Honglin Zhao
Source: The Advocate
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

GRR by the numbers
More From The Market Herald
Eagle Mountain Mining (ASX:EM2) - Managing Director, Charles Bennett Bass - The Market Herald

" Eagle Mountain Mining’s (ASX:EM2) subsidiary granted access to patented claims

Eagle Mountain Mining’s (EM2) wholly owned subsidiary, Wedgetail Operations, has secured an agreement to gain access to the Golden Eagle prospect area.
The Market Herald Video

" Magmatic Resources (ASX:MAG) raises $5M for drilling copper-gold targets

Magmatic Resources (MAG) has obtained binding commitments from a range of investors for a $5 million capital raising.
AVZ Minerals (ASX:AVZ) - Managing Director, Nigel Ferguson - The Market Herald

" AVZ Minerals (ASX:AVZ) confirms potential for extensions at lithium and tin project

AVZ Minerals (AVZ) has received results from several new mineralised zones at its Manono Lithium and Tin Project in the Democratic Republic of
Accelerate Resources (ASX:AX8) - Managing Director, Yaxi Zhan (left) - The Market Herald

" Rossland Gold Project yields encouraging finds for Accelerate Resources (ASX:AX8)

Accelerate Resource’s (AX8) Rossland Gold Project in British Columbia has yielded a small but promising batch of gold assay results.