Grange Resources Limited · ASX:GRR
Grange Resources — Shareholder Meeting (May 2019)
29 slides from Grange Resources's shareholder meeting presentation, May 9, 2019
Slide 1: Australia's most experienced magnetite producer
For personal use only Australia’s most experienced magnetite producer Investor Presentation 9 May 2019
Slide 2: Company Highlights
Company Highlights For personal use only ✓ Most EXPERIENCED magnetite producer Over 50 years of operational experience at Savage River ✓ STRONG Safety Culture Achieved over 2 years LTI free at the end of March 2019 ✓ Shipped over 2.3m tonnes of Iron Ore Products 2.37 million tonnes of pellets and ch
Slide 3: Vision & Values
Vision & Values For personal use only At Grange we ALL will… ✓ Work safely. ✓ Lead & act with fairness, integrity, trust and respect. ✓ Be responsible & accountable for our actions. ✓ Utilise our resources efficiently and effectively. ✓ Engage with stakeholders and proactively manage our impact on t
Slide 4: Grange's Process
Grange’s Process For personal use only Savage River • Magnetite iron ore is extracted from the open cut pit by conventional drilling, blasting, loading and hauling. • Ore is then crushed to approximately 200mm and transported via a 1.6km overland conveyor belt to a stockpile. • At the concentrator p
Slide 5: Benefits of pellets
✓ Pellets have favourable physical and chemical ✓ Reduction in waste - slag For personal use only properties. ✓ Higher yield of metallic iron ✓ Lower maintenance costs in due to higher Fe content the Blast Furnace ✓ Reduced environmental ✓ Reduction in energy impact with decrease in consumption air
Slide 6: Pellet Premium
Pellet Premium For personal use only Pellet Premium Received (FOB USD) 160.00 Sustained Pellet Premium ✓ High Fe Content 140.00 ✓ Low Impurities ✓ Attracting Premium 120.00 ✓ Delivering into term 100.00 offtake agreements 80.00 60.00 40.00 20.00 - Jan-2018 Feb-2018 Mar-2018 Apr-2018 May-2018 Jun-201
Slide 7: Company Overview
For personal use only Company Overview May 2019 Slide 7
Slide 8: Grange Strategy
Grange Strategy For personal use only Maximise Mineral Strategic Partnership Optimise Capital Asset Value Southdown Project Allocation Plan ✓ Invest in mine development ✓ Secure new strategic partner(s) ✓ Conserve cash & build up ✓ Complete the exploration to develop the project reserves for future
Slide 9: Company Assets
Company Assets For personal use only Australia’s Most Experienced Magnetite Producer Savage River (100%) Southdown Project (70%) Focusing on the Searching for an fundamentals equity partner Quality assets in Tasmania and Western Australia. May 2019 Slide 9
Slide 10: GRR Company Snapshot
GRR Company Snapshot For personal use only Capital Structure (A$) Share Price and Volume Ordinary Shares on issue 31 Mar 2019 1,157m Share Price 31 Mar 2019 $0.275 Market Capitalization 31 Mar 2019 $318m Cash, cash equivalents and liquid 31 Mar 2019 $207m investments Ownership Structure as at 31 Mar
Slide 11: Iron Ore Products
Iron Ore Products For personal use only Magnetite is a naturally occurring mineral, commonly refined into an iron ore Higher Iron Ore concentrate and used for steel production. Pellet ~65% Fe Smelting magnetite to iron involves agglomeration Magnetite or ‘clumping together’ of the magnetite Concentr
Slide 12: The Benefit of Pellets
The Benefit of Pellets For personal use only Pellets are often preferred over iron ore fines, sinter and lump due to their favourable physical and chemical properties supporting increased Blast Furnace productivity and efficiency. Pellets are an enriched form of iron ore and provide significant bene
Slide 13: Tasmanian Operations Performance & Focus
For personal use only Tasmanian Operations Performance & Focus May 2019 Slide 13
Slide 14: Highlights for 2018 — Tasmania
Highlights for 2018 — Tasmania For personal use only ✓ Celebrated over 50 years of operation Savage River Mine, Concentrator, Pipeline, Port Latta Pellet Plant ✓ Maintained ore production from Main Ore Zone Supported full year production despite high rainfall and flooding Mining movements increased
Slide 15: Dec 2018 Financial Position - Consolidated
Dec 2018 Financial Position - Consolidated For personal use only 2018 2017 Difference Indicator Variance% Comments AUD’000 AUD’000 AUD’000 ↑ Cash, ↑Short Term Managed Funds Current Assets 316,676 261,339 55,337 21% ↓ Shipping receivables, ↓ Inventories ↓ PP&E ↑ Mine Properties & Dev Non-current Asse
Slide 16: 2018 Performance – Indicators
2018 Performance – Indicators For personal use only 2018 2017 Indicator Unit Difference Variance % Comments Actual Actual Tonnes ↑Full year production supported despite high Concentrate 2,276 1,960 316 16% rainfall hampering mining activity ‘000 Tonnes ↑Pellet production line balanced with concentra
Slide 17: LOM Strategies — Maximising Mineral Assets
LOM Strategies — Maximising Mineral Assets For personal use only North Pit South Deposit ▪ Increased high quality, long life resources ▪ ~18MT @ 41%DTR ▪ ~294MT @ 50%DTR ▪ Supporting LOM tailings infrastructure ▪ Supporting long life operations construction Centre Pit Long Plains ▪ Modelling in prog
Slide 18: North Pit Development
North Pit Development For personal use only North Pit Mine Development ▪ West wall cut-back continues North Pit East Wall Remediation ▪ Supporting continued ore production Main Ore Zone May 2019 Slide 18
Slide 19: Key Projects
Key Projects For personal use only Exploration Decline Truck rebuild program ✓ Board approved $15m expenditure ✓ Rebuild of 789 truck fleet ✓ Commenced decline in March 2019 continues in 2019. ✓ Over 150m developed ✓ $22m total project cost to ✓ Will provide access for further drilling complete in Q
Slide 20: LOM Strategies— Optimising Mining Operations
LOM Strategies— Optimising Mining Operations For personal use only May 2019 Slide 20
Slide 21: LOM Strategies— Optimising Mining Operations
LOM Strategies— Optimising Mining Operations For personal use only North Pit Underground ▪ Exploration program in progress to define ore at depth ▪ Studies proceeding for potential block cave Centre Pit ▪ Exploration program in progress ▪ Feasibility study focused on future ore development May 2019
Slide 22: Southdown Project Achievements & Strategies
For personal use only Southdown Project Achievements & Strategies May 2019 Slide 22
Slide 23: 2018 Project Overview – Southdown
2018 Project Overview – Southdown For personal use only ✓ The Project continues on reduced expenditure while Grange seeks an equity partner for a strategic share in the Project ✓ Existing tenure and approvals have been maintained . ✓ Project security has been enhanced by continuing to build land ten
Slide 24: Grange ROC Property Joint Venture Established
For personal use only Grange ROC Property Joint Venture Established May 2019 Slide 24
Slide 25: Grange ROC Property
Grange ROC Property For personal use only ▪ Joint Venture with ROC Built ▪ Grange ROC Property (GRP) established in early 2018 ▪ Part of strategy to provide diversify risk and return on capital ▪ Ownership 51% Grange Resources; 49% ROC Built ▪ Investment in smaller scale, high-end residential proper
Slide 26: Grange ROC Property
Grange ROC Property For personal use only ▪ Project 1 – Lumley Park, Prahran ▪ Construction is progressing according to plan and within budget ▪ Pre-sold 2 out of 5 apartments at budgeted sale price ▪ Expected completion end of 2019 ▪ Project 2 – Carter, Toorak ▪ Construction is progressing accordin
Slide 27: Grange Core Strategies
Grange Core Strategies For personal use only Maximising Mineral Asset Value ▪ Provide high quality ore from North Pit ▪ Continue investment in mine development ▪ Progress North Pit development on the west wall ▪ Progress feasibility study for Centre Pit ▪ Investigating the potential to access ore at
Slide 28: Ongoing Strategies
Ongoing Strategies For personal use only Our fundamentals remain firm: ▪ Experienced magnetite producer with a long life project close to the Asian market ▪ Producer of a high quality iron ore product (65%+ Fe) that receives a premium price ▪ Strong balance sheet ▪ Stable work force with minimal tur
Slide 29: Primary Contact
Primary Contact For personal use only Primary Contact: Honglin Zhao Managing Director +61 3 6430 0222 ManagingDirector@grangeresources.com.au Notes: - A lower cut-off grade of 15% DTR was used in the calculation of both the Mineral Resources and Ore Reserves - For details of Resources and Reserves,