Grange Resources Limited · ASX:GRR
Grange Resources — Shareholder Meeting (May 2023)
24 slides from Grange Resources's shareholder meeting presentation, May 9, 2023
Slide 1: Australia's most experienced magnetite producer
For personal use only Australia’s most experienced magnetite producer Investor Presentation 9 May 2023
Slide 2: Company Highlights
Company Highlights ✓ STRONG Safety Culture Record safety performance of over 6 years Lost Time Injury free in March 2023. For personal use only ✓ Most EXPERIENCED magnetite producer Over 55 years of operational experience on the Savage River Project ✓ Shipped 2.5m tonnes of Iron Ore Products in 2022
Slide 3: Vision & Values
Vision & Values Our Purpose: The responsible provision of mineral We value At Grange we all will… For personal use only resources to support sustainable development, growth and prosperity Safety ✓ Work safely. Respect ✓ Lead & act with fairness, integrity, trust and respect. Accountability ✓ Be resp
Slide 4: Grange's Process
Grange’s Process Savage River For personal use only • 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: Iron Ore Products
Iron Ore Products Magnetite is a naturally occurring mineral, commonly refined into an iron ore For personal use only 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 6: Benefits of magnetite pellets
✓ Reduced environmental impact with decrease in air ✓ Reduction in energy emissions consumption For personal use only ✓ Lower maintenance costs in ✓ Reduction in waste & slag the Blast Furnace ✓ Favourable physical & ✓ Higher yield of metallic iron chemical properties. with higher Fe content
Slide 7: Our product attracts a premium price
Our product attracts a premium price Pellet Premium Received (FOB USD) For personal use only 300 Sustained Pellet Premium ✓ High Fe Content 250 ✓ Low Impurities ✓ Attracting Premium 200 ✓ Delivering into term offtake agreements 65% Index FOB Calculated Pellet Price 150 100 50 62% Index FOB Calculate
Slide 8: Environmental, Social, Governance
Environmental, Social, Governance • In 2017, the International Business Council sponsored For personal use only “The Compact for Responsive and Responsible Leadership”, which declared that “society is best served by corporations that have aligned their goals to serve the long-term goals of society”.
Slide 9: Environment, Social and Governance: ESG Update Q1 2023
Environment, Social and Governance ESG Update Q1 2023 For personal use only Highlights and achievements Q1: • Modern Slavery Policy reviewed and adopted by the Board • Developing ESG-inclusive Board Skills Matrix • Decarbonisation roadmap being developed for further communication Focus areas for Q2:
Slide 10: For personal use only
For personal use only May 2023 Slide 10
Slide 11: Strategic Plan Framework 2023
Strategic Plan Framework 2023 Develop Sustainable LOMP Integrate Innovation Build Capacity & Capability Develop Strategic Initiatives Deliver ESG Goals • Underdevelopment of the east wall • Innovation is critical to improving • We have a committed workforce • We have capacity and capability • Grange
Slide 12: Strategic Areas of Focus
Strategic Areas of Focus Maximising Mineral Asset Value ▪ Deliver ore from Centre Pit in 2023 For personal use only ▪ Continue investment in stripping in North Pit ▪ Complete the DFS for underground mining in North Pit ▪ Continue to develop projects to improve mining efficiency Strategic Review for
Slide 13: GRR Company Snapshot
GRR Company Snapshot Capital Structure (A$) – 30 Apr 2023 For personal use only Jiangsu Shagang Ordinary Shares on issue 1,157m Acadian Asset Management 42% 48% Pacific International Share Price $0.615 DFA Australia Macquarie Investment Management Market Capitalization $711.8m 2% Other 3% 3% 2% Cash
Slide 14: LOM Strategies — Maximising Mineral Assets
LOM Strategies — Maximising Mineral Assets North Pit South Deposit ▪ High quality, long life resources ▪ ~11MT @ 47%DTR For personal use only ▪ ~239MT @ 46%DTR ▪ Supporting LOM tailings infrastructure ▪ Supporting long life operations construction Centre Pit Long Plains ▪ Modelling in progress to fu
Slide 15: North Pit Mine Development
For personal use only North Pit Mine Development ▪ Focus on pre-stripping ▪ East wall cut will continue throughout 2023 North Pit East Wall ▪ Redesigned batters with presplits presenting clean walls. May 2023 Slide 15 North Pit Development
Slide 16: Centre Pit Stage
Centre Pit Stage 1 ▪ Advanced towards main ore zone ▪ Providing high grade ore in H2, 2023 For personal use only May 2023 Slide 16 Centre Pit Development
Slide 17: Financial Performance
For personal use only Financial Performance May 2023 Slide 17
Slide 18: December 2022 Financial Position - Consolidated
December 2022 Financial Position - Consolidated 2022 2021 Difference Variance Indicator Comments For personal use only AUD’000 AUD’000 AUD’000 % ↓ Cash ↑Term deposits 6-12mths Current Assets 521,913 650,809 -128,896 -20% ↑ Shipping receivables Non-current Assets 576,306 469,426 106,880 23% ↑ PP&E, ↑
Slide 19: 2022 Performance
2022 Performance 2022 2021 Indicator Unit Difference Variance % Comments For personal use only Actual Actual ↑North Pit Stage 6 yielded large stockpiles to Concentrate Tonnes ‘000 2,625 2,560 65 2% support production in 2022 and 2023 ↓Changes in ore chemistry and process resulting in Pellet Tonnes ‘
Slide 20: Core Growth Projects
For personal use only Core Growth Projects Achievements & Strategies May 2023 Slide 20
Slide 21: NPUG Feasibility Study
NPUG Feasibility Study Underground Feasibility Study For personal use only ✓ Demonstrated ore continuity at depth ✓ Potential 6 million tonne per annum production rate ✓ Underground mine life of more than 10 years, utilising underground caving methods. ✓ Potential for increase in mine life. ✓ In lin
Slide 22: Southdown project moving forward
Southdown project moving forward Southdown Magnetite Prefeasibility Study ✓ Identifies a reduced-capital development option for the Southdown Magnetite For personal use only Project ✓ Production rate of 5 million tonnes per annum of high-quality magnetite concentrate at 69.5 % Fe, ✓ The concentrator
Slide 23: Our Strength & Strategy
Our Strength & Strategy Our key strengths: For personal use only ▪ 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 turnover
Slide 24: Primary Contact
Primary Contact For personal use only 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, refer ASX announc