Grange Resources Limited · ASX:GRR

Grange Resources — Investor Presentation (February 2014)

21 slides from Grange Resources's investor presentation, Feb 6, 2014

  1. Slide 1: Australia's most experienced magnetite producer

    For personal use only Australia’s most experienced magnetite producer Investor Presentation – Amsterdam Wayne Bould, Managing Director 6 February 2014

  2. Slide 2: Disclaimer

    Disclaimer For personal use only The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase, any security in Grange Resources Limited (“GRR”) nor does it form the basis of any contract or commitment. GRR makes no

  3. Slide 3: Company Highlights

    Company Highlights For personal use only  Most EXPERIENCED magnetite producer Over 45 years of operational experience at Savage River  STRONG Safety Culture Over 1,260 days LTI free  LONG LIFE producer of PREMIUM iron ore pellets High quality ore reserves (52% DTR) producing 65.5% Fe BF pellets S

  4. Slide 4: Company Snapshot

    Company Snapshot For personal use only Capital Structure (A$) Share Price and Volume 0.40 15 Ordinary Shares on issue 31 Jan 2014 1,157m 12 Volume (m) Share price (A$) 0.30 Share Price 31 Jan 2014 $0.27 9 6 0.20 Market Capitalisation 31 Jan 2014 $312m 3 0.10 0 Cash and Term Deposits 31 Dec 2013 $160

  5. Slide 5: Company Assets

    Company Assets For personal use only Australia’s Most Experienced Magnetite Producer Savage River (100%) Southdown Project (70%) Focusing on Searching for the fundamentals an equity partner Quality assets in Tasmania and Western Australia. February 2014 Slide 5

  6. Slide 6: Focusing on the fundamentals

    Focusing on the fundamentals For personal use only  Our fundamentals are very sound  Experienced magnetite producer with a long life project close to the Asian market  Producer of a high quality iron ore product (65.5% Fe) that receives a premium price  Strong balance sheet  Stable work force w

  7. Slide 7: Focusing on the fundamentals – 2014

    Focusing on the fundamentals – 2014 For personal use only 1. Maintain access to high grade ore through continued investment in mine development  Regained access to North pit high grade ore in September 2013 and delivered strong quarterly results in December 2013  Commenced replenishment of run of

  8. Slide 8: Focusing on the fundamentals – 2014

    Focusing on the fundamentals – 2014 For personal use only 2. Take advantage of iron ore market prices  December 2013 quarter average product price of US$149.39 per tonne (FOB Port Latta)  Quality premiums have returned for premium grade (lower impurity) iron ore – Grange in well positioned to capi

  9. Slide 9: 2013 Quarterly Results – Production

    2013 Quarterly Results – Production For personal use only December September June March Quarter Quarter Quarter Quarter 2013 2013 2013 2013 Production Total BCM Mined 4,528,208 4,031,266 4,248,393 4,859,868 Total Ore BCM 619,180 489,814 520,750 349,046 Weight Recovery (%) 46.0 31.5 25.4 31.9 Concent

  10. Slide 10: Focusing on the fundamentals: Marketing & Pricing

    Focusing on the fundamentals Marketing & Pricing For personal use only Referenced on Metal Bulletin Iron Ore Pellet Index Iron Ore Prices (CFR China)  Shagang Commitment $200.00 $180.00 - Long term FOB (Port Latta) contract to 2023 Iron Ore Price (US$/dmt) $160.00 - 1 million tonnes (+/- 10%) of ir

  11. Slide 11: 2013 Quarterly Results – Shipping and Sales

    2013 Quarterly Results – Shipping and Sales For personal use only December September June March Quarter Quarter Quarter Quarter 2013 2013 2013 2013 Shipping and Sales Total Iron Ore Product Sales (dmt) 594,291 536,503 380,290 388,202 Avg Realised Product Price (US$/t FOB) 149.39 133.85 136.34 144.71

  12. Slide 12: 2013 - Exceptional Safety Performance

    2013 - Exceptional Safety Performance For personal use only Last LTI: July 2010 February 2014 Slide 12

  13. Slide 13: LOM Strategies: Grow Reserves & Develop Multiple Mining Locations

    LOM Strategies Grow Reserves & Develop Multiple Mining Locations For personal use only North Pit South Deposit  High quality, long life resources  Defined reserve  Supporting operations to 2030 and beyond  Supporting LOM tailings infrastructure development Centre Pit South Long Plains  Alternat

  14. Slide 14: LOM Strategies: Developing Multiple Mining Locations

    LOM Strategies Developing Multiple Mining Locations North Pit Production Stripping For personal use only  Ore supply for 2013/14 North Pit Mine Development  East wall cut-back Reducing risk associated with a single pit operation South Deposit Mine Development  Ore supply for 2014/15  Provides or

  15. Slide 15: LOM Strategies: Value Adding Downstream Infrastructure

    LOM Strategies Value Adding Downstream Infrastructure For personal use only Concentrator Pipeline Pellet Plant & Port - Autogenous milling and magnetic - 85km pipeline connecting Savage River - Four furnace lines capable of producing separation process to Port Latta 2.4mtpa of iron ore pellets - Pro

  16. Slide 16: LOM Strategies: Iron Ore Pellet or Magnetite Concentrate

    LOM Strategies Iron Ore Pellet or Magnetite Concentrate For personal use only Higher Iron Ore Pellet ~65.5% Fe Magnetite Concentrate QUALITY ~67% Fe Direct Shipping Lump ~63% Fe Premium Iron Ore Pellet Product High iron content, Low impurities Iron (Fe) 65.5% Direct Shipping Fines Silica (SiO2) 2.5%

  17. Slide 17: Southdown Project

    Southdown Project For personal use only Southdown Project (GRR Share: 70%) 5X bigger than Savage River February 2014 Slide 17

  18. Slide 18: Southdown Project Achievements

    Southdown Project Achievements For personal use only  Completed a definitive feasibility study in April 2012 which improved the projects level of accuracy to +/- 15%  Advanced project in terms of project engineering, land acquisition, permitting, drilling and test work  Initial capital expenditur

  19. Slide 19: Southdown Project Strategy

    Southdown Project Strategy For personal use only  Continue the search for a new equity partner to take a strategic share of the Company’s interest  Significantly reduce project expenditure for 2013 to approx. $2.5 million (GRR Share) during a period of difficult market conditions for new capital p

  20. Slide 20: Grange – LOM Strategies Recapped

    Grange – LOM Strategies Recapped  Broaden customer base to take advantage of market opportunities and to diversify For personal use only geographic customer risk  Drive operating costs down further and maintain access to high grade ore  Continue investment in mine development - progress next phas

  21. Slide 21: Primary Contact

    Primary Contact For personal use only Primary Contact: Wayne Bould 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, s

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