Grange Resources Limited · ASX:GRR
Grange Resources — Shareholder Meeting (May 2022)
23 slides from Grange Resources's shareholder meeting presentation, May 11, 2022
Slide 1: Australia's most experienced magnetite producer
Australia’s most experienced magnetite producer Investor Presentation 11 May 2022
Slide 2: Company Highlights
Company Highlights ✓ STRONG Safety Culture Achieved over 5 years LTI free at the end of March 2022 ✓ Most EXPERIENCED magnetite producer Over 55 years of operational experience on the Savage River Project ✓ Shipped 2.5m tonnes of Iron Ore Products in 2021 Over 2.5 million tonnes of pellets and chips
Slide 3: Vision & Values
Vision & Values Our Purpose: The responsible provision of mineral We value At Grange we all will… resources to support sustainable development, growth and prosperity Safety ✓ Work safely. Respect ✓ Lead & act with fairness, integrity, trust and respect. Accountability ✓ Be responsible & accountable
Slide 4: Environmental, Social, Governance
Environmental, Social, Governance • In 2017, the International Business Council sponsored “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”. • They identified the
Slide 5: Grange's Process
Grange’s Process 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 plant, the ore is proce
Slide 6: Pellets have favourable physical and chemical properties
✓ Pellets have favourable physical and chemical ✓ Reduction in waste - slag 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 emissions
Slide 7: Our product attracts a premium price
Our product attracts a premium price Sustained Pellet Premium ✓ High Fe Content ✓ Low Impurities ✓ Attracting Premium 65% Index FOB Calculated Pellet Price ✓ Delivering into term offtake agreements 62% Index FOB Calculated Price May 2022 Slide 7
Slide 8: Strategic Plan
Strategic Plan Develop Sustainable LOMP Integrate Innovation Sustain Ageing Infrastructure Build Capacity & Capability • Uncertainty in the Life of Mine Plan is a key • Innovation is critical to improving safety, • Our process is supported by mature and • People are our most valuable asset area to a
Slide 9: Strategic Areas of Focus
Strategic Areas of Focus Maximising Mineral Asset Value ▪ Provide high quality ore from North Pit ▪ Continue investment in mine development in Centre Pit ▪ Environmental approvals for Centre Pit have been obtained ▪ Investigating the potential to access ore at depth in North Pit via underground mini
Slide 10: GRR Company Snapshot
GRR Company Snapshot Capital Structure (A$) Share Price, Trading Volume and Returns Share Price Performance Ordinary Shares on issue 31 Mar 2022 1,157m Volume Share Price Share Price 31 Mar 2022 $1.11 20 $1.40 Volume (millions) $1.20 Price ($AUD) 15 $1.00 $0.80 10 Market Capitalization 31 Mar 2022 $
Slide 11: Iron Ore Products
Iron Ore Products 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 Concentrate concentrate, and t
Slide 12: Highlights for 2021 — Tasmania
Highlights for 2021 — Tasmania ✓ Exceeded 5 years Lost Time Injury Free By end March 2022. ✓ Delivered full year production target Managed the safety health and wellbeing of our employees through COVID19 ✓ Continued investment in Mine Development The next stage of North Pit cutback commenced on the
Slide 13: LOM Strategies — Maximising Mineral Assets
LOM Strategies — Maximising Mineral Assets North Pit South Deposit ▪ High quality, long life resources ▪ ~11MT @ 47%DTR ▪ ~238MT @ 50%DTR ▪ Supporting LOM tailings infrastructure ▪ Supporting long life operations construction Centre Pit Long Plains ▪ Modelling in progress to further develop ore ▪ De
Slide 14: North Pit Mine Development
North Pit Mine Development ▪ Road width risk assessment completed and widening, and signage upgrades completed to improve risk controls completed North Pit East Wall ▪ The geotechnical fences to limit the risk of rock fall entering the work area below 20mRL has remained effective in catching small s
Slide 15: Centre Pit Development
Centre Pit Stage 1 ▪ The first part of Stage 1 has been completed ▪ Commenced mining of the temporary ramp and the western side of the Stage 1. May 2022 Slide 15 Centre Pit Development
Slide 16: Financial Performance
Financial Performance May 2022 Slide 16
Slide 17: December 2021 Financial Position - Consolidated
December 2021 Financial Position - Consolidated 2021 2020 Difference Variance Indicator Comments AUD’000 AUD’000 AUD’000 % ↑Cash Current Assets 650,809 420,403 230,406 55% ↓Shipping receivables, ↑Ore inventories Non-current Assets 469,426 453,377 16,049 4% ↑PP&E Total Assets 1,120,235 873,780 246,45
Slide 18: 2021 Performance
2021 Performance 2021 2020 Indicator Unit Difference Variance % Comments Actual Actual ↑High grade ore from the Main Ore Zone in North Concentrate Tonnes ‘000 2,560 2,531 29 1% Pit delivered throughout the year ↑Pellet production line balanced with concentrate Pellet Tonnes ‘000 2,597 2,348 249 11%
Slide 19: Core Growth Projects Achievements & Strategies
Core Growth Projects Achievements & Strategies May 2022 Slide 19
Slide 20: NPUG Feasibility Study
NPUG Feasibility Study Underground Prefeasibility Study ✓ Standalone underground case ✓ Informs the decision to transition from open pit to an underground mine in the future. ✓ Demonstrated ore continuity at depth with a 30% (approximately 120 million tonne) increase in Mineral Resources. ✓ Potentia
Slide 21: Southdown project moving forward
Southdown project moving forward Southdown Magnetite Prefeasibility Study ✓ Identifies a reduced-capital development option for the Southdown Magnetite Project ✓ Production rate of 5 million tonnes per annum of high-quality magnetite concentrate at 69.5 % Fe, ✓ The concentrator design utilises dry g
Slide 22: Ongoing Strategies
Ongoing Strategies 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 turnover ▪ Our people und
Slide 23: Primary Contact
Primary Contact 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, refer ASX announcement