Grange Resources Limited · ASX:GRR

Grange Resources — Shareholder Meeting (May 2016)

22 slides from Grange Resources's shareholder meeting presentation, May 11, 2016

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

    Australia’s most experienced magnetite producer AGM Presentation May 2016

  2. Slide 2: Company Highlights

    Company Highlights  Most EXPERIENCED magnetite producer 49 years of operational experience at Savage River  STRONG Safety Culture Over 1 year LTI free achieved April 2016  LONG LIFE producer of PREMIUM iron ore pellets High quality ore reserves (~ 51% DTR) producing ~65%+ Fe BF pellets  STRONG b

  3. Slide 3: 1. Company Overview

    1. Company Overview May 2016 Slide 3

  4. Slide 4: 1.1 Company Assets

    1.1 Company Assets 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 2016 Slide 4

  5. Slide 5: 1.2 Dec 2015 Financial Position - Consolidated

    1.2 Dec 2015 Financial Position - Consolidated Dec 2015 Dec 2014 Difference Indicator Variance% Comments AUD’000 AUD’000 AUD’000 Current Assets 229,522 231,233 -1,711 -1% ↓ Cash & Receivables ↑ Inventory Non-current Assets 111,772 397,016 -285,244 -72% ↑Impairment & ↓ DTA Total Assets 341,294 628,24

  6. Slide 6: 1.3 Company Snapshot

    1.3 Company Snapshot Capital Structure (A$) Share Price and Volume Ordinary Shares on issue 31 Mar 2016 1,157m Share Price 31 Mar 2016 $0.085 Market Capitalization 31 Mar 2016 $98m Cash and Term Deposits 31 Mar 2016 $127m Loan 31 Mar 2016 $11m Ownership Structure as at 07 March 2016 Research Coverag

  7. Slide 7: 1.4 Products from Tasmanian Operations

    1.4 Products from Tasmanian Operations Higher Developing Iron Ore Pellet Fluxed Pellet ~65% Fe Magnetite Concentrate ~67% Fe QUALITY Direct Shipping Lump ~63% Fe Direct Shipping Fines Lower ~57% - ~ 61% Fe Lower Price Higher May 2016 Slide 7

  8. Slide 8: 2. Tasmanian Operations Performance & Focus

    2. Tasmanian Operations Performance & Focus May 2016 Slide 8

  9. Slide 9: 2.1 Jan.-Dec. 2015 Performance – Indicators

    2.1 Jan.- Dec. 2015 Performance – Indicators Indicator Unit Dec 2015 Dec 2014 Difference Variance% Comments Concentrate Tonne ‘000 2,606 2,627 21 1% → Sustained through Mill replacement Pellet Tonne ‘000 2,528 2,341 187 8% ↑ Improved processes, record production C1 Cash Operating Costs AUD/t 77.17 8

  10. Slide 10: 2.2 2016 Quarter 1 Performance – Indicators

    2.2 2016 Quarter 1 Performance – Indicators Variance Indicator Unit Q1 2016 Actual Q4 2015 Actual Difference Comments % Concentrate Tonne ‘000 664 670 (6) (0.9%) → Achieved production target Pellet Tonne ‘000 640 625 15 2.4% ↑ Improved processes, reduced downtime ↓ Cost reductions, slowed down movem

  11. Slide 11: 2.3 Highlights for 2015 — Tasmania

    2.3 Highlights for 2015 — Tasmania  Continued Safety Focus Record set at 1,728 days (Over 5 years LTI free at Savage River)  Ore Supply from North Pit & South Deposit blend North Pit and South Deposit ores were blended well through the concentrator  Autogenous Mill Shell replacement completed in

  12. Slide 12: 2.4 LOM Strategies — Leveraging Resources

    2.4 LOM Strategies — Leveraging Resources North Pit South Deposit  High quality, long life resources  ~23MT @ 44%DTR  ~128MT @ 58%DTR  Supporting LOM tailings infrastructure  Supporting long life operations construction Centre Pit Long Plains  Modelling in progress to further develop ore  Dev

  13. Slide 13: 2.5 LOM Strategies — Leveraging Resources

    2.5 LOM Strategies — Leveraging Resources Ore Reserves Other Potential  Potential to increase with continued development  Long Plains  Strong Resource basis for long life  Centre Pit  External opportunities 百 万 吨 May 2016 Slide 13

  14. Slide 14: 2.6 LOM Strategies — Optimising Mining Operations

    2.6 LOM Strategies— Optimising Mining Operations North Pit Production Stripping  Ore supply for 2017 North Pit Mine Development  East wall cut-back South Deposit in full production South Deposit Mine Development  Ore supply for 2016  Provides ore and material for construction of South Deposit Ta

  15. Slide 15: 3. Southdown Project Achievements & Strategies

    3. Southdown Project Achievements & Strategies May 2016 Slide 15

  16. Slide 16: 3.1 2015 Project Overview – Southdown

    3.1 2015 Project Overview – Southdown  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 tenure and access, in

  17. Slide 17: 3.2 Southdown Project Strategies 2016

    3.2 Southdown Project Strategies 2016 We continue the approaches adopted in 2015 into 2016, as we:  Formulate valid alternate development model and seek to secure equity  Seek partners for a strategic share of the Company’s interest in the project May 2016 Slide 17

  18. Slide 18: 4. Recap

    4. Recap May 2016 5 Slide 18 GRANGE

  19. Slide 19: 4.1 Grange — LOM Strategies Recapped

    4.1 Grange — LOM Strategies Recapped  Drive operating costs down further and sustain access to high grade ore  Provide high quality ore for blending from South Deposit  Continue investment in mine development - progress next phase of North Pit development  Continue to invest in process infrastru

  20. Slide 20: 4.2 Focusing on the fundamentals

    4.2 Focusing on the fundamentals  Our fundamentals are solid  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  O

  21. Slide 21: 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

  22. Slide 22: Disclaimer

    Disclaimer 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 representation or war

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