Grange Resources Limited · ASX:GRR
Grange Resources — Mines & Money Melbourne 2013
17 slides from Grange Resources's conference presentation, Oct 30, 2013
Slide 1: Australia's most experienced magnetite producer
For personal use only Australia’s most experienced magnetite producer Mines & Money – Melbourne, Australia 30-31 October 2013
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
Slide 3: Company Highlights
Company Highlights STRONG Safety Culture For personal use only Over 1,100 days LTI free Most EXPERIENCED magnetite producer Over 45 years of operational experience at Savage River LONG LIFE producer of PREMIUM iron ore pellets High quality ore reserves (52% DTR) producing 65.5% Fe BF pellets Support
Slide 4: Company Snapshot
Company Snapshot For personal use only Current Key Statistics (A$) Current Ownership Structure Ordinary shares on issue 29 Oct 2013 1,156m Free Freefloat Float Share Price 29 Oct 2013 $0.215 39.63% PML RGL Group 46.52% Market Capitalization 29 Oct 2013 $249m RGL 5.36% PMLGroup Cash and Term Deposits
Slide 5: Magnetite – The Premium Iron Ore
Magnetite – The Premium Iron Ore For personal use only Iron Ore Pellet ~65.5% Fe Higher ~US$134/t1 FOB Tasmania Magnetite Concentrate QUALITY ~67% Fe Direct Shipping Lump ~63% Fe Direct Shipping Fines Lower ~57% - ~ 61% Fe Note: 1 Average realised product price for the quarter ended 30 September 201
Slide 6: Grange Assets
Grange Assets For personal use only Australia’s Most Experienced Magnetite Producer Savage River (100%) Southdown Project (70%) Quality assets in Tasmania and Western Australia. October 2013 Slide 6
Slide 7: Large Scale Long Life Operations
Large Scale Long Life Operations For personal use only October 2013 Slide 7
Slide 8: Reliable and Sole Use Downstream Infrastructure
Reliable and Sole Use Downstream Infrastructure For personal use only October 2013 Slide 8
Slide 9: Delivering 2013 Priorities
Delivering 2013 Priorities For personal use only 1. Focus on accessing high grade ore through continued investment in mine development North pit mining operations running ahead of schedule, regained access to high grade ore in September 2013 Progressing South Deposit mine development and tailing
Slide 10: 2013 Quarterly Results
2013 Quarterly Results For personal use only September June March Quarter Quarter Quarter 2013 2013 2013 Shipping and Sales Total Iron Ore Product Sales (dmt) 536,503 380,290 388,203 Avg Realised Product Price (US$/t FOB) 133.85 136.34 144.71 Avg Realised Exchange Rate (AUD:USD) 0.9176 0.9847 1.0359
Slide 11: 2013 Quarterly Results
2013 Quarterly Results For personal use only September June March Quarter Quarter Quarter 2013 2013 2013 Shipping and Sales Total Iron Ore Product Sales (dmt) 536,503 380,290 388,203 Avg Realised Product Price (US$/t FOB) 133.85 136.34 144.71 Avg Realised Exchange Rate (AUD:USD) 0.9176 0.9847 1.0359
Slide 12: Strategic Direction On-Track
Strategic Direction On-Track 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 with no debt Stable
Slide 13: Southdown Project
Southdown Project For personal use only Southdown Project (GRR Share: 70%) 5X bigger than Savage River October 2013 Slide 13
Slide 14: 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
Slide 15: Southdown Project – Priorities
Southdown Project – Priorities For personal use only Continue search for new equity partner to take a strategic share of the Company’s interest Significantly reduce expenditure for 2013 to approx. $2.5 million (GRR Share) during the period of difficult market conditions for new capital projects
Slide 16: 2013 Priorities – Recapped
2013 Priorities – 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 regain access to high grade ore Continue investment in mine development - progress next phase of Nor
Slide 17: Primary Contact
Primary Contact For personal use only Primary Contact: Wayne Bould Managing Director +61 3 6430 0222 managingdirector@grangeresources.com.au October 2013 Slide 17