Grange Resources Limited · ASX:GRR
Grange Resources — Investor Presentation (November 2013)
20 slides from Grange Resources's investor presentation, Nov 18, 2013
Slide 1: Australia's most experienced magnetite producer
For personal use only Australia’s most experienced magnetite producer Savage River Investor Trip 18-19 November 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 For personal use only Most EXPERIENCED magnetite producer Over 45 years of operational experience at Savage River STRONG Safety Culture 1,195 days LTI free LONG LIFE producer of PREMIUM iron ore pellets High quality ore reserves (52% DTR) producing 65.5% Fe BF pellets Suppor
Slide 4: Company Snapshot
Company Snapshot For personal use only Capital Structure (A$) Share Price and Volume Ordinary Shares on issue 15 Nov 2013 1,156m 0.50 15 0.40 12 Share Price 15 Nov 2013 $0.245 Share price (A$) Volume (m) 0.30 9 Market Capitalisation 15 Nov 2013 $283m 0.20 6 Cash and Term Deposits 30 Sept 2013 $139m
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. November 2013 Slide 5
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 with no debt Stable
Slide 7: Focusing on the fundamentals – 2013
Focusing on the fundamentals – 2013 For personal use only 1. Focus on accessing high grade ore through continued investment in mine development North pit mining redevelopment and operations running ahead of schedule, regained access to high grade ore in September 2013 Progressing South Deposit m
Slide 8: 2013 Quarterly Results – Production
2013 Quarterly Results – Production For personal use only September June March Quarter Quarter Quarter 2013 2013 2013 Production Total BCM Mined 4,031,266 4,248,393 4,859,868 Total Ore BCM 489,814 520,750 349,046 Weight Recovery (%) 31.5 25.4 31.9 Concentrate Produced (t) 472,108 397,075 453,410 Pel
Slide 9: 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 $200.00 Iron Ore Price (US$/dmt) $180.00 - Long term FOB (Port Latta) contract to 2023 $160.00 - 1 million tonnes (+/- 10%) of ir
Slide 10: 2013 Quarterly Results – Shipping and Sales
2013 Quarterly Results – Shipping and Sales For personal use only September June March Quarter Quarter Quarter 2013 2013 2013 Shipping and Sales Total Iron Ore Product Sales (dmt) 536,503 380,290 388,203 Avg Realised Product Price (US$/t FOB) 133.85 136.34 144.71 Avg Realised Exchange Rate (AUD:USD)
Slide 11: 2013 - Exceptional Safety Performance
2013 - Exceptional Safety Performance For personal use only Last LTI: July 2010 Our focus on safety will continue to be unrelenting November 2013 Slide 11
Slide 12: 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
Slide 13: 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
Slide 14: 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 - Four furnace lines capable of producing - 85km pipeline connecting Savage River separation process 2.4mtpa of iron ore pellets to Port Latta - Pro
Slide 15: 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 Direct Shipping Fines Lower ~57% - ~ 61% Fe Lower Price Higher November 2013 Slide 15
Slide 16: Southdown Project
Southdown Project For personal use only Southdown Project (GRR Share: 70%) 5X bigger than Savage River November 2013 Slide 16
Slide 17: 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 18: 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
Slide 19: 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 regain access to high grade ore Continue investment in mine development - progress next phase
Slide 20: 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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