Grange Resources Limited · ASX:GRR
Grange Resources — Shareholder Meeting (May 2023)
31 slides from Grange Resources's shareholder meeting presentation, May 9, 2023
Slide 1: Australia's most experienced magnetite producer
Australia’s most experienced magnetite producer Investor Presentation 9 May 2023
Slide 2: Company Highlights
Company Highlights ✓ STRONG Safety Culture Record safety performance of over 6 years Lost Time Injury free in March 2023. ✓ Most EXPERIENCED magnetite producer Over 55 years of operational experience on the Savage River Project ✓ Shipped 2.5m tonnes of Iron Ore Products in 2022 Over 2.5 million tonn
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: 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 5: 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 6: Reduced environmental impact with decrease in air emissions
✓ Reduced environmental impact with decrease in air ✓ Reduction in energy emissions consumption ✓ Lower maintenance costs in ✓ Reduction in waste & slag the Blast Furnace ✓ Favourable physical & ✓ Higher yield of metallic iron chemical properties. with higher Fe content
Slide 7: Our product attracts a premium price
Our product attracts a premium price 300 Pellet Premium Received (FOB USD) Sustained Pellet Premium ✓ High Fe Content 250 ✓ Low Impurities ✓ Attracting Premium 200 ✓ Delivering into term offtake agreements 65% Index FOB Calculated Pellet Price 150 100 50 62% Index FOB Calculated Price 0 May 2023 Sli
Slide 8: 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 9: Environment, Social and Governance
Environment, Social and Governance ESG Update Q1 2023 Highlights and achievements Q1: • Modern Slavery Policy reviewed and adopted by the Board • Developing ESG-inclusive Board Skills Matrix • Decarbonisation roadmap being developed for further communication Focus areas for Q2: • Release of the emis
Slide 10: Carbon Reduction Timeline
CARBON REDUCTION TIMELINE
Slide 11: Carbon reduction timeline
a 2023 2024 2025 2026 20
Slide 12: Carbon reduction timeline
eet eee eee! ae ee 3 2024 2025 2026 2027 20
Slide 13: Carbon reduction timeline
| | | | | 2023 2024 2025 2026 202] 2028 UG TRANSITION yO 2024-2027 26KG/T ELECTRIFICATION OF MINING EQUIPMENT =ygfsg=ffl=s=yse TAS GRID EMISSIONS FACTOR 2024-2027 14KC/T ZERO SCOPE 2 EMISSIONS
Slide 14: Carbon reduction timeline
2025 2026 2027 2028 q023 2030
Slide 15: Carbon reduction timeline
~ 2029 2030 2031 2032
Slide 16: Carbon reduction timeline
ee ee 2030 2031 2032 2033 2034 PELLET PLANT ALTERNATIVE ENERGY @ iATTRAL GAS REPLACEMENT
Slide 17: Grange's Emission Reduction Targets
T T T T 2023 2024 2025 2026 2021 FURNACE UPGRADES if 2023-2026 SKG/T ANTHRACITE REMOVED UG TRANSITION lt. a a whet 26KG/T ELECTRIFICATION OF MINING EQUIPMENT TAS GRID EMISSIONS FACTOR 2024-2027 1AKG/T TERO SCOPE 2 EMISSIONS P2P HEAT RECOVERY 2025-2030 20NG/T 20% REDUCTION IN P2P ENERGY T T 2028 2029
Slide 18: Strategic Plan Framework 2023
Strategic Plan Framework 2023 Develop Sustainable LOMP Integrate Innovation Build Capacity & Capability Develop Strategic Initiatives Deliver ESG Goals • Underdevelopment of the east wall • Innovation is critical to improving • We have a committed workforce • We have capacity and capability • Grange
Slide 19: Strategic Areas of Focus
Strategic Areas of Focus Maximising Mineral Asset Value ▪ Deliver ore from Centre Pit in 2023 ▪ Continue investment in stripping in North Pit ▪ Complete the DFS for underground mining in North Pit ▪ Continue to develop projects to improve mining efficiency Strategic Review for Southdown Project ▪ De
Slide 20: GRR Company Snapshot
GRR Company Snapshot Capital Structure (A$) – 30 Apr 2023 Jiangsu Shagang Ordinary Shares on issue 1,157m Acadian Asset Management 42% 48% Pacific International Share Price $0.615 DFA Australia Macquarie Investment Management Market Capitalization $711.8m 2% Other 3% 3% 2% Cash, cash equivalents & $
Slide 21: LOM Strategies — Maximising Mineral Assets
LOM Strategies — Maximising Mineral Assets North Pit South Deposit ▪ High quality, long life resources ▪ ~11MT @ 47%DTR ▪ ~239MT @ 46%DTR ▪ Supporting LOM tailings infrastructure ▪ Supporting long life operations construction Centre Pit Long Plains ▪ Modelling in progress to further develop ore ▪ De
Slide 22: North Pit Mine Development
North Pit Mine Development ▪ Focus on pre-stripping ▪ East wall cut will continue throughout 2023 North Pit East Wall ▪ Redesigned batters with presplits presenting clean walls. May 2023 Slide 22 North Pit Development
Slide 23: Centre Pit Development
Centre Pit Stage 1 ▪ Advanced towards main ore zone ▪ Providing high grade ore in H2, 2023 May 2023 Slide 23 Centre Pit Development
Slide 24: Financial Performance
Financial Performance May 2023 Slide 24
Slide 25: December 2022 Financial Position - Consolidated
December 2022 Financial Position - Consolidated 2022 2021 Difference Variance Indicator Comments AUD’000 AUD’000 AUD’000 % ↓ Cash ↑Term deposits 6-12mths Current Assets 521,913 650,809 -128,896 -20% ↑ Shipping receivables Non-current Assets 576,306 469,426 106,880 23% ↑ PP&E, ↑Deferred stripping ass
Slide 26: 2022 Performance
2022 Performance 2022 2021 Indicator Unit Difference Variance % Comments Actual Actual ↑North Pit Stage 6 yielded large stockpiles to Concentrate Tonnes ‘000 2,625 2,560 65 2% support production in 2022 and 2023 ↓Changes in ore chemistry and process resulting in Pellet Tonnes ‘000 2,518 2,597 -79 -3
Slide 27: Core Growth Projects Achievements & Strategies
Core Growth Projects Achievements & Strategies May 2023 Slide 27
Slide 28: NPUG Feasibility Study
NPUG Feasibility Study Underground Feasibility Study ✓ Demonstrated ore continuity at depth ✓ Potential 6 million tonne per annum production rate ✓ Underground mine life of more than 10 years, utilising underground caving methods. ✓ Potential for increase in mine life. ✓ In line with company ESG ini
Slide 29: 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 30: Our Strength & Strategy
Our Strength & Strategy Our key strengths: ▪ 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 Delivering into our St
Slide 31: 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 31-Mar-2023 May