Grange Resources Limited · ASX:GRR

Grange Resources — Investor Presentation (March 2013)

14 slides from Grange Resources's investor presentation, Mar 5, 2013

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

    For personal use only Australia’s most experienced magnetite producer Investor Presentation March 2013

  2. 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

  3. Slide 3: Company Snapshot

    Company Snapshot For personal use only Current Key Statistics (A$) Current Ownership Structure Ordinary shares on issue 1 March 2013 1,156m Free Freefloat Float 40.39% Last Share Price 1 March 2013 $0.26 PML RGL Group 46.43% Market Capitalization 1 March 2013 $300.6m PMLGroup RGL 5.36% 7.82% Jiangsu

  4. Slide 4: Magnetite – The Premium Iron Ore

    Magnetite – The Premium Iron Ore For personal use only Iron Ore Pellet ~65.5% Fe Higher ~US$145/t1 FOB Tasmania Magnetite Concentrate QUALITY ~67% Fe Direct Shipping Lump ~63% Fe Direct Shipping Fines Lower ~57% - ~ 61% Fe Note: 1Price from 2012 Annual Financial Report Lower Price Higher March 2013

  5. Slide 5: 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. March 2013 Slide 5

  6. Slide 6: 2012 Highlights

    2012 Highlights For personal use only  Exceptional safety record continues  No Lost Time Injuries recorded since July 2010  Solid operating performance and results  Successfully addressed operational challenges from July 2012 rock slide  Disciplined cash management has preserved balance sheet s

  7. Slide 7: Exceptional Safety Performance

    Exceptional Safety Performance For personal use only Last LTI: July 2010 TRIFR: 1.99 per million hours worked Our focus on safety will continue to be unrelenting March 2013 Slide 7

  8. Slide 8: 2012 Results Overview

    2012 Results Overview For personal use only  Revenues from mining operations of $331.3 million (down 19% from $410.4m)  Sales volumes up 34% to 2.4 million tonnes of iron ore products  Average realised price down 32% to US$145.71 per tonne  Net profit after tax of $35.9 million (down 83% from $2

  9. Slide 9: Key Production Statistics

    Key Production Statistics For personal use only 2012 2011 2013 Priorities Total Mined (‘000 BCM) 14,638 15,628 Total Ore (‘000 BCM) 1,774 1,693  Focus on accessing high Concentrate Produced (t) 2,123 2,019 grade ore Weight Recovery (%) 35.9% 36.4%  Continued investment in Pellets Produced (‘000 t)

  10. Slide 10: Key Operating Statistics

    Key Operating Statistics For personal use only 2012 2011 2013 Priorities Tonnes Sold (‘000) 2,369 1,773  Take advantage of improving iron Realised Selling Price (US$/t) $145.71 $214.28 ore prices Average Exchange Rate (A$:US$1) 1.036 1.038  Drive C1 cost Realised Selling Price (A$/t) $139.86 $202.

  11. Slide 11: 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%  Progressed project engineering, land acquisition, permitting, drilling and test work  Initial capital expenditure estimated at A

  12. Slide 12: 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)  Maintain all tenements, permits and project assets in good order Timely

  13. Slide 13: 2013 Priorities – Recapped

    2013 Priorities – Recapped  Broaden customer base to take advantage of improving market opportunities For personal use only  Drive operating costs down further and regain access to high grade ore  Continue investment in mine development - progress next phase of North Pit development and unlock So

  14. Slide 14: Primary Contact

    Primary Contact For personal use only Primary Contact: Richard Mehan Managing Director +61 8 9327 7901 managingdirector@grangeresources.com.au March 2013 Slide 14

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