Grange Resources Limited · ASX:GRR
Grange Resources — ASX Small to Mid Caps Conference - Hong Kong 2009
25 slides from Grange Resources's conference presentation, Oct 29, 2009
Slide 1: Grange Resources – Australia's leading magnetite producer
Grange Resources – Australia’s leading magnetite producer For personal use only Grange Resources Limited (GRR) ASX Small to Mid Caps Conference – Level 11, 200 St Georges Terrace Perth, WA 6000, Australia Hong Kong Phone + 61 8 9321 1118 29th October 2009 Fax + 61 8 9321 1523 www.grangeresources.com
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
Slide 3: Projects - Savage River
Projects - Savage River For personal use only 3
Slide 4: Grange Savage River Operations - 2009
Projects - Savage River For personal use only 4 Grange Savage River Operations - 2009
Slide 5: Iron Ore Value
Iron Ore Value For personal use only • Direct Reduction Pellet ~70% Fe 40% • Blast Furnace Pellet Value & price ~67% Fe Quality • Direct Shipping Lump ~63% Fe • Magnetite Concentrate • Direct Shipping Fines ~58% Fe
Slide 6: For personal use only
For personal use only 6
Slide 7: Grange – Australia's leading magnetite producer
Grange – Australia’s leading magnetite producer For personal use only • Australia’s largest iron ore pellet producer • Recently completed entitlement offer to raise $124m • FY09 EBITDA of $132m and NPAT of $86m • Solid customer base • Long life assets • Producer and projects • Low sovereign risk • E
Slide 8: Company Snapshot
Company Snapshot For personal use only Current key statistics (A$) Current ownership Structure 26.2% Shagang – China’s largest private Ordinary shares on issue 15 Oct 09 1,048m steel producer Stemcor – London-based trading Last share price 15 Oct 09 $0.265 major 8.2% Market capitalisation 15 Oct 09
Slide 9: Australia's leading magnetite producer
Australia’s leading magnetite producer For personal use only Ownership Operations Customers Production Profile Southdown Project Savage River Mine 9
Slide 10: Savage River Mine & Pellet Plant
Savage River Mine & Pellet Plant For personal use only Port Latta – Pellet Plant producing 2.4Mtpa of pellets Slurry Pipeline to Port Latta (83km) Savage River – open pit mine and concentrator producing 2.5Mtpa of concentrate 10
Slide 11: Projects - Savage River
Projects - Savage River For personal use only 11
Slide 12: Projects - Savage River
Projects - Savage River For personal use only 12
Slide 13: Projects - Savage River
Projects - Savage River For personal use only 13
Slide 14: Customers – Solid and long term
Customers – Solid and long term For personal use only Agreements are in place for both Savage River and Southdown production at benchmark prices or better. • China’s largest private steel mill, 22 Mtpa of pig iron • Grange’s largest shareholder • Savage River LOM contracts in place: • 1.3 Mtpa pelle
Slide 15: Key Information 08/09
Key Information 08/09 Profitable even during economically hard times For personal use only FY09 Operational Statistics FY09 Savage River Actual. Total volume mined (‘000 bcm) 17,745 Total ore mined (‘000 bcm) 997 Concentrate produced (‘000 tonnes) 2,289 Pellets produced (‘000 tonnes) 2,174 Pellets s
Slide 16: Growth - Southdown
Growth - Southdown For personal use only Pellet Plant producing 4. 6.8Mtpa direct reduction and blast furnace pellets 3. Concentrate shipped 2. 100km slurry pipeline to Albany Port 1. 6.6Mtpa mining and concentrating operations for 30 years 16
Slide 17: For personal use only
For personal use only 17
Slide 18: Southdown Infrastructure – Port of Albany
Southdown Infrastructure – Port of Albany For personal use only 18
Slide 19: Grange Resources – production growth prospects
Grange Resources – production growth prospects For personal use only kt Southdown Savage River 19
Slide 20: Resources and Reserves
Resources and Reserves Supporting Long Mine Lives For personal use only Grange has 774Mt of attributable Mineral Resources and 396Mt of attributable Ore Reserves. Mineral Resources (inclusive of reserves) Ore Reserves Tonnes Grade Tonnes Grade (Mt) (%DTR) (Mt) (%DTR) Savage River 4 Savage River Meas
Slide 21: Grange Resources - Summary
Grange Resources - Summary For personal use only • Australia's leading magnetite producer • Australians largest iron ore pellet producer • High grade quality products • Consistent cash margins • Solid customer and revenue base • Low debt & strong balance sheet • Long life assets • Low sovereign risk
Slide 22: Grange …… Australia's leading magnetite producer
For personal use only Grange …… Australia’s leading magnetite producer 22
Slide 23: Competent Person Statement
Competent Person Statement For personal use only • Southdown Project • The information in this presentation which relates to the Mineral Resources of the Southdown Project is based on information compiled by James Farrell who is a full-time employee of Golder Associates Pty Ltd and a Member of the A
Slide 24: Appendix A – Southdown Project
Appendix A – Southdown Project For personal use only In situ Mineral Resource Estimate Classification Measured Resources Indicated Resources Inferred Resources Total Resources Tonnes (Mt) 219.7 210.3 224.4 654.4 DTC wt% 37.4 38.9 33.4 36.5 DTC Fe% 69.2 69.3 69.1 69.2 DTC SiO2% 1.72 1.94 2.07 1.91 DT
Slide 25: Appendix B – Savage River
Appendix B – Savage River For personal use only Mineral Resource and Ore Reserve Estimates Mineral Resource Tonnes (Mt) Grade (%DTR) Ore Reserve Tonnes (Mt) Grade (%DTR) Measured 88.01 52.7 Proved 52.39 49.6 Indicated 135.96 51.7 Probable 72.00 48.9 Inferred 92.22 47.2 Total 124.40 49.2 Total 316.20
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