Grange Resources Limited · ASX:GRR
Grange Resources — Investor Presentation (December 2009)
27 slides from Grange Resources's investor presentation, Dec 3, 2009
Slide 1: Grange Resources European Investors Lunch
For personal use only Grange Resources European Investors Lunch Amsterdam 2nd December 2009 Russell Clark Managing Director & CEO NOT FOR DISTRIBUTION IN THE US Level 11, 200 St Georges Terrace NOT FOR DISTRIBUTION IN THE US Perth Western Australia 6000 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer For personal use only This document has been prepared by Grange Resources Limited (ABN 80 009 132 405) (Grange or the Company). No party other than Grange has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, r
Slide 3: Grange Highlights
Grange Highlights For personal use only Grange is Australia’s largest magnetite producer, formed by a merger between Grange and Australian Bulk Minerals (ABM) in 2009. 9 Australia’s leading exporter of iron ore pellets, producing 2.2Mtpa from the Savage River operations in Tasmania in 08/09 9 Recent
Slide 4: Current Ownership Structure
Grange Resources Current ownership Structure For personal use only Board of Directors 24.2% Shagang – China’s largest private steel producer Mr Xi Zhiqiang Chairman Stemcor – London-based trading major Mr Neil Chatfield Deputy Chairman Mr Russell Clark Managing Director, CEO 7.2% RGL – Commodity imp
Slide 5: Jiangsu Shagang: A Strong Partnership
Jiangsu Shagang A strong partnership For personal use only Shagang Overview Grange’s largest shareholder Demonstrated continuing support for Grange with an attractive LOM offtake agreement at Savage River at benchmark prices and agreement to negotiate at fair market price for Grange’s share of o
Slide 6: Iron Ore Value
Iron Ore Value For personal use only Vale/Nippon Steel FOB Tubarao Direct Reduction Pellet US125.23c per dmtu1 Blast Furnace Pellet US110.43c per dmtu Value & price Quality Direct Shipping Lump US100.94c per dmtu Magnetite Concentrate Direct Shipping Fines US89.87c per dmtu Note: NOT FOR D
Slide 7: Pellet Price: Rising rapidly with economic recovery
Pellet Price Rising rapidly with economic recovery For personal use only • Since the iron ore price settlement in June, Grange has had offers to buy pellets into the spot market at a significant premium to current benchmark Pellets are highly leveraged to the world’s economic recovery – when blast
Slide 8: Video
Video For personal use only NOT FOR DISTRIBUTION IN THE US 9
Slide 9: Australia's Leading Magnetite Producer
Australia’s Leading Magnetite Producer For personal use only Grange’s position as Australia’s leading magnetite producer is supported by quality assets in Tasmania and Western Australia. Southdown Project (70%) Savage River (100%) 90km northeast of the Port Northwest Tasmania of Albany Produci
Slide 10: 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 11: Savage River Overview
Savage River Overview For personal use only Ownership • Grange 100% • Mineral Resource of 316Mt magnetite at Resources and 50.7% DTR Reserves • Ore Reserve of 124Mt magnetite at 49.2% DTR • 2.5Mtpa blast furnace pellets and concentrate Production (annualised basis) • Potential to expand to 2.9Mtpa L
Slide 12: 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 13 NOT FOR DISTRIBUTION IN THE US 13
Slide 13: Large Scale Operations
Large Scale Operations For personal use only NOT FOR DISTRIBUTION IN THE US 14
Slide 14: Projects - Savage River
Projects - Savage River For personal use only 15 NOT FOR DISTRIBUTION IN THE US 15
Slide 15: Own Downstream Infrastructure
Own Downstream Infrastructure For personal use only NOT FOR DISTRIBUTION IN THE US 16
Slide 16: Own Port and Shiploading Infrastructure
Own Port and Shiploading Infrastructure For personal use only NOT FOR DISTRIBUTION IN THE US 17
Slide 17: 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 18 NOT FOR DISTRIBUTION IN THE US 18
Slide 18: Southdown Project
Southdown Project High grade magnetite project with advanced infrastructure For personal use only Ownership • Grange 70%, Sojitz Corporation 30% Resources and • Mineral Resource of 654Mt magnetite at 36.5% DTR1,2 Reserves1 • Ore Reserve of 388Mt magnetite at 35.5% DTR1,3 • 6.6Mtpa magnetite concentr
Slide 19: For personal use only
For personal use only 20 NOT FOR DISTRIBUTION IN THE US 20
Slide 20: Southdown Infrastructure – Port of Albany
Southdown Infrastructure – Port of Albany For personal use only 21 NOT FOR DISTRIBUTION IN THE US 21
Slide 21: 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 22: Solid Customer Base
Solid Customer Base Long term offtake agreements – providing revenue stability 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, producing 22 Mtpa of pig iron • Grange’s largest shareholde
Slide 23: 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 24: Key Contacts
Key Contacts For personal use only Primary contacts: Russell Clark Managing Director & Chief Executive Officer +61 8 9321 1118 managingdirector@grangeresources.com.au NOT FOR DISTRIBUTION IN THE US 26
Slide 25: 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 26: Appendix A: Southdown Project Reserves and Resources
Appendix A Southdown Project Reserves and Resources 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
Slide 27: Appendix B: Savage River Reserves and Resources
Appendix B Savage River Reserves and Resources 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
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