Grange Resources Limited · ASX:GRR
Grange Resources — Shareholder Meeting (May 2021)
27 slides from Grange Resources's shareholder meeting presentation, May 25, 2021
Slide 1: Australia's most experienced magnetite producer
Australia’s most experienced magnetite producer Investor Presentation 25 May 2021
Slide 2: Company Highlights
Company Highlights ✓ Most EXPERIENCED magnetite producer Over 50 years of operational experience at Savage River ✓ STRONG Safety Culture Achieved over 4 years LTI free at the end of March 2021 ✓ Shipped 2.5m tonnes of Iron Ore Products in 2020 2.5 million tonnes of pellets and chips sold through the
Slide 3: Vision & Values
Vision & Values At Grange we ALL will… ✓ Work safely. ✓ Lead & act with fairness, integrity, trust and respect. ✓ Be responsible & accountable for our actions. ✓ Utilise our resources efficiently and effectively. ✓ Engage with stakeholders and proactively manage our impact on their environment. We w
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: Pellets have favourable physical and chemical properties
✓ Pellets have favourable physical and chemical ✓ Reduction in waste - slag properties. ✓ Higher yield of metallic iron ✓ Lower maintenance costs in due to higher Fe content the Blast Furnace ✓ Reduced environmental ✓ Reduction in energy impact with decrease in consumption air emissions
Slide 6: Pellet Price Received
Pellet Price Received Sustained Pellet Premium ✓ High Fe Content ✓ Low Impurities ✓ Attracting Premium ✓ Delivering into term offtake agreements May 2021 Slide 6
Slide 7: Strategic Plan 2021
Strategic Plan 2021 Develop Sustainable LOMP Integrate Innovation Sustain Ageing Infrastructure Build Capacity & Capability • Uncertainty in the Life-of-Mine Plan is the • Innovation is critical to improving safety, • Our process is supported by mature and • People are our most valuable asset founda
Slide 8: Strategic Areas of Focus
Strategic Areas of Focus Maximising Mineral Asset Value ▪ Provide high quality ore from North Pit ▪ Continue investment in mine development in Centre Pit ▪ Environmental approvals for Centre Pit have been obtained ▪ Investigating the potential to access ore at depth in North Pit via underground mini
Slide 9: Company Assets
Company Assets Australia’s Most Experienced Magnetite Producer Savage River (100%) Southdown Project (70%) Focusing on the Searching for an fundamentals equity partner Quality assets in Tasmania and Western Australia. May 2021 Slide 9
Slide 10: GRR Company Snapshot
GRR Company Snapshot Capital Structure (A$) Share Price, Trading Volume and Returns Ordinary Shares on issue 30 Apr 2021 1,157m Share Price 30 Apr 2021 $0.57 Market Capitalization 30 Apr 2021 $660m Cash, cash equivalents and liquid 30 Apr 2021 $296m investments Ownership Structure as at 30 April 202
Slide 11: 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 12: The Benefit of Pellets
The Benefit of Pellets Pellets are often preferred over iron ore fines, sinter and lump due to their favourable physical and chemical properties supporting increased Blast Furnace productivity and efficiency. Pellets are an enriched form of iron ore and provide significant benefits for the steel mak
Slide 13: Highlights for 2020 — Tasmania
Highlights for 2020 — Tasmania ✓ Surpassed 1,470 consecutive days Lost Time Injury Free By end March 2021. ✓ Delivered full year production target 2020 Managed the safety health and wellbeing of our employees through COVID19 1.4 MBCM 14.6 MBCM ✓ Continued investment in Mine Development Ore BCM 2%
Slide 14: COVID-19 Status in Tasmania
COVID-19 Status in Tasmania COVID-19 in Tasmania ▪ Over 12 months since Tasmania recorded a case of COVID-19 in our community ▪ Tasmania continues a risk-based approach with strong safeguards ▪ Tas e-Travel system is required for registered entry into the state, with temperature scans and registrati
Slide 15: LOM Strategies — Maximising Mineral Assets
LOM Strategies — Maximising Mineral Assets North Pit South Deposit ▪ High quality, long life resources ▪ ~18MT @ 41%DTR ▪ ~245MT @ 50%DTR ▪ Supporting LOM tailings infrastructure ▪ Supporting long life operations construction Centre Pit Long Plains ▪ Modelling in progress to further develop ore ▪ De
Slide 16: North Pit Development
North Pit Mine Development ▪ West wall cut-back completed North Pit East Wall Remediation ▪ Supporting continued ore production Main Ore Zone May 2021 Slide 16 North Pit Development
Slide 17: Centre Pit Development
Centre Pit Mine Development ▪ East wall cut-back in progress May 2021 Slide 17 Centre Pit Development
Slide 18: Key Projects
Key Projects Exploration Decline ✓ Over 2.4 km developed Steel Pan Conveyor ✓ 30,000m of diamond core collected ✓ Implemented within 23 days ✓ Bulk Sample Drive completed ✓ Planned for Q4,2020 ✓ Drive completed through fault zone ✓ Reduces maintenance costs and Main Ore Zone and improves pellet qual
Slide 19: Financial Performance
Financial Performance May 2021 Slide 19
Slide 20: Dec 2020 Financial Position - Consolidated
Dec 2020 Financial Position - Consolidated 2020 2019 Difference Variance Indicator Comments AUD’000 AUD’000 AUD’000 % ↑ Cash, Current Assets 420,403 340,536 79,867 23% ↑ Shipping receivables, ↑ Inventories ↑ PP&E ↑ Mine Properties & Dev Non-current Assets 453,377 348,285 105,093 30% ↑ Deferred Tax A
Slide 21: 2020 Performance – Indicators
2020 Performance – Indicators 2020 2019 Indicator Unit Difference Variance % Comments Actual Actual ↑Increased concentrate production due to high Tonnes Concentrate 2,531 2,117 414 20% grade ore delivered from Main Ore Zone from ‘000 North Pit ↑Pellet production line balanced with concentrate Tonnes
Slide 22: Proposed long-term offtake agreement
Proposed long-term offtake agreement The below table summaries the key changes in the proposed off-take agreement to the existing off-take agreement. Existing Off-take Agreement Proposed Off-take Agreement Term • 10 years • 10 years • 1 million DMT per annum ✓ 1 million DMT per annum Quantity • (plu
Slide 23: Proposed long-term offtake agreement
Proposed long-term offtake agreement Grange are recommending a renegotiated long term ✓ Shagang, as Grange’s largest shareholder and one of offtake agreement with major shareholder and core the top 3 steel manufacturers in China, is assessed to customer, Shagang. pose low-counter party risk. ✓ In ad
Slide 24: Southdown Project Achievements & Strategies
Southdown Project Achievements & Strategies May 2021 Slide 24
Slide 25: 2020 Project Overview – Southdown
2020 Project Overview – Southdown ✓ The Company is continuing to carry out a strategic review of the project ✓ Existing tenure and approvals have been maintained . ✓ Project security has been enhanced by continuing to build land tenure and access, including: • Negotiations concluded on accessing Mai
Slide 26: Ongoing Strategies
Ongoing Strategies Our fundamentals remain firm: ▪ 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 ▪ Our people und
Slide 27: Primary Contact
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