Grange Resources Limited · ASX:GRR
Grange Resources — Investor Presentation (April 2017)
23 slides from Grange Resources's investor presentation, Apr 18, 2017
Slide 1: Australia's most experienced magnetite producer
For personal use only Australia’s most experienced magnetite producer Presentation April 2017
Slide 2: Company Highlights
Company Highlights ✓ Most EXPERIENCED magnetite producer For personal use only Over 49 years of operational experience at Savage River ✓ STRONG Safety Culture Achieved over 630 days LTI free at the end of Dec 2016 ✓ Record Shipping of ~2.7 million tonnes of Iron Ore Products Over 2.7mt of pellets an
Slide 3: 1. Company Overview
For personal use only 1. Company Overview April 2017 Slide 3
Slide 4: 1.1 Company Assets
1.1 Company Assets For personal use only 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. April 2017 Slide 4
Slide 5: 1.2 Dec 2016 Financial Position - Consolidated
1.2 Dec 2016 Financial Position - Consolidated For personal use only Dec 2016 Dec 2015 Difference Indicator Variance% Comments AUD’000 AUD’000 AUD’000 Current Assets 232,806 229,522 3,284 1% ↑ Cash & Receivables ↓ Inventory Non-current Assets 196,150 111,772 84,378 75% ↑ PP&E ↑ Mine Properties & Dev
Slide 6: 1.3 Company Snapshot
1.3 Company Snapshot For personal use only Capital Structure (A$) Share Price and Volume Grange Resources Limited Share Price Performance Ordinary Shares on issue 31 Mar 2017 1,157m 6.0 0.25 Share Price 31 Mar 2017 $0.195 5.0 0.20 4.0 Share Price ($/share) 0.15 Market Capitalization 31 Mar 2017 $226
Slide 7: 1.4 Products from Tasmanian Operations
1.4 Products from Tasmanian Operations For personal use only Higher Developing Iron Ore Pellet Fluxed Pellet ~65% Fe Magnetite Concentrate ~67% Fe QUALITY Direct Shipping Lump ~63% Fe Direct Shipping Fines Lower ~57% - ~ 61% Fe Lower Price Higher April 2017 Slide 7
Slide 8: 2. Tasmanian Operations Performance & Focus
For personal use only 2. Tasmanian Operations Performance & Focus April 2017 Slide 8
Slide 9: 2.1 Jan.- Dec. 2016 Performance – Indicators
2.1 Jan.- Dec. 2016 Performance – Indicators For personal use only Indicator Unit Dec 2016 Dec 2015 Difference Variance% Comments ↓ Concentrate production in line with Concentrate Tonne ‘000 2,397 2,606 -209 -8% planned South Deposit Ore delivery ↓ Pellet production line balanced with Pellet Tonne ‘
Slide 10: 2.2 2016 Quarter Performance – Indicators
2.2 2016 Quarter 4 Performance – Indicators Variance Indicator Unit Q4 2016 Actual Q3 2016 Actual Difference Comments For personal use only % Concentrate Tonne ‘000 605 567 38 7% ↑ Achieved production target Pellet Tonne ‘000 586 632 (46) (7%) ↓ Maintenance undertaken at Pellet Plant ↓ Cost reductio
Slide 11: 2.3 Highlights for 2016 — Tasmania
2.3 Highlights for 2016 — Tasmania • Continued Safety Focus For personal use only Our focus on safety is the highest priority and we saw significant improvements in performance in 2016. Unfortunately a tragic accident occurred at the mine in March 2017. The accident occurred when a team of contracto
Slide 12: 2.4 LOM Strategies — Leveraging Resources
2.4 LOM Strategies — Leveraging Resources For personal use only North Pit South Deposit ▪ High quality, long life resources ▪ ~19MT @ 42%DTR ▪ ~128MT @ 58%DTR ▪ Supporting LOM tailings infrastructure ▪ Supporting long life operations construction Centre Pit Long Plains ▪ Modelling in progress to fur
Slide 13: 2.5 LOM Strategies — Leveraging Resources
2.5 LOM Strategies — Leveraging Resources For personal use only Ore Reserves Other Potential ▪ Potential to increase with continued development ▪ Long Plains ▪ Strong Resource basis for long life ▪ Centre Pit ▪ External opportunities 百 万 吨 April 2017 Slide 13
Slide 14: 2.6 LOM Strategies—Optimising Mining Operations
2.6 LOM Strategies— Optimising Mining Operations For personal use only North Pit Production Stripping ▪ Ore supply for 2017 North Pit Mine Development ▪ West wall cut-back commences South Deposit – reaching completion of current design ▪ Ore supply for early 2017 ▪ Provides ore and material for cons
Slide 15: 3. Southdown Project Achievements & Strategies
For personal use only 3. Southdown Project Achievements & Strategies April 2017 Slide 15
Slide 16: 3.1 2016 Project Overview – Southdown
3.1 2016 Project Overview – Southdown For personal use only ✓ The Project continues on reduced expenditure while Grange seeks an equity partner for a strategic share in the Project ✓ Existing tenure and approvals have been maintained . ✓ Project security has been enhanced by continuing to build land
Slide 17: 3.2 Southdown Project Strategies 2017
3.2 Southdown Project Strategies 2017 For personal use only We continue the approaches adopted in 2016 into 2017, as we: ▪ Formulate valid alternate development model and seek to secure equity ▪ Seek partners for a strategic share of the Company’s interest in the project April 2017 Slide 17
Slide 18: 4. Recap
For personal use only 4. Recap April 2017 Slide 18
Slide 19: 4.1 Grange — LOM Strategies Recapped
4.1 Grange — LOM Strategies Recapped For personal use only ▪ Improve productivity and sustain access to high grade ore ▪ Provide high quality ore from North Pit ▪ Continue investment in mine development - progress next phase of North Pit development on the west wall ▪ Continue to invest in process i
Slide 20: 4.2 Focusing on the fundamentals
4.2 Focusing on the fundamentals For personal use only ▪ 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 w
Slide 21: 4.3 Ongoing Strategies
4.3 Ongoing Strategies For personal use only ▪ We continue to: ▪ Develop and optimise LOM ▪ Progress with PRCC project ▪ Develop Long Plain resources and project ▪ Look for M&A opportunities of iron ore projects ▪ Diversify the markets outside of China ▪ Improve communications/relations with all sha
Slide 22: Primary Contact
Primary Contact For personal use only 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,
Slide 23: 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
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