Grange Resources Limited · ASX:GRR
Grange Resources — Shareholder Meeting (May 2020)
28 slides from Grange Resources's shareholder meeting presentation, May 28, 2020
Slide 1: Australia's most experienced magnetite producer
Australia’s most experienced magnetite producer Investor Presentation 28 May 2020
Slide 2: Company Highlights
Company Highlights ✓ Most EXPERIENCED magnetite producer Over 50 years of operational experience at Savage River ✓ STRONG Safety Culture Achieved over 3 years LTI free at the end of March 2020 ✓ Shipped 2.2m tonnes of Iron Ore Products in 2019 2.2 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: COVID-19 Status in Tasmania
COVID-19 Status in Tasmania COVID-19 in Tasmania ▪ 226 cases have been confirmed in Tasmania ▪ 205 have recovered | 8 cases active | no new cases in the last 11 days. ▪ Outbreak in the NW has been controlled – State Premier has provided outstanding direction and communication throughout the crisis i
Slide 5: COVID-19 Planning and Response
COVID-19 Planning and Response Pandemic Management Plan ▪ Team has developed appropriate and comprehensive plans and supporting resources to supplement our Crisis Management framework ▪ These encompass oversight of the crisis, response to any potential active cases onsite, management of remote work
Slide 6: 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 7: 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 8: Pellet Premium
Pellet Premium Pellet Prices (FOB USD) Sustained Pellet Premium 140.00 ✓ High Fe Content 120.00 ✓ Low Impurities ✓ Attracting Premium 100.00 ✓ Delivering into term offtake agreements 80.00 60.00 40.00 20.00 - Jan-2019 Feb-2019 Mar-2019 Apr-2019 May-2019 Jun-2019 Jul-2019 Aug-2019 Sep-2019 Oct-2019 N
Slide 9: Company Overview
Company Overview May 2020 Slide 9
Slide 10: Strategic Plan 2020
Strategic Plan 2020 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 11: Strategic Areas of Focus
Strategic Areas of Focus Maximising Mineral Asset Value ▪ Provide high quality ore from North Pit ▪ Continue investment in mine development ▪ Progress North Pit development on the west wall ▪ Obtain environmental approvals for Centre Pit ▪ Investigating the potential to access ore at depth in North
Slide 12: 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 2020 Slide 12
Slide 13: GRR Company Snapshot
GRR Company Snapshot Capital Structure (A$) Share Price and Volume Ordinary Shares on issue 31 Mar 2020 1,157m Share Price 31 Mar 2020 $0.175 Market Capitalization 31 Mar 2020 $203m Cash, cash equivalents and liquid 31 Mar 2020 $169m investments Click to add text Ownership Structure as at 3 Feb 2020
Slide 14: 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 15: 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 16: Tasmanian Operations Performance & Focus
Tasmanian Operations Performance & Focus May 2020 Slide 16
Slide 17: Highlights for 2019 — Tasmania
Highlights for 2019 — Tasmania ✓ Surpassed 1,000 consecutive days Lost Time Injury Free By year end 2019. ✓ Achieved revised full year production target Despite the high rainfall and flooding hampering mining activity from previous year. ✓ Continued investment in Mine Development The next stage of N
Slide 18: Dec 2019 Financial Position - Consolidated
Dec 2019 Financial Position - Consolidated 2019 2018 Difference Indicator Variance% Comments AUD’000 AUD’000 AUD’000 ↓ Cash, Current Assets 339,592 316,676 22,916 7% ↑ Shipping receivables, ↑ Inventories ↑ PP&E ↑ Mine Properties & Dev Non-current Assets 348,285 291,939 56,346 19% ↑ Deferred Tax Asse
Slide 19: 2019 Performance – Indicators
2019 Performance – Indicators 2019 2018 Indicator Unit Difference Variance % Comments Actual Actual ↓Revised full year production target achieved Tonnes despite high rainfall and wall instability during the Concentrate 2,117 2,276 (159) (7%) latter part of the prior year impacting mine ‘000 producti
Slide 20: LOM Strategies — Maximising Mineral Assets
LOM Strategies — Maximising Mineral Assets North Pit South Deposit ▪ High quality, long life resources ▪ ~18MT @ 41%DTR ▪ ~237MT @ 49%DTR ▪ Supporting LOM tailings infrastructure ▪ Supporting long life operations construction Centre Pit Long Plains ▪ Modelling in progress to further develop ore ▪ De
Slide 21: North Pit Development
North Pit Development North Pit Mine Development North Pit East Wall Remediation ▪ West wall cut-back continues ▪ Supporting continued ore production Main Ore Zone May 2020 Slide 21
Slide 22: Key Projects
Key Projects Exploration Decline Steel Pan Conveyor ✓ Commenced decline in March 2019 ✓ Installation at Pellet Plant ✓ Over 1.50km developed ✓ Planned for Q4,2020 ✓ Drilling program continues in 2020 ✓ Reduces maintenance costs and ✓ Bulk Sample Drive to develop improves pellet quality through ore z
Slide 23: Southdown Project Achievements & Strategies
Southdown Project Achievements & Strategies May 2020 Slide 23
Slide 24: 2019 Project Overview – Southdown
2019 Project Overview – Southdown ✓ 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 tenure and access, includ
Slide 25: Grange ROC Property
Grange ROC Property Project Status & Focus May 2020 Slide 25
Slide 26: Grange ROC Property
Grange ROC Property ▪ Project 1 – Lumley Park, Prahran ▪ All 5 units at Lumley Park were successfully sold and settled. ▪ Project 2 – Carter, Toorak ▪ Construction at Carter Toorak is completed. Statement of Compliance was issued. ▪ The focus now is to sell the remaining units. Three of 8 units have
Slide 27: 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 28: 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