Grange Resources Limited · ASX:GRR
Grange Resources — Shareholder Meeting (May 2015)
25 slides from Grange Resources's shareholder meeting presentation, May 13, 2015
Slide 1: Australia's most experienced magnetite producer
For personal use only Australia’s most experienced magnetite producer Annual General Meeting 13 May 2015
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 no
Slide 3: Company Highlights
Company Highlights For personal use only Most EXPERIENCED magnetite producer 48 years of operational experience at Savage River STRONG Safety Culture Over 1,700 days LTI free as at 31 March 2015 LONG LIFE producer of PREMIUM iron ore pellets High quality ore reserves (~ 51% DTR) producing ~65%
Slide 4: 1. Company Overview
For personal use only 1. Company Overview May 2015 Slide 4
Slide 5: Company Assets
1.3 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. May 2015 Slide 5
Slide 6: 2014 Financial Position - Consolidated
1.5 2014 Financial Position - Consolidated For personal use only Dec 2014 Dec 2013 Difference Indicator Variance% Comments AUD’000 AUD’000 AUD’000 Decrease of Cash, Receivables and Current Assets 231,233 252,194 -20,961 -8% Inventory Non-current Assets 397,016 541,933 -144,917 -27% Impairment and ca
Slide 7: Company Snapshot
1.6 Company Snapshot For personal use only Capital Structure (A$) Share Price and Volume Ordinary Shares on issue 30 Apr 2015 1,157m Share Price 30 Apr 2015 $0.115 Market Capitalisation 30 Apr 2015 $133m Cash and Term Deposits 30 Apr 2015 $144m Loan 30 Apr 2015 - Ownership Structure as at 27 January
Slide 8: Products at Tasmanian Operations
1.7 Products at Tasmanian Operations For personal use only Higher Iron Ore Pellet ~65% Fe Magnetite Concentrate QUALITY ~67% Fe Direct Shipping Lump ~63% Fe Direct Shipping Fines Lower ~57% - ~ 61% Fe Lower Price Higher May 2015 Slide 8
Slide 9: 2. Performance at Tasmanian operations
For personal use only 2. Performance at Tasmanian operations May 2015 Slide 9
Slide 10: 2014 Performance Highlights – Tasmania
2.1 2014 Performance Highlights – Tasmania For personal use only Strong focus on safety Continued Lost Time Injury Free in 2014 Ore supply and head grade sustained despite major rockfall Successfully executed complex mine plans despite the major east wall failure in July 2014 and maintained high
Slide 11: 2014 Performance - Tasmanian Lead Indicators
2.2 2014 Performance - Tasmanian Lead Indicators For personal use only Indicator Unit 2014 2013 Difference Variance% Comments Lost Time Injuries Case 0 0 No LTIs since June 2010 Iron Ore Sales Tonne 2,501,996 1,899,286 602,710 31.7% Higher production and sales Average Price of Iron FOB Port Latta; P
Slide 12: 3. Southdown Project Achievements
For personal use only 3. Southdown Project Achievements May 2015 Slide 12
Slide 13: 2014 Project Overview - Southdown
3.1 2014 Project Overview - Southdown The Project continued on reduced expenditure while Grange seeks an equity For personal use only partner for a strategic share in the Project Existing tenure and approvals have been maintained with notable achievements including: • Securing a 5 year extension
Slide 14: 4. 2015 Work Objectives
For personal use only 4. 2015 Work Objectives May 2015 Slide 14
Slide 15: Focus for 2015 — Tasmania
4.1 Focus for 2015 — Tasmania Continued Safety Focus For personal use only The release of the new 3 year strategic plan will continue to focus our people on safe work Ore Supply from NP Stage 3A & blending with SD ore HG ore sources well developed to allow blending from North Pit and South Depos
Slide 16: 2015 Indicators – Quarter
4.2 2015 Indicators – Quarter 1 For personal use only Result Result Result Result 2014 2015 Q1 2014 Q4 2014 Q1 Production Concentrate (t ‘000) 2,626 710 706 558 Pellet (t ‘000) 2,341 645 595 504 C1 Operational Cost (AUD/ t) 87 71 78 105 Shipping and Sales Total Iron Ore Product Sales (dmt) 2,501,996
Slide 17: LOM Strategies — Grow Reserves & Develop Multiple Mining Locations
4.3 LOM Strategies — Grow Reserves & Develop Multiple Mining Locations For personal use only North Pit South Deposit High quality, long life resources Defined reserve Supporting operations beyond 2030 Supporting LOM tailings infrastructure construction Centre Pit South Long Plains Alternat
Slide 18: LOM Strategies — Developing Multiple Mining Locations
4.4 LOM Strategies — Developing Multiple Mining Locations North Pit Production Stripping For personal use only Ore supply for 2015 North Pit Mine Development East wall cut-back Reducing risk associated with a single pit operation South Deposit Mine Development Ore supply for 2015/16 Provides
Slide 19: LOM Strategies — Value Adding Downstream Infrastructure
4.5 LOM Strategies —Value Adding Downstream Infrastructure For personal use only Concentrator Pipeline Pellet Plant & Port - Autogenous milling and magnetic - 85km pipeline connecting Savage River - Four furnace lines capable of producing separation process to Port Latta ~2.4mtpa of iron ore pellets
Slide 20: Focusing on the fundamentals — Marketing & Pricing 2015
4.6 Focusing on the fundamentals — Marketing & Pricing 2015 For personal use only Iron Ore Prices – (CFR China) Referenced on Metal Bulletin Iron Ore Pellet Index $250 Shagang Commitment $200 Iron Ore Price (AU$/dmt) - Long term FOB (Port Latta) contract to 2023 $150 - 1 million tonnes (+/- 10%) o
Slide 21: Southdown Project Strategies 2015
4.7 Southdown Project Strategies 2015 For personal use only We will continue the approaches adopted in 2014 into 2015, 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 May 2015 Slide 21
Slide 22: 5. Recap
For personal use only 5. Recap May 2015 Slide 22
Slide 23: Grange — LOM Strategies Recapped
5.1 Grange — LOM Strategies Recapped Drive operating costs down further and sustain access to high For personal use only grade ore Provide high quality ore for blending from South Deposit Continue investment in mine development - progress next phase of North Pit development Continue to inves
Slide 24: Focusing on the fundamentals
5.2 Focusing on the fundamentals For personal use only Our fundamentals are solid 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 wit
Slide 25: 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,