Slide 1: 2011 December Quarter Results
For personal use only Australia’s leading magnetite producer 2011 December Quarter Results Russell Clark Managing Director and CEO 17 January 2012
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 Overview
Company Overview For personal use only Grange remains Australia’s leading magnetite producer. An ASX 300 index, dividend paying company, with a strong balance sheet, no net debt , a large producing mine and a larger magnetite project. January 17, 2012 Slide 3
Slide 4: Company Snapshot
Company Snapshot For personal use only Current key statistics (A$) Current Ownership Structure Ordinary shares on issue 16 January 2012 1,154m Free float Last share price 16 January 2012 $0.545 33.9% PML 46.78% Market capitalization 16 January 2012 $628m RGL Group Cash & Receivables 31 December 2011
Slide 5: Grange Resources: Australia's Leading Magnetite Producer
Grange Resources Australia’s Leading Magnetite Producer For personal use only Grange’s position is supported by quality assets In Tasmania and Western Australia. Southdown Project (70%) Savage River (100%) 90km northeast of the Northwest Tasmania Port of Albany Annualised production rate 698
Slide 6: December 2011 Quarter Highlights
December 2011 Quarter Highlights For personal use only • Continued excellent safety performance at Savage River and Southdown. • 17 months of no Lost Time Incidents (LTI) achieved. • Improved cash, term deposits and trade receivables position of A$226.7 million • No net debt at the end of the quarte
Slide 7: December 2011 Quarter Summary
December 2011 Quarter Summary For personal use only Production and Production and Production and Costs Costs Costs December Quarter September Quarter December Quarter 2011 2011 2010 Total BCM Mined 4,240,390 3,184,680 3,971,951 Total Ore BCM 531,189 402,846 361,781 Weight Recovery (% DTR) 41.70 34.5
Slide 8: East wall failure – June 2010
East wall failure – June 2010 For personal use only As a result of the wall failure, access to the high grade North Pit was cut off January 17, 2012 Slide 8
Slide 9: East wall failure – December 2010
East wall failure – December 2010 For personal use only The East Wall has undergone a cut back and access to the North Pit has been re-established January 17, 2012 Slide 9
Slide 10: Savage River Concentrate Production
Savage River Concentrate Production Quarter on Quarter Tonnesuse only 700,000 650,000 600,000 550,000 For personal 500,000 450,000 400,000 350,000 300,000 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 As planned, production has increased as the aast wall remediation has been complet
Slide 11: Savage River C1 Unit costs of pellets
Savage River C1 Unit costs of pellets Quarter on Quarter For personal use only 180 160 C1 Unit cost per tonne of pellets produced $/t 140 120 100 80 60 40 20 0 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Increased production rates in the December quarter have resulted in a reducti
Slide 12: Southdown Mineral Resources
Southdown Mineral Resources Quantity and Confidence improved For personal use only As at December 2010 As at December 2011 Tonnes Grade Tonnes Grade (Mt) wt% DTR (Mt) wt% DTR Measured 220 37.4 407 37.1 Indicated 210 38.9 40.2 40.7 Inferred 224 33.4 250.8 32.5 Total 654 36.5 698 35.7 An $8.3 million
Slide 13: Savage River - Leveraged to price
Savage River - Leveraged to price For personal use only Margin leverage to price @2.0Mtpa 450 December 2011 400 350 Margin A$ million 300 Revenue 250 Costs 200 150 100 120 130 140 150 160 170 180 190 200 210 Price US$/t January 17, 2012 Slide 13
Slide 14: Summary
Summary For personal use only Strong December Quarter Increased production - highest concentrate production for 15 months Lower unit costs – 30% reduction from previous quarter Robust margins Continuing solid safety performance Improved cash and receivables position No net debt Predi
Slide 15: Key Contacts
Key Contacts For personal use only Primary contacts: Russell Clark Managing Director & Chief Executive Officer +61 8 9327 7901 managingdirector@grangeresources.com.au Media: Tarryn Truscott Consultant, “LastSay.” Communications 08 6102 7295 or 0438 906 643 tarryn@lastsay.net.au January 17, 2012 Slid
Slide 16: Competent Person Statement
Competent Person Statement For personal use only Southdown Project The information in this report which relates to the Mineral Resources of the Southdown Project- Western Tenements is based on information compiled by Michael Everitt who is a full-time employee of Grange Resources Limited and a Mem