Grange Resources Limited · ASX:GRR
Grange Resources — UBS Iron Ore and Coal Conference 2013
20 slides from Grange Resources's conference presentation, Nov 27, 2013
Slide 1: Australia's most experienced magnetite producer
Australia’s most experienced magnetite producer UBS Iron Ore and Coal Conference Sydney, Australia 27-28 November 2013
Slide 2: Disclaimer
Disclaimer 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 representation or war
Slide 3: Company Highlights
Company Highlights Most EXPERIENCED magnetite producer Over 45 years of operational experience at Savage River STRONG Safety Culture 1,195 days LTI free LONG LIFE producer of PREMIUM iron ore pellets High quality ore reserves (52% DTR) producing 65.5% Fe BF pellets Supporting operations at Sav
Slide 4: Company Snapshot
Company Snapshot Capital Structure (A$) Share Price and Volume Ordinary Shares on issue 22 Nov 2013 1,156m 0.50 15 0.40 12 Share Price 22 Nov 2013 $0.245 Share price (A$) Volume (m) 0.30 9 Market Capitalisation 22 Nov 2013 $283m 0.20 6 Cash and Term Deposits 30 Sept 2013 $139m 0.10 3 Debt 30 Sept 20
Slide 5: Company Assets
Company Assets Australia’s Most Experienced Magnetite Producer Savage River (100%) Southdown Project (70%) Focusing on Searching for the fundamentals an equity partner Quality assets in Tasmania and Western Australia. November 2013 Slide 5
Slide 6: Focusing on the fundamentals
Focusing on the fundamentals Our fundamentals are very sound Experienced magnetite producer with a long life project close to the Asian market Producer of a high quality iron ore product (65.5% Fe) that receives a premium price Strong balance sheet with no debt Stable work force with minim
Slide 7: Focusing on the fundamentals – 2013
Focusing on the fundamentals – 2013 1. Focus on accessing high grade ore through continued investment in mine development North pit mining redevelopment and operations running ahead of schedule, regained access to high grade ore in September 2013 Progressing South Deposit mine development and ta
Slide 8: 2013 Quarterly Results – Production
2013 Quarterly Results – Production September June March Quarter Quarter Quarter 2013 2013 2013 Production Total BCM Mined 4,031,266 4,248,393 4,859,868 Total Ore BCM 489,814 520,750 349,046 Weight Recovery (%) 31.5 25.4 31.9 Concentrate Produced (t) 472,108 397,075 453,410 Pellets Produced (t) 446,
Slide 9: Marketing & Pricing
Focusing on the fundamentals Marketing & Pricing Referenced on Metal Bulletin Iron Ore Pellet Index Iron Ore Prices (CFR China) Shagang Commitment $200.00 Iron Ore Price (US$/dmt) $180.00 - Long term FOB (Port Latta) contract to 2023 $160.00 - 1 million tonnes (+/- 10%) of iron ore pellets per $14
Slide 10: 2013 Quarterly Results – Shipping and Sales
2013 Quarterly Results – Shipping and Sales September June March Quarter Quarter Quarter 2013 2013 2013 Shipping and Sales Total Iron Ore Product Sales (dmt) 536,503 380,290 388,203 Avg Realised Product Price (US$/t FOB) 133.85 136.34 144.71 Avg Realised Exchange Rate (AUD:USD) 0.9176 0.9847 1.0359
Slide 11: 2013 - Exceptional Safety Performance
2013 - Exceptional Safety Performance Last LTI: July 2010 November 2013 Slide 11
Slide 12: LOM Strategies: Grow Reserves & Develop Multiple Mining Locations
LOM Strategies Grow Reserves & Develop Multiple Mining Locations North Pit South Deposit High quality, long life resources Defined reserve Supporting operations to 2030 and beyond Supporting LOM tailings infrastructure development Centre Pit South Long Plains Alternative reserve Developi
Slide 13: LOM Strategies: Developing Multiple Mining Locations
LOM Strategies Developing Multiple Mining Locations North Pit Production Stripping Ore supply for 2013/14 North Pit Mine Development East wall cut-back Reducing risk associated with a single pit operation South Deposit Mine Development Ore supply for 2014/15 Provides ore and material for con
Slide 14: LOM Strategies: Value Adding Downstream Infrastructure
LOM Strategies Value Adding Downstream Infrastructure 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 - Progressing the phased up
Slide 15: Iron Ore Pellet or Magnetite Concentrate
LOM Strategies Iron Ore Pellet or Magnetite Concentrate Higher Iron Ore Pellet ~65.5% Fe Magnetite Concentrate QUALITY ~67% Fe Direct Shipping Lump ~63% Fe Premium Iron Ore Pellet Product High iron content, Low impurities Iron (Fe) 65.5% Direct Shipping Fines Silica (SiO2) 2.5% Lower ~57% - ~ 61% Fe
Slide 16: Southdown Project
Southdown Project Southdown Project (GRR Share: 70%) 5X bigger than Savage River November 2013 Slide 16
Slide 17: Southdown Project Achievements
Southdown Project Achievements Completed a definitive feasibility study in April 2012 which improved the projects level of accuracy to +/- 15% Advanced project in terms of project engineering, land acquisition, permitting, drilling and test work Initial capital expenditure estimated at A$2.885
Slide 18: Southdown Project Strategy
Southdown Project Strategy Continue the search for a new equity partner to take a strategic share of the Company’s interest Significantly reduce project expenditure for 2013 to approx. $2.5 million (GRR Share) during a period of difficult market conditions for new capital projects Maintain all
Slide 19: Grange – LOM Strategies Recapped
Grange – LOM Strategies Recapped Broaden customer base to take advantage of market opportunities and to diversify geographic customer risk Drive operating costs down further and regain access to high grade ore Continue investment in mine development - progress next phase of North Pit developme
Slide 20: Primary Contact
Primary Contact Primary Contact: Wayne Bould Managing Director +61 3 6430 0222 [email protected] 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, see 2012 Annual Report
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