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Mar.28.2024 1USD=7.0948RMB
  SteelHome >>Raw Material>>Market Info>>Special Studies
 
Grange Resources Announces 2020 Q2 Iron Ore Production Report

https://en.steelhome.com [SteelHome] 2020-07-28 15:22:46

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HIGHLIGHTS

•      The operation achieved over 1200 days Lost Time Injury Free.

•      The Company continued to prioritize the health, safety and well-being of our workforce during the COVID-19 pandemic. The northwest region of Tasmania also experienced a cluster of infection cases in the early part of the quarter. Since then the State has sustained zero new COVID-19 cases for over 2 months.

•      Pellet production increased for the quarter to 641kt compared with 589kt for the March 2020 quarter.

•      Pellet sales increased for the quarter to 642kt compared with 557kt for the March 2020 quarter.

•      Decrease in average received prices for the quarter to US$112.72/t (A$170.89/t) (FOB Port Latta) compared with US$118.34/t (A$183.47/t) for the March 2020 quarter.

•      Unit cash operating cost decreased for the quarter to A$97.23/t compared with A$99.28/t for the March 2020 quarter. This was due to an increase in concentrate production to 649kt from 600kt for the last quarter.

•      Cash and liquid investments of A$175.98 million and trade receivables of A$34.47 million compared with cash and liquid investments of A$168.98 million and trade receivables of A$40.25 million for the March 2020 quarter.

•      Outlays of approximately A$14.61 million have been made in the quarter on capital projects including progression of the underground exploration decline in North Pit and replacement of pellet plant west wall cladding

•      Underground exploration decline completed to 1,525 metres.

•      The Southdown Magnetite project achieved a significant milestone as the Company was granted approval of EPBC 2011/6053 under the Environment Protection and Biodiversity Conservation Act 1999.

“The COVID-19 pandemic continues to be highly active globally. Our operations and workforce in Tasmania were also impacted early on in the quarter as the pandemic broke out in Australia. Our Team has done exceptionally well in implementing our business continuity response plan. Their significant efforts during this period of unprecedent uncertainty has enabled our operations to continue production and most importantly enabled our workforce to feel and be safe as we continue to stay vigilant” said CEO Mr. Honglin Zhao.

“Our production and sales of iron ore remain on budget for the full year.”

“The underground feasibility study continues to progress, with the Exploration Decline development and Bulk Sample Drive being carried out on schedule.”

SAVAGE RIVER OPERATIONS

PRODUCTION

 

June Quarter 2020

March Quarter 2020

December Quarter 2019

Total BCM Mined

3,710,712

4,061,862

3,835,834

Total Ore BCM

222,163

133,514

771,345

Concentrate Produced (t)

649,377

600,481

699,522

Weight Recovery (%)

46.5

51.7

53.1

Pellets Produced (t)

640,922

588,885

650,378

Pellet Stockpile (t)

178,138

179,515

147,721

Concentrate Stockpile (t)

1,872

3,073

5,497

Downstream processing performed well with Concentrate and Pellet production both up from the previous quarter. Scheduled maintenance works on furnace line 3 as well as the change- out of the hot pellet conveyor belt completed safely without any incident.

SHIPPING AND SALES

 

June Quarter 2020

March Quarter 2020

December Quarter 2019

Iron Ore Pellet Sales (dmt)

642,299

557,091

731,816

Iron Ore Concentrate Sales (dmt)

0

0

41

Iron Ore Chip Sales (dmt)

20,010

20,371

35,020

TOTAL Iron Ore Product Sales (dmt)

662,309

577,461

766,877

Average Realised Product Price (US$/t FOB Port Latta)

112.72

118.34

104.04

Average Realised Exchange Rate (AUD:USD)

0.6596

0.645

0.6827

Average Realised Product Price (A$/t FOB Port Latta)

170.89

183.47

152.4

The average A$ price received during the quarter of A$170.89/t (US$112.72/t) (FOB Port Latta), decreased by 6.86% from A$183.47/t (US$118.34/t) for the March Quarter.

Grange continues to deliver into secured term offtake agreements realising higher prices for our lower impurity and high-quality products.

MINE DEVELOPMENT PROJECTS

North Pit Underground

Underground exploration decline development completed to 1,525 metres. The Bulk Sample Drive access development was commenced in the quarter and completed 237 metres by the end of the quarter. The Board has approved additional work to be undertaken throughout 2020, with a view to completing the pre-feasibility study in Q2 2021. This additional work will include the incorporation of the data from the completed Phase 3 drilling program and the implementation of a Bulk Sample Drive that will be developed through the width of the ore zone. The Bulk Sample Drive will enable further collection of information to inform the risks and uncertainties identified.

Port Latta Improvement Projects

Work continues to redesign and rebuild the fifth furnace. This involves demolition works of redundant infrastructure around the furnace in preparation for the rebuilding and modification of the furnace. Engineering design work to modify the furnace to improve the air flow in the furnace continues. If successful, this will improve pellet quality and reduce energy consumption. Current planning is seeking completion of the innovative design in 2020 with a view to implement in 2021.

SOUTHDOWN MAGNETITE PROJECT

(Grange 70%, SRT Australia Pty Ltd 30%)

At the end of the quarter, the Project achieved a significant milestone as the Company was granted approval of the Southdown Magnetite Project (EPBC 2011/6053) under the Environment Protection and Biodiversity Conservation Act 1999.

The process of seeking a strategic investor(s) for the project is ongoing.

All tenements, permits and project assets continue to be maintained in good order. Budgeting and cost control over expenditure on this project continues to secure the investment.

The Joint Venture Partners continue to monitor all ongoing project requirements. This is to ensure that the current status of the feasibility studies allow the full recommencement of the project once the Joint Venture is able to secure an equity partner for a strategic share of the Company’s interest in the project.

GRANGE ROC PROPERTY

The Company has decided that no further property developments will be sought with existing investments being reviewed.

Carter Toorak

Construction at Carter Toorak is complete with the certificates of occupancy obtained. The focus now is to sell the remaining units. Three of 8 units have been sold and achieved the budgeted or higher sale price.

Brookville

The focus continues on selling the developed land at Brookville.


(To contact the reporter on this story: cody.wang@steelhome.cn or 86-555-2238837 18725550282)
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