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. |