Grange Resources (ASX:GRR) Reports Strong December Quarter
Operational Achievements
Grange Resources (ASX:GRR) achieved a Lost Time Injury-free record during the December quarter. The company reported a significant increase in cash and liquid investments, rising to A$298.05 million, along with a rise in trade receivables to A$752.2k. Pellet sales increased to 668kt, while concentrate production rose to 683kt due to improved recovery rates.
Financial Performance
The average received prices remained stable at US$118.91/t (A$180.59/t), compared to US$121.64/t (A$182.74/t) in the previous quarter. The unit cash operating cost saw a decrease to A$133.65/t, down from A$146.37/t, attributed to higher concentrate production.
Mine Development Updates
Development of the North Pit Underground Project advanced with the successful completion of the first raise bore hole for primary ventilation. Additionally, outstanding progress was made in capital projects, amounting to approximately A$31.2 million for the quarter, including work on key infrastructure and equipment upgrades.
Future Outlook
Grange Resources continues to explore future funding options for the North Pit Underground Project, engaging BurnVoir Corporate Finance to secure a financing package aimed at maximising shareholder value. The company is also evaluating the Centre Pit extension as an alternative feed source to increase operational flexibility.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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