Grange Resources Limited (GRR)

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General Information
Company Name: Grange Resources Limited
Stock Code: GRR
GICS Sub-Industry: Gold
Market Cap ($M): 145
Equiv. Shares (M): 1,157

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.125 $ 0.130 $ 0.130 $ 0.122 $ 0.125 2,461,180 0%

Current Broker Consensus Recommendation more
Recommendation: Strong Sell (5)
Recommendation Date: 17th Oct 2014
Brokers Surveyed: 1

Company Overview

Business Description:
Grange Resources Ltd (GRR) owns and operates iron ore mining and pellet production business located in the northwest region of Tasmania. GRR focuses on magnetite projects in two main areas, namely, Savage River Mine Operation and Southdown Project.

Strategy Analysis:
The company has maintained its strategy of pursuing growth through acquiring smaller bolt-on acquisitions that deliver value for shareholders. GRR will continue to pursue a policy of careful capital management and will be reinvesting in plants while watching for other acquisition opportunities and maintaining the company's capability to take advantage of other significant opportunities to add value to the asset portfolio. The company is working to eliminate raw materials that are genetically modified, from the retail branded products wherever this is technically possible and will maximise cost recovery through operational efficiency and price recovery in the market place. Sustained increases in the costs of agricultural commodities are expected to ease in the future. Grange Resources reported NPAT down 83% to $35.90m for the year ended 31 December 2012. Revenues from ordinary activities were $331.31m, down 19% from last year. Diluted EPS was 3.1 cents compared to 18.76 cents last year. Net operating cash flow was $131.93m compared to $210.38m last year. The final dividend declared was 2 cents, taking the full year dividend to 2 cents compared with 2 cents last year.

Financial Summary
Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F -- -1.7 -- -- -- 0.0 --
2014  F -- 17.2 872.3 0.7 -- 0.0 --
2013  A 20.5 1.8 -60.0 12.5 3.0 13.5 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
Grange Resources (GRR) $145 M -0.5995 8.7232 -- 7.0621 0.7263 -- 24.00 0.00 0.00
Newcrest Mining (NCM) $7,665 M -0.0429 -0.3006 0.6076 17.7431 25.3678 15.7803 0.00 0.00 1.90
OceanaGold (OGC) $772 M -- -- -0.0875 -- 8.4238 9.2319 0.00 0.00 0.00
OZ Minerals (OZL) $1,202 M -- -- -0.7053 -- 80.4878 273.1034 5.05 5.05 3.79
Regis Resources (RRL) $752 M -- -- 0.9489 -- 12.0112 6.1630 0.00 NaN 5.61

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
GRR 0.43 0.88 0.19 10.00 0.52
Market 0.89 15.1 1.22 1.70 1.49
Sector 0.68 11.0 0.81 0.95 3.17

Name Position Start Date
Mr Hong Lin Zhao Executive Director 30 July 2010
Dr Michelle Li Non-Executive Chairman 29 October 2013
Mr Daniel Lewis Tenardi Non-Executive Director 31 March 2014
Mr Cheung Clement Ko Non-Executive Director 02 January 2009
Mr John Hoon Non-Executive Director 02 June 2010
Ms Yan Jia Non-Executive Director 01 June 2014
Mr Liming Huang Non-Executive Director 24 September 2014

Name Position
David Corr Chief Financial Officer
Piers Richard Lewis Company Secretary
Ben Maynard General Manager Operations

Substantial Shareholders
Holding Name
698,118,988 (60.33%) Shagang International Holdings Ltd and associates

Calendar of Events
Date Event
16 October 2015 Report (Quarterly)
28 August 2015 Report (Interim)
17 July 2015 Report (Quarterly)
16 April 2015 Report (Quarterly)
20 March 2015 Report (Annual)
19 March 2015 Report (Prelim)
27 February 2015 Report (Prelim)
16 January 2015 Report (Quarterly)
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