Big drop in sales for Grange Resources

Iron ore sales have fallen almost 50 per cent for junior mining company Grange Resources, with variations in shipping schedules impacting the company's bottom line.

In a quarterly results report posted late last week Grange said total iron ore sales had dropped to 388,203 tonnes for the March quarter, down from the 779,028t posted at the same time last year.

 

“Total sales for the quarter were impacted by minor variations to shipping schedules which resulted in a budgeted shipment (totalling approximately A$11.5 million) moving into April 2013 and thereby increasing our 31 March 2013 quarter end pellet stockpiles,” the company said.

 

Grange said the average price received during the quarter was $US144.71 per tonne, which reflected a “continuing strengthening of global iron ore prices and the quality premium attaching to our iron ore pellets”.

 

Grange operates the Savage River mine in Tasmania, and also has plans to develop the Southdown magnetite project in the south of Western Australia, near Albany.

 

Company managing director Richard Mehan said Grange had made a “solid start” to 2013 and production was close to the budgeted targets.

 

“Our strong focus on mine development to provide better access to high grade ore is on target,” he said.

 

“Costs during the quarter were below budget, product prices have strengthened and there is strong market interest in our available spot cargoes. Opportunities for additional long term contracts are currently being negotiated.”

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