AUSTRALIA'S MOST EXPERIENCED MAGNETITE PRODUCER
1 GRANGE RESOURCES LIMITEDBoard of Directors
Michelle Li Non-executive Chairperson Yan Jia Non-executive Deputy Chairperson Daniel Tenardi Non-executive Director Liming Huang Non-executive Director Honglin Zhao Chief Executive Officer and ExecutiveDirector
COMPANY SECRETARY Piers LewisSTOCK EXCHANGE
Grange Resources Limited is listed on the ASX Limited (ASX Code: GRR) and the 'OTC' Markets in Berlin, Munich, Stuttgart and Frankfurt in Germany (Code: WKN. 917447)
WEBSITEwww.grangeresources.com.au
ContentsAbout Grange 1
2016 Overview 2
REGISTERED OFFICEGrange Resources Limited ABN 80 009 132 405 34a Alexander Street, BURNIE, TAS 7320
Telephone: + 61 (3) 6430 0222; Facsimile: + 61 (3) 6432
3390
2017 Priorities 3
About the Grange Business 4
Chairperson's & Chief Executive Officer's Review 5
Operating and Financial Review 8
Corporate Governance Statement 19
SHARE REGISTRYAdvance Share Registry Services Limited 110 Stirling Highway
Nedlands, WA 6009
AUDITORS
PricewaterhouseCoopers Freshwater Place
2 Southbank Boulevard, SOUTHBANK, VIC 3006
Directors' Report 21
Auditor's Independence Declaration 31
Financial Statements 32-61
Tenement Schedule 66
ASX Additional Information 67
List of Significant ASX Announcements 68
ABOUT GRANGEOUR BUSINESS
Grange Resources Limited (Grange or the Company), ASX Code: GRR, is Australia's most experienced magnetite producer with over 49 years of mining and production from
OUR VISION
We will produce high quality steel making raw materials economically and effectively. Our operations will be efficient, flexible, and stakeholder focused.
its Savage River mine and has a projected mine life beyond
2030.
Grange's operations consist principally of owning and operating the Savage River integrated iron ore mining and pellet production business located in the north-west region of Tasmania. The Savage River magnetite iron ore mine is a long life mining asset. At Port Latta, on the north-west coast of Tasmania, Grange owns a downstream pellet plant and port facility producing over 2 million tonnes of premium quality iron ore pellets annually, with plans to increase annual production. Grange has a combination of spot and contracted sales arrangements in place to deliver its pellets to customers throughout the Asia Pacific region.
In addition, Grange is a majority joint venture partner in a major magnetite development project at Southdown, near Albany in Western Australia. The Southdown magnetite project, once developed, is expected to have the capacity to supply over four times the amount of iron ore produced at Savage River, at an annual production rate of 10 million tonnes of premium magnetite concentrate. The Company is continuing its search for an equity partner for a strategic share of the Company's interest in the project.
OUR VALUESAt Grange we ALL will...
Work safely
Lead and act with fairness, integrity, trust and respect
Be responsible and accountable for our actions
Utilise our resources efficiently and effectively
Engage with stakeholders and proactively manage our impact on their environment
Work together openly and transparently
Promote an environment in which our people can develop and prosper
1 2016 OVERVIEWIn 2016 we delivered a solid year with respect to production and safety, efficiently navigating through a very challenging market. We sustained consistent production and continue to see demand for our premium product.
OPERATIONAL OVERVIEW
Achieved 630 days Lost Time Injury free at the end of 2016
Maintained good access to high grade ore and achieved solid production results
Shipped a record of 2.75 million tonnes of iron ore products through the Port
Progressed construction of the South Deposit Tails Storage Facility to near completion
Improved production and continued cost control disciplines to significantly reduce operating costs
Preserved balance sheet strength with disciplined operational planning and execution enabling internal funding of critical mine re-development
FINANCIAL OVERVIEW
Total iron ore product sales of 2.75 million tonnes (2015:
2.36 million tonnes)
Continued cost control disciplines, although lower production rate resulted in a slight increase in C1 cash operating costs to $79.13 per tonne (2015: $77.18)
Grange's high quality, low impurity iron ore products attracted a high premium with average product prices of
$98.06 per tonne (2015: $87.23) (FOB Port Latta)
Lower realised AUD:USD exchange rates have delivered stronger AUD revenues
Delivered profit after tax of $92.9 million (2015: loss of
$277.8 million), on revenues from mining operations of
$276.3 million (2015: $205.6 million)
Sustained strong cash and cash equivalents position at
$166.0 million (2015: $138.4 million)
2
Grange Resources Limited published this content on 24 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 April 2017 11:11:16 UTC.
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