GRR – Macquarie rates the as Underperform

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Grange saw better than expected prices in the Sep Q and lower costs, but sales were weaker and inventory build greater than Macquarie expected, while working capital appears to have increased significantly. The result is a $10m drop in the company’s cash balance.

Grange is the only iron ore producer under coverage to have seen a fall in cash balance in the quarter, Macquarie notes. Downgrade to Underperform, target falls to 9c from 11c.

Sector: Materials.

Target price is $0.09.Current Price is $0.13. Difference: ($0.04) – (brackets indicate current price is over target). If GRR meets the Macquarie target it will return approximately -44% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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