Grange Resources (ASX: GRR) reported a decrease in concentrate and pellet production in its Q1 2025 report due to a planned annual preventative maintenance program. Concentrate production fell to 495kt from 683kt in the previous quarter, while pellet sales dropped to 426kt from 668kt. This maintenance also led to a higher unit cash operating cost of A$178.08/t, compared to A$133.65/t in the December quarter.
Despite the production dip, the average realized product price (FOB Port Latta) increased to US$124.15/t (A$198.01/t), a 9.64% rise from US$118.91/t (A$180.59/t) in the previous quarter. This price improvement signals strong market support for Grange’s products.
The company invested A$14.8 million in growth capital projects, including the North Pit Underground (NPUG) project. Grange anticipates first ore from NPUG in late 2028 or mid-2029, with project financing progressing steadily. Cash and liquid investments stood at A$265.03 million at the end of the quarter.
Grange also completed a feasibility study for its Southdown Magnetite Project, outlining a 28-year mine life with production of high-grade concentrate. The company is actively seeking equity investors for this project. Mr. Chongtao Xu resigned from the board but will remain a senior executive within the company.
