Iron ore miner Grange Resources has announced a half-year net profit of $58.1 million and paid its first dividend of two cents per share.
The profit came on revenue of $209 million, an 8 per cent increase on the previous corresponding period.
During the half-year Grange produced 840,018 tonnes of iron ore pellets from its Savage River mine, and said it expected to reach its full-year guidance of 2 million tonnes.
By close of trade today, Grange’s stock had gained 8.4 per cent, to trade at 51.5 cents.
Managing director Russell Clark said the company was very pleased to have announced its inaugural dividend and said it would ensure it was not a “one off”.
“Opportunities with nearby magnetite developers in Tasmania, together with exploration success at Savage River provide a path to produce more at that operation and to drive unit costs down,” Mr Clarke said.
“The Southdown feasibility study has been significantly advanced, with permitting further progressed, engineering undertaken and a drill program to further assess reserves and resources under way.
“There is an obvious advantage being a successful producer when contemplating new development projects – we have cash and we have expertise.”
