Major impairment affects Grange bottom line
PERTH (miningweekly.com) – A significant impairment over the carrying value of magnetite miner Grange Resources’ Savage River asset, in Tasmania, has resulted in the company reporting a statutory after-tax loss of A$162.2-million for the half-year ended June.
The company reported noncash losses of A$186.5-million during the interim period, arising from an impairment of A$207.3-million on the carrying value of the Savage River project.
The impairment related to lower-than-expected iron-ore prices resulting from the recent changes in the supply and demand dynamics of the industry.
The losses were partially offset by a A$20.8-million profit from a deferred consideration obligation.
Underlying profit after tax for the half year reached A$24.4-million, compared with the A$9 000 reported in the 2013 corresponding period, on the back of revenues of A$129.7-million.
During the six months to June, Grange sold 981 174 t of iron-ore products, compared with the 768 492 t sold during the previous corresponding period, reflecting the access to higher-grade ore at the Savage River mine.
However, Grange was faced with lower average pellet prices during the period under review, which was consistent with the reduction in benchmark iron-ore prices.
Grange noted that with the soft market conditions, the company has made the strategic decision not to place a number of cargoes into a market driven by opportunistic bidders.
It was expected that the higher product stockpiles would be placed with long-term buyers during the third quarter of the year.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation