Grange Resources Limited (GRR) AI Stock Analysis

• Market Cap: AU$214.11M
• Dividend Yield: 5.41%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 3.7
• Beta (1Y): 1.38
• Revenue Growth: -15.28%
• EPS Growth: -60.99%
• Country: AU
• Employees: 581
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): 0.05
• Shares Outstanding: 1,157,338,700
• 10 Day Avg. Volume: 885,276
• 30 Day Avg. Volume: 1,200,087
• PEG Ratio: -0.08
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

Grange Resources Limited achieves a solid overall score due primarily to its strong financial stability and attractive valuation metrics. These strengths are somewhat offset by bearish technical indicators and the absence of recent earnings call insights or notable corporate events. The company's low leverage and high dividend yield are key positives, but challenges in revenue growth and profitability margins remain areas for improvement.

Grange Resources Limited Business Overview & Revenue Model

Company Description

Grange Resources Limited (GRR) is an Australian-based mining company primarily engaged in the exploration, development, and operation of iron ore projects. The company is known for its Savage River magnetite iron ore mine in Tasmania, which is a significant part of its operations. Grange Resources focuses on the production and export of high-quality iron ore pellets, which are essential components in steel manufacturing.

How the Company Makes Money

Grange Resources Limited generates revenue primarily through the extraction and sale of iron ore pellets. The company's main revenue stream comes from its Savage River project, where it mines magnetite iron ore, processes it into pellets, and sells these to steel producers in domestic and international markets. The company benefits from long-term supply contracts and pricing agreements, which help stabilize its income. Additionally, Grange Resources may engage in strategic partnerships or joint ventures to enhance its mining operations and expand its market reach. Fluctuations in global iron ore prices and demand from the steel industry are significant factors that impact the company's earnings.

Grange Resources Limited Financial Statement Overview

Summary

Grange Resources Limited demonstrates strong financial stability with a robust balance sheet and solid cash flow generation. The company benefits from minimal leverage and strong equity financing. However, declining revenue and profitability margins pose challenges, suggesting a need for improved revenue strategies and operational efficiency.

Income Statement

Grange Resources Limited showed a mixed performance in its income statement. The gross profit margin declined from 32.47% in 2023 to 13.51% in 2024, reflecting pressure on profitability. Net profit margin also decreased from 24.42% to 11.24%. Revenue growth rate was negative at -15.28% in 2024 compared to 2023, indicating challenges in maintaining sales levels. However, the company maintained reasonable EBIT and EBITDA margins of 11.72% and 22.90% respectively, showing efficiency in managing operating expenses.

Balance Sheet

Grange Resources Limited maintains a strong balance sheet with a very low debt-to-equity ratio of 0.001, reflecting minimal leverage and low financial risk. The equity ratio is 81.55%, indicating a high proportion of assets financed by equity, showcasing financial stability. Return on Equity (ROE) decreased to 5.52% in 2024, which is a decline from previous years, highlighting reduced profitability relative to equity.

Cash Flow

The cash flow statement shows a solid free cash flow to net income ratio of 2.62, indicating strong cash generation relative to earnings. However, the free cash flow growth rate was 1,620.09% in 2024, primarily due to a low base in 2023. Operating cash flow to net income ratio is 4.10, demonstrating robust cash flow from operations. Despite the challenges, cash flow metrics remain strong, indicative of good liquidity management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	520.80M	614.74M	594.55M	781.66M	526.32M
Gross Profit	118.94M	275.53M	285.99M	462.69M	228.17M
EBITDA	119.28M	274.53M	276.68M	538.92M	269.93M
Net Income	58.55M	150.10M	171.74M	322.26M	204.18M
Balance Sheet
Total Assets	1.30B	1.24B	1.14B	1.13B	878.34M
Cash, Cash Equivalents and Short-Term Investments	298.05M	282.61M	108.41M	464.69M	202.92M
Total Debt	1.32M	2.21M	6.48M	17.45M	16.45M
Total Liabilities	240.06M	212.82M	240.07M	255.91M	166.25M
Stockholders Equity	1.06B	1.03B	904.13M	871.22M	713.26M
Cash Flow
Free Cash Flow	40.13M	8.92M	-27.63M	418.09M	74.82M
Operating Cash Flow	239.92M	267.11M	196.94M	498.16M	202.57M
Investing Cash Flow	-253.38M	-241.90M	-396.24M	-79.57M	-125.12M
Financing Cash Flow	-30.73M	-25.19M	-145.55M	-165.25M	-26.89M

Grange Resources Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GRR, the sentiment is Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.22, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:GRR.

Grange Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEX	74 Outperform	AU$218.64M	15.28	8.27%	―	10.26%	-68.36%
GRR	72 Outperform	AU$214.11M	3.66	5.68%	5.41%	-15.28%	-60.99%
DRE	46 Neutral	AU$55.87M	―	-34.82%	―	―	-142.11%
Sector *	44 Neutral	AU$1.45B	-6.10	-40.74%	3.82%	-3.45%	-41.76%
CBE	39 Underperform	AU$18.62M	―	-3.74%	―	―	67.62%

Grange Resources Limited Corporate Events

Grange Resources Issues Performance Rights to Boost Employee Incentives

Grange Resources Limited has announced the issuance of 3,560,318 performance rights as part of an employee incentive scheme. These unquoted equity securities, which are not intended to be listed on the ASX, aim to motivate and retain key personnel, potentially enhancing the company’s operational efficiency and competitive positioning in the mining sector.

Grange Resources Limited Announces Successful AGM Resolutions

Grange Resources Limited announced the successful passing of all resolutions at its Annual General Meeting of Shareholders. The resolutions included the adoption of the remuneration report, re-elections and elections of directors, approval of the executive rights plan, and the issuance of performance rights, indicating strong shareholder support and stability in the company’s governance.

Grange Resources Confirms Stability in Mineral Resource Estimates

Grange Resources Limited has released a presentation detailing its current activities and mineral resource estimates. The company has confirmed that there are no new material changes to the mineral resource and ore reserve estimates for its Savage River and Southdown projects. This announcement underscores the company’s stable resource base, which is critical for its ongoing operations and industry positioning.

Grange Resources Reports Strong Safety Record and Project Progress in Q1 2025

Grange Resources Limited reported its first-quarter results for 2025, highlighting a strong safety record with no lost time injuries and an improvement in market pricing for its products. Despite a planned reduction in production due to annual maintenance, the company is progressing with its North Pit Underground project, aiming for project execution in 2026. The company maintains a strong cash reserve, although it decreased due to capital expenditures and lower sales. The feasibility study for the Southdown Magnetite Project indicates its potential value in the direct reduction iron market.