Grange Resources Limited (GRR) AI Stock Analysis

• Market Cap: AU$266.19M
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.38
• Revenue Growth: -13.54%
• EPS Growth: -56.86%
• Country: AU
• Employees: 581
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.01
• Shares Outstanding: 1,157,338,700
• 10 Day Avg. Volume: 715,755
• 30 Day Avg. Volume: 1,373,734
• PEG Ratio: -0.07
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 6.34
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: AU$0.29 ▲(14.00% Upside)

Grange Resources Limited demonstrates strong financial stability and positive technical momentum, which are the primary drivers of its stock score. The undervaluation based on the P/E ratio adds to its attractiveness. However, challenges in revenue growth and profitability margins are areas of concern.

Positive Factors

Balance sheet strength

Extremely low leverage and an 81.55% equity ratio give Grange structural financial resilience. Over the next 2-6 months this supports capital allocation for maintenance or incremental projects, lowers refinancing risk through cycles, and preserves optionality versus highly leveraged peers.

Cash generation

High free cash flow relative to net income and strong operating cash conversion indicate durable cash generation capability. This underpins liquidity, funds capex and working capital from operations, and provides a buffer against commodity price swings that can persist for months.

Operating efficiency

Sustained double-digit EBITDA and positive EBIT margins reflect efficient pellet production and cost control in processing/logistics. These margins support profitability across cycles, helping the company cover fixed costs and preserve cash flows even if volumes or prices soften.

Negative Factors

Revenue decline

Material revenue contraction reduces scale benefits and may raise per-unit costs over coming months. Sustained top-line weakness limits reinvestment capacity, constrains margin recovery, and increases execution risk for projects that depend on steady shipment volumes.

Margin compression

Sharp declines in gross and net margins point to price or cost pressures that materially reduce earnings power. If these compressions persist, they will erode free cash flow resilience, limit ability to invest in productivity, and heighten sensitivity to commodity cycles.

Return on equity weakness

A declining ROE signals weaker returns on shareholder capital and lower capital efficiency. Over the medium term this can constrain internal funding for growth, reduce attractiveness for reinvestment, and pressure management to find higher-return investments or restructure operations.

Grange Resources Limited Business Overview & Revenue Model

Company Description

Grange Resources Limited (GRR) is an Australian mining company primarily engaged in the exploration, development, and production of iron ore. The company operates in the mining sector and is known for its significant iron ore projects, including the Savage River mine in Tasmania. Grange Resources focuses on producing high-quality iron ore pellets and concentrates, catering to both domestic and international markets. The company is committed to sustainable mining practices and aims to enhance its operational efficiency while maintaining a strong commitment to environmental stewardship.

How the Company Makes Money

Grange Resources Limited generates revenue primarily through the sale of iron ore products, including iron ore pellets and concentrates. The company's key revenue stream comes from contracts with international steel manufacturers and traders, who require high-quality iron ore for steel production. Additionally, Grange Resources benefits from long-term supply agreements and strategic partnerships that help stabilize its revenue and provide a consistent customer base. The company's earnings are influenced by global iron ore prices, demand from the steel industry, and its operational efficiency. Any fluctuations in these factors can significantly impact the company's financial performance.

Grange Resources Limited Financial Statement Overview

Summary

Grange Resources Limited shows financial resilience with a strong balance sheet and robust cash flow generation. The low debt-to-equity ratio and high equity ratio indicate financial stability. However, declining revenue and profitability margins highlight challenges in maintaining sales and profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.19M	520.80M	614.74M	594.55M	781.66M	526.32M
Gross Profit	57.05M	61.32M	199.51M	239.40M	435.55M	232.81M
EBITDA	102.47M	243.74M	274.53M	308.67M	538.92M	269.93M
Net Income	45.78M	58.55M	150.10M	171.74M	322.26M	204.18M
Balance Sheet
Total Assets	1.32B	1.30B	1.24B	1.10B	1.12B	878.34M
Cash, Cash Equivalents and Short-Term Investments	239.37M	298.05M	282.61M	298.61M	464.69M	202.92M
Total Debt	543.00K	1.32M	2.21M	6.48M	17.45M	16.45M
Total Liabilities	248.51M	240.06M	212.82M	194.09M	249.02M	166.25M
Stockholders Equity	1.08B	1.06B	1.03B	904.13M	871.22M	713.26M
Cash Flow
Free Cash Flow	93.44M	40.13M	8.92M	-27.63M	418.09M	74.82M
Operating Cash Flow	170.26M	239.92M	267.11M	196.94M	498.16M	202.57M
Investing Cash Flow	-171.94M	-253.38M	-241.90M	-396.24M	-79.57M	-125.12M
Financing Cash Flow	-7.55M	-30.73M	-25.19M	-145.55M	-165.25M	-26.89M

Grange Resources Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GRR, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.27, and above the 200-day MA of 0.22, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:GRR.

Grange Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRR	78 Outperform	AU$266.19M	5.81	4.28%	―	-13.54%	-56.86%
FEX	62 Neutral	AU$316.61M	58.11	3.14%	2.17%	21.95%	-84.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CBE	55 Neutral	AU$86.40M	-32.35	-6.39%	―	―	37.04%
CTM	51 Neutral	AU$335.12M	-15.18	-53.29%	―	―	―
DRE	50 Neutral	AU$141.06M	-5.21	-36.29%	―	―	-166.67%

Grange Resources Limited Corporate Events

Grange Resources Lifts Production and Cuts Costs in Strong December Quarter

Grange Resources reported a strong December 2025 quarter, highlighting continued leading safety performance with 967 days without a lost time injury and robust operational results at its Savage River operations. Concentrate production rose to 623kt and pellet production exceeded plan, supported by higher-grade ore from Centre Pit and the cutback of North Pit, while unit cash operating costs fell to A$140.57/t, enhancing margins despite slightly lower pellet sales due to a shipping delay. Average realised prices remained broadly stable in Australian dollar terms, and the company maintained a solid financial position with cash and liquid investments of A$275.15 million and higher trade receivables, while advancing project financing and technical due diligence for the North Pit Underground development, underscoring its focus on sustaining and growing future production.

The most recent analyst rating on (AU:GRR) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Grange Resources Limited stock, see the AU:GRR Stock Forecast page.

Grange Resources Files Final Director’s Interest Notice for Departing Board Member

Grange Resources Limited has announced the cessation of director Alice Shen’s appointment as of 30 December 2025, lodging a Final Director’s Interest Notice with the ASX in accordance with listing rule 3.19A.3. The notice confirms that Shen held no relevant interests in the company’s securities, either directly or indirectly, and had no interests in any related contracts, indicating a straightforward board departure with no immediate implications for the company’s capital structure or governance-related shareholdings.

The most recent analyst rating on (AU:GRR) stock is a Buy with a A$0.31 price target. To see the full list of analyst forecasts on Grange Resources Limited stock, see the AU:GRR Stock Forecast page.

Grange Resources Announces Resignation of Non-Executive Director Alice Shen

Grange Resources Limited, an Australian iron ore producer serving domestic and international markets, operates within the broader resources and commodities sector. The company has announced the immediate resignation of non-executive director Alice Shen due to ongoing work commitments, with the board acknowledging her contributions since her appointment in December 2023 and extending well wishes, a change that adjusts the company’s board composition but does not signal any stated shift in strategic direction.

The most recent analyst rating on (AU:GRR) stock is a Buy with a A$0.31 price target. To see the full list of analyst forecasts on Grange Resources Limited stock, see the AU:GRR Stock Forecast page.