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Grange Resources Limited (AU:GRR)
:GRR
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Grange Resources Limited (GRR) AI Stock Analysis

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AU

Grange Resources Limited

(OTC:GRR)

Rating:72Outperform
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 (GRR) vs. iShares MSCI Australia ETF (EWA)

Grange Resources Limited Business Overview & Revenue Model

Company DescriptionGrange 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 MoneyGrange 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
70
Positive
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
85
Very Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue520.80M614.74M594.55M781.66M526.32M
Gross Profit118.94M275.53M285.99M462.69M228.17M
EBITDA119.28M274.53M276.68M538.92M269.93M
Net Income58.55M150.10M171.74M322.26M204.18M
Balance Sheet
Total Assets1.30B1.24B1.14B1.13B878.34M
Cash, Cash Equivalents and Short-Term Investments298.05M282.61M108.41M464.69M202.92M
Total Debt1.32M2.21M6.48M17.45M16.45M
Total Liabilities240.06M212.82M240.07M255.91M166.25M
Stockholders Equity1.06B1.03B904.13M871.22M713.26M
Cash Flow
Free Cash Flow40.13M8.92M-27.63M418.09M74.82M
Operating Cash Flow239.92M267.11M196.94M498.16M202.57M
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 Price0.18
Price Trends
50DMA
0.19
Negative
100DMA
0.19
Negative
200DMA
0.22
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
49.50
Neutral
STOCH
33.33
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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUFEX
74
Outperform
AU$218.64M15.288.27%10.26%-68.36%
AUGRR
72
Outperform
AU$214.11M3.665.68%5.41%-15.28%-60.99%
AUDRE
46
Neutral
AU$55.87M-34.82%-142.11%
44
Neutral
AU$1.45B-6.10-40.74%3.82%-3.45%-41.76%
AUCBE
39
Underperform
AU$18.62M-3.74%67.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:GRR
Grange Resources Limited
0.19
-0.16
-45.91%
AU:FEX
Fenix Resources Limited
0.30
-0.09
-23.38%
AU:DRE
Dreadnought Resources Limited
0.01
-0.01
-50.00%
AU:CBE
Cobre Limited
0.04
-0.03
-42.86%

Grange Resources Limited Corporate Events

Grange Resources Issues Performance Rights to Boost Employee Incentives
Jun 5, 2025

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
May 14, 2025

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
May 13, 2025

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
Apr 29, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025