Grange Resources Limited (GRR) AI Stock Analysis

• Market Cap: $231.47M
• Dividend Yield: 12.5%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.51
• Revenue Growth: -13.54%
• EPS Growth: -56.86%
• Country: AU
• Employees: 581
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Industrial Materials
• EPS (TTM): 0.01
• Shares Outstanding: 1,157,338,700
• 10 Day Avg. Volume: 1,164,457
• 30 Day Avg. Volume: 1,203,990
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.12
• Enterprise Value/Revenue: -0.06
• Enterprise Value/Gross Profit: -0.42
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: AU$0.00 ▼(-100.00% Downside)

Grange Resources Limited's overall score is driven by its strong valuation and financial stability, despite challenges in revenue growth and profitability. The technical analysis indicates mixed signals, with potential short-term bearishness. The stock's attractive valuation and high dividend yield are significant positives.

Grange Resources Limited Business Overview & Revenue Model

Company Description

Grange Resources Limited owns and operates integrated iron ore mining and pellet production business in the northwest region of Tasmania. The company is involved in the mining, processing, and sale of iron ore; and exploration, evaluation, and development of mineral resources. It owns interests in the Savage River project in Tasmania; Pellet Plant project in Port Latta located to the northwest of Burnie; and Southdown magnetite project located in Western Australia. Grange Resources Limited is based in Burnie, Australia.

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 exhibits financial resilience with a strong balance sheet and solid cash flow generation. The company's low leverage ensures financial flexibility. However, the declining revenue growth rate and reduced profitability margins highlight the need for strategies to improve sales 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	61.32M	199.51M	239.40M	435.55M	232.81M
EBITDA	243.74M	274.53M	308.67M	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	298.61M	464.69M	202.92M
Total Debt	1.32M	2.21M	6.48M	17.45M	16.45M
Total Liabilities	240.06M	212.82M	194.09M	249.02M	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: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 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 0.2 is below the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 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
GRR	73 Outperform	$231.47M	5.05	4.28%	12.50%	-13.54%	-56.86%
Sector *	61 Neutral	$10.25B	6.13	0.71%	2.93%	3.45%	-36.02%
4ER	―	€133.28M	37.95	3.14%	―	―	―
DRE	46 Neutral	AU$60.95M	―	-34.82%	―	―	-142.11%
CBE	39 Underperform	AU$23.06M	―	-3.74%	―	―	67.62%
CTM	―	AU$202.12M	―	-40.70%	―	―	―
XTC	―	AU$17.53M	―		―	―	―

Grange Resources Limited Corporate Events

Grange Resources Reports Strong Q2 2025 Performance and Progress on Key Projects

Grange Resources Limited reported a strong second quarter in 2025, with significant achievements in safety and production at its Savage River Operations. The company recorded no Lost Time Injuries and increased both concentrate and pellet production compared to the previous quarter. Despite higher costs due to waste stripping and maintenance, operating costs remained below budget, and the company anticipates decreased costs in the latter half of the year. The North Pit Underground Project financing is progressing well, with interest from domestic and international lenders, and the company’s Reconciliation Action Plan has been endorsed by Reconciliation Australia.

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.