The last quarter proved to be a good one for the mineral resource developer and iron ore miner…
The post Why the Grange Resources (ASX:GRR) share price is up 7% today appeared first on The Motley Fool Australia. –
Within the report, Grange Resources said the average price it received for its iron ore products increased by 25.5% over the quarter ended 30 June 2021 and its operations were unhindered by COVID-19.
Currently, the Grange Resources share price is 86.5 cents. That’s 7.45% higher than its previous close of 81 cents.
Let’s take a closer look at today’s news from the mineral resource developer and iron ore miner.
Financial and operational performance
The quarterly report stated the average price Grange Resources received for its products increased to US$287.15 per tonne over the June quarter. That’s up from US$228.52 per tonne in the quarter prior.
Its production of concentrate materials also increased to 677 kilotons. That’s up from 529 kilotons in the March quarter.
The company’s pellet sales also increased to 653 kilotons for the quarter – 97 kilotons more than it sold in the March quarter.
On top of increased sales and prices, the company’s operating costs decreased by 20% to $90.16 per tonne.
Grange Resources has ended the period with cash and liquid investments valued at $416.4 million.
What else has Grange been up to?
Over the quarter just been, Grange has been working towards upgrading and developing its operations in northern Tasmania.
It also received environmental approval to mine the remaining area of its centre pit and installed safety controls to minimise rockfalls at its north pit.
Over the June quarter, Grange Resources upgraded its rougher magnetic separators for the first time in 53 years.
Finally, the company spent $10.1 million on equipment and upgrades over the 3 months just gone.
Grange Resources share price snapshot
Today’s gains have boosted the Grange Resource share price even higher.
Right now, shares in Grange Resources are up 188% year to date. They’re also 246% higher than they were this time last year.
The company has a market capitalisation of around $931 million, with approximately 1.1 billion shares outstanding.
Should you invest $1,000 in Grange Resources right now?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.