PERTH (miningweekly.com) – Pellet producer Grange Resources has reported record production during the quarter ended March, despite the significant decline in iron-ore prices.
The miner on Monday reported that production during the three months to March reached 645 287 t, compared with the 595 429 t of pellets produced in the December quarter.
CEO Honglin Zhao noted that the company continued to benefit from the high-quality and low-impurity nature of its flagship pellet product, and despite the fall in iron-ore prices, the company continued to receive relatively strong prices for its product.
“This reflects the quality of our pellets, which leaves us well placed to benefit from the expansion pollution controls being imposed in China and the scrutiny being placed on Chinese steel mils.”
During the quarter under review, Grange’s average prices received dropped from $91.34/t reported in the December quarter, to $78.73/t.
“Our margins have also been underpinned by our ongoing cost-cutting programme, while record production has helped protect our bottom line, leaving the company with A$144.2-million cash at the end of March,” said Zhao.
Some 335 758 t of pellets were sold during the quarter, compared with the 640 623 t sold during the December quarter, while iron-ore concentrate sales reached 40 t, compared with the 50 t sold in the previous quarter.