GRR - Grange Resources Limited, Australia's leading magnetite producer

[tricha]

Well I must be a little bored, I took the opportunity to buy some of these, they had a bad quarter due to low production, with valid reasons.
A wall collapse, but they made the most of a shutdown and they should be back on track for the rest of the year.
If China stays on track they will be printing money, WELL not quite US$.
Anyway folks, can any one see any error in buying this :confused:


REPORT FOR THE QUARTER ENDED 31 MARCH 2011

http://www.stocknessmonster.com/news-item?S=GRR&E=ASX&N=537944 (http://www.stocknessmonster.com/news-item?S=GRR&E=ASX&N=537944)


HIGHLIGHTS


• Continued excellent safety performance at Savage River.

• Strong cash and receivables position of $156.2 million and no net debt at the
end of the quarter.

• $70 million invoiced for previous sales at interim prices.

• Pricing mechanism agreed with major customers, ending interim pricing
mechanism.

• Record pellet prices experienced during the quarter, and forecast to
continue.

• Company remains “on track” to produce 2 million tonnes of pellets in 2011.

• Major concentrator and pellet plant maintenance shutdown completed ahead
of schedule and under budget.

• East wall recovery plan proceeding on schedule.

• Year to date costs lower than budgeted.

• $2.3 million cash inflow from sale of Horseshoe Metals holdings.

• Southdown project pre-feasibility study completed, with a report to the
market expected within a month.

[macduffy]

Hi tricha

I also bought a few GRR recently, much for the reasons you have mentioned but especially in anticipation of the Southdown project. Seems to be reason for confidence on this proceeding and if it does it could change market perception of GRR quite markedly.

Don't tell Phaedrus but TA-wise I've probably moved a bit too soon. Charts, Relative Strength etc don't support buying at this stage but I'll give it a few days before I take my loss, if necessary. Whatever happens, it will stay on my watchlist.

[tricha]

That is pleasing news Mac Duffy

We are on the same wavelink with this one. We could fail in the short term on this one, due to the OZ market in a down turn.
But as long as China remains robust we will come out ok. They have plenty of cash to cover a few blips.

I will not tell P we are buying in a down trend, actually the second company in the last week I've bought into a down trend.
He will probably wait till we have failed before he whips us :ohmy:

[macduffy]

RBS has GRR as a Buy. From FN Arena:

"RBS Australia rates GRR as Buy (1) - In line with earlier expressed intentions, management at Grange Resources is now negotiating deals with third parties to use Grange's infrastructure and analysts at RBS see multiple benefits emerging from the strategy. The MOU with Shree Minerals, reports RBS, has the potential to double total pellet production for Grange by as early as 2012.
The deal, if concluded successfully, has the potential to add 7% to Grange's profits in FY12, estimates RBS. There are at least two more potential deals in the offing, say the analysts. They argue the shares are cheaply priced, up to the point where investors effectively pay nothing today for the Southdown magnetide project in development.

0.76 price target maintained as well as the Buy rating.

Target price is $0.76 Current Price is $0.56 Difference: $0.2 If GRR meets the RBS Australia target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in December. RBS Australia forecasts a full year FY11 dividend of 0.00 cents and EPS of 9.50 cents .

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.89. "

[tricha]

grr
RBS has GRR as a Buy. From FN Arena:

"RBS Australia rates GRR as Buy (1) - In line with earlier expressed intentions, management at Grange Resources is now negotiating deals with third parties to use Grange's infrastructure and analysts at RBS see multiple benefits emerging from the strategy. The MOU with Shree Minerals, reports RBS, has the potential to double total pellet production for Grange by as early as 2012.
The deal, if concluded successfully, has the potential to add 7% to Grange's profits in FY12, estimates RBS. There are at least two more potential deals in the offing, say the analysts. They argue the shares are cheaply priced, up to the point where investors effectively pay nothing today for the Southdown magnetide project in development.

0.76 price target maintained as well as the Buy rating.

Target price is $0.76 Current Price is $0.56 Difference: $0.2 If GRR meets the RBS Australia target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in December. RBS Australia forecasts a full year FY11 dividend of 0.00 cents and EPS of 9.50 cents .

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.89. "

WELL it looks like we get another dividend Mac Duffy, that is if u still hold.
I topped up, so back to even, this is a cash cow.
Strong and trade receivables position of $183.7 million


http://www.stocknessmonster.com/news-item?S=GRR&E=ASX&N=555144

[macduffy]

Yes, I still hold, tricha.

Still a bit under water as far as I'm concerned but the Southdown project is still the main game here!

[macduffy]

Commentary on GRR's result and maiden dividend.

http://www.sharecafe.com.au/article_air.asp?a=AV&ai=21435

[drillfix]

Technically appears today and yesterday have run up to the 150ema line and the 60 min chart now showing negative MACD histogram divergence.

Not holding but lower entry?

Good luck to holders.

[macduffy]

GRR's quarterly report to 31 December is out. Is it that time already!

http://asx.com.au/asxpdf/20120117/pdf/423smmg6cnxkp8.pdf

Another good quarter of production from Savage River but the big attraction with this stock is still the Southdown project in WA. Seems to be moving along nicely here with an increased resource certified during the period.

[macduffy]

And here's the presentation of the quarterly report.

http://asx.com.au/asxpdf/20120117/pdf/423ss5f94hg9q6.pdf

Ten brokers have price target ranging from 70c - $1.06. Current SP 54.5c.

Southdown feasibility study scheduled for completion this quarter.