Things are looking up for Savage River iron ore miner Grange Resources Limited.
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Grange increased its margin per tonne to $16.54 in the September quarter, after a wafer thin margin of $2.05 in the June quarter.
The improvement came from a $12.16 increase in average price received per tonne to $103.32, while cost cutting efforts reduced the cash operating cost per tonne by $2.33 to $86.78.
Commodities prices have been improving of late, with some big miners calling the end of the downturn.
“While the iron ore market remains uncertain, demand for our products and the price premium for pellets continue to remain strong,” chief executive Honglin Zhao said in its quarterly report.
“We will continue to seek innovation in improving the productivity and the quality of our products.”
Grange said severe wet weather had hampered pit movements and operations. Grange had $128.58 million in cash and trade receivables on September 30. Grange has offtake agreements for all products in 2016 and 2017.
