Highlights

  • Pellet sales rose to 732,944 tonnes from 580,239 tonnes driven by term offtake agreements and spot premiums.
  • Unit cash operating cost fell to A$144.80 per tonne on a C1 basis, down from A$157.69 in the prior quarter.
  • The board approved the North Pit Underground sub-level cave, extending production and pellet supply to 2035 with lower initial capital.
  • Cash and liquid investments reached A$300.41 million, up from A$267.90 million, and Grange reported no lost-time injuries.

Four furnace lines running, stockpiles shrinking and a go-ahead for the mine's next chapter. Grange Resources Limited (ASX:GRR) reported on 28 October 2026 that it produced 632 thousand tonnes of iron ore concentrate in the three months to 30 September 2026, up from 587 thousand tonnes in the June quarter. The quarterly report also confirmed the board's final investment decision on the North Pit Underground Project, announced on 14 October 2026.

Production and sales

Pellet production was 604,184 tonnes against 590,883 tonnes a quarter earlier, helped by running four furnace lines. Pellet sales jumped to 732,944 tonnes from 580,239 tonnes, and chip sales reached 77,950 tonnes against 45,488 tonnes. Total product sales were 810,894 tonnes, compared with 625,727 tonnes in June. Grange credited term offtake agreements and spot sales at premiums to index prices.

Pellet stockpiles dropped to 174,643 tonnes from 303,403 tonnes, and the concentrate stockpile fell to 8,982 tonnes from 28,078 tonnes. Weight recovery improved to 41.3 per cent from 34.9 per cent, offsetting minor unplanned maintenance and harder ore. Ore mined rose to 416,039 bank cubic metres from 66,745, while total material movement eased to 3,123,001 bank cubic metres because of a revised capping and armouring sequence on dump closures. Ex-pit mining ran ahead of plan.

Costs, pricing and cash

Unit cash operating cost on a C1 basis was A$144.80 per tonne, compared with A$157.69. C1 excludes mine development, deferred stripping, stockpile movements, royalties, sustaining capital, and depreciation and amortisation. The average realised price, free on board at Port Latta, was US$116.13 per tonne, or A$164.41, against US$114.32 and A$160.30 in June, at an average exchange rate of 0.7063. Pricing is adjusted for freight and final settlements on provisional sales, typically finalised one to three months after shipment.

Cash and liquid investments stood at A$300.41 million. Trade receivables fell to A$7.82 million from A$23.72 million, and about A$15.9 million of planned growth capital was spent. No lost-time or disabling injuries were reported.

North Pit Underground

The investment decision covers a sub-level cave, which Grange said needs significantly lower initial capital than the block cave option studied earlier and extends production and pellet supply to 2035. A future block cave remains possible but would need further studies, funding and a separate decision.

The timetable has underground development restarting in the first quarter of 2027, first sub-level cave ore in 2028 and a ramp-up to about four million tonnes a year by 2030. Open pit mining is expected to finish during 2028. The design, schedule and mining cost estimates were independently reviewed in August 2026. These dates are forecasts and depend on execution.

Southdown and shareholders

On the Southdown Magnetite Project, the search for equity investors continues while tenements, approvals and project assets are maintained. No investor or funding agreement has been reported. Grange had about 8,450 shareholders at 30 September 2026.

What to watch

Early 2027 brings the start of underground development, and the Southdown investor search is still open. Provisional-sale pricing will be finalised over the next one to three months.