The Grange Resources Limited (ASX: GRR) share price closed 8.82% higher at 37 cents today. This leaves the company's shares sitting just shy of the 52-week high which it hit in this morning's trade.
Today's share price climb comes after the company released its quarterly update for the three months ending December 31, 2020.
Quarterly highlights from Grange Resources
The company reported an increase in pellet sales for the December quarter to 754kt compared with 422kt in September. Thanks to record iron ore prices, the company's average received payment for the quarter increased to $236.77/t. The average price for the September quarter was $182.49/t.
Grange Resources reported cash and liquid investments of $202.9 million and trade receivables of $79.3 million for the December quarter. This was a boost from the September quarter which reported $175.5 million in cash and liquid investments with trade receivables totalling $13.5 million.
Commenting on the financial achievements of the quarter, CEO Mr Honglin Zhao said:
"Grange management are happy with the very strong fourth quarter that completed a strong 2020, particularly delivery exceptional sales volume figures in combination with record sales. This is coupled with the production team's strong performance. The team is to be commended for their efforts and results achieved, especially in the current COVID-19 environment…"
What does Grange Resources do?
Grange Resources is one of Australia's premier providers of iron ore pellets. The company operates one of the country's largest integrated iron ore and pellet production businesses.
The three main Grange Resources sites are Port Latta, Savage River and Southdown.
Port Latta is the Tasmanian-based pellet plant and port facility. It currently produces over 2.2 million tonnes of premium quality iron ore products annually.
The Savage River magnetite iron ore mine is located 70 kilometres from Port Latta in Burnie. The city of Burnie boasts that it produces some of the highest iron-concentrated magnetite in Australia.
Finally, located in Western Australia's Great Southern region is the company's joint-venture, Southdown. Combining forces with SRT Australia Pty Ltd, the Southdown Magnetite Project claims to encompass over 1.2 billion tonnes of high-quality mineral resources.
The Grange Resources share price has climbed over 51% in the last 12 months. This compares to the S&P/ASX 200 Index (ASX: XJO) which has fallen 3.75% in the same period.
