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Key points
- The GWR Group share price surged 17.24% today to 17 cents
- In earlier trading, the GWR share price was up by nearly 21%
- GWR reveals it has secured multiple iron ore shipments
This ASX mining share had a stellar day on the market today. The GWR Group (ASX: GWR) share price skyrocketed after the company revealed that its flagship high-grade C4 iron ore mine is back in full production.
At the market close, the GWR share price was up 17.24% to 17 cents. However, in earlier trade, the company's shares surged by as much as 20.69% to 17.5 cents.
Let's take a look at what attracted ASX investors to GWR today.
What did GWR announce to make its share price go skyward?
GWR is an iron ore producer exploring the Wiluna West Iron Ore Project and the 100% Wiluna West Gold Project in Western Australia.
The miner revealed today that its flagship iron ore mine is back in full production after it restarted operations in January.
GWR also announced that a shipment of 30,438 tonnes of iron ore left the Port of Geraldton in January. GWR sold the ore at a fixed price of US$100 per tonne, making it worth more than $3 million. The shipment was shared with iron ore and copper miner, CuFe Ltd (ASX: CUF).
In addition, GWR announced that it has secured fixed-price contracts for 1 vessel per month up to July. GWR said these contracts provide certainty for the company.
The shipments include:
- February shipment of 30,000 tonnes at US$95 per tonne (fines) and US$100 p/t (lump)
- March lump shipment at US$110 p/t
- April, May and June lump shipments at US$111 p/t
- July lump shipment at US$114 p/t.
GWR hopes to secure more fixed-price contracts by tapping into Asian markets including Malaysia, Indonesia, and China.
GWR said that its C4 mine has more than 2 million tonnes of high-grade iron ore available for mining.
Management comment
Commenting on the announcement, GWR chairman Gary Lyons said:
It is great to see the flagship C4 Iron Ore mine back in full production, having worked through the recent volatility in iron ore prices, the GWR team has been able to refine its operations focused on cost reduction and fixed priced contract shipment.
Due to the nature of our high-grade iron ore, we have been able to take advantage of alternative markets such as Malaysia and Indonesia as well as China.
There are many moving parts to our operation, and I am very pleased with our ability to tie these in all together as we continue to build our haulage fleet with long term haulage contractors supplemented by additional haulage companies.
GWR share price recap
The GWR share price has descended 45% in the past 12 months. But the miner has had a good start to the new year, with its shares up 6.25%.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 3.8% in the past 12 months.
GWR has a market capitalisation of $51 million based on its current share price.
