The Grange Resources Limited (ASX: GRR) share price is tumbling 10% following the release of its results for the June quarter.
After falling 2% on open, the iron ore producer's stock plunged to an intraday low of $1.14, a 13% drop. At the time of writing, its shares are trading at $1.18 each, 10.27% lower.
Grange Resources share price plunges on quarterly results
Here are the key takeaways from the company's June quarter results:
- Iron ore concentrate production rose to 664 kilotons – a 4% quarter-on-quarter improvement
- Iron ore pellet sales increased to 705 kilotons – a 47% increase on that of the March quarter
- The average received price for the quarter dropped to $193.44 per tonne
- Operating costs increased to $122.72 per tonne
The iron ore producer's production costs rose 15% in the June quarter, driven by higher energy costs. Meanwhile, its realised sales price dropped 37% on that of the March quarter, alongside iron ore prices.
The company's iron ore pallet sales jumped considerably quarter-on-quarter due to planned maintenance activity in the prior period.
It ended the June quarter with cash and liquid investments of $369.5 million and trade receivables of $8.5 million.
What else happened in the June quarter?
The Grange Resources share price gained 13.5% over the three months ended June despite the only news from the company – its results for the March quarter – driving it 5% lower.
It also continued working towards the development of its north pit underground mine and expects the rebuild of its furnace line 4 to begin commissioning in the current quarter.
What did management say?
Grange Resources CEO Honglin Zhao commented on the results driving the company's share price today. He said higher energy prices and the deflating iron ore price made for a "challenging" June quarter, adding:
Despite these headwinds, our team continues to focus on cost discipline, safe, and effective production as we see through this difficult period.
What's next?
The company is working towards a definitive prefeasibility study for its 70%-owned Southdown Magnetite Project. It's expected to be completed later this year.
It's also developing an environmental, social, and governance (ESG) framework. It expects to release its first full disclosure statement in the current quarter.
Grange Resources share price snapshot
Today's dip hasn't been enough to plunge the Grange Resources share price into the long-term red.
The stock is still 50% higher than it was at the start of 2022 and 38% higher than it was this time last year.
For comparison, the All Ordinaries Index (ASX: XAO) has slipped 11% this year and 8% over the last 12 months.
