This ASX iron ore share is not as well known as BHP, but one analyst is tipping it as a buy.
The Grange Resources Limited (ASX: GRR) share price has fallen nearly 10% in the past month. It has also sunk around 60% since its highs of mid-June.
Today, the company's share price is rising 0.70% to 72 cents.
Let's take a look at the outlook for Grange Resources.
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What could be ahead for this ASX iron ore share?
Grange Resources is an iron ore pellet producer based in Tasmania. Grange Resources produced 655,000 tonnes of concentrate in the September quarter, down from 664,000 tonnes in June.
Commenting on The Bull, Spotee Connect CEO Chris Batchelor noted the iron ore price has been falling lately amid less activity in China. Despite this, he recommends this ASX iron ore share. He said:
We believe the Grange share price fall has been excessive given the higher quality ore it produces. Therefore, we rate GRR a buy at these levels.
The company achieved an average realised price of US$95.17 a tonne in the September quarter, down from US$139 a tonne in June.
CEO Honglin Zhao said:
The past few months have been very challenging with demand for iron ore pellets products very weak, particularly from the Chinese market, largely due to high stock levels in the market.
As a consequence, some of our shipments were deferred into Q4 of this year.
Grange Resources share price snapshot
This ASX iron ore share has soared 49% in the past year, but it has dropped 5% year to date.
For perspective, the S&P/ASX 200 (ASX: XJO) has fallen nearly 7% year to date.
Grange Resources has a market capitalisation of about 824.6 million based on the current share price.
