GRANGE RESOURCES LIMITED. (ASX:GRR) - Ann: Corporate Update - Grange Strategic Developments, 31491400, page-32 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by Stockholm ↑

From Michelle

Many thanks for raising your concerns and feedbacks. Please let me to give you a bit more background on property development:

The Company is committed to realising the full value in our assets and providing positive results to our shareholders. The Company’s core focus is on reinvesting in our core mining assets in Tasmania to deliver sustained and stable returns.

The decision for our property venture fits well in our Company’s long-term strategy to manage and diversify our overall risk profile while seeking to deliver higher returns on our investments. We are also seeking a strategic investor(s) to help develop our Southdown asset in WA to fully capitalise on the value in this project. At the same time, the Company is executing a capital allocation plan in which we will deploy a small percentage of our capital to invest in higher-return investments with a manageable set of risks. The objective is to build a portfolio of investments along a spectrum of manageable risk-to-return levels with short to medium term time horizons. With regards to the Property Venture, we have spent quite some time exploring this sector and its potential. We have carried out our due diligence to better understand the market uncertainties and to ensure the Company can manage the risks that come with this venture. We see great potential in the small-scale, high-end residential apartments sector in the Melbourne market. This is underpinned by the demographic and economic make-up of the Melbournian population. As we see baby-boomers down-size their homes, while wanting to keep the lifestyles in the suburbs that they are comfortable living in, we see great growth potential in this sector.

We firmly believe and have the confidence in our management team in delivering results, as they have demonstrated throughout the years, particularly by overcoming the difficulties of the past few years in a depressed iron ore market and bringing the Company out of a very tough period in a very strong position. ROC Built was referred to us by one of our Company’s independent directors who has extensive knowledge of the property market in Melbourne and through his network saw a good fit between the two Company’s objectives. ROC Built although a relatively young company has much experience in this niche market that we are investing in and its CEO and our JV partner. Our venture into small-scale, high-end residential property is a part of our capital allocation plan to deploy a small percentage of our capital to invest in higher-return investments with a management set of risks. We have not specified an amount for our property venture and will be dependent on the investment opportunities that we can identify that meet our objectives. All investment proposals go through a robust due diligence process to ensure we understand and can manage the risks.

Best regards

Michelle

Expand

Thanks for the trouble in posting Michelle's reply - interesting but predictable in what she has said.
You can already predict which JV partner will come out of this better.
It really is a totally insane move IMO and for every dollar invested it will decrease free cash flow by that amount and take away from shareholders' dividends a quarter of the amount invested. So if they invest $40mil then $10mil(or 1c/share) will be deducted from the dividend pool that shareholders were expecting/entitled to under their dividend policy.
It stinks to high heaven.

No.	Vol.	Price($)
5	311733	23.5¢

No.

Vol.

Price($)

311733

23.5¢

Price($)	Vol.	No.
24.0¢	11914	3

Price($)

Vol.

No.

24.0¢

11914

No.	Vol.	Price($)
8	219779	0.270
9	458580	0.265
26	932290	0.260
7	172530	0.255
22	717920	0.250

No.

Vol.

Price($)

219779

0.270

458580

0.265

932290

0.260

172530

0.255

717920

0.250

Price($)	Vol.	No.
0.275	405759	8
0.280	942702	17
0.285	372332	13
0.290	1710676	31
0.295	651900	8

Price($)

Vol.

No.

0.275

405759

0.280

942702

0.285

372332

0.290

1710676

0.295

651900

(20min delay)
Last 23.5¢		Change -0.005(2.08%)		Mkt cap ! $266.1M

Open	High	Low	Value	Volume
24.0¢	24.5¢	23.5¢	$96.74K	403.4K

Thanks for the trouble in posting Michelle's reply - interesting...

Scientific conference spotlights PYC's work on blindness disease treatment

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Sales growth pushes Lovisa's fortunes (and shares) upwards

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Buyers (Bids)

Sellers (Offers)

Thanks for the trouble in posting Michelle's reply - interesting...

Top Stories

Scientific conference spotlights PYC's work on blindness disease treatment

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Sales growth pushes Lovisa's fortunes (and shares) upwards

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Buyers (Bids)

Sellers (Offers)