Grange up on maiden dividendThe West Australian August 31, 2011, 12:01 pm tweet0EmailPrintThe West Australian ?
Shares in magnetite iron ore pellet producer Grange Resources were higher after the company posted a $58.1 million first half profit and a maiden unfranked interim dividend of two cents a share.
The result was achieved on revenue of $209 million, up 8 per cent on the previous half.
The company produced 840,018 tonnes of pellets in the six months to the end of June at its flagship Savage River operations in Tasmania.
It also said it had advanced a feasibility study for its Southdown magnetite project near Albany.
Grange managing director Russell Clark said the company was pleased to declare an inaugural dividend and expected to continue to issue dividends in the periods ahead on the back of continuing strong prices for iron ore.
"Opportunities with nearby magnetite developers in Tasmania, together with exploration success at Savage River provide a path to produce more at that operation and to drive unit costs down," he said.
The company said it continued to target production of 2mtpa of pellets from Savage River and expected to produce significantly more tonnage in the second half of 2011 than in the first six months, with a consequent reduction in unit operating costs.
Grange shares were up 3.5 cents, or 7.37 per cent, to 51 cents at noon.
ARH Price at posting:
21.0¢ Sentiment: None Disclosure: Held
