Executive Summary
Grange Resources Limited engages in the integrated iron ore mining and pellet production business in the northwest region of Tasmania.
Snowflake
Fundamentals
Excellent balance sheet and fair value.
Risks
- Grange Resources has significant price volatility in the past 3 months.
- Grange Resources is not covered by any analysts.
Similar Companies
Share Price & News
How has Grange Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-6.3%
ASX:GRR
3.7%
AU Metals and Mining
0.5%
AU Market
1 Year Return
4.7%
ASX:GRR
20.9%
AU Metals and Mining
6.3%
AU Market
GRR underperformed the Metals and Mining industry which returned 20.9% over the past year.
GRR underperformed the Market in Australia which returned 6.3% over the past year.
Share holder returns
| GRR | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.3% | 3.7% | 0.5% |
| 30 Day | 2.3% | 4.0% | 4.6% |
| 90 Day | -16.7% | -0.08% | 2.1% |
| 1 Year | 13.4%4.7% | 29.3%20.9% | 12.3%6.3% |
| 3 Year | 150.7%104.5% | 86.5%62.5% | 41.4%22.4% |
| 5 Year | 174.1%95.7% | 59.9%23.7% | 49.4%16.6% |
Price Volatility Vs. Market
How volatile is Grange Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
21 hours ago | Simply Wall St
Should You Buy Grange Resources Limited (ASX:GRR) For Its Dividend?2 weeks ago | Simply Wall St
Does Grange Resources Limited (ASX:GRR) Have A Volatile Share Price?4 weeks ago | Simply Wall St
Should You Consider Grange Resources Limited (ASX:GRR)?Valuation
Is Grange Resources undervalued based on future cash flows and its price relative to the stock market?
16%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
Grange Resources's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Grange Resources's share price is below the future cash flow value, but not at a substantial discount (< 40%).
Price Based on Earnings
Grange Resources is good value based on earnings compared to the AU Metals and Mining industry average.
Grange Resources is good value based on earnings compared to the Australia market.
Price Based on Expected Growth
Unable to calculate PEG ratio for Grange Resources, we can't assess if its growth is good value.
Price Based on Value of Assets
Grange Resources is good value based on assets compared to the AU Metals and Mining industry average.
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Future Growth
How is Grange Resources expected to perform in the next 1 to 3 years based on estimates from 0 analysts?
8.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
Unable to determine if Grange Resources is high growth as no revenue estimate data is available.
Grange Resources's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Unable to compare Grange Resources's revenue growth to the Australia market average as no estimate data is available.
Grange Resources's earnings growth is positive but not above the Australia market average.
Grange Resources's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Earnings per Share Growth Estimates
Future Return on Equity
Unable to establish if Grange Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
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Past Performance
How has Grange Resources performed over the past 5 years?
56.9%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Grange Resources has delivered over 20% year on year earnings growth in the past 5 years.
Grange Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Grange Resources's 1-year earnings growth is negative, it can't be compared to the AU Metals and Mining industry average.
Return on Equity
Grange Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Return on Assets
Grange Resources used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
Return on Capital Employed
Grange Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
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Financial Health
How is Grange Resources's financial position?
Financial Position Analysis
Grange Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Grange Resources's cash and other short term assets cover its long term commitments.
Debt to Equity History and Analysis
Grange Resources's level of debt (2.8%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has increased over the past 5 years (0.1% vs 2.8% today).
Debt is well covered by operating cash flow (460.2%, greater than 20% of total debt).
Grange Resources earns more interest than it pays, coverage of interest payments is not a concern.
Balance Sheet
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 20.7x debt.
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Dividend
What is Grange Resources's current dividend yield, its reliability and sustainability?
8.89%
Current Dividend Yield
Dividend Yield and Payments Analysis
Grange Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).
Grange Resources's dividend is above the markets top 25% of dividend payers in Australia (5.56%).
Grange Resources has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Grange Resources has only been paying a dividend for 8 years, and since then dividends per share have fallen.
Current Payout to Shareholders
Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to Shareholders
Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
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Management
What is the CEO of Grange Resources's salary, the management and board of directors tenure and is there insider trading?
4.9yrs
Average management tenure
CEO
Honglin Zhao (66yo)
4.5yrs
Tenure
AU$810,165
Compensation
Mr. Hong Lin Zhao has been the Chief Executive Officer of Grange Resources Limited since March 6, 2015 and serves as its Managing Director. Mr. Zhao serves as Managing Director of Southdown Project Managem ...
CEO Compensation Analysis
Honglin's remuneration is about average for companies of similar size in Australia.
Honglin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
4.9yrs
Average Tenure
The tenure for the Grange Resources management team is about average.
Board Age and Tenure
5.2yrs
Average Tenure
59yo
Average Age
The tenure for the Grange Resources board of directors is about average.
Insider Trading
More shares have been bought than sold by Grange Resources individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 28,500 |
| Max Price | AU$0.27 |
Ownership Breakdown
Management Team
Piers Lewis
Company Secretary
- Tenure: 4.9yrs
Honglin Zhao (66yo)
CEO, MD & Executive Director
- Tenure: 4.5yrs
- Compensation: AU$810.17k
Philip Gao
Chief Commercial Manager
- Tenure: 9yrs
Steven Phan
Chief Financial Officer
- Tenure: 3.4yrs
- Compensation: AU$406.58k
Ben Maynard
General Manager of Operations
- Tenure: 6.7yrs
- Compensation: AU$489.41k
Board Members
Michael Dontschuk
Independent Non-Executive Director
- Tenure: 2.3yrs
- Compensation: AU$96.75k
David Woodall (59yo)
Director
- Tenure: 0.5yrs
Dan Tenardi (73yo)
Independent Non-Executive Director
- Tenure: 5.5yrs
- Compensation: AU$107.25k
Honglin Zhao (66yo)
CEO, MD & Executive Director
- Tenure: 4.5yrs
- Compensation: AU$810.17k
Michelle Li (54yo)
Independent Non-Executive Chairperson
- Tenure: 5.9yrs
- Compensation: AU$170.00k
Yan Jia (37yo)
Non-Executive Deputy Chairperson
- Tenure: 4.8yrs
- Compensation: AU$99.50k
Company Information
Grange Resources Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Grange Resources Limited
- Ticker: GRR
- Exchange: ASX
- Founded:
- Industry: Steel
- Sector: Materials
- Market Cap: AU$260.401m
- Shares outstanding: 1.16b
- Website: https://www.grangeresources.com.au
Location
- Grange Resources Limited
- 34A Alexander Street
- Burnie
- Tasmania
- 7320
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GRR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 2007 |
| GRR | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2007 |
| GRR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 2007 |
Biography
Grange Resources Limited engages in the integrated iron ore mining and pellet production business in the northwest region of Tasmania. The company is involved in the mining, processing, and sale of iron or ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/09/17 10:35 |
| End of Day Share Price | 2019/09/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.