Rana Gruber more than doubled the revenues for the first quarter 2021 to NOK 529.0 million, following all-time high iron ore prices. The company has resolved to distribute a quarterly dividend for Q1-21 at NOK 2.90/share – implying a pay-out ratio of 70 per cent, in the upper end of the targeted range of 50-70 per cent.
Mo i Rana, 12 May 2021 – The Norwegian iron ore producer Rana Gruber posted its first-quarter results with revenues of NOK 529.0 million (NOK 260.4 million in Q1-20), and a corresponding EBITDA of NOK 345.2 million – more than three times Q1-20 EBITDA at NOK 105.6 million.
– It’s truly been a milestone quarter for the company. Most importantly, we have ensured safety for all our colleagues during the pandemic. At the same time, we have delivered the best quarterly results in the company’s history, driven by all-time-high prices for iron ore. I would like to thank all our employees for their contribution during these special times, says CEO Gunnar Moe.
Rana Gruber was admitted to trading at Euronext Growth in Oslo on 26 February after a highly oversubscribed IPO. The company targets to distribute 50-70 per cent of net income to its investors on a quarterly basis. The company’s board of directors has resolved to distribute a Q1-21 dividend of NOK 2.90/share, implying a pay-out ratio in the upper end of the policy range.
Global demand supportive
411’ metric tons (mt) iron ore concentrate were produced in the first three months of the year, up five per cent from the same period of 2020. The average hematite prices were realised at 1 267 NOK/mt (623 in Q1-20). Iron ore is an important input factor for infrastructure projects globally, and demand has increased strongly during 2020 and 2021.
– Our progress is supported by a historically strong market for iron ore. Prices have increased due to supply side limitations – specifically iron ore of high quality – combined with increased demand from a ramp-up of infrastructure projects globally to boost the economy post Covid-19, says Gunnar Moe.
New strategic projects
The company has launched three strategic projects for the coming 3-5 years, including increasing the iron ore content in production, expanding magnetite production, and reducing CO2 emissions. For the latter, the company aims for reducing all CO2 emission to zero within 2025, through electrification of mining equipment and more sustainable supply chains.
– We are confident that our strategic priority to lift the production to iron ore with higher iron concentrate will strengthen both our long-term market position and profitability. Furthermore, we will also consider a diverse range of efforts expanding our business and reducing costs, Moe concludes.
CEO, Gunnar Moe
CFO, Erlend Høyen