Highlights from the quarter:
- Historical high concentrate production with 1.848.000 mt. for the financial year of 2024
- Significant improvement in cash cost from the previous quarters
- Advancing preparations for the new Stensundtjern open-pit mine
- Board of directors has decided to distribute NOK 66.7 million/DPS of NOK 1.80, for Q4- 2024. This corresponds to 70 percent of the adjusted net profit.
Financial Performance:
Net profit for the fourth quarter was NOK 57 million (adj. net profit of NOK 95 million). Total revenues for the fourth quarter amounted to NOK 443.2million (NOK 620.2 million). Despite strong sales volumes fourth quarter revenues this year is reduced compared to last mainly because of lower prices and negatively lagged effects from the previous quarter. Reduced freight cost, together with the depreciation in the Norwegian Currency continues to contribute positively for Rana Gruber.
The last three months of 2024 saw a continuation of the strong production levels we have experienced over the past year, with total output reaching 478,000 metric tons. We have consistently elevated our quality standards to new heights. We are on track to install the remaining equipment necessary to produce above Fe65 with sustainable tonnage. This final installation is scheduled for the beginning of the second quarter, and we expect to sell our first cargo linked to the Fe65 index in the second half of 2025.
At the beginning of January Rana Gruber reached an agreement on the framework for future operations in the Storforshei and Ørtfjell areas with Salten Reindeer District. This agreement secures the coexistence for both of us and is essential to achieving mutual understanding and sustainable solutions.
“Cost focus has been an important focus at the end of 2024 and Rana Gruber strives to deliver in the range between USD 50-55 over time. I am therefore happy to see that our effort already pays off and that we managed to reduce our cash cost to 46 USD per ton, well below our target. This gives us the confidence to focus on our long-term ambitions and at the same time deliver return to our stakeholders”, says Gunnar Moe, CEO.
For the sixteen quarter in a row Rana Gruber distribute dividends to our shareholders and the board of directors has decided to distribute NOK 66.7 million/ DPS of NOK 1.80. After two quarters with a payout ratio of 60 percent, we are now back at 70 percent. This shows our commitment to deliver return to our shareholders and ability to create profitability over time.
Please find enclosed the report and the presentation for the fourth quarter of 2024:
– Report
– Presentation
The financial results will be presented by CEO Gunnar Moe and CFO Erlend Høyen, 13. February at 08.00 a.m. CET.
The presentation and a following Q&A session will be made available as a webcast which can be reached through the following link: https://bit.ly/RanaQ4-24
A recording of the presentation and Q&A session will be available on https://ranagruber.no/investors/
For more information, please contact:
Gunnar Moe, Chief Executive Officer: +47 941 47 650
Erlend Høyen, Chief Financial Officer: +47 902 02 741
About Rana Gruber
Rana Gruber is a Norwegian iron ore producer established in 1964, with operations based on more than 200 years of mining experience. The company’s products are based on natural mineral resources, which are processed and exported to customers worldwide. Key customers include steel producers and participants in the chemical industry. The company has about 370 employees and a production capacity of 1.8 million metric tons of iron ore concentrates.
This information is subject to the disclosure requirements pursuant to Section 5-12 in the Norwegian Securities Trading Act. This stock exchange announcement was published by Vegard Nerdal, IR at Rana Gruber AS on 13 February 2024 at 07:00 CET.