KEY North-West miner Grange Resourcesmade a solid start to 2016, with March quarter prices up and operating costs per tonne down.
The Savage River miner has been hit by the iron ore price slump.
It booked a statutory loss of $277.8 million for calendar year 2015 due to big asset writedowns.
The Savage River Mine.
Grange managed an underlying after tax profit of $50.9 million for the year.
It has been working hard on costs, including through a redundancy program to cut up to55 positions.
Itsgraph turned upward in the first three months of the year, with the average price received per tonne up from $75.97 to $80.64.
Cash operating costs dropped to an average $63.27, from $72.73 in the previous quarter.
Burnie-headquarteredGrange’s quarterly report said it had continued its focus on cost reduction during the quarter “with finalising the redundancy and restructuring and optimising the workforce”.
CEO Honglin Zhao said: “Despite continued uncertainty in the industry and the company implementing cost reduction initiatives, including a redundancy and restructure program optimising the workforce, the team achieved set targets and delivered strong results for the quarter.”
The company said the stronger prices were consistent with a rebound in benchmark iron oreprices in China.
Grange said it had secured a second long-term sales contract for 2016 and 2017.
Its share price has spiked upwards since mid-April, in line with the wider ASX metals and mining index as commodities prices have improved.
Ithad $127 million in cash and trade receivables of $14 million on March 31.
This story Administrator ready to work first appeared on Nanjing Night Net.