Rana Gruber ASA

Investor Presentation • Nov 13, 2024

Oslo, 13 November 2024

Disclaimer and important information

This presentation has been prepared by Rana Gruber ASA (the "Company") solely for information purposes.

The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various forward-looking statements that reflect management's current views with respect to future events and financial and operational performance.

The words "believe," "expect," "anticipate," "intend," "may," "plan," "estimate," "should," "could," "aim," "target," "might," or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realised. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. Past performance information included in this Presentation or in such other written or oral material is not an indication of future performance and the actual returns on investments may differ materially from the returns indicated herein.

No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, neither the Company nor its subsidiary undertakings or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

For APM definitions, please refer to the appendix to the condensed interim financial statements. Quarterly figures are unaudited.

Strong production, dividend distributed of NOK 1.45 per share

Strong production with record magnetite sales volumes

Stable and efficient production brought cash cost down from high levels seen in the second quarter

Lower realised prices for hematite due to macroeconomic outlook and strong production volumes from Australia and Brazil

Continued emphasis on shareholder returns with dividend of NOK 1.45 per share bringing total dividends to more than NOK 1.3bn distributed since listing in 2021

Still a solid safety profile

People and environment - our number one assets

No production-related injuries in the quarter. Safety focus to be maintained and prioritised to secure a safe working environment

Among the lowest carbon emissions in the industry, at 7.17 kg CO2e per ton of iron ore produced. Extend the timeline for full electrification and focus instead on a more gradual reduction of carbon emissions from today's levels.

Production

The strong production trend continues

Revenue

Strong production and sales with record magnetite sales volumes

* Mainly consisting of onward billing of freight costs related to magnetite shipments, as well as minor sales of equipment and services.

Cost from operations

Stable and efficient production brought cash cost down

Financial performance

15 consecutive quarterly dividends

Amounts in NOK million (Except where otherwise stated)	Q3 2024	Q3 2023	Change (%)
Revenue	388.6	470.1	-17.3 %
Raw materials and consumables used	-101.2	-101.7	-0.5 %
Other costs	-175.4	-152.6	14.9 %
Change in inventory	12.8	-35.4	63.8 %
EBITDA	124.8	251.2	50.3 %
Depreciation	-46.4	-41.0	13.2 %
EBIT	78.4	210.2	-62.7 %
Net financial income/(expenses)	0.5	67.4	-100.8 %
Pre-tax profit	78.9	142.7	-44.7 %
Tax	-17.4	-31.4	-44.7 %
Net profit	61.6	111.3	-44.7 %
Adjustments*	35.6	76.8	-53.6 %
Tax on adjustments	-7.8	-16.9	-53.6 %
Adjusted net profit	89.3	171.2	-47.8 %

* For explanation, please see the appendix to the interim financial statements.

Change in cash

Reduced cash mainly due to working capital, investments and dividends

*The operating cash flow is before changes in working capital and taxes.

Financial position 30 September 2024 (31 December 2023)

*The interest-bearing debt consists of lease and rent obligations. The company has an unused credit facility of NOK 100 million.

Key takeaways

Strong production and sales with record magnetite sales volumes

Strong balance sheet, solid partners and a competent organization to handle volatile markets

Solid track record over 60 years, and on track to deliver iron ore concentrate of 65% and increased magnetite production.

15 consecutive quarters of dividends payments – more than NOK 1.3 billion in total since listing in February 2021

Cost breakdown last 12 months

Amounts in NOK million (Except where otherwise stated)	Cost item	Total cost	Share of total
Mining	Open pit	230.3	20.9%
	Load and haul/crushing	109.3	9.9%
	Drilling and blasting	66.4	6.0%
	Mine administration and maintenance	63.3	5.7%
	Mine planning and development	15.8	1.4%
Processing	Processing	155.1	14.1%
	Colorana	37.4	3.4%
	Loading/Ship handling	32.7	3.0%
Support/administration	Insurance, SG&A	166.1	15.1%
	IT, infra, lab and facility services	82.0	7.4%
Tech Support	Tech support	78.3	7.1%
Train	Train	65.3	5.9%
Total		1 102.1	100%