GRANGE RESOURCES LIMITED. — Interim / Quarterly Report 2015

Aug 27, 2015

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Appendix 4D

Half year report

Name of entity

GRANGE RESOURCES LIMITED

ABN

80 009 132 405

Details of the reporting period and the previous corresponding period

Current Reporting Period The half year ending 30 June 2015 Previous Corresponding Reporting Period The half year ending 30 June 2014

Results for announcement to the market

				6 months to		6 months to
				30 June		30 June
				2014		2015
				$’000		$’000
Revenues from ordinary activities	Down	10%	from	129,668	to	116,579
Profit from ordinary activities after tax (beforesignificant items) attributable to members	Up	37%	from	24,382	to	33,298
Profit for the period attributable to members	Up	51%	from	(162,153)	to	(79,792)

A commentary on the results for the current reporting period is contained within the interim financial statements that accompany this announcement. During the current period there were a number of significant items that had a material impact on the income statement of the consolidated entity as set out in the table below:

	6 months to
	30 June
	2015
	$’000
Underlying profit after tax	33,298
Significant items (net of tax)
Impairment of assets1	(113,090)
Statutory loss after tax	(79,792)

(1) Non-cash impairment of the carrying value of Savage River assets of $161.6 million ($113.1 million net of tax). The key driver of the impairment is lower than forecast iron ore prices arising from recent changes in the supply and demand dynamics of the market. Refer to Note 24 of the interim financial statements for more details.

Dividend information

The Directors have resolved not to pay an interim dividend. The decision will provide the Directors with additional time to assess the downward pressure of the current iron ore market and Company cash flow position.

Net tangible asset backing

	30 June	30 June
	2014	2015
Net tangible asset backing per ordinary security	$0.42	$0.38

Details of entities over which control has been gained or lost during the period

Not applicable.

Details of any dividend or distribution reinvestment plans in operation and the last date for the receipt of an election notice for participation in any dividend or distribution reinvestment plan

Not applicable.

Details of associates and joint venture entities

a) Details of associates

Not applicable.

b) Details of material joint ventures

Name of unincorporated joint venture	Southdown Joint Venture
Ownership interest	70% economic interest

As previously announced, the Company is looking to sell at least a 30 per cent stake of the Group’s 70 per cent interest in the Southdown Magnetite Project.

For foreign entities, which set of accounting standards is used in compiling the report (e.g. International Accounting Standards)

The interim financial report for the six month period ended 30 June 2015 has been prepared in accordance with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements.

If the accounts are subject to audit dispute or qualification, a description of the dispute or qualification

Not applicable.

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Michelle Li Chairperson Hong Kong 28 August 2015