Earnings Release • Feb 15, 2024
Earnings Release
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CEO Gunnar Moe & CFO Erlend Høyen Mo i Rana, 15 February 2024
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.
Record high production in 2023 and increased quality. Strong production in Q4 despite one week planned maintenance stop
Highest ever revenues in 2023 and in Q4
Best ever adjusted net profit in 2023 and Q4 leading to a dividend of NOK 4.27/share in the quarter
One-year life extension of open-pit mine in Ørtfjell
No production-related injuries in the quarter
Risk assessment for small electric vehicles in the underground mine completed
First electric loader arrived late December, with internal training ongoing
Safety focus to be maintained and prioritised
- The trend continues
- Supported by record-high production and strong market
* Mainly consisting of onward billing of freight costs related to magnetite shipments, as well as minor sales of equipment and services.
Amountsin NOK million (Except where otherwise stated)
| Q4 2023 |
Q4 2022 |
Change (%) |
|
|---|---|---|---|
| Revenue | 620.2 | 382.8 | 62.0% |
| Raw materials and consumables used | -99.8 | -116.5 | -14.3% |
| Other costs | -177.9 | -138.5 | 28.5% |
| Change in inventory | 16.1 | 40.2 | -59.9% |
| EBITDA | 358.5 | 168.0 | 113.4% |
| Depreciation | -42.5 | -40.1 | 6.1% |
| EBIT | 316.0 | 127.9 | 147.0% |
| Net financial income/(expences) |
-92.2 | 215.7 | -142.7% |
| Pre tax profit | 223.8 | 343.6 | -34.9% |
| Tax | -49.2 | -75.6 | -34.9% |
| Net profit | 174.6 | 268.0 | -34.9% |
| Adjustments* | 66.0 | -141.0 | -146.8% |
| Tax on adjustments | -14.5 | 31.0 | -146.8% |
| Adjusted net profit |
226.1 | 158.1 | 43.0 % |
* For explanation, please see the appendix to the interim financial statements.
- offset by high investments in strategic project and dividend
*The operating cash flow is before changes in working capital and taxes.
31 December 2023 (30 September 2023)
*The interest-bearing debt consists of lease and rent obligations. The company has an unused credit facility of NOK 100 million.
Progressing on strategic projects while maintaining high production
Historically high iron ore prices – high level expected to continue as inventory levels in China are low
Magnetite production expected to increase as capacity is being expanded
Activities at the Ørtfjell deposit extended by approximately one year. Gives additional time develop more cost-efficient production strategy for the Steinsundtjern deposit
12 consecutive quarters of dividends payments – NOK 1.2 billion in total since listing in February 2021
Contact: [email protected] Next report: Q1 2024 – 14 May 2024
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