Ann: GRR - Quarterly Report for 3 months ended 31 March 2019, page-30

GRR has around 250m in cash and relatively liquid assets. In 2018 it had an EPS of 9.79c per share (2017 5.25c). It also delivered profit after tax of $112.9m in 2018 (2017: profit after tax of $60.7m). It has had net assets of $477.8m as at 31Dec2018. The company has a market cap of $353m currently and a dividend yield of 6.56%.

This is not a spec stock and has been in production for a long time and calls itself as Australia's most experienced magnetite producer. It has projected mine life at Savage River mine in Tasmania beyond 2030. It also has sales arrangements in place. It’s also majority joint venture partner in a major magnetite development project in WA. Once developed it is expected to have capacity to supply 4 times the amount of iron ore produced in Savage River (10m t). I believe the company is looking for strategic partner(s) to develop the project.

My view the company will have a comparatively lower pallet production in 1H (1Q 453kt). Still with a good 2H they will be able to achieve 2m t for the year. The weaker A$:U$ is also supporting the company's A$ revenue and with almost no inflation, there could be more rate cuts in 2019 and a further weaker A$. The company also has no direct sovereign risk as its operations are based in Australia.

By the announcement of 11th April they advised in advance that the production in 1H will be lower and full production is expected in 2H. The lower production was due to a delay in completion and I believe the market had its reaction on the announcement. At this market cap GRR should be a good investment choice in my view. I am relatively new to this stock and only has a small holding as at now and may look to increase my holdings on dips. Dyor. Good luck all.