preliminary final report year ending june 30, , page-4

Grange has announced a profit of $42m for the FY 2009-2010!!!

This is lower than last years profit because of a one off sale of $40m which occurred last year.

Like BHP RIO FMG, the first 9 months of the FY saw iron ore prices of around $70 per tonne, when Granges cash cost was around $65 per tonne, so little profit if any was made during this time.

All the operating profit has occurred since April this year to June 30 to bring about this $42m profit. They also had a legacy agreement whereby they had to sell a million tonnes of iron ore at $43 per tonne. Which they wont have to do any more.

Going forward Grange will have a significant profit margin for their pellets - $130-150 per tonne in revenue less the Cash Cost of $65 per tonne costs!



This would mean the 2010FY profit would sit around



$140 - $65 = $75 per tonne gross profit x 2.4mtpa =
$180m Gross Profit for this financial year is expected to be over 4 times higher than in 2009-2010FY.



Going forward expect to see some excellent quarterly announcements! GO GRANGE!!!