Shagang Offtake, page-23

Grange wrote down the value of the mine by $296 million with impairment charges in 2014 and a further $285 million in 2015. After this $581 million write off, the depreciation and amortisation charges were about $50 million per year lower and the reported profit was inflated by about $50 million per year in subsequent years.

Grange is spending real money to extent the life of the mine. So the cashflow is about $50 million per year lower than the reported profit. This is probably why Grange decided to only pay 20 or 25% of profit as dividends.

But the high iron ore prices changes everything. With The 2021 profit is so big that Grange could pay 70% of profits as dividends and still have enough money to extend the mine life. It is possible that Grange could revise the dividend policy later this year when the cash starts building up.