Rana Gruber continues its strong production trend from 2023 with increased volumes and improved quality. The Board has decided to distribute 1.29 NOK in dividends per share, this marks the thirteenth consecutive quarter of dividends since the company’s listing on the Oslo Stock Exchange in 2021.
For the first quarter of 2024, Rana Gruber reported revenues of NOK 285 million, a decrease from NOK 493 million in the same period in 2023. This decline is primarily due to lower iron ore prices and the delay of one vessel’s revenue recognition to the second quarter. Iron ore prices, which ended 2023 at high levels, fell back during the first quarter, affecting the revenue recognition of vessels from the fourth quarter that had their final settlements in the first quarter, as well as the preliminary pricing of vessels shipped in the first quarter.
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With a total cash cost of NOK 270.5 million, this resulted in an EBITDA of NOK 55.7 million. The adjusted net result amounted to NOK 68.2 million, down from NOK 151.4 million in the first quarter of 2023.
“The first quarter is usually a stable production quarter with good production conditions, despite sometimes challenging climatic conditions. This was also the case in 2024, and we are very pleased with the solid effort made by the operators in the mine and the processing plant during this period,” says Gunnar Moe, CEO.
From an financial perspective, we are affected by falling iron ore prices impacting both the final settlements of vessels from the fourth quarter and the revenue recognition of vessels from the first quarter. At the start of the second quarter, we again see a strengthening of iron ore prices, which will have a corresponding positive effect into the second quarter.
After the quarters end, the company has been in dialogue with the “Jernbanedirektoratet”, which highlights the electrification of the Nordlandsbanen and the Mo i Rana – Ørtfjell stretch as a priority in their work to electrify the Norwegian railway. “Electrification of the Mo i Rana – Ørtfjellmoen stretch will be a very important step towards carbon-free iron ore production for Rana Gruber,” says Nancy Stien Schreiner, Head of Environment and Sustainability.
Please find enclosed the report and the presentation for the first quarter of 2024.
The financial results will be presented by CEO Gunnar Moe and CFO Erlend Høyen, 14 May at 08.00 a.m. CEST.
The presentation and a following Q&A session will be made available as a webcast which can be reached through the following link:
https://bit.ly/RG_Q1_24
A recording of the presentation and Q&A session will be available on https://ranagruber.no/investors/
For more information, please contact:
CEO, Gunnar Moe
+47 941 47 650
Gunnar.moe@ranagruber.no
CFO, Erlend Høyen
+47 902 02 741
Erlend.hoyen@ranagruber.no
About Rana Gruber
Rana Gruber is a Norwegian iron ore producer established in 1964, with operations based on more than 200 years of mining experience. The company’s products are based on natural mineral resources, which are processed and exported to customers worldwide. Key customers include steel producers and participants in the chemical industry. The company has about 370 employees and a production capacity of 1.8 million metric tons of iron ore concentrates.
This information is subject to the disclosure requirements pursuant to Section 5-12 in the Norwegian Securities Trading Act.
This stock exchange announcement was published by Vegard Nerdal, IR at Rana Gruber AS on 14 May 2024 at 07:00 CEST.
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