RANA: Rana Gruber first quarter 2023 results
The first quarter of 2023 was characterised by continued high production
volumes, ambitions for increased product quality, and led to dividends of NOK
2.86 per share.
Rana Gruber produced 434 thousand metric tons in the quarter. That is 7 per cent
more than in the first quarter of 2022. The production increase was a result of
continuous improvement in the entire operations from the mine to the processing
The company expects the demand for higher quality iron ore to increase as
European steel mills transition towards a more sustainable production method,
which requires iron ore of at least 66.5 per cent Fe. Initial studies conducted
by the company indicate that Rana Gruber will be able to produce hematite of 67
per cent Fe, and in March, the board of directors decided to continue the
studies around the development of higher quality iron ore.
The company extended the partnership with Cargill by five years until 2035. This
will allow the companies to collaborate on the development of Rana Gruber's
future products and to work with the customers to ensure that Rana Gruber has
access to customers that will value the premium grade ore in the company's
In February, the company also signed a frame agreement with Sandvik for the
delivery of 19 battery-electric vehicles. This is an important step to achieve
the strategic goal to become the world's first carbon free iron ore producer
before the end of 2025.
The revenues came in at NOK 493.0 million, down from NOK 515.7 million in the
first quarter of 2022. The reduction is largely explained by lower iron ore
prices in the end of the quarter compared to last year. Together with an
increase in operating costs caused by global inflation, and a increased
inventory, this resulted in a decrease in operating profit (EBITDA), which ended
at NOK 226.3 million (NOK 273.6 million).
The adjusted net profit amounted to NOK 151.4 million, and the board of
directors decided to pay out dividends per share of NOK 2.86.
"We have paid out 70 per cent of the adjusted net profit as dividends in all the
nine quarters since we were listed. Once again, this confirms our ability to
create value to our shareholders," says Gunnar Moe, CEO of Rana Gruber.
Please find enclosed the report for the first quarter of 2023.
The financial results will be presented by CEO Gunnar Moe, CFO Erlend Høyen, and
COO Stein-Tore Liljenström 11 May, 08.00 a.m. CET. There will also be a Q&A
The presentation and Q&A session will be made available through the following
A recording of the presentation will be available on
For more information, please contact:
CEO, Gunnar Moe
CFO, Erlend Høyen
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 300 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 11 May 2023 at 07:00 CET.