What are MM thoughts on Grange Resources (GRR)?

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Question asked 25/06/2022

What are MM thoughts on Grange Resources (GRR)?

Hi James & Team, I can see you guys put a lot of work into Market Matters which I think is one of the best newsletters on the market. Grange Resources Limited GRR has been recommended by a number of commentators. What is your opinion on the investment prospect of the stock & your bear case valuation in this volatile market? I am curious to read in the JLG announcements that a director was able to purchase shares in the company prior to a company upgrade announcement? How is that possible? 03/06/2022 11:35 am AEST Change of Director's Interest Notice - Adrian Gleeson 3 09/06/2022 9:03 am AEST Johns Lyng Group Limited provides earnings upgrade for FY22 2 market sensitive Thanks & regards, Sidney

Answer

Hi Sidney,

Thanks for the positive feedback, much appreciated after a long few weeks putting together the launch of MM3.

Tasmanian based iron ore pellets producer Grange Resources (GRR) has soared in 2022 although its been unceremoniously dumped 30% in the last fortnight as Iron Ore prices have declined by a similar amount. GRR, however around $1.20 its forecasted 10% yield will be hard to ignore and should by definition be very supportive.

Looking out over the next 3-5 years, the price of Iron Ore is likely to be lower given increasing supply coming into the market during this time frame – we think staying active in the space will be key rather than buying and holding. In the shorter term, we think buying into weakness around $1,20 looks reasonable.

Lastly RE directors buying or selling – there are lots of different reasons for this to happen and I have not looked at these two instances specifically, however the ASX does have well defined windows around this.

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Grange Resources Ltd (GRR)

LAST UPDATED 24/06/2022 16:06

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