Q2 2024 Rana Gruber ASA Earnings Call Transcript
Key Points
- Rana Gruber ASA (STU:7XH) reported a significant increase in revenue for Q2 2024, reaching NOK548 million compared to NOK349 million in the same quarter last year.
- The company maintained a strong safety record with no production-related injuries during the extensive maintenance period.
- Rana Gruber ASA (STU:7XH) achieved record high sales volumes in the hematite segment with nearly nine shipments in the quarter.
- The company continues to pay dividends consistently, with the Board declaring a NOK2.23 per share dividend for the second quarter, marking 14 consecutive quarters of dividend payments.
- Magnetite production is on track to reach 150,000 tonnes per year, aligning with the company's strategic goals.
- The annual maintenance stop led to lower production and higher cash costs per tonne due to increased maintenance expenses.
- An unexpected failure of a conveyor belt in the underground mine resulted in additional costs beyond initial plans.
- The company faces challenges in reaching its 2025 environmental targets due to longer lead times and higher costs.
- The total net cash flow from operations was negative NOK27 million for the second quarter, impacted by a significant tax payment and reduction in payables.
- Rana Gruber ASA (STU:7XH) is facing potential headwinds from volatile iron ore prices and uncertainties related to sales in Europe.
Welcome to this presentation of Rana Gruber results for the second quarter and first half of 2024. My name is Gunnar Moe and I am the CEO at Rana Gruber. And with me today, I have our CFO, Erland Hoyen. We will now take you through it here our operational and financial performance, and you are welcome to send us questions during our presentation by using the Q&A feature. Questions will be answered at the end of the session.
Let's start with the highlights for the second quarter. Second quarter is normally an eventful quarter and our most important quarter were to improve and maintain our processing equipment.
Second quarter is always a quarter with lower production in all part of our process due to the annual maintenance stop. The reduced production in the period in combination with higher maintenance costs means higher cash cost per tonne. This year, we also had an unexpected failure on one of the conveyor belts in the underground mine, which resulted in higher costs than the initial plan.
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