Grange Resources approves A$287 million mine for Grange Resources stock

Published on 10/25/2026 at 02:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

The Savage River plan carries an A$357 million NPV and 43 percent IRR. Grange Resources stock now has a mine plan through 2035.

Underground plan and funding case

Grange Resources approved a Savage River underground project on October 14, 2026, with A$287 million in capital expenditure.
The base case carries an A$357 million after-tax net present value and a 43 percent internal rate of return.
Underground development is scheduled to begin in the first quarter of 2027, extending pellet supply continuity to 2035.

Grange Resources, AU000000GRR8, Illustration mit AI erstellt.

Grange Resources has approved an A$287 million underground mine at Savage River, giving Grange Resources stock a new operating plan through 2035. The decision, released on October 14, 2026, selected a sub-level cave after the larger block cave required more funding. SureStone reported that the project carries an A$357 million after-tax net present value and a 43 percent internal rate of return.

Capital is lower than the earlier design

The approved sub-level cave requires A$287 million of underground capital and A$234 million of sustaining capital over an estimated 10-year mine life. The plan is designed to use existing cash reserves and cash flow from open-pit operations, while preserving a later option for a larger block cave.

Mugglehead reported on October 14, 2026, that Grange held A$267.9 million in cash, cash equivalents and liquid investments at June 30, 2026. That liquidity figure provides the clearest funding context for the new mine plan.

What does the project mean for supply?

The company targets underground development in the first quarter of 2027, with open-pit mining planned to finish in 2028 and first underground ore expected in 2028. Production is projected to ramp toward 4 million tonnes annually by 2030, according to Discovery Alert.

Three dates define the transition

On September 24, 2026, Grange reported half-year operating cash flow of A$77.1 million. On October 14, 2026, the board approved the A$287 million sub-level cave. On October 23, 2026, the ASX-listed stock was last quoted at AUD 0.10, according to the evaluated market quote. The sequence shows a company moving from impairment pressure toward a smaller, staged development model.

Next milestones are operational

Mining contract awards and mobilization are planned for the fourth quarter of 2026, followed by renewed underground development in the first quarter of 2027. The project assumptions include an 8.3 percent real after-tax discount rate and a US$90 per tonne iron ore benchmark, making execution and commodity prices important variables for the stated return case.

Stock context

Grange Resources operates the Savage River magnetite mine and the Port Latta pellet plant in Tasmania. Its primary listing is the ASX under ticker GRR, and the company is classified in the Materials sector.

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