Interim report
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1 Grange Resources Limited ABN 80 009 132 405 Australia’s most experienced magnetite producer Half Year Financial Report – 30 June 2026
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Grange Resources Limited and its Controlled Entities Directors' report 30 June 2026 2 The directors present their report on the consolidated entity (the “Group”) consisting of Grange Resources Limited (“Grange” or the “Company”) and the entities it controlled at the end of, or during, the half-year ended 30 June 2026. Directors The following persons were directors of Grange Resources Limited during the whole of the financial half -year and up to the date of this report, unless otherwise stated: Michelle Li Chairperson Fong Hoon Non-Executive Director Ajanth Saverimutto Non-Executive Director Guo Wei Non-Executive Director (Appointed on 10 March 2026) Jiajia Jiang Non-Executive Director (Resigned on 15 April 2026) Jie Yu Non-Executive Director (Appointed on 2 June 2026) Principal activities During the six months ended 30 June 2026, the principal activities of the Group were as follows: ● mining, processing and sale of iron ore from its operations in Tasmania; and ● the ongoing exploration and evaluation of mineral resources, principally the Southdown Magnetite Project near Albany, Western Australia. Review of operations Key Highlights ● The Company continues to optimise a self-funded alternate plan to transition to a smaller underground sub-level cave. It expects to extend the life-of-mine to 2035 and preserve optionality to progress to the Block Cave once market conditions and funding support a larger investment. ● Sustained safety performance of 1,135 days Lost Time Injury (LTI) Free prior to an LTI occurring on 18 May 2026. ● Pellet production of 1.15 million tonnes (2025: 1.07 million tonnes) driven by increased concentrate availability and improved furnace utilisation. ● Pellet sales of 1.14 million tonnes (2025: 0.99 million tonnes) driven by higher pellet production throughput and increased sale of spot shipments. ● Unit cash operating costs for the six months ended 30 June 2026 of $146.95 per tonne (2025: $180.25 per tonne) principally due to higher concentrate produced. ● Cash, cash equivalents and liquid investments of $267.9 million (31 December 2025: $275.1 million) impacted by lower price and operational expenditure to secure future ore delivery. ● Underlying profit after tax for the six months ended 30 June 2026 of $10.5 million (2025: $13.8 million) was achieved despite the stronger AUD:USD FX rate and higher diesel price, primarily driven by stronger sales volume. The statutory result for the period was materially impacted by the recognition of non-cash impairment of assets (note 17). A reconciliation of underlying profit after tax to statutory loss after tax for the year ended 30 June 2026 is set out below: 30 June 2026 $'000 Underlying profit after tax 10,503 Significant item Impairment of assets (690,678) Deferred tax impact 138,330 Impairment of assets (net of deferred tax impact) 552,348 Statutory loss after tax (541,845)
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Grange Resources Limited and its Controlled Entities Directors' report 30 June 2026 3 Consolidated Statement of Comprehensive Income Statutory loss after tax of $541.8 million was recorded for the half ‑year (2025: $13.8 million profit). Revenue increased to $230.8 million (2025: $206.4 million), however the operating result was materially impacted by the recognition of a non -cash impairment of assets (note 17) $552.3 million (net of deferred tax impact). Key revenue metrics for the 30 June 2026 half year and preceding 2025 half year were as follows: 6 months to 6 months to 30 June 2026 30 June 2025 Iron Ore Pellet Sales (dmt) 1,135,678 999,045 Iron Ore Chip Sales (dmt) 45,488 53,283 TOTAL Iron Ore Product Sales (dmt) 1,181,166 1,052,328 Average Realised Product Price (US$/t FOB Port Latta)* 119.95 113.31 Average Realised Exchange Rate (AUD:USD) 0.7023 0.6343 Average Realised Product Price (A$/t FOB Port Latta)* 170.79 178.63 * A portion of sales were made on CFR (Cost and Freight) terms whereby the Group incurred shipping expenses to transport the shipments to the discharge ports. The above FOB Port Latta unit prices realised reflect prices net of shipping expenses. Grange will continue to deliver into secured term offtake agreements for its products for 2026. 6 months to 6 months to 30 June 2026 30 June 2025 Total BCM Mined 6,482,715 7,346,057 Total Ore BCM 578,209 635,991 Concentrate Produced (t) 1,194,342 1,014,997 Pellet Produced (t) 1,145,712 1,066,259 Pellet Stockpile (t) 303,403 310,127 Weight Recovery (%) 37.80 35.80 "C1" Costs (A$/tonne Product Produced) 146.95 180.25 Note: “C1” costs are the cash costs associated with producing iron ore products without allowance for mine development, deferred stripping and stockpile movements, and does not include royalties, depreciation and amortisation costs. Lower C1 costs per tonne principally due to higher concentrate produced. BCM represents the volume of material moved, covering both waste and ore, measured in bank cubic metre. Quarter one mining activity focused on the completion of Centre Pit and the progression of waste stripping in North Pit. During the June quarter, efficient advancement of the North Pit waste stripping programme and favourable ore grade reconciliation continued. Ore blending and controlled drawdown of higher -grade stockpiles resulted in a lower average weight recovery during the second quarter, while maintaining premium pellet quality and production performance. For the half year, the weight recovery increased to 37.80% (2025: 35.80%). Concentrate and pellet production remained strong during the first half of 2026. Following completion of annual maintenance activities in the March quarter, the concentrator continued to perform well and milling throughput exceeded plan. This supported con centrate production of 1.19 million tonnes and pellet production of 1.15 million tonnes for the half year. Operations benefited from strong plant performance, increased concentrate production, and consistent pellet plant utilisation of four furnaces.
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Grange Resources Limited and its Controlled Entities Directors' report 30 June 2026 4 North Pit Underground Development Project During the first half of 2026, the North Pit Underground Project (NPUG) was reviewed by an Independent Technical Expert. That report confirmed that the project is technically robust and identified no fatal technical, operational or permitting flaws. In addition, the Grange Resources (Tasmania) Pty Ltd (Alternative Application Period) Bill 2026 progressed through the Tasmanian Parliament, providing an important step towards increased long -term tenure certainty for the Savage River operation and potential future underground development. Maintenance activities on underground assets and development planning are also continuing. NPUG would utilise the block -cave mining method as reviewed above and, if fully funded, could extend the Company’s life - of-mine to 2040. However, global market uncertainty, commodity price volatility, and funding requirements including potential guarantee structures that may be required for a project of this scale, are impacting the risk appetite and long -term value assessments of this plan. The Company is currently focused on optimising a self-funded alternative plan based on a smaller sub-level cave (SLC). The Company expects this plan to extend its life -of-mine to 2035 while preserving the option to progress the Block Cave development in the future if market conditions and funding arrangements can support the larger investment. The Company continues to assess the SLC Standalone development case against the opportunity to optimize the Open Pit. The SLC Standalone case remains the development pathway currently being progressed by management, with further optimisation work continuing to reduce funding requirements and preserve long-term value. Neither the Block Cave nor SLC Standalone development has reached a final investment decision. The impairment assessment for HY26 has been based on the SLC Standalone case, reflecting the development pathway currently being progressed by management. The as sessment has also considered the Open Pit standalone case. The Company has recognised a non-cash impairment charge in this half -year financial report. The non -cash impairment charge will apply to the carrying values of mining assets of the Savage River ope rations and will be excluded from HY26 underlying profit after tax. Port Latta Improvement Projects Progress continued on the balling drum replacement programme at Port Latta, with the successful replacement of the Furnace Line 5 Drum during the half year. The project forms part of an ongoing asset renewal and furnace optimisation strategy, supported by prior investments in electrical and control system infrastructure to improve reliability, operational efficiency and future plant performance. Supporting sustaining capital projects were also progressed to enable future Furnace Efficiency Upgrades aligned with the converted Furnace Line 4 configuration. These works included investment in transformers and upgrades to the Furnace Line 5 Motor Control Centres and Control System. Consolidated Statement of Financial Position Grange’s net assets have decreased significantly from $1,108.2 million as at 31 December 2025 to $566.4 million as at 30 June 2026. The reduction of $541.7 million was driven primarily by a $552.3 million non -cash impairment of assets (net of deferred tax impact).
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Grange Resources Limited and its Controlled Entities Directors' report 30 June 2026 5 Consolidated Statement of Cash Flows Net cash flows from operating activities Net cash inflows from operating activities for the six months ended 30 June 2026 were $77.1 million (six months ended 30 June 2025: net inflow of $41.4 million) which is mainly due to receipts from customer and other debtors of $244.2 million (June 2025: $ 191.3 million) and interest received of $6.3 million (June 2025: $9.3 million) offset by payments to supplier and employees of $173.3 million (June 2025: $153.6 million). Net cash flows from investing activities Net cash outflows from investing activities for the six months ended 30 June 2026 were $73.5 million (six months ended 30 June 2025: net inflow of $1.8 million), principally related to proceeds from term deposits $1.4 million (June 2025: $100.0 million) reduced by significant expenditure for mine properties and development of $51.6 million (June 2025: $72.4 million), and purchase of property plant equipment of $22.2 million (June 2025: $25.4 million). Net cash flows from financing activities Net cash outflows from financing activities for the six months ended 30 June 2026 were $0.9 million (six months ended 30 June 2025: net outflow of $0.9 million). Net outflow was principally related to lease payments. Rounding of amounts The Group is of a kind referred to in Australian Securities and Investment Commission (ASIC) Legislative Instrument 2016/191 Class relating to the ‘rounding off’ of amounts in the directors' report. Amounts in the directors' report have been rounded off in accordance with the instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Michelle Li Chairperson of the Board of Directors 31 August 2026
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PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331 MELBOURNE VIC 3001 T: +61 3 8603 1000, F: +61 3 8603 1999, www.pwc.com.au pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation. Auditor’s Independence Declaration As lead auditor of Grange Resources Limited's financial report for the half-year ended 30 June 2026, I declare that, to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review of the financial report; and b) no contraventions of any applicable code of professional conduct in relation to the review of the financial report. Chris Dodd Melbourne Partner 31 August 2026 PricewaterhouseCoopers 6
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Grange Resources Limited and its Controlled Entities Contents 30 June 2026 7 Consolidated statement of comprehensive income 8 Consolidated statement of financial position 9 Consolidated statement of changes in equity 10 Consolidated statement of cash flows 11 Notes to the consolidated financial statements 12 Directors' declaration 26 Independent auditor's review report to the members of Grange Resources Limited 27
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Grange Resources Limited and its Controlled Entities Consolidated statement of comprehensive income For the half-year ended 30 June 2026 Note Six months to 30 June 2026 Six months to 30 June 2025 $'000 $'000 The above Consolidated statement of comprehensive income should be read in conjunction with the accompanying notes 8 Revenue from Operations 2,3 230,788 206,426 Cost of Sales 4 (213,185) (194,152) Gross profit from operations 17,603 12,274 Administrative Expenses (2,076) (3,686) Exploration and Evaluation Expenditures (878) (1,386) Other Income 190 124 Impairment of assets 17 (690,678) - Operating (loss)/profit before finance costs (675,839) 7,326 Finance Income 3,641 14,018 Finance Expenses (2,841) (2,632) (Loss)/profit before income tax benefit/(expense) (675,039) 18,712 Income tax benefit/(expense) 5 133,194 (4,945) (Loss)/profit after income tax benefit/(expense) for the half-year 16 (541,845) 13,767 Other comprehensive (loss)/income for the half-year, net of tax - - Total comprehensive (loss)/income for the half-year (541,845) 13,767 Cents Cents Basic (loss)/earnings per share (46.82) 1.19 Diluted (loss)/earnings per share (46.59) 1.18
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Grange Resources Limited and its Controlled Entities Consolidated statement of financial position As at 30 June 2026 30 June 31 December Note 2026 2025 $'000 $'000 The above Consolidated statement of financial position should be read in conjunction with the accompanying notes 9 Assets Current assets Cash and cash equivalents 6 98,696 94,549 Trade and other receivables 7 42,916 49,596 Inventories 9 250,922 247,597 Other financial assets 8,18 170,050 184,478 Total current assets 562,584 576,220 Non-current assets Other financial assets 8,18 - 828 Property, plant and equipment 10 89,418 232,611 Right-of-use assets 1,063 171 Mine properties and development 11 81,110 574,549 Deferred tax assets 12 34,599 - Receivables 18,645 11,108 Total non-current assets 224,835 819,267 Total assets 787,419 1,395,487 Liabilities Current liabilities Trade and other payables 13 36,972 37,793 Lease liability 1,780 91 Provisions 14 26,237 26,991 Total current liabilities 64,989 64,875 Non-current liabilities Deferred grants 1,715 1,550 Lease liability 1,583 85 Other financial liabilities 18 225 - Deferred tax liabilities 12 - 98,444 Provisions 14 152,544 122,378 Total non-current liabilities 156,067 222,457 Total liabilities 221,056 287,332 Net assets 566,363 1,108,155 Equity Contributed Equity 15 331,513 331,513 Reserves (1,310) (1,363) Retained earnings 16 236,160 778,005 Total equity 566,363 1,108,155
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Grange Resources Limited and its Controlled Entities Consolidated statement of changes in equity For the half-year ended 30 June 2026 The above Consolidated statement of changes in equity should be read in conjunction with the accompanying notes 10 Contributed Retained Total equity Equity Reserves earnings $'000 $'000 $'000 $'000 Balance at 1 January 2025 331,513 (1,657) 731,405 1,061,261 Profit after income tax expense for the half-year - - 13,767 13,767 Other comprehensive (loss)/income for the half-year, net of tax - - - - Total comprehensive (loss)/income for the half-year - - 13,767 13,767 Transactions with owners in their capacity as owners: Share-based payments - 93 - 93 Balance at 30 June 2025 331,513 (1,564) 745,172 1,075,121 Contributed Retained Total equity Equity Reserves earnings $'000 $'000 $'000 $'000 Balance at 1 January 2026 331,513 (1,363) 778,005 1,108,155 Loss after income tax benefit for the half-year - - (541,845) (541,845) Other comprehensive (loss)/income for the half-year, net of tax - - - - Total comprehensive loss for the half-year - - (541,845) (541,845) Transactions with owners in their capacity as owners: Share-based payments - 53 - 53 Balance at 30 June 2026 331,513 (1,310) 236,160 566,363
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Grange Resources Limited and its Controlled Entities Consolidated statement of cash flows For the half-year ended 30 June 2026 Six months to 30 June 2026 Six months to 30 June 2025 $'000 $'000 The above Consolidated statement of cash flows should be read in conjunction with the accompanying notes 11 Cash flows from operating activities Receipts from customers and other debtors (inclusive of goods and services tax) 244,225 191,299 Payments to suppliers and employees (inclusive of goods and services tax) (173,320) (153,586) 70,905 37,713 Interest received 6,314 9,333 Interest paid (131) (140) Income taxes paid - (5,539) Net cash inflow from operating activities 77,088 41,367 Cash flows from investing activities Payments for mine properties and development (51,627) (72,441) Payments for property, plant and equipment (22,185) (25,409) Proceeds from security and term deposits 1,400 99,950 Payments for commodity options (1,082) (273) Net cash (used in)/from investing activities (73,494) 1,827 Cash flows from financing activities Lease payments (942) (891) Net cash used in financing activities (942) (891) Net increase in cash and cash equivalents 2,652 42,303 Cash and cash equivalents at the beginning of the financial half-year 94,549 71,449 Effects of exchange rate changes on cash and cash equivalents 1,495 (581) Cash and cash equivalents at the end of the financial half-year 98,696 113,171
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 12 Note 1. Summary of Significant Accounting Policies (a) Basis of preparation for the interim financial report This consolidated interim financial report for the half -year reporting period ended 30 June 2026 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. The consolidated interim financial report does not include all information and disclosures required in the annual financial statements. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2025 and any public announcements made by Grange Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. (b) Accounting policies The accounting policies adopted in the preparation of the consolidated interim financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2025. Where required, comparative figures have been adjusted to conform to changes in presentation for the current financial year. A number of amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amendments. (c) Critical accounting estimates and judgements The preparation of this interim financial report requires the use of estimates and judgements. The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within this interim financial report are consistent with those of the previous financial year as disclosed in the Annual Report for the year ende d 31 December 2025 with the exception of the assessment of Cash-Generating Unit (CGU) recoverable value (note 17). The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. (d) Rounding of amounts The Group is of a kind referred to in Australian Securities and Investment Commission (ASIC) Legislative Instrument 2016/191 Class relating to the ‘rounding off’ of amounts in the directors' report. Amounts in the directors' report have been rounded off in accordance with the instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Note 2. Segment Information (a) Description of segments Operating segments are determined based on the reports reviewed by the Chief Executive Officer, who is the Group’s chief operating decision maker in terms of allocating resources and assessing performance. The Group has one reportable segment which is the exploration, evaluation, and development of mineral resources and iron ore mining operations The Chief Executive Officer allocates resources and assesses performance, in terms of revenues earned, expenses incurred, and assets employed, on a consolidated basis in a manner consistent with that of the measurement and presentation in the financial statements. Segment assets and capital are allocated based on where the assets are located. The consolidated assets of the Group were predominately located in Australia as at 30 June 2026 and 31 December 2025. The total costs incurred during the current and comparative periods to acquire segment assets also predominately incurred in Australia. Exploration, evaluation and development projects (including the Southdown project) are not deemed reportable operating segments at this time as the financial performance of these operations is not separately included in the reports provided to the Chief Executive Officer. These projects may become segments in the future.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 2. Segment Information (continued) 13 Ore Mining Six months to 30 June 2026 Six months to 30 June 2025 $'000 $'000 Revenue from contracts with customers 230,788 206,426 Inter-segment revenue - - Revenue from External Customers 230,788 206,426 Timing of Revenue Recognition At a point in time 201,731 187,978 Over time 29,057 18,448 230,788 206,426 Adjusted EBITDA 32,741 37,444 Adjusted EBITDA is a non -IFRS financial measure used by the Chief Operating Decision Maker to assess segment performance. It represents earnings before interest, tax, depreciation and amortisation, adjusted for impairment and other items not allocated to the operating segments. Adjusted EBITDA is reconciled to statutory (loss)/profit after income tax below. Six months to 30 June 2026 Six months to 30 June 2025 $'000 $'000 Reconciliation of adjusted EBITDA Adjusted EBITDA 32,741 37,444 Impairment of assets (note 17) (690,678) - Depreciation and amortisation (note 4) (24,129) (26,224) Interest revenue 7,310 7,646 Interest expense (131) (97) Income tax benefit/(expense) (note 5) 133,194 (4,945) Others (152) (57) (Loss)/profit after Income Tax Expense (541,845) 13,767 Note 3. Revenue from Operations Ore Mining Six months to 30 June 2026 Six months to 30 June 2025 $'000 $'000 Revenue from contracts with customers 230,707 211,477 Other revenue/(loss) 81 (5,051) 230,788 206,426 Revenue from contracts with provisional pricing is recognised based on the estimated forward prices, where available, which the Group expects to receive at the end of the quotation period. Where an estimated forward price is not available, spot prices are applied as management’s best estimate of the provisional prices. The quotation period exposure is considered to be an embedded derivative and forms part of trade receivables. The subsequent changes in the fair value were recognised in the statement of profit or loss and other comprehensive income as other revenue/(loss). Changes in fair value over, and until the end of the quotation period, are estimated by reference to updated forward market prices.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 14 Note 4. Cost of Sales Six months to 30 June 2026 Six months to 30 June 2025 $'000 $'000 Cost of sales - mining Mining costs 96,586 107,485 Production costs 82,027 77,194 Changes in inventories (5,944) 10,398 Freight Costs 29,057 18,448 Government Royalties 3,110 3,617 Depreciation and amortisation expense 19,718 22,370 Mine properties and development - Amortisation expense 4,403 3,854 Deferred Stripping - Amounts capitalised during the period (51,627) (72,441) - Amortisation expense 35,234 22,278 Foreign exchange loss 621 949 Total Cost of Sales 213,185 194,152 Note 5. Income Tax (Benefit)/Expense Six months to 30 June 2026 Six months to 30 June 2025 $'000 $'000 (a) Income Tax (Benefit)/Expense Adjustment to tax of prior period 29 (701) Deferred income tax included in income tax expense comprises: (Decrease)/increase in deferred tax liability (133,042) 13,451 North Pit Underground decline claim in prior year income tax return - (8,176) Other adjustments in prior year income tax return (177) 371 Movements in unrecognised deferred tax (4) - (133,223) 5,646 Total Income Tax (Benefit)/Expense (133,194) 4,945
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 5. Income Tax (Benefit)/Expense (continued) 15 (b) Numerical reconciliation of income tax (benefit)/expense to prima facie tax (receivable)/payable Profit from continuing operations before income tax (benefit)/expense (675,039) 18,712 Tax (benefit)/expense at the Australian tax rate of 30% (June 2025: 30%) (202,512) 5,614 Tax effect of amounts which are not deductible (taxable) in calculating taxable income 420 32 (202,092) 5,646 Movements in previously unrealised deferred tax assets (4) - Adjustment to tax of prior period 29 (701) Unrecognised deferred tax benefit on impairment of assets 68,873 - Total Income Tax (Benefit)/Expense (133,194) 4,945 (c) Taxation Losses Unused taxation losses for which no deferred tax assets has been recognised 1,070 1,085 Potential tax benefit @ 30% 321 326 Note 6. Cash and cash equivalents 30 June 31 December 2026 2025 $'000 $'000 Cash at bank and on hand 15,133 9,584 Short-term deposits 83,563 84,965 98,696 94,549 Note 7. Trade and other receivables 30 June 2026 31 December 2025 $'000 $'000 Trade receivables 23,720 38,623 Security deposits 2,766 304 Income tax receivable 3,753 3,602 Other receivables 5,020 4,049 Prepayments 4,272 629 Interest receivables 3,385 2,389 42,916 49,596 Security deposits comprise of restricted deposits that are used for monetary backing for performance guarantees.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 16 Note 8. Other financial assets 30 June 31 December 2026 2025 $'000 $'000 Current Assets Derivatives (note 18) 850 3,878 Short-term investment in term deposits 169,200 180,600 170,050 184,478 Non-current Assets Derivatives (note 18) - 828 The Group holds investments in AUD term deposits with 91 to 365 day terms and carries an average annual interest rate of 4.86%. Note 9. Inventories 30 June 31 December 2026 2025 $'000 $'000 Stores and spares 56,459 60,702 Ore stockpiles 133,016 142,643 Work in progress 4,387 1,714 Finished goods (at lower of cost and net realisable value) 57,060 42,538 250,922 247,597 Ore stockpiles, work in progress, finished goods and stores and spares are valued at the lower of weighted average cost and estimated net realisable value. A credit of $5.9 million in 2026 and a debit of $10.4 million in 2025 were recognised for the movements in inventories (note 4). Note 10. Property, plant and equipment Land and Plant and Computer Assets Under Building Equipment Equipment Construction Total $'000 $'000 $'000 $'000 $'000 At 1 January 2026 Cost 88,026 641,222 20,245 38,769 788,262 Accumulated depreciation and impairment (47,508) (493,102) (15,041) - (555,651) Net book amount 40,518 148,120 5,204 38,769 232,611 Half-year ended 30 June 2026 Opening net book amount 40,518 148,120 5,204 38,769 232,611 Additions - - - 22,694 22,694 Depreciation charge (1,119) (16,575) (1,072) - (18,766) Transfer to PPE 48 10,431 433 (10,912) - Transfer to MP&D - - - (2,657) (2,657) Other transfers - - - (509) (509) Impairment losses (note 17) (11,726) (96,775) (3,104) (32,350) (143,955) Closing net book amount 27,721 45,201 1,461 15,035 89,418 At 30 June 2026 Cost 88,074 651,653 20,678 47,385 807,790 Accumulated depreciation and impairment (60,353) (606,452) (19,217) (32,350) (718,372) Net book amount 27,721 45,201 1,461 15,035 89,418
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 17 Note 11. Mine properties and development 30 June 2026 31 December 2025 $'000 $'000 Mine properties and development (at cost) 787,862 747,077 Accumulated amortisation and impairment (706,752) (527,683) Net book amount 81,110 219,394 Deferred Stripping Costs (Net Book Amount) - 355,155 Total mine properties and developments 81,110 574,549 30 June 2026 31 December 2025 Movements in mine properties and development are set out below: $'000 $'000 Mine properties and development Opening net book amount 219,394 154,541 Current year expenditure capitalised - 53,959 Change in rehabilitation estimate 38,128 18,357 Amortisation expense (4,403) (7,463) Transfer from PPE 2,657 - Impairment losses (note 17) (174,666) - 81,110 219,394 Deferred stripping costs Opening net book amount 355,155 306,490 Current year expenditure capitalised 51,627 110,243 Amortisation expense (35,234) (61,578) Impairment losses (note 17) (369,779) - Write-off (1,769) - Closing net book amount - 355,155
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 18 Note 12. Deferred tax assets (liabilities) 30 June 2026 31 December 2025 $'000 $'000 The balance comprises temporary differences attributable to: Deferred Tax Assets Property, plant and equipment 18,505 3,581 Mine properties and development 9,404 - Decommissioning and restoration 2,342 33,857 Employee benefits 9,011 8,961 Foreign exchange - 96 Trade payables 7 1 Tax losses 4,428 1,272 Total deferred tax assets 43,697 47,768 Deferred Tax Liabilities Mine properties and development - (137,166) Inventory (8,048) (7,627) Derivatives (187) (1,412) Foreign exchange (855) - Prepayment (8) (7) Total deferred tax liabilities (9,098) (146,212) Total net deferred tax assets (liabilities) 34,599 (98,444) The movement in deferred tax balances for the period primarily reflects the deferred tax impact of the impairment of non - current assets recognised during the year. Note 13. Trade and other payables 30 June 31 December 2026 2025 $'000 $'000 Trade payables and accruals 31,861 32,959 Contract Liabilities 2,912 2,988 Other payables 2,199 1,846 36,972 37,793 Note 14. Provisions 30 June 2026 31 December 2025 Provisions (Current) $'000 $'000 Leave Obligations 23,188 22,416 Employee benefits 2,155 3,583 Decommissioning and restoration 894 992 26,237 26,991 The following amounts reflect leave that is not expected to be taken or paid within the next 12 months. Current leave obligations expected to be settled after 12 months 10,606 11,156
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 14. Provisions (continued) 19 30 June 31 December 2026 2025 $'000 $'000 Movements in the current provision for decommissioning and restoration are set out below Balance at beginning of the year / period 992 1,025 Payments (112) (336) Transfers to current provisions 14 303 894 992 30 June 31 December 2026 2025 $'000 $'000 Provisions (Non-current) Leave obligations 4,485 3,870 Employee benefits 208 - Decommissioning and restorations 147,851 118,508 152,544 122,378 Movements in non-current provision for decommissioning and restoration are set out below 30 June 2026 31 December 2025 $'000 $'000 Balance at beginning of the year / period 118,508 97,430 Change in estimate 38,281 19,185 Rehabilitation work completed (8,792) (720) Unwinding of discount 2,511 2,916 Transfers to current provisions (14) (303) Derecognition of the joint venture rehabilitation provision (2,643) - Balance at the end of the period / year 147,851 118,508 The change in estimate reflects a change in valuation of the decommissioning and restoration liability due to a change in discount rate. Derecognition of the Joint Venture Rehabilitation Provision A sale agreement has been reached for the Mt Windsor JV, with final terms still under negotiation. Under the agreed terms, the JV parties will only remain responsible for rehabilitation activities through September 2026. As a result, the portion of the rehabilitation provision relating to post September 2026 obligations of $2.6 million no longer meets the definition of a present obligation under AASB 137 and has been derecognised, with the corresponding credit recognised as non‑tax‑deductible other income. Note 15. Contributed equity Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds of winding up of the Company in proportion to the number of and amounts paid on the shares held. Ordinary shares entitle their holder to one vote per share, either in person or by proxy, at a meeting of the Company. Ordinary shares have no par value and the Company does not have a limited amount of authorised share capital.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 15. Contributed equity (continued) 20 30 June 2026 31 December 2025 30 June 2026 31 December 2025 No. of Shares No. of Shares $'000 $'000 Shares 1,157,338,698 1,157,338,698 331,513 331,513 Note 16. Retained earnings Retained earnings attributable to owners of Grange Resources Limited 30 June 2026 31 December 2025 $'000 $'000 Retained profits Balance at the beginning of the year 778,005 731,405 (Loss)/profit for the year (541,845) 46,600 Balance at the end of the period / year 236,160 778,005 Note 17. Impairment of Non-Current Assets At each reporting date, the Group assesses whether there is any indication that an asset should be impaired. The Group considers the relationship between its market capitalisation and its book value, among other factors, when reviewing for indicators of impairment. As at 30 June 2026, the market capitalisation of the Group was below the book value of its net assets indicating a potential trigger for impairment of assets. During the first half of 2026, the North Pit Underground Project (NPUG) was reviewed by an Independent Technical Expert. That report confirmed that the project is technically robust and identified no fatal technical, operational or permitting flaws. In addition, the Grange Resources (Tasmania) Pty Ltd (Alternative Application Period) Bill 2026 progressed through the Tasmanian Parliament, providing an important step towards increased long -term tenure certainty for the Savage River operation and potential future underground development . Maintenance activities on underground assets and development planning are also continuing. NPUG would utilise the block -cave mining method as reviewed above and, if fully funded, could extend the Company’s life - of-mine to 2040. However, global market uncertainty, commodity price volatility, and funding requirements including potential guarantee structures that may be required for a project of this scale, are impacting the risk appetite and long -term value assessments of this plan. The Company is currently focused on optimising a self-funded alternative plan based on a smaller sub-level cave (SLC). The Company expects this plan to extend its life -of-mine to 2035 while preserving the option to progress the Block Cave development in the future if market conditions and funding arrangements can support the larger investment. The Company continues to assess the SLC Standalone development case against the opportunity to optimize the Open Pit. The SLC Standalone case remains the development pathway currently being progressed by management, with further optimisation work continuing to reduce funding requirements and preserve long-term value. Neither the Block Cave nor SLC Standalone development has reached a final investment decision. The impairment assessment for HY26 has been based on the SLC Standalone case, reflecting the development pathway currently being progressed by management. The as sessment has also considered the Open Pit standalone case. The Company has recognised a non-cash impairment charge in this half -year financial report. The non -cash impairment charge will apply to the carrying values of mining assets of the Savage River ope rations and will be excluded from HY26 underlying profit after tax.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 17. Impairment of Non-Current Assets (continued) 21 (a) Impairment Testing (i) Methodology The Group's Savage River CGU has been estimated using a fair value less costs of disposal basis. The costs of disposal have been estimated by management based on prevailing market conditions. The fair value assessment is categorised within level 3 in the fair value hierarchy. An impairment loss is recognised for a CGU when the recoverable amount is less than the carrying amount. The recoverable amount of the CGU was determined based on the fair value less cost of disposal method. Fair value is estimated based on the net present value of estimated future cash flows for the CGU. Future cash flows are based on a number of assumptions, including commodity price expectations, foreign exchange rates, reserves and resources and expectations regarding future operating performance and capital requirements which are subject to risk and uncertainty. An adverse change in one or mor e of the assumptions used to estimate fair value could result in a reduction of the CGU’s fair value. Costs of disposal comprise only the incremental, directly attributable costs required to sell the CGU. These include broker commissions, legal transfer fees, applicable stamp duties and other incidental disposal‑specific costs. Finance costs, income tax and general operating expenditures are excluded in accordance with AASB 136. Estimates of future commodity prices are based on the Group’s best estimate of future market prices with reference to independent external market analysts’ forecasts. Management has refined the pricing methodology to rely on blended pricing of two experts’ price forecasts to ensure a balanced and reasonable outlook on commodity prices. (ii) Key assumptions The impairment model has been developed based on the assumption that NPUG project sublevel cave investment will commence in 2027, with the initial extraction of the sub level cave ore anticipated in Q1 2028. The key assumptions which are used by the Directors in determining the recoverable amount for the Group's Savage River CGU were in the following ranges: as at 30 June 2026 Assumptions 2026 2027-2031 2032-2035 Iron ore pellets (FOB Port Latta) (US$ per DMT) $119.64 $119.23 - $125.52 $128.72 - $134.07 AUD:USD exchange rate $0.71 $0.71 - $0.73 $0.73 Capital expenditures $93.3 million $413.7 million $21.7 million Operating expenditures $355.9 million $1,846.1 million $1,116.0 million Post-tax nominal discount rate 11% Proven ore reserves in accordance with JORC 2012 31.8 million tonnes Probable ore reserves in accordance with JORC 2012 68.3 million tonnes Management has determined each of the above key assumptions as follows: Commodity prices and foreign exchange rates Commodity prices and foreign exchange rates are estimated with reference to analysis performed by external parties and are updated at least once every six months, in -line with the Group’s reporting dates. The iron ore pellet price assumptions are based market indices adjusted for premiums supported by sales arrangements achieved by the Group, net of freight.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 17. Impairment of Non-Current Assets (continued) 22 Operating performance (production, operating costs and capital costs) Life of mine production, operating cost and capital cost assumptions are based on the Group’s most recent life of mine plan approved by the Board. The sub-level cave underground mine will transition the current North Pit open-cut mining over the next 2 years. The transition to sublevel cave mining has been integrated with the current open-cut mining operations. While the Group acknowledges that future changes to the regulatory framework in response to climate change could affect the recoverability of assets, these potential impacts have not been incorporated into our current assumptions. Although the Group recognises the global transition toward a low‑carbon future and the need to assess the risks and opportunities associated with climate change, no immediate financial impacts have been identified in the short term. Climate-related matters The Group constantly monitors the latest government legislation in relation to climate-related matters. At the current time, no legislation has been passed that will impact the Group. The Group will adjust the key assumptions used in fair value calculations and sensitivity to changes in assumptions should a change be required. Discount rate To determine the recoverable amount, the estimated future cash flows have been discounted to their present value using a post-tax real discount rate that reflects a current market assessment of the time value of money and risks specific to the asset. (iii) Impacts As at the reporting date, the Group has conducted a carrying value analysis and recognised non -current assets impairment of the carrying value of Savage River assets of $690.7 million (before tax impact) as summarised in the table below. 30 June 2026 $'000 Impairment Deferred stripping 369,779 Mine, properties and development 174,666 Property, plant and equipment 143,955 Right-of-use of assets 2,278 Total assets impairment 690,678 Net deferred tax impact (138,330) Total asset impairments (net of deferred tax impact) 552,348 The impairment is primarily attributable to the revision of the life‑of‑mine plan following the decision to adopt a sublevel‑cave mining, driven by the financing constraints that prevent progression to the block cave phase and the lower forecast iron ore prices arising from recent changes in the supply and demand dynamics of the market. The previous plan incorporated both sublevel cave and block cave phases, supporting a longer life of mine and higher recoverable ore volumes. Removal of the block cave component has materially shortened the life of the mine. The deferred tax impact included an impairment of deferred tax assets $40.6m relating to the decommissioning liability and excluded $28.3 million increase in deferred tax assets arising from impairment, as both amounts have been assessed as non‑recoverable.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 17. Impairment of Non-Current Assets (continued) 23 (iv) Sensitivity Analysis After recognising the asset impairments, the fair value of the Savage River Asset is assessed as being equal to its carrying amount as at 30 June 2026. The following movements in key assumptions would result in the recoverable value amount of the CGU to be lower than its carrying amount: US$1 per dmt decrease in iron ore pellet prices FOB Port Latta $19.4 million $0.01 increase in the AUD:USD Exchange rate $37.5 million 1% increase in estimated operating costs $21.6 million 25 bps increase in the discount rate $4.8 million Due to the interrelated nature of the assumptions, movements in any one variable can have an indirect impact on others and individual variables rarely change in isolation. Additionally, management can be expected to respond to some movements to mitigate downsides and take advantage of upsides, as circumstances allow. Note 18. Fair Value Measurement Fair value hierarchy This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value in the consolidated financial statements. To provide an indication about the reliabilit y of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. Level 2: The fair value of financial instruments that are not traded in an active market (for example, over -the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Specific valuation techniques used to value the derivative financial instruments mainly include determining the fair value of forward contracts using forward rates at the balance sheet date provided by the dealers.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 Note 18. Fair Value Measurement (continued) 24 The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair value at 30 June 2026 and 31 December 2025 on a recurring basis: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either direc tly or indirectly Level 3: Unobservable inputs for the asset or liability Level 1 Level 2 Level 3 Total 30 June 2026 $'000 $'000 $'000 $'000 Assets Derivative financial instruments - 850 - 850 Liabilities Derivative financial instruments - 225 - 225 Trade payables - embedded derivatives - 2,512 - 2,512 - 2,737 - 2,737 Level 1 Level 2 Level 3 Total 31 December 2025 $'000 $'000 $'000 $'000 Assets Derivative financial instruments - 4,706 - 4,706 Trade receivables - embedded derivatives - 9,125 - 9,125 Total assets - 13,831 - 13,831 Derivatives are only used for economic hedging purposes and not as speculative investments. The Group has the following derivative financial instruments: 30 June 2026 31 December 2025 $'000 $'000 Electricity fixed forward 125 3,650 Foreign currency options (554) 38 Commodity option 518 (903) Diesel commodity swap 531 (127) Foreign currency forward - 2,048 Electricity swap 5 - 625 4,706 Derivatives (current asset) 850 3,878 Derivatives (non-current asset) - 828 Derivatives (non-current liability) (225) - 625 4,706 The Company enters into forward contracts, foreign currency options, commodity options and swaps to manage exposures arising from energy and fuel consumption, commodity price volatility and movements in the AUD/USD exchange rate. (i) Classification of derivatives Derivatives are classified as financial assets held at fair value through profit or loss (FVTPL). They are presented as curre nt assets or liabilities if they are expected to be settled within 12 months after the end of the reporting period.
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Grange Resources Limited and its Controlled Entities Notes to the consolidated financial statements 30 June 2026 25 Note 19. Contingent liabilities There were no significant changes to the contingent liabilities previously disclosed since the last annual reporting date. Note 20. Events Occurring After the Reporting Period No matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
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Grange Resources Limited and its Controlled Entities Directors' declaration 30 June 2026 26 In the opinion of the Directors: (a) The interim financial statements and notes of Grange Resources Limited set out on pages 8 to 25 are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity's financial position as at 30 June 2026 and of its performance for the half-year ended on that date; (ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. (b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration has been made after receiving the declaration made to the directors for the half year ended 30 June 2026 in accordance with the 4th Edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations. This declaration is made in accordance with a resolution of the directors. ___________________________ Michelle Li Chairperson of the Board of Directors 31 August 2026
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PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331 MELBOURNE VIC 3001 T: +61 3 8603 1000, F: +61 3 8603 1999, www.pwc.com.au Li ability limited by a scheme approved under Professional Standards Legislation. pwc.com.au Independent auditor’s review report to the members of Grange Resources Limited Report on the half-year financial report Conclusion We have reviewed the half-year financial report of Grange Resources Limited (the Company) and the entities it controlled during the half-year (together the Group), which comprises the consolidated statement of financial position as at 30 June 2026, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, material accounting policy information and selected explanatory notes and the directors’ declaration. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of Grange Resources Limited does not comply with the Corporations Act 2001 including: 1. giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the half-year ended on that date; and 2. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Basis for conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor’s responsibilities for the review of the half-year financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the 27
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2 Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. Other emphasis of matter – Impairment assessment of non-current assets We draw attention to Notes 1c and 17 of the half-year financial report, which describe the critical accounting estimate and judgements in management’s impairment assessment of non-current assets. Our conclusion is not modified in respect of this matter. Responsibilities of the directors for the half-year financial report The directors of the Company are responsible for the preparation of the half-year financial report, in accordance with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error. Auditor’s responsibilities for the review of the half-year financial report Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Matters relating to the electronic presentation of the reviewed half-year financial report This review report relates to the half-year financial report of the Company for the half-year ended 30 June 2026 included on Grange Resources Limited’s web site. The Company’s directors are responsible 28
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3 for the integrity of Grange Resources Limited’s web site. We have not been engaged to report on the integrity of this web site. The review report refers only to the statements named above. It does not provide a conclusion on any other information which may have been hyperlinked to/from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the reviewed half-year financial report to confirm the information included in the reviewed half-year financial report presented on this web site. PricewaterhouseCoopers Chris Dodd Partner Melbourne 31 August 2026 29