Grangex (GRANGEX) Investor Update summary

Project highlights and financials

• Sydvaranger mine's net present value is estimated at $1.2 billion, with a total group NPV of nearly $1.5 billion when combined with Dannemora, and a pre-tax NPV8 of US$1,215.1m for Option B.

• The PEA confirms a 19-year mine life, with 15 years at steady-state production and a competitive production cost of $54–$55 per ton, and steady-state annual production of 3 Mt concentrate.

• CapEx for Option B is approximately $350 million (US$347.91m), with a 23.83% contingency, to be invested over four years, leveraging existing infrastructure.

• Internal rate of return is projected at 47%, with a product grade above 70% iron, targeting the direct reduction steel market.

• The project is expected to generate significant economic activity in the region, employing around 450 people by early 2027.

Strategic partnerships and offtake agreements

• Anglo American is a strategic partner, providing technical support and committing $50 million to project financing, with an offtake agreement for the mine's entire production at market prices.

• The offtake agreement is contingent on Anglo's participation in project financing and includes a balanced price calculation formula.

• Project financing discussions are underway with public agencies in Norway and international investors, with formalization expected in the coming quarters.

Operational and market positioning

• Sydvaranger benefits from low logistics costs due to proximity to the plant and port, ownership of its own railroad, and an ice-free harbor.

• The mine will produce ultra-high-grade iron ore concentrate (70% Fe), positioning it in the premium segment required for green steel production.

• Production is planned to start within 12 months, with first shipments expected in early 2027.

• FOB selling price forecasted at US$106/t in 2027, peaking at US$142/t by 2035, based on Fastmarkets study.

• The project is designed to meet growing demand for high-grade iron ore driven by the global green transition in steelmaking.