Grangex (GRANGEX) Stora Aktiedagarna 2026 summary

Strategic rationale and industry context

• Acquisition of Sydvaranger mine in Norway in May 2024 targets the rare direct reduction (DR) grade iron ore market, essential for decarbonizing steel production and supporting electric arc furnace growth.

• DR grade iron ore is scarce, representing only 4% of global iron ore output, and both Sydvaranger and Dannemora are among the only such projects in Europe.

• The steel industry is a major polluter; transitioning to DR grade iron ore can significantly reduce emissions, with Sydvaranger projected to save over 75 million tons of CO2 over its life.

• The project aligns with global trends, as major steelmakers invest in electric arc furnace capacity and seek secure, high-quality feedstock.

Project execution and operational plans

• Sydvaranger is a restart, not a greenfield project, leveraging existing infrastructure for rapid ramp-up and low CapEx.

• All key operational positions are filled, with a focus on local employment and integration into the Kirkenes community.

• Recruitment has been strong, with over 600 applications for roles, and the company aims to be the largest employer in Eastern Finnmark.

• The operational ramp-up is expected to reach steady-state production by Q1 2027, less than 12 months after the first shipment in late 2026.

Financials, partnerships, and risk management

• Anglo American is a strategic partner, providing $42 million in non-dilutive financing and securing a 25-year offtake agreement valued at nearly $9 billion.

• The project’s definitive feasibility study confirms a pre-tax NPV over SEK 1.5 billion and a pre-tax IRR close to 40%.

• The company is finalizing project financing, including consideration of a Nordic law bond, with imminent closure expected.

• The offtake agreement with Anglo American is described as extremely robust, with the partner also providing technical support.

• The project is resilient to iron ore price fluctuations due to low operating costs and a guaranteed sales contract.