Rana Gruber (RANA) Q2 2024 earnings summary

Executive summary

• Achieved record high hematite sales volume in Q2 2024, with nearly nine shipments and strong operational performance despite planned maintenance and a conveyor belt failure.

• Magnetite production and sales are increasing, targeting at least 150,000 mt per year, with strategic projects on track for year-end completion.

• Extensive annual maintenance was completed without production-related injuries, supporting operational reliability.

• Dividend of NOK 2.23/share declared for Q2 2024, marking 14 consecutive quarterly payouts and NOK 1.3 billion distributed since listing.

Financial highlights

• Q2 2024 revenue rose 57% year-over-year to NOK 548 million, driven by high volumes, increased prices, and currency effects.

• EBITDA increased to NOK 205.2 million, up 119% year-over-year; EBIT surged 218% to NOK 163.7 million.

• Adjusted net profit reached NOK 137.4 million, up 29% year-over-year; adjusted EPS was NOK 3.71.

• Cash cost per mt produced increased to NOK 648, mainly due to maintenance, higher wage costs, and equipment failure.

• Cash flow from operations was negative NOK 27 million, impacted by tax payments and contract settlements; capex was NOK 74 million.

Outlook and guidance

• Magnetite sales are expected to increase as the M40 project nears completion, becoming a more significant revenue driver.

• Market conditions remain challenging, especially in Europe’s automotive and construction sectors, with possible shipment redirection to Asia.

• Updates on cost position, capex, and strategic projects will be provided at the November Capital Markets Day.

• Focus on operational optimization, cost reduction, and gradual reduction of carbon emissions.