Rana Gruber (RANA) Q3 & CMD 2025 earnings summary

Executive summary

• Announced ambition to become a world-leading producer of high-grade iron ore (above 67% Fe) by 2029, advancing from current Fe65 production levels and leveraging unique ore quality and proximity to European steel mills.

• Strategic focus on supporting the steel industry's decarbonization by supplying high-grade ore for DRI technology, which significantly reduces CO2 emissions.

• Strong operational performance in Q3 2025, with stable production, improved product quality through process optimization and installation of fine screens, and consistent shareholder returns.

• Long-term offtake agreement with Cargill supports market access and production optimization.

• Board approved a NOK 400 million investment in the processing plant over three years to transition to high-grade production.

Financial highlights

• Q3 2025 revenue increased 9% year-over-year to NOK 425.2 million, with 472,000 mt produced.

• EBITDA rose 38% to NOK 172.7 million, with a margin of 40.6% (up from 32.1%).

• Net profit rose 57% to NOK 96.4 million; adjusted net profit was NOK 84.6 million.

• Cash cost per tonne was NOK 556, a 4.7% decrease year-over-year.

• Quarterly dividend of NOK 1.60 per share declared, representing a 70% payout ratio and 19th consecutive quarterly dividend since listing.

Outlook and guidance

• Targeting high-grade iron ore production above 67% Fe by 2029, with incremental quality improvements and price premiums expected as milestones are reached.

• Aims to maintain cash cost between $50-$55/ton, supported by operational improvements and cost control.

• Flexible investment plan for high-grade project, with NOK 400 million total CAPEX phased by milestones and market conditions.

• Magnetite production expected to reach and sustain over 200,000 mt annually from 2026.

• Continued focus on efficiency, cost control, and product quality to drive sustainable profitability and growth.