Fortress Minerals has reported earnings of US$2.31 million ($3.10 million) for the 1QFY2025 ended May, a 7.6% y-o-y decrease from the 1QFY2024’s US$2.50 million.
For the period, revenue was slashed by 26.2% y-o-y to US$9.78 million due to a decrease in the company’s sales volume, as well as a lower average realised selling price.
Similarly, gross profit in the 1QFY2025 fell by 13.9% y-o-y to US$7.13 million from US$8.28 million from the previous period.
Despite this, Fortress Minerals OAJ ’ gross profit margin increased by 10.4 percentage points (ppts) to 72.9% for 1QFY2025, as higher production volume achieved in 1QFY2025 allowed the company to benefit from economies of scale.
Ivan Chee, executive director and CEO of Fortress Minerals, says: “Our unwavering commitment to operational excellence and strategic growth has resulted in the early completion of the two additional ball mills at Bukit Besi. This will allow us to continue to improve efficiency, preserve shareholder value in challenging periods and position Fortress Minerals for sustainable success in the evolving market landscape.”
He adds: “Reinforcing our growth ambitions, we have secured two new twelve-month offtake agreements. These agreements strengthen our relationships with key partners and affirm our position as the preferred producer of choice for our customers. We remain committed to expanding our revenue streams and diversifying our portfolio to ensure long term profitability and stability.”
See also: Kimly reports higher FY2024 revenue but earnings down on higher depreciation and other costs
Shares in Fortress Minerals closed one cent lower or 3.70% down at 26 cents on July 11.
