Fortress Minerals has reported earnings of US$4.2 million ($5.9 million) for 1QFY2023 ended May 31, 41.8% lower compared to the US$7.2 million ($10.11 million) recorded in the previous corresponding quarter.
Earnings per share for the quarter stood at 84 US cents, down 41.7% from 1.44 US cents in 1QFY2022.
Revenue for 1QFY2023 at US$14.6 million was 15.5% lower y-o-y, mainly due to the average benchmark IODEX CFR North China of Platts Daily Iron Ore Assessment price indices weakening in the quarter compared to 1QFY2022.
The average realised selling price for 1QFY2023 was resilient at US$119.80 per dry metric tonnes (DMT) as compared to US$143.00 per DMT in the corresponding period last year.
The company said the demand during the quarter was robust, supported by regional steel mill customers. Sales volume for 1QFY2021 was 121,425 DMT, a 0.6% increase compared to 1QFY2022.
Average unit cost of sales increased 25.6% to US$32.08 per wet metric tonnes (WMT) in 1QFY2023, mainly due to higher inflation of production costs as a result of rising diesel prices.
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Fortress partially offsets transport costs with its in-house fleet of trucks and will continue to take a disciplined approach to cost controls to mitigate the impact.
Gross profit margin was lower at 70.6% for 1QFY2023 compared to 80.5% for 1QFY2022.
EBITDA and NPAT stood at US$6.9 million and US$4.2 million for 1QFY2023 respectively. Net asset value per share increased to 11.74 US cents as at May 31 compared to 11.36 US cents as at February 28, supported by the company’s growth efforts, business resilience and strong balance sheet.
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Fortress executive director and CEO said the company continues to leverage its experience to build its business to remain resilient throughout the cycle. “Our growth strategies are beginning to come to fruition, and we will continue to focus on disciplined cost and capital management to ensure that our growth is sustainable.
“Production at the CASB mine has commenced and we are in an even stronger position to deliver value added growth to our shareholders in the long term. We remain well-supported by our quality assets, the robust local demand and the deep relationships we have built in the region,” he added.
Shares in Fortress closed flat on July 6 at 38 cents.
