Fortress Minerals Limited has posted earnings of US$6.8 million ($8.9 million) in 1HFY2025 ended Aug 31, down 4.4% y-o-y from US$7.1 million in the previous financial year.
The group’s earnings in 2QFY2025 fell by 2.7% y-o-y to US$4.5 million from the same period in 2023.
Earnings per share (EPS) in 2QFYFY2025 stood at 0.85 US cents, down from a share of 0.88 US cents in 2QFY2024, while 1HFY2025 EPS stood at 1.29 US cents, down from 1.36 US cents in 1HFY2024.
This came on the back of higher financing costs, and increased administrative expenses.
Meanwhile, the group’s revenue fell by 10.4% y-o-y to US$15.5 million in 2QFY2025, due to lower average selling prices.
That said, the group’s average unit cost of sales decreased by 3.8% to US$27.44/WMT for 2QFY2025. This decline came on the back of higher production volumes achieved during the quarter enabling the group to benefit from economies of scale.
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The group's revenue for 2QFY2025 was US$15.5 million, down 10.4% year-on-year, largely due to lower average selling prices. Sales volume decreased 6.2% to 175,078 DMT for the quarter.
The average unit cost of sales decreased by 3.8% to US$27.44 per wet metric tons for 2QFY2025. This decline was primarily due to higher production volumes achieved during the quarter enabling the Group to benefit from economies of scale.
As a result, the group reported a gross profit margin of 66.2% for 2QFY2025, in line with 66.1% recorded in 2QFY2024.
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The group also saw a decline in ebitda in 2QFY2025, which stood at US$7.4 million, down 11.3% y-o-y from US$8.3 million in 2QFY2024.
According to an Oct 10 release, the group recorded a net asset value (NAV) per share 15.5% higher at 15.61 US cents as at Aug 31 compared to 13.52 US cents during the same period last year.
The group adds that it “remains committed to disciplined capital management and growing its operations strategically to maximise long-term value for its shareholders”.
Currently, global crude steel production has decreased by 1.5% y-o-y for January to August. China, the global leading steel producer, also saw a decline of 3.3% y-o-y to 691.4 million tonnes over the same period.
Despite this, the group says it continues to see “resilient” domestic demand compared to global trends and is “well supported by its enlarged offtake agreements with domestic steel mills”.
Moving forward, the group adds that demand for high-grade iron is expected to continue due to countries aiming to reduce emissions amidst decarbonisation efforts in the steel industry.
Dato’ Sri Ivan Chee, executive director and CEO of Fortress Minerals OAJ , says: “Our focus remains on growing shareholder value through the cycle and for the long term. By pursuing growth opportunities that enhance operational efficiencies and leveraging economies of scale, we are reinforcing our position as the partner of choice in an evolving market landscape."
Shares in Fortress Minerals closed flat at 28.5 cents on Oct 10.
