Fortress Minerals Reports 1Q FY2026 Profit Up 7% to US$2.5 Million on Strong Sales Volume Despite Lower Iron Ore Prices
Summary:
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Revenue: Increased by 65.3% to US$16.0 million for 1Q FY2026, driven by more than doubling iron ore sales volume to 194,946 DMT.
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Average Selling Price: Fell 18.5% to US$82.30/DMT due to weaker global iron ore benchmark prices.
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Cost of Sales: Rose by 195.7% to US$7.8 million, with average unit cost up 43.9% to US$36.66/WMT, mainly due to higher direct materials and drilling costs.
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Gross Profit: Grew 13.5% to US$8.1 million, though gross margin narrowed to 50.8% from 72.9%.
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Net Profit: Increased 7.2% to US$2.5 million, helped by US$0.6 million in forex gains and a US$0.2 million fair value gain on options tied to an Australian investment.
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Balance Sheet: Total assets rose to US$110.1 million from US$103.2 million, mainly on higher plant, equipment, and inventory.
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Cash Position: Cash and bank balances rose to US$9.7 million, with the Group maintaining a positive working capital of US$16.0 million.
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Outlook: The Group highlighted stable demand from regional steel mills, continued expansion efforts including its recent stake in a bauxite mining venture, and plans to navigate uncertain macro and steel market conditions.