Back 01 Jul 2025

Fortress Minerals Reports 1Q FY2026 Profit Up 7% to US$2.5 Million on Strong Sales Volume Despite Lower Iron Ore Prices

Link: https://links.sgx.com/1.0.0/corporate-announcements/GRV1KIB114AYA8MR/2cf321abfc0a2b816c378c4f74749208c1d584d77dfa0ac427b38a5055c43481

Summary:

  • 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.

  • Average Selling Price: Fell 18.5% to US$82.30/DMT due to weaker global iron ore benchmark prices.

  • 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.

  • Gross Profit: Grew 13.5% to US$8.1 million, though gross margin narrowed to 50.8% from 72.9%.

  • 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.

  • Balance Sheet: Total assets rose to US$110.1 million from US$103.2 million, mainly on higher plant, equipment, and inventory.

  • 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.

  • 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.