Fortress Minerals FY21 net profit up 2.8 times to US$18.2m

CATALIST-LISTED Fortress Minerals saw its net profit increase 2.8 times to US$18.2 million for the financial year 2021.

Earnings per share for the full year rose 176.8 per cent to 3.65 US cents.

The improved performance was driven by strong customer demand, strength in iron ore prices and lower unit cost through higher productivity, the Malaysian iron ore concentrate producer and exporter said in an update of its financial results late on Wednesday.

It declared an interim dividend of 1.0 Singapore cents per share, which will be paid on May 10. The dividend payout ratio stands at 20.6 per cent.

The group's revenue rose 84.1 per cent year on year to US$47.7 million, on the back of increased production output. Sales of iron core concentrate for the year hit a record volume 452,756 dry metric tonnes (DMT), at a higher average realised selling price US$105.43/DMT.

Earnings before interest, tax, depreciation and amortisation (Ebitda) for FY2021 stood at US$26.6 million, with an Ebitda margin of 55.7 per cent.

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Calling this a "milestone year", Fortress Minerals executive director and chief executive officer Ivan Chee said the group expects to be able to efficiently develop the large-scale Mengapur project to meet increasing demand of customers and unlock value for shareholders.

Fortress Minerals acquired Monument Mengapur and its subsidiaries in FY2021, which comprise tenements covering approximately 935.1 hectares held by its subsidiaries, save for the third-party iron ore interests.

Fortress Minerals shares closed flat on Wednesday at 42 Singapore cents.