Fortress Minerals posts 21% drop in FY2022 earnings to US$14.4 million

IRON ore miner Fortress Minerals saw its earnings tumble 82.3 per cent to US$1.1 million for the fourth quarter ended February, from US$6.1 million in the corresponding period a year ago.

This brought full year earnings down 21.2 per cent to US$14.1 million, down from US$18.3 million in the year-ago period.

Earnings per share (EPS) was down 82.8 per cent to 0.21 US cents for Q4, bringing EPS for FY2022 to 2.88 cents – some 21.1 per cent lower than a year ago.

Revenue fell 69.8 per cent to US$5.2 million in Q4. For the full year, revenue was 9.1 per cent lower at US$43.4 million.

The Catalist-listed company said the lower revenue was due to lower volume of iron ore sold.

The decline was partially mitigated by a 15 per cent increase in the average realised selling price recorded in FY2022.

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“Iron ore production and sales for the group remain strong and the group’s growth prospects are well-supported by efforts to invest in growing its portfolio sustainably,” the company said in a bourse filing.

Fortress Minerals has recommended a final dividend of S$0.008 for FY2022 – down from the dividend of S$0.01 paid out a year ago.

The company said this was to “conserve cash for its working capital purposes” amid the lower revenue and profit.

Shares of Fortress Minerals closed S$0.005 or 1.1 per cent higher at S$0.455 on Apr 27, before the announcement.