Fortress Minerals Q3 profit jumps to US$4.3m; proposes acquisition of Monument Mengapur

CATALIST-LISTED Fortress Minerals on Monday posted a net profit of US$4.3 million for the three months ended Nov 30, 2020, more than five times that of US$751,151 a year ago.

This came as the iron ore concentrates producer and exporter saw its revenue more than double to US$10.3 million from US$4.1 million a year ago, on the back of higher volume sold and higher pricing for high-grade iron ore concentrate.

Earnings per share stood at 0.87 US cent for the quarter, up from 0.15 cent the year before.

No dividend was declared for the quarter, versus a second interim dividend of 0.2 Singapore cent the year prior.

Fortress Minerals executive director and chief executive officer Ivan Chee said the present strong operating environment during the quarter under review contributed positively to the group.

"We remain confident in the demand for our high-grade iron ore concentrate while we continue to focus on our long-term strategy to further elevate our group's production capacity, productivity and efficiency," he said.

A NEWSLETTER FOR YOU

Friday, 8.30 am

SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

Sign Up

Separately on Monday, Fortress Minerals proposed a US$30 million acquisition of Malaysia's Monument Mengapur, which is principally engaged in the business of copper and other minerals exploration.

Monument Mengapur is the legal and beneficial owner of Cermat Aman and Star Destiny. Cermat Aman is the registered lessee of mining lease for a parcel in Bukit Mengapur in Pahang, Malaysia, while Star Destiny is the holder of an exploration permit for compartment 110 and part of compartments 108, 109, 111, 112 of Hutan Simpan Berkelah in Pahang.

Fortress Minerals entered into a conditional share purchase agreement with vendor Monument Mining on Jan 8, 2021. In connection with the proposed acquisition, the former has also entered into a royalty agreement with the latter.

Fortress Minerals will pay royalties at the rate of 1.25 per cent of gross revenue on all mineral products produced in forms ready for sale from the area within the boundaries of the entire tenements held by Cermat Aman and Star Destiny.

The royalties exclude the free-digging oxide magnetite iron materials contained on the top soil at certain areas of the tenement held by Cermat Aman, subject to the completion and terms of the proposed acquisition.

Fortress Minerals shares ended flat at S$0.28 on Friday.