Fortress Minerals Q1 net profit more than triples to US$7.2m on record revenue

FORTRESS Minerals saw record revenue of US$17.3 million for the first quarter ended May 31, nearly two-and-a-half times the US$7.1 million figure for the year-ago period. (see amendment note)

Net profit more than tripled to US$7.2 million, up from US$2.2 million in the year-ago period.

The Malaysian producer and exporter of iron ore concentrate attributed its results to increased sales volume and strong iron ore prices.

Revenue was underpinned by resilient demand from regional steel mill customers, and with the average realised selling price of iron ore up 50.6 per cent year on year, at US$143 per dry tonne.

Earnings per share for the quarter were 1.44 US cents, compared to 0.43 US cents for the year-ago quarter. No dividend was declared.

With authorities having reopened most sectors in several states where Fortress Minerals operates, the group's mining and production operations have gradually returned to normalcy since July 5, said Fortress Minerals executive director and chief executive officer Ivan Chee.

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Fortress Minerals said it would focus on ramping up production in its Bukit Besi mine, and endeavour to start production of iron ore at Mengapur at the end of the financial year ended Feb 28, 2022, as originally planned.

Fortress Minerals shares closed down S$0.01 or 1.56 per cent at S$0.63 on Wednesday before the results release.

Amendment note: A previous version of this article incorrectly stated that the record revenue for the first quarter ended May 31 jumped nearly one-and-a-half times on year when it is in fact two-and-a-half times. The article has been amended to reflect this change.