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.

 

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.

 

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.

 

concentrate while we continue to focus on our long-term strategy to further elevate our group' s production capacity, productivity and efficiency," he said.

 

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.