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Joelton ( Date: 13-Jan-2022 09:36) Posted:
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Fortress Minerals reports 34.5% lower earnings of US$2.8 mil for 3QFY2022
Fortress Minerals has reported earnings of US$2.8 million ($3.8 million) for the 3QFY2021 ended Nov 30, 2021.
Earnings per share (EPS) for the quarter stood at 0.57 cents, down 34.5% y-o-y from 0.87 cents during the same period last year.
However, revenue for the 3QFY2021 grew 7.5% y-o-y to US$11.0 million on the back of higher sales volume.
In the 3QFY2021, sales volume grew 35.3% y-o-y to 126,131 dry metric tonnes (DMT), reflecting resilient demand from regional markets and higher production volume achieved.
The increase was partly offset by a lower average realized selling price of US$87.44 per DMT, which fell 20.6% y-o-y due to the weakening of the average benchmark IODEX CFR North China of Platts Daily Iron Ore Assessments.
The group&rsquo s average unit cost of sales fell 20.0% y-o-y to US$20.22/wet metric tonne (WMT), which was bolstered by higher production volume of 138,771 WMT during the quarter.
Gross profit for the 3QFY2022 stood 6.6% y-o-y higher at US$8.2 million, which is reflective of the higher volume sold.
The group&rsquo s other operating income inched up to US$0.3 million from US$0.2 million in the 3QFY2022 mainly due to an increase in unrealised foreign exchange gain on the back of the weakening of the exchange rate movement of USD against the Malaysian ringgit.
During the quarter, selling and distribution expenses increased by US$1.5 million to US$2.1 million in the 3QFY2021 due to the addition of ocean freight charge for export sales of US$1.0 million.
Other operating expenses also grew to US$2.2 million from US$0.5 million.
Earnings for the 9MFY2021 improved by 9.5% y-o-y to US$13.3 million, while EPS stood 9.4% y-o-y higher at 2.67 cents from 2.44 cents in the year before.
9MFY2021 revenue grew 25.5% y-o-y to US$38.1 million due to a 4.1% increase in volume to 315,977 DMT and strong average realised selling price of iron ore during the period.
According to the group, sales volume is expected to remain strong and be well-supported by its new 15-month offtake agreement announced in October 2021 to deliver 375,000 WMT to a third-party domestic steel mill in Malaysia.
As at Nov 30, 2021, cash and cash equivalents stood at US$10.2 million.
No dividend has been declared for the period.
Fortress Minerals reports strong set of results for 9M FY2022
EBITDA up 18.5% to US$20.9 million
⚫ Revenue for 9M FY2022 increased by 25.5% to US$38.1 million, underpinned by a 4.2% increase
in volume sold to 315,977 DMT and strong average realised selling price of iron ore in 9M FY2022.
⚫ Net cash flow generated from operating activities for 9M FY2022 increased by 65.1% to US$22.1
million, backed by strong EBITDA margins of 55.1%.
⚫ Strategic growth plans and efforts to maintain disciplined capital allocation into key assets and
infrastructure are on track and continue to support the Group?s progress and resilience...
https://links.sgx.com/1.0.0/corporate-announcements/MWQRW0MX8NSS6R74/697430_3QFY2022%20Results%20Press%20Release.pdf
Fortress Minerals
Between Dec 9 and 10, Fortress Minerals $ FortressMinerals: OAJ -2.44% non-executive and non-independent director Teh Lip Kim acquired 500,000 shares of the Catalist-listed company at an average price of 40.6 cents per share.
With a consideration of S$203,000 this increased Teh' s direct interest in the explorer, miner, producer, and seller of iron ore concentrate from 0.20 per cent to 0.30 per cent.
This followed her acquisition of 300,000 shares at an average price of 38.5 cents per share on Dec 7, and 300,000 shares at an average price of 38.0 cents per share between Nov 30 and Dec 1.
Teh also maintains a 33.29 per cent deemed interest in Fortress Minerals which takes her total interest to 33.59 per cent.
Fortress Minerals
On Dec 7, Fortress Minerals non-executive and non-independent director Teh Lip Kim acquired 300,000 shares of the Catalist-listed company at an average price of 38.5 cents per share.
With a consideration of S$115,500 this increased Teh' s direct interest in the explorer, miner, producer, and seller of iron ore concentrate from 0.14 per cent to 0.20 per cent.
This followed her acquisition of 300,000 shares at an average price of 38.0 cents per share between Nov 30 and Dec 1.
Teh also maintains a 33.29 per cent deemed interest in Fortress Minerals which takes her total interest to 33.49 per cent.
Something stirring??
Fortress Minerals
Between Nov 30 and Dec 1, Fortress Minerals $ FortressMinerals: OAJ 0% non-executive and non-independent director Teh Lip Kim acquired 400,000 shares of the Catalist-listed company at an average price of 38.0 cents per share.
With a consideration of S$152,000 this increased her direct interest in the explorer, miner, producer, and seller of iron ore concentrate from 0.10 per cent to 0.18 per cent.
She also maintains a 33.29 per cent deemed interest in Fortress Minerals which takes her total interest to 33.47 per cent.
Teh was appointed to the board of Fortress Minerals in February 2019.
She is presently the managing director and substantial shareholder of Selangor Dredging, a property development company listed on Bursa Malaysia and the holding company of SDB Mining, a controlling shareholder of Fortress Minerals.
On Oct 8, Fortress Minerals reported revenue of US$27.3 million for its H1FY22 (ended Aug 31), a year-on year increase of 35.8 per cent, driven by higher average realised selling price which was up by 49.1 per cent year on year, underpinned by a robust pricing environment.
2 potential upcoming catalysts:
1) rebound in iron ore prices as China lifts caps that were put in place to control pollution for the Winter Olympics. There could be pent up demand as steel mills are eager to ramp up production and may stockpile iron ore again. Do note Chinese New Year is coming up also which is a lull period for Chinese steel mills.
2) operational commencement of the new Mengapur mine was slated to be by end of Feb, so watch out for that. Not sure if it will be delayed due to Covid in Malaysia.
Dyodd as always
1) rebound in iron ore prices as China lifts caps that were put in place to control pollution for the Winter Olympics. There could be pent up demand as steel mills are eager to ramp up production and may stockpile iron ore again. Do note Chinese New Year is coming up also which is a lull period for Chinese steel mills.
2) operational commencement of the new Mengapur mine was slated to be by end of Feb, so watch out for that. Not sure if it will be delayed due to Covid in Malaysia.
Dyodd as always
happy happy today ... 0.445 ...and clsoed at 0.43...
TheMatrix ( Date: 18-Oct-2021 12:43) Posted:
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PhillipCapital downgrades Fortress Minerals on lower-than-expected 2QFY22 results
PhillipCapital analyst Vivian Ye has downgraded Fortress Minerals to &ldquo accumulate&rdquo with a lower target price of 51 cents.
The downgrade comes as the company&rsquo s results for the 2QFY2022 ended August stood below her expectations.
Revenue and PATMI for the 1HFY2022 stood at 39% and 34% of her FY2021 forecasts, respectively.
Revenue for the 2QFY2022 fell 23% y-o-y due to a 49% collapse in production. Fortress Minerals, however, saw a 48% y-o-y growth in selling prices, which offset some of the weakness in revenue.
The company also saw lower sales volume on the back of production disruptions at Bukit Besi Mine, which stood below expectations.
Fortress Minerals&rsquo average selling price (ASP) of US$141.82 ($191.11)/DMT stood in line with Ye&rsquo s forecast of US$140/DMT.
To this end, Ye has lowered her PATMI estimates for the FY2022 by 22% to US$23.9 million. She has also lowered her sales volume forecast by 8.6% to 455,020 DMT.
In addition, she has decreased her ASP forecast to US$120/DMT for the FY2022 as iron ore prices are expected to remain week at around US$140/DMT, with continued steel production cuts in China.
Fortress Minerals also reported increased bank borrowings of US$22.9 million for the 2QFY2022 due to the acquisition of Fortress Mengapur.
The higher net debt presents another negative on the counter, according to Ye.
As at 10.31am, shares in Fortress Minerals are trading 1.5 cents lower or 3.45% down at 42 cents.
But iron ore price now surrpressed. Where got up , up up?
phongy45 ( Date: 18-Oct-2021 12:36) Posted:
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up up up and away soon ..
Joelton ( Date: 13-Oct-2021 09:51) Posted:
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Fortress Minerals unit bags 15-month offtake deal with Malaysia steel mill
IRON ore concentrate producer Fortress Minerals has entered into a new 15-month offtake agreement with a third-party domestic steel mill in Malaysia.
Fortress Minerals' subsidiary will deliver about 375,000 wet metric tonnes of iron ore from Oct 11, 2021 to Dec 31, 2022, to the steel mill under the latest agreement.
In a bourse filing on Tuesday (Oct 12), the board said the new offtake deal will provide recurrent income and cash flows to the group as well as strengthen its financial position.
It will also ensure that the group remains well-placed to execute its growth plans and provide long-term value to shareholders, the board added.
Fortress Minerals expects the new agreement to contribute positively to the group' s earnings per share for the financial year ending Feb 28, 2022.
The deliverables are subject to a variance of an additional 30 per cent or a reduction of 10 per cent at the option of the Fortress Minerals subsidiary.
The selling price will be based on the same formula used in the previous one-year offtake deal. The formula is guided by, among other things, the daily price index for 65 per cent Fe CFR North China published by S& P Global Platts.
Why gap up ?
Hopefully
phongy45 ( Date: 12-Oct-2021 20:59) Posted:
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cheong tmr ...
des_khor ( Date: 11-Oct-2021 11:15) Posted:
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415/420
phongy45 ( Date: 11-Oct-2021 10:45) Posted:
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0.405 - 0.41
des_khor ( Date: 11-Oct-2021 10:40) Posted:
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Some moment today !
The average selling price of USD 142.50/dmt was when iron ore prices were trading higher than USD 200/T. With iron ore prices dropping to around USD 100 to 110/t, can Fortress Minerals continue to maintain such earnings?
spursfan ( Date: 08-Oct-2021 20:39) Posted:
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