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Close eyes and buy for long term

Fortress Minerals reports 1QFY2024 earnings of US$2.5 mil, 40.2% lower y-o-y

Fortress Minerals has reported earnings of US$2.5 million ($3.3 million) for the 1QFY2024 ended May 31, 40.2% lower y-o-y.

Earnings per share (EPS) for the period fell to 0.48 US cents, 42.9% lower y-o-y.

Revenue for the three-month period fell by 9.2% y-o-y to US$13.3 million as the average realised selling price fell by 12.4% y-o-y to US$104.92/DMT or dry metric tonnes and higher average unit cost of US$35.83/WMT or wet metric tonnes. This was offset by the 4.0% y-o-y increase in sales volume of 126,324 DMT.

Gross profit fell by 19.7% y-o-y to US$8.3 million with a lower gross profit margin of 62.5%, down 8.1 percentage points y-o-y.

Interest income surged by 502.2% y-o-y to US$33.4 million.

As at May 31, cash and cash equivalents stood at US$2.8 million.

&ldquo Supported by a positive long-term industry outlook and resilient demand for our high-grade iron ore products, we remain well-positioned to capitalise on prospective new growth opportunities moving forward,&rdquo says Dato&rsquo Sri Ivan Chee, Fortress Minerals&rsquo executive director and CEO.

&ldquo Following the commencement of exploration activities in East Malaysia to prospect for nickel, copper and cobalt minerals in May 2023, we are pleased to have secured the approval of our shareholders for the proposed diversification of our existing business. This will enable us to expand our revenue streams and broaden our growth prospects for the long term,&rdquo he adds. &lsquo By leveraging our extensive industry expertise and strong relationships, we remain cautiously optimistic in executing our next phase of growth as we strive to provide stable, diversified returns and enhanced value for our shareholders.&rdquo

Fortress Minerals signs new offtake agreement with existing customer

Iron miner Fortress Minerals has renewed an offtake agreement with a steel mill.

Fortress Minerals has an existing 15-month offtake agreement with the same mill signed back in Oct 2021. The new agreement is for 9 months covering April to December this year.

Under this agreement, Fortress Minerals will deliver around 270,000 wet metric tonnes of iron ore.

The delivery volume is subject to a variance of an additional or a reduction of 20% at the option Fortress Minerals.

The selling price of the iron ore will remain the same, being a formula guided by, amongst others, the average of the available daily price of Platts for 65% Fe CFR North China, adjusted subject to the Fe content of each iron ore shipment.

" The sales volume commitment of approximately 270,000 WMT is a testament to the consistent demand for the group&rsquo s high grade iron ore concentrate, efficient business operations, and strong business relationships with its customers," says Fortress Minerals in its April 19 announcement.

The new agreement is expected to contribute positively to the company' s earnings for the current FY ending Feb 29 2024.

Fortress Minerals

On March 22, Fortress Minerals : OAJ -1.27% executive director and chief executive officer Chee Yew Fei acquired two million shares at 45 cents per share in married deals.

This increased his total interest in the high-grade iron ore concentrate producer from 50.25 per cent to 50.65 per cent.

Executive director and chief operating officer Ng Mun Fey also acquired one million shares in a married deal on Mar 22, increasing his deemed interest in the Catalist listed stock from 7.12 per cent to 7.32 per cent.

Fortress Minerals produces high grade iron ore mined from its Bukit Besi mine and Cermat Aman mine in Malaysia and sells its iron ore primarily to steel mills in Malaysia and trading companies in China.

Clever way of minting S$9m thru issue papers in Sg where the company is listed.
Coverted to Rm at 3.35 exrate yield RM$30m.
Why borrow from their banks at ridiculous interest rates.
Management now laughing all the way to the bank.

Joelton ( Date: 22-Mar-2023 10:31) Posted:

Fortress Minerals to raise $9 mil via proposed placement of up to 23.3 mil shares

Fortress Minerals OAJ -12.22% is seeking to raise $9 million via a proposed placement of up to 23.3 million shares. After deducting estimated fees, the net proceeds of the placement will be at $8.7 million.

The company entered into a placement agreement with Stirling Coleman Capital on March 20 where the latter, as the placement agent, will procure placees to subscribe to the placement shares.

The shares will be issued at 38.6 cents apiece, representing a discount of 9.9% to the volume-weighted average price of 42.84 cents per share for trades done on March 16. March 16 is the last full market day where shares in Fortress Minerals were signed before the signing of the placement agreement and before Fortress Minerals&rsquo trading halt on the morning of March 17.

The placement price was agreed between Fortress Minerals and Stirling Coleman after negotiations. The price also factored in Fortress Minerals&rsquo historical trading performance, prevailing market conditions and its future prospects.

The placement shares represent 4.66% of the existing shares in the company and 4.46% of the company&rsquo s enlarged share capital. They will not be placed to a director or substantial shareholder of the company.

The proceeds of the proposed placement will partly fund Fortress Minerals&rsquo exploration efforts in Sabah. The company had received new prospecting licenses in Sabah on March 6. &ldquo The exploration of new geographies and minerals provides the potential to diversify the group&rsquo s revenue streams and bolster sustainable growth for the long term,&rdquo says Fortress Minerals in its March 20 statement.

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The proceeds will also fund Fortress Minerals&rsquo efforts to build up its production capabilities at the Cermat Aman Sdn Bhd (CASB) mine. The mine is located at Mengapur and commenced production in July 2022. The company says it intends to build a new integrated processing plant which will enhance production capabilities at the CASB Mine and enable it to produce high grade iron ore, copper and pyrrhotite concentrate as part of the effort to grow business top lines.

&ldquo These initiatives will continue to propel the company' s pipeline growth and support sustainability of earnings in the long term,&rdquo adds Fortress Minerals.

Fortress Minerals to raise $9 mil via proposed placement of up to 23.3 mil shares

Fortress Minerals OAJ -12.22% is seeking to raise $9 million via a proposed placement of up to 23.3 million shares. After deducting estimated fees, the net proceeds of the placement will be at $8.7 million.

The company entered into a placement agreement with Stirling Coleman Capital on March 20 where the latter, as the placement agent, will procure placees to subscribe to the placement shares.

The shares will be issued at 38.6 cents apiece, representing a discount of 9.9% to the volume-weighted average price of 42.84 cents per share for trades done on March 16. March 16 is the last full market day where shares in Fortress Minerals were signed before the signing of the placement agreement and before Fortress Minerals&rsquo trading halt on the morning of March 17.

The placement price was agreed between Fortress Minerals and Stirling Coleman after negotiations. The price also factored in Fortress Minerals&rsquo historical trading performance, prevailing market conditions and its future prospects.

The placement shares represent 4.66% of the existing shares in the company and 4.46% of the company&rsquo s enlarged share capital. They will not be placed to a director or substantial shareholder of the company.

The proceeds of the proposed placement will partly fund Fortress Minerals&rsquo exploration efforts in Sabah. The company had received new prospecting licenses in Sabah on March 6. &ldquo The exploration of new geographies and minerals provides the potential to diversify the group&rsquo s revenue streams and bolster sustainable growth for the long term,&rdquo says Fortress Minerals in its March 20 statement.

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The proceeds will also fund Fortress Minerals&rsquo efforts to build up its production capabilities at the Cermat Aman Sdn Bhd (CASB) mine. The mine is located at Mengapur and commenced production in July 2022. The company says it intends to build a new integrated processing plant which will enhance production capabilities at the CASB Mine and enable it to produce high grade iron ore, copper and pyrrhotite concentrate as part of the effort to grow business top lines.

&ldquo These initiatives will continue to propel the company' s pipeline growth and support sustainability of earnings in the long term,&rdquo adds Fortress Minerals.

FM just announced that they issued a share placement of 4.6% of new shares at 38.6 cents. This is mainly for the new exploration in Sabah.

In my opinion, it will be a cash burn during the exploration phase till the site proves that it has enough deposits for a viable production. Got to wait for progressive announcements from FM on their tests during the exploration phase to have an inkling if there are sufficient deposits.

Kandee ( Date: 19-Mar-2023 15:42) Posted:

Fortress Minerals called for a trading halt on 17/3/2023. Any news for the reason for this trading halt?

Wonder what the news could be. I hopes is good new of takeover😪

Fortress Minerals called for a trading halt on 17/3/2023. Any news for the reason for this trading halt?

A key point from this article is that FM has been granted a Prospecting and Exploring license. The former means testing the ground for the availability of the said minerals.
Exploring would mean confirming the availability of such minerals. If exploring proves that there are enough deposits for viable production, only then would FM start to see revenue from these 2 fields.

My guess is that there are some years to go before it could see revenue and profitability from these 2 fields.

Joelton ( Date: 07-Mar-2023 09:52) Posted:

Fortress Minerals bags 2 prospecting licences in Sabah

CATALIST-LISTED Fortress Minerals : OAJ +10.67% has been granted two new licences in Sabah, Malaysia to undertake prospecting operations for copper, nickel and cobalt minerals, the iron ore miner said on Monday (Mar 6).

The prospecting licences were issued by the Sabah Land and Surveys Department to two subsidiaries of Fortress Minerals, and cover prospecting in the concession areas of 40 square kilometres (sq km) in Telupid, Sabah and 400 sq km in Tongod, Sabah.

The licence granted to Saga Mineral Sdn Bhd allows it to conduct prospecting operations for copper mineral between Dec 15, 2022, and Dec 14, 2024. Meanwhile, the licence granted to Kencana Primary Sdn Bhd for the period between Dec 19, 2022, and Dec 18, 2024, allows it to prospect for nickel, cooper and cobalt minerals.

The Telupid and Tongod areas of Sabah are known to be rich in mineral sources, including copper, iron ore, nickel and cobalt, said the company.

The prospecting licences &ldquo offer the opportunity to expand the group&rsquo s commodity profiles and diversify its revenue streams&rdquo , as part of its strategic growth efforts to &ldquo invest prudently through the cycle and to enhance long-term shareholder value&rdquo , said Fortress Minerals.

Exploration activities are expected to commence in April 2023 and comprise surface geological mapping with different surveys &ldquo to better define the targets for drilling campaigns&rdquo , said the group.

The total estimated commitment of the exploration activities for both projects is about RM30 million (S$9 million) over the two-year period, which is expected to be funded by a combination of internal and external sources.

This is not expected to have any material impact on the net asset value per share and earnings per share of the group for the financial year ending Feb 29, 2024.