Although Fortress Minerals OAJ announced a 21.8% drop in net profit to US$7.084 million for the six months to Sept 30, its 1HFY2024, the Group reported a 1.5% yoy increased in revenue to US$30.6 million in the same period, driven by higher volumes sold in 2QFY2024. Sales volume rose 16.5% to 186,587 dry metric tonnes (DMT) of iron ore and 11.1% to 312,911 DMT for 2QFY2024 and 1HFY2024, respectively.
The increase in revenue was partially offset by the lower average realised selling price of US$97.47/DMT for 1H FY2024 compared to US$106.85/DMT in 1H FY2023. Average unit cost of sales rose 12.4% yoy to US$31.47 per wet metric tonne (WMT) for 1H FY2024 mainly attributable to higher inflation of production costs. The cost increases were partially mitigated by a 17.3% y-o-y increase in volume sold for 2QFY2024 which yielded cost efficiencies for the Group. Consequently, the Group reported a gross profit margin of 64.5% for 1H FY2024, from 71.3% for 1H FY2023.
On June 28 this year, Fortress Minerals secured the approval of its shareholders to diversify beyond its core business to include the mining of manganese, copper, nickel, cobalt, zinc, lead, tin, chromite, tungsten, gold, silver and other minerals, trading in iron ore. The new minerals will be able to be mined from its own mining assets, third parties, joint ventures and partnerships, Fortress Minerals says.
