Fortress Minerals has reported earnings of US$18.3 million ($24.2 million) for the FY2021 ended February, nearly triple the earnings – or 180.9% higher – than the US$6.5 million posted in the FY2020.
Earnings per share (EPS) during the year stood at 3.65 US cents, compared to the 1.31 US cents reported in the year before.
The group achieved record revenue of US$47.7 million, up 84.6% y-o-y.
The group says the growth is attributable to strong operational performance and resilient demand from regional markets boosted iron ore deliveries by 67.9% y-o-y with 452,756 dry metric tonnes (DMT) of iron ore concentrate sold at higher average realised selling price of US$105.43/DMT, up 9.9% y-o-y.
Average unit cost during the FY2021 fell 21.5% y-o-y to US$22.62/wet metric tonne (WMT) contributed by productivity gains and efficacy from higher production volume in FY2021.
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Gross profit during the year surged 111.0% y-o-y to US$36.5 million, while gross profit margin (GPM) rose 8.8 percentage points to 76.4%.
EBITDA for the FY2021 more than doubled to US$26.6 million from the US$12.2 million a year ago, while EBITDA margin stood at 55.7%.
The group’s net asset value (NAV) per share stood at 9.68 US cents compared to the 5.92 US cents a year ago.
An interim dividend of 1.0 cent per share has been declared for the FY2021 to “reward shareholders for their support”.
The dividend payout ratio of 20.6% is above the 20% payout ratio that was previously targeted by Fortress Minerals.
The dividend will be paid on May 10.
Looking ahead, the group says it remains positive on the outlook of high-grade iron ore. Prices for the metal has continued to increase steadily at 7.6% up year-to-date (y-t-d).
Demand for iron ore continued to grow in 2021 as global crude steel production stood higher in January and February by 4.8% and 4.1% y-o-y respectively.
The group says it will continue to focus on increasing its mineral resource through the exploration at the Bukit Besi mine. It will also look at improving its overall production tonnage and cost efficiencies which have improved “significantly” in FY2021.
“In this extraordinary year of FY2021, we have continued to build up our capabilities as evidenced by our growing iron ore deliveries and strong earnings, which have resulted in another milestone year for Fortress Minerals,” says Dato’ Sri Ivan Chee, executive director and CEO of Fortress Minerals.
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“Coupled with the quality of our team and assets, our business continues to be resilient, adding to our positive track record. With the strong iron ore prices, we were able to deliver a robust EBITDA of US$26.6 million for FY2021 and as a result, the board has declared an interim dividend of 1.0 Singapore cents per share for FY2021 to reward shareholders for their continued support and trust,” he adds.
“Through our extensive expertise and experience with the Bukit Besi mine, as well as our strong relationships within the regional mining ecosystem, we expect to be able to efficiently develop the large-scale Mengapur project to meet the increasing demand of our customers, create jobs in the communities we operate in, and unlock value for our shareholders.”
Shares in Fortress Minerals closed flat at 42 cents on April 21.
