Pahang-based iron miner Southern Alliance Mining has reported earnings of RM16.3 million for FY2022 ended July, down 89% y-o-y.
Revenue in the same period was down 53.9% y-o-y to RM178.7 million, in line with a softer global market for iron ore and lower production volume.
The company plans to expand into gold mining so as to diversify its earnings base.
In Jan this year, the company has received approval from the Johor government to carry out exploration work for gold mining at the Tenggaroh Mine.
Since then, it has made “significant advancements” in its sampling, mapping, and exploration activities that have helped narrow down into the key mineable areas.
Subsequently, Southern Alliance Mining has come up with an “extensive” exploration program to carry out exploration and drilling activities at the key mineable areas that is aligned with the gold mineralisation.
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In addition, the company has acquired two associate companies to expand its iron ore mining activities as well as mining of other base metals so that it will not be as susceptible to concentration risks.
The company will continue to be on the lookout for such opportunities going forward.
“We have come a long way and achieved much since obtaining the mining rights to the Chaah Mine in 2008. It is time for us to build on that foundation to further extend and strengthen our roots,” says CEO and executive director Pek Kok Sam.
“We are confident that our expansion and diversification strategy will bring about more value to shareholders going forward, in the form of longer earnings visibility, reduced earnings volatility and sustainable earnings growth,” he adds.
Southern Alliance Mining shares closed on Sept 28 at 63 cents, unchanged for the day and down 12.5% year to date.
