Fortress Minerals’ OAJ subsidiary, Fortress Resources, has entered into a new 12-month offtake agreement with an unnamed independent third-party domestic steel mill in Malaysia.
Under the agreement, Fortress Resources has agreed to deliver approximately 240,000 wet metric tonnes of iron ore to the domestic steel mill from Jan 2 to Dec 31. The deliverables are subject to a variance of an additional or a reduction of 20% at the option of Fortress Resources.
The selling price of the deliverables will be based on a formula guided by the average of the available daily price of Platts for 65% Fe CFR North China, adjusted subject to the Fe (iron) content of each shipment of the deliverables.
According to Fortress Minerals OAJ , the agreement will provide recurrent income and cash flows to the group during the period it has signed for.
It will also strengthen its financial position, although it will not have any impact on the group’s net asset value (NAV) for the FY2024 ending Feb 29. It will, however, contribute positively to the group’s earnings per share (EPS) for the FY2024.
Shares in Fortress Minerals closed unchanged at 29.5 cents on Jan 23.
