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’s high grade iron ore concentrate, efficient business operations, and strong business relationships with its customers," says Fortress Minerals in its April 19 announcement.
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The new agreement is expected to contribute positively to the company's earnings for the current FY ending Feb 29 2024.
Fortress Minerals shares last traded at 39 cents.
