Fortress Minerals Limited Reports Strong 3Q FY2026 Results Amid Strategic Expansion

Fortress Minerals Limited, a leading high-grade iron ore producer listed on the SGX Catalist Board, has released its 3Q FY2026 results, revealing robust financial and operational performance as well as several strategic developments that could significantly impact shareholder value.

Key Financial Highlights

• Revenue Growth: The Group posted gross revenue of US\$50.8 million for 9M FY2026, up 32.7% year-on-year, driven by increased sales volume and cost savings from economies of scale.
• Profitability: Underlying EBITDA reached US\$15.8 million, a 10% increase, with a robust gross profit margin of 57.5%.
• Net Asset Value: NAV per share stands at 17.43 US cents.
• Operating Cash Flow: Net operating cash flow for the period was US\$9.5 million.
• Return on Capital Employed (ROCE): 21.2%.
• Earnings Per Share (EPS): 1.70 US cents.
• Liquidity: Cash and bank balances total US\$10.5 million, including money market funds.
• CAPEX: US\$5.5 million invested in plants and mine infrastructure.

Operational Performance and Expansion

• Record Sales Volumes: Fortress Minerals sold 632,424 dry metric tonnes (DMT) in FY2025, setting a new record and demonstrating strong regional demand and operational scalability.
• Cost Efficiency: Average unit cost per wet metric tonne (WMT) continues to decline, reflecting economies of scale and improved productivity.

Strategic Developments and Investments

• New Offtake Agreements: On 28 August 2025, subsidiary Fortress Resources Pte. Ltd. signed two new 24-month offtake contracts with an independent Malaysian steel mill, covering the delivery of approximately 1.2 million wet metric tonnes of iron ore concentrate. These agreements extend previous 12-month contracts and are expected to deliver stable recurring income and positive earnings impact for FY2026.
• Expansion into New Minerals: Fortress obtained shareholder approval to diversify into new minerals, opening fresh avenues for growth and risk diversification.
• International Expansion: In May 2025, Fortress proposed acquiring a 10% equity stake in Strategic Venture Pte. Ltd., which owns Cheroh Mining PNG Limited, a Papua New Guinea-based bauxite mining company. Additionally, Fortress has subscribed to shares of Norwest Minerals Limited, marking its entry into gold mining in Australia and expanding its exposure to complementary assets.
• Capacity Upgrades: The commissioning of two new ball mills at Bukit Besi in May 2024 increased nameplate capacity to 50,000 tonnes per month, with potential to reach 60,000 tonnes per month. This positions Fortress for a targeted 20% year-on-year production increase from FY2024.
• Infrastructure Investments: Construction of a new crushing plant at Bukit Besi, and a pilot beneficiation plant at the Mengapur site, are underway or recently completed, targeting further integration and operational efficiency.

Asset Overview

• Bukit Besi Mine: 526.2 hectares, 13-year mining rights (to 2033), with an indicated and inferred resource of 11.55 million tonnes at 44.36% Fe. Strategic location with excellent infrastructure and proximity to key ports and customers.
• Mengapur Mine: 951.68 hectares, 13-year license, with 2.10 million tonnes of indicated and inferred magnetite iron ore resource at 30.30% Fe. The site also hosts copper, gold, and silver mineralisation, with copper resource estimated at 35.89 million tonnes.
• Exploration Licenses in Sabah: New exploration licenses commenced in May 2023, offering diversification and future growth in commodity profiles.

Corporate Developments and Dividends

• Consistent Dividend Payouts: Fortress continues to reward shareholders with dividends, maintaining payout ratios well above 15% in recent years. FY2025 saw a final dividend of S\$3.1 million (23.3% payout ratio).
• Award Recognition: Winner of The Edge Singapore’s highest weighted ROE over three years, highlighting strong capital efficiency.
• Management Stability: The executive team, led by CEO Dato’ Sri Ivan Chee, COO Ng Mun Fey, and Financial Controller Fionne Chua, brings deep industry and financial expertise.

Growth Prospects and Outlook

Fortress Minerals’ results, expansion strategy, and new contracts underscore its ambition to be a leading regional supplier of high-grade iron ore and diversified minerals. The Group’s ability to secure long-term offtake agreements, expand production capacity, and diversify its resource base positions it well for sustained growth and resilience against commodity price volatility.

Key factors that could be price sensitive and move the share price include:

• Execution and delivery of new offtake contracts ensuring stable revenue streams.
• Progress on international investments in bauxite and gold mining, potentially adding significant new income sources.
• Continued record production volumes and cost reductions.
• Ongoing infrastructure upgrades and ability to scale production further.
• Diversification into new minerals, which may reduce risk and enhance future profitability.

Shareholders should monitor:

• Updates on progress and integration of new production facilities at Bukit Besi and Mengapur.
• Further details regarding operational performance and output from new international ventures.
• Any regulatory developments or changes in mining concessions, especially the transition of CASB mining lease to Pahang Mining Corporation (state-owned), ensuring operational continuity.
• Commodity price movements and their impact on realised selling prices and margins.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. Past performance is not indicative of future results. Fortress Minerals Limited’s share price may be affected by factors not covered in this article.

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