Fortress Minerals Limited - Result Presentation for 2Q & 1H FY2021 Malaysia - Fortress Minerals Ltd
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Fortress Minerals Limited Result Presentation for 2Q & 1H FY2021 Malaysia
IMPORTANT NOTICE:
This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any offer
to buy or subscribe for, any securities in Fortress Minerals Limited (“Fortress Minerals” or the “Group”) in Singapore or
any other jurisdiction nor shall it or any part of it form the basis of, or be relied on in connection with, any investment
decision, contract or commitment whatsoever in this or any jurisdiction. This presentation may contain forward-looking
statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may
differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and
assumptions. You are cautioned not to place undue reliance on these forward-looking statements, if any, which are
based on the current view of management on future events. The information contained in this presentation has not
been independently verified. No representation or warranty expressed or implied is made as to, and no reliance
should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in
this presentation. Neither Fortress Minerals or any of its affiliates, advisers or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use,
reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The
past performance of Fortress Minerals is not indicative of the future performance of Fortress Minerals. The value of
shares in Fortress Minerals (“Shares”) and the income derived from them may fall as well as rise. Shares are not
obligations of, deposits in, or guaranteed by, Fortress Minerals or any of its affiliates. An investment in Shares is
subject to investment risks, including the possible loss of the principal amount invested.
2
01 Fortress, at a glance Bukit Besi Mine Overview
Corporate overview and achievement FYE
✓ We are an iron ore producer and exporter headquartered in Malaysia. 2016 Obtain mining right in Bukit Besi, Terengganu, Malaysia.
✓
✓ Our principal business activities include exploration, mining,
2017
production and sale of iron ore concentrate. Construction of major processing plants in Bukit Besi
✓ Currently producing high-grade iron ore concentrate
5.41 2018
from East, Valley and West Deposits in Bukit Besi mine. MT
Completed construction of major processing plants and
We focused on production of high-grade iron ore concentrate. commenced commercial production
.
6.19 2019
MT
FIRST iron ore company listed on the Catalist Board
of SGX-ST on 27 March 2019.
2020
7.18 US$ 6.5 million NPAT achieved.
MT
S$ 2.6 million OR 29.3% Dividends Distributed
> 15% Targeted distribution
1H
JORC Mineral Resource US$ 7.8 million NPAT
Estimates 2021 > US$1.3 million / +20.7% compared to full year FY2020 result
MT denotes millions tonnes
^ JORC denotes Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
1H FY2020 sales volume represented 77.9% of FY20204
Management team
Talents whom responsible for the stewardship and long-term sustainable success of the Group
Dato’ Sri Ivan Chee Ng Mun Fey Fionne Chua
• Responsible for overall • Responsible for the overall • Responsible for all finance and
management and operations of management and day-to-day accounting operations of the
the Group, including formulating, operations of the Bukit Besi Group.
implementing and monitoring the Mine, including heading the • Coordinates and directs the
Group’s strategic directions, Group’s marketing, geology, preparation of the budget,
growth plans, financial and risk mining, processing and other financial forecast, reports and
management. supporting divisions. financial statements and
• Extensive experience in civil and coordinates the preparation of
structural engineering and regulatory reporting.
mining industry. • A Chartered Accountant with
more than 10 years of relevant
experience.
Executive Director & Chief Executive Director & Chief Financial Controller
Executive Officer Operating Officer
5
Bukit Besi Mine Strategic Location supported with Good Infrastructure
Daily trucking to
Customers’ stockyards
Bukit Besi
Area 526.2 h
Airport 1.5 hour
Mobility
Easy access to highways
convenience
Seamless transportation flows
Domestic
customers
Proximity to
customers’
stockyards
Bukit Besi
Kemaman Port
86 KM
Proximity to Port
Shorten delivery lead time for export shipment
6
Mineral Resource – A closer look
Growing resource base and Overall Fe increases despite yearly depletion
RESOURCE SUMMARY:
West, Valley and East Deposits are
Processing
Plants
and
Mine
Infrastructure
“Resilience productivity capable to operate on 24-hour shift”
02 Financial results
A strong performance in 1H FY2021
A very resilient financial performance supported by strong underlying profitability
Financial Balance Sheet Value creation
performance
US$ 20.1 million US$ 4.4 million US$ 1.2 million
210,143 DMT Net debt* reductions Capital assets invested
US$ 1.0 million
Group Revenue/ Plants and equipment
US$ 0.2 million
Sales volume
Exploration and evaluation assets
231,007 WMT
Production sold
US$15.1 million
Gross profit
75.3%
Gross profit margin
US$7.8 million
Net profit after tax
* Comprising lease liabilities, banks borrowings and amounts owing to shareholders
10Financial Highlights Revenue
+ +
1H FY2021: NPAT exceed full year FY2020 66.9% 47.4%
Financial metrics 2Q 2020 2Q 2021 1H 2020 1H 2021 2020 28.0 100 .0%
7.8 13.0 13.6 20.1 25.9
US$’ million Audited
2Q FY20 2Q FY21 1HFY20 1HFY21 FY20
EBITDA
Revenue 7.8 13.0 13.6 20.1 25.9 62.1%
58.0%
49.9% 52.2%
48.2%
Gross profit + +
269,615
5.4 10.1 9.4 15.1 17.3 14.0 50. 0%
107.7%
76.334
77.3%
131,886
135,482
Gross profit margin 69.4% 77.5% 69.1% 75.3% 66.7%
EBITDA 3.9 8.1 6.6 11.7 13.5
3.9 8.1 6.6 11.7 13.5
- 0.0 %
2Q FY20 2Q FY21 1H FY20 1H FY21 FY 20
EBITDA margin 49.9% 62.1% 48.2% 58.0% 52.2%
NPAT Exceed
14.0 50. 0%
NPAT 43.8% Full year by
2.5 5.7 3.6 7.8 6.5 US$ 1.3M
39.1%
32.4%
Net profit margin 32.4% 43.8% 26.5% 39.1% 25.1% + +
125.6% 26.5% 117.3%
25.1%
Basic and diluted EPS
(US cents) 0.50 1.14 0.74 1.57 1.31
2.5 5.7 3.6 7.8 6.5
- 0.0 %
2Q FY20 2Q FY21 1H FY20 1H FY21 FY 20
11Robust Sales Volume (DMT *) and Average selling price (US$/DMT)
Gross Profit
102.95 103.10
95.99 95.62 95.93
440 ,000 110 .00
105 .00
100 .00
95.0 0
90.0 0
Margin
85.0 0
+ + 80.0 0
Sales and volume
75.0 0
59.3%
70.0 0
77.5% 65.0 0
60.0 0
220 ,000 55.0 0
50.0 0
45.0 0
40.0 0
35.0 0
30.0 0
Driven by
25.0 0
20.0 0
15.0 0
76,334 135,482 131,886 210,143 269,615 10.0 0
5.00
- -
2Q FY20 2Q FY21 1H FY20 1H FY21 FY 20
High Volume Volume (WMT #) and Average unit cost (US$/WMT)
and 540,000 27.78 28.64 28.81 30.30
30.00
76,334
29.70
Lower unit cost
29.40
29.10
28.80
28.50
28.20
27.90
27.60
27.30
27.00
26.70
26.40
26.10
25.80
21.50
25.50
25.20
24.90
24.60
24.30
24.00
23.70
19.64
210,143
23.40
135,482
23.10
22.80
22.50
22.20
21.90
21.60
85,739
21.30
21.00
20.70
20.40
20.10
Productivity
19.80
19.50
19.20
+
18.90
18.60
18.30
18.00
17.70
+ 17.40
17.10
16.80
16.50
16.20
57.0%
15.90
15.60
270,000 15.30
15.00
14.70
73.5% 14.40
14.10
13.80
13.50
13.20
12.90
12.60
12.30
12.00
11.70
11.40
11.10
10.80
10.50
10.20
9.90
9.60
9.30
9.00
8.70
8.40
8.10
7.80
7.50
7.20
6.90
6.60
6.30
6.00
5.70
5.40
5.10
4.80
4.50
4.20
3.90
3.60
3.30
85,739 148,751 147,125 231,007 300,036 3.00
2.70
2.40
2.10
1.80
1.50
1.20
0.90
0.60
0.30
- -
2Q FY20 2Q FY21 1H FY20 1H FY21 FY 20
Gross Profit (US$ Million) and Gross Profit Margin (%)
69.4% 77.5% 69.1% 75.3% 66.7%
+ +
60.6%
Gross Profit 86.4%
* DMT denotes Dry metric tonnes 5.4 10.1 9.4 15.1 17.3
# WMT denotes Wet metric tonnes
2Q FY20 2Q FY21 1HFY20 1HFY21 FY20 12Financial
performance
A quick glance
13Use of IPO proceeds – Status in FY2021
Amount denominated in SGD’ million Opening 2Q FY2021 Closing
1Q FY2021 (Utilised) 2Q FY2021
IPO
7.0
• Further development of Bukit Besi Mine
• Future exploration and geology work
• Expansion of iron ore processing capacities
01 6.9 (4.0) 2.9
Exploration and geology work
IPO
Proceeds 2.0
• Acquisition/ JV of new mines
02
12.5 2.0 - 2.0
• General • Acquisition/
working capital JV of new mines
•
3.5 General working capital 03 Fully utilised
• Net of IPO expenses
S$2.5 million
Total 4.9
1426
Fe
Iron
55.845
03
Industry and product overviewHigh-grade Iron ore: Unique and Essential
High Fe content with low gangue (1)
lower level of Phosphorus(2)
preferred by steel mills:
Decrease CO₂
1 Environmentally friendly
2 Decrease in steel sintering (3) productivity.
3 Reduction cost and increase in steel yield
Reduce the slag (4) volume;
4 Increase productivity in blast furnace.
Reference
1. Commercially worthless materials that surrounds or impurities
2. High level of Phosphorus “P” could impact the strength of low-alloy steel
3. Process for impurities separation from raw ore
4. Shaping process to form solid mass of materials with extremely high melting pointsYou can also read
