Fortress Minerals Limited · SGX:OAJ
Fortress Minerals — FY2020 Earnings Presentation
25 slides from Fortress Minerals's earnings presentation, 2020
Slide 1: Fortress Minerals Limited FY2020 Full Year Results Presentation
Fortress Minerals Limited FY2020 Full Year Results Presentation Singapore
Slide 2: Important Notice
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
Slide 3: Business Introduction
01 Business Introduction
Slide 4: Company Profile
Company Profile Malaysia’s Leading High-Grade Iron Ore Concentrate Mine • We are an iron ore producer and exporter headquartered in Malaysia • Our principal business activities include exploration, mining, production and sale of iron ore concentrate • Currently producing high-grade iron ore concentr
Slide 5: Management team
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 acco
Slide 6: Significant Milestones
Significant Milestones ✓ Awarded mining rights to Bukit Besi Mine 2016 ✓ Magnetic survey and metallurgical testing ✓ Planning & design of mine infrastructure and processing plant ✓ Completed JORC drilling campaign on East, Valley & West Deposits ✓ Constructed mine infrastructure and processing plant
Slide 7: Significant Milestones (continued)
Significant Milestones (continued) ✓ Listed on the Catalist Board of SGX-ST in March 2019 1st Quarter ✓ First iron ore miner listed on SGX, successfully raising S$15.0 million FY 2020 ✓ Resource upgraded to 6.19 Mt at East, Valley & West Deposits. ✓ 1st interim dividend for FY2020 of 0.16 SG cents p
Slide 8: Bukit Besi Mine Overview
02 Bukit Besi Mine Overview
Slide 9: Bukit Besi Mine - Overview
Bukit Besi Mine- Overview Mine Infrastructure Magnetite-pyrite skarn Tenement Boundaries North Location: Terengganu, Malaysia East West Valley Total Concession Area: 526.2ha open pit Nearby Airports: Airports in Kuantan and Kuala Terengganu (approximately 1.5 hours drive); Explored surface area with
Slide 10: Mineral Resource – A closer look
Mineral Resource – A closer look Growing resource base and Overall Fe increasing despite yearly depletion RESOURCE SUMMARY: West, Valley and East Deposits are <5% of total concession area (526.2 ha) 7 Aug 2018 28 Feb 2019 29 Feb 2020 Deposit Resource North Area Category Net Attributable to the Group
Slide 11: Bukit Besi Mine Production Process
Bukit Besi Mine Production Process Removal of blasted material Step 1 Step 2 Blasting of the Removal and identified stockpiling of location blasted materials Rock surface after blasting Step 3 Step 4 Crushing Concentrate processing process The crushing plant Magnetic separator Grinding ball mills Fo
Slide 12: Financial Highlights
03 Financial 04 Highlights Financial results
Slide 13: A strong performance in FY2020
A strong performance in FY2020 Solid performance supported by strong underlying profitability US$ 13.5 million US$7.8 million Underlying Group Adjusted EBITDA* Adjusted Net profit after tax* US$ 25.9 million S$ 2.6 million or 269,615DMT Delivered 29.3%** of NPAT Group Revenue/ Dividends paid to shar
Slide 14: Financial performance
Financial performance Operating metrics 2020 2019 Change Average Platts* 65% price/DMT 105.99 90.82 +16.7% • Platts 65% has been consistently strong throughout FY2020. * IODEX 65% Fe CFR North China of Platts Daily Iron Ore Assessments price indices Average realised price/DMT 95.93 89.65 +7.0% • Ave
Slide 15: Dividend Distribution for FY2020
Dividend Distribution for FY2020 In S$ The Company’s board of directors (the “Directors”) have previously declared their intentions to recommend and distribute dividends of not less than 15% of the Group’s net profit after tax for FY2020 as set out in page 68 of the Company’s offer document dated 19
Slide 16: Statement of Comprehensive Income for the Group
Statement of Comprehensive Income for the Group US$’000 FY2020 FY2019 Change (%) Revenue 25,925 20,629 25.7 • Increase in sale volume (45,756 DMT) & average SP (+7.0% / US$6.28/dmt) Gross profit 17,280 13,034 32.6 • Higher average selling prices realised and the lower average unit cost of Gross prof
Slide 17: Statements of Financial Position for the Group
Statements of Financial Position for the Group 29 February 28 February US$'000 2020 2019 ASSETS Non-current assets Exploration & evaluation asset 2,322 403 • Intensified upon resource estimate increase to 7.18 Mt from 6.19 Mt. Mining properties 6,344 6,973 • Reduction due to annual amortisation effe
Slide 18: Statements of Financial Position for the Group
Statements of Financial Position for the Group US$'000 29 February 28 February 2020 2019 Non-current liabilities Deferred tax liabilities 1,467 505 • Timing difference on tax benefit claimed on additions of PPE invested. Amounts due to shareholders - 15,721 • Reduction due to repayments (US$3.3 mill
Slide 19: Statement of Cash Flows for the Group
Statement of Cash Flows for the Group US$'000 29 February 2020 28 February 2019 Net cash flow generated from operating activities 9,188 6,294 • Increase in operating profit of US$12.9 million after adjusted working capital outflows of US$1.6 million. Net cash flow used in investing activities (6,177
Slide 20: Use of IPO proceeds – Status in FY2020
Use of IPO proceeds – Status in FY2020 Aggregate amounts in S$’000 • Further development of Bukit Besi Mine • Future exploration and geology work 01 S$7.0 million • Expansion of iron ore processing capacities • Acquisition/ 02 S$2.0 million JV of new mines • General working capital 03 utilised • Net
Slide 21: Industry overview
04 Industry overview
Slide 22: Iron Ore Demand – Malaysia
Iron Ore Demand – Malaysia • We are the high-grade iron ore producer in Malaysia and enjoy a competitive advantage in this niche and attractive market. • High-grade iron ore is preferred by steel mills: i. High Fe content with low gangue (1) reduce the slag (2) volume, decrease the fuel rate and inc
Slide 23: Uncertainty - The Covid-19 Impact to Our Industry
Uncertainty- The Covid-19 Impact to Our Industry Most businesses are frozen, presently. Following the Malaysian government’s announcement on the implementation of the nationwide restricted movement control order under the Prevention and Control of Infectious Diseases Act 1988 and the Police Act 1967
Slide 24: Competitive Advantage
Competitive Advantage ✓ Key contributing factors to our ✓ Low levels of impurities which would competitiveness command premium prices against Strategic Location, ✓ Favourable geological conditions and lower grades cost advantage ✓ The unique characteristics of our Good ✓ Access to good public infras
Slide 25: Thank You!
THANK YOU! Registered Office: 8 Robinson Road #03-00 ASO Building Singapore 048544 Principal Place of Business: 9-1 Jalan PJS 8/18 Dataran Mentari 46150 Petaling Jaya Selangor, Malaysia Tele: +60 (3) 56301993 Email: corporate@fortress.sg Website: www.fortress.sg