Fortress Minerals Limited · SGX:OAJ
Fortress Minerals — Q1 FY2020 Earnings Presentation
28 slides from Fortress Minerals's earnings presentation, July 2019
Slide 1: Fortress Minerals Limited 1QFY2020 Results Presentation
A LEADING MALAYSIAN HIGH-GRADE IRON ORE CONCENTRATE PRODUCER AND EXPORTER FORTRESS MINERALS LIMITED 1QFY2020 Results Presentation
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
7) " ‘i 19) 6 / vy BUSINESS INTRODUCTION
Slide 4: Company Profile
COMPANY PROFILE • 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 concentrate from East, Valley and West Deposits in Bukit Besi mi
Slide 5: Key Management
KEY MANAGEMENT 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 operations of the Bukit Besi Group formulating,
Slide 6: Our Milestones
OUR MILESTONES Completed JORC drilling campaign on East, Valley & West Listed on the Catalist Board of SGX- Deposits ST in March 2019 Constructed mine infrastructure and processing plant with S$15.0 million gross proceeds raised a steady-state production of 40,000 wet metric tonnes First i
Slide 7: FY2019 Highlights
FY2019 HIGHLIGHTS Commenced Iron Ore Production Listed on the Catalist Board of SGX-ST April 2018 March 2019 Started commercial production of iron S$15.0 million in gross proceeds ore concentrate with TFe grade of at were raised to increase minerals least 65.0% resource and processing capabiliti
Slide 8: Bukit Besi Mine Overview
7) " ‘i 19) 6 / vy — @’ BUKIT BES! MINE OVERVIEW
Slide 9: Bukit Besi Mine - Overview
BUKIT BESI MINE - OVERVIEW Mine Infrastructure Magnetite-pyrite skarn Location: Terengganu, Malaysia Tenement Boundaries North Total Concession Area: 526.2ha open pit West East Nearby Airports: Airports in Kuantan and Kuala Valley Terengganu (approximately 1.5 hours drive); Kemaman Port (approximate
Slide 10: West/Valley/East Deposits – A Closer Look
WEST/VALLEY/EAST DEPOSITS – A CLOSER LOOK 10
Slide 11: Bukit Besi Mine – Overview
BUKIT BESI MINE – OVERVIEW AS AT 7 AUGUST 2018 Net attributable to Area Category the Group LOCATION TERENGGANU, MALAYSIA Tonnes Grade Total concession Area 526.2ha (Mt) (% Fe) West, Valley and East West Deposit Indicated Resource 0.37 42.20 Explored areas Deposits West Deposit Inferred Resource 2.55
Slide 12: Bukit Besi Mine – Production Process
BUKIT BESI MINE – PRODUCTION PROCESS Removal of blasted material Step 1 Step 2 Blasting of the Removal and identified stockpiling of location blasted materials Rock surface after blasting Step 3 Step 4 Crushing Concentrate processing process The crushing plant Magnetic separator Grinding ball mills
Slide 13: Financial Highlights
7) " ‘i 19) 6 / vy FINANCIAL HIGHLIGHTS
Slide 14: 1Q FY2020 Snapshot
1Q FY2020 SNAPSHOT US$’M Revenue & Net Profit WMT Sales Volume 25 300,000 20.6 244,975 250,000 20 200,000 15 1Q2020 revenue is approximately 150,000 10 28% of FY2019 5.8 100,000 61,386 4.9 5 50,000 1.1 0 0 Sales Volume FY2019 1Q2020 FY2019 1Q2020 Revenue Net Profit US$’M Gross Profit & Gross Profit
Slide 15: Statement of Comprehensive Income for the Group
STATEMENT OF COMPREHENSIVE INCOME FOR THE GROUP Unaudited US$'000 1Q FY2020 1Q FY2019 FY2019 Revenue 5,841 - 20,629 Gross profit 4,010 - 13,034 Gross profit margin 68.6% - 63.2% Other operating income 420 2,167 2,002 Selling and distribution expenses (560) (805) (5,357) Other operating expenses (865
Slide 16: Statement of Financial Position for the Group
STATEMENT OF FINANCIAL POSITION FOR THE GROUP 31 May 2019 28 February 2019 ASSETS Non-current assets Exploration & evaluation assets 714,630 403,005 Mining properties 6,660,964 6,973,060 Plant and equipment 11,962,431 11,365,523 Right-of-use assets 30,806 - Current assets Inventories 531,338 438,908
Slide 17: Statement of Financial Position for the Group
STATEMENT OF FINANCIAL POSITION FOR THE GROUP 31 May 2019 28 February 2019 Non-current liabilities Lease liabilities 12,870 - Deferred tax liabilities 594,932 504,898 Amount due to shareholders 8,099,867 15,721,339 Current liabilities Lease liabilities 17,056 - Trade payables 236,176 256,797 Other p
Slide 18: Statement of Cash Flows for the Group
STATEMENT OF CASH FLOWS FOR THE GROUP 1Q FY2020 1Q FY2019 FY2019 Net cash flow (used in) / generated from operating activities (490,107) (749,409) 6,294,257 Net cash flow used in investing activities (1,703,036) (806,221) (6,400,845) Net cash flow generated from financing activities 9,914,431 2,563,
Slide 19: Dividends
DIVIDENDS First interim dividends for FY2020: Directors intend to recommend not less than 15% of the Group’s NPAT for FY2020 Not less than 0.16 Singapore Cent1 20% of NPAT S$800,000 or 12.1% of FY2019 NPAT paid as Interim for FY2020 FY2020 FY2021 FY2019 1 As disclosed in page 68 of the Company’s Off
Slide 20: Future Plans and Use of Proceeds
FUTURE PLANS AND USE OF PROCEEDS Aggregate amounts in SGD’000 Balance as at 10 July 2019 • Further development of our Bukit Besi Mine • Future exploration and geology work 01 S$7.0 million • Expansion of iron ore processing capacities • Acquisition/JV 02 S$2.0 million of new mines • General working
Slide 21: Industry Overview
7) " ‘i 19) 6 / vy INDUSTRY OVERVIEW
Slide 22: Update on Iron Ore Supply
INDUSTRY OVERVIEW Update on Iron Ore Supply Global seaborne iron market continues to witness persistent supply disruptions from the dam disaster in Brazil and cyclones at the main iron ore shipping ports in Australia2 Australia government forecasts Global shipments will contract 4.2% to 1.53 bil
Slide 23: Update on Iron Ore Price
Update on Iron Ore Price Iron ore prices hit 5 year high as supply concerns wage on2 According to a recent report from Cyclones strikes in Australia Australia’s chief economist, the Vale dam disaster in Brazil shortfall in iron ore supply stemming from the Vale incident is set to last at least t
Slide 24: PRC's Demand for High-Grade Iron Ore Likely to Remain Strong
INDUSTRY OVERVIEW PRC’s Demand for High-Grade CRUDE STEEL PRODUCTION Iron Ore Likely to Remain Strong Our primary market, the PRC, is the world’s largest steelmaker and consumer of iron ore The crude steel production in China posted a 10.2 percent year-on-year increase to 192.49 million tonnes f
Slide 25: Competitive Advantage
COMPETITIVE ADVANTAGE Iron ore concentrate with TFe Key contributing factors to our content of at least 65% competitiveness Low levels of impurities which Strategic Location, Favourable geological conditions would command premium prices High Grade Iron Good Infrastructure, and cost advantage
Slide 26: Share Statistics
SHARE STATISTICS Bloomberg Code: FMIL SP SGX: OAJ Share Price S$0.255 Market Capitalization S$127.5 million Free Float 75.0 million P/E ratio 0.81 Interim Gross Dividend Yield 0.63% NAV Per Share 5.05 US Cents = 6.85 Singapore Cents Total Issued Shares 500 million Substantial Shareholders Insiders 5
Slide 27: Price Trend
PRICE TREND FMIL SP SGD 7 .255 +0.005 S.235 At 14:56 Vol 50,000 Q .255S H .255 95) Compare 96) Actions ~ 97) Edit ~ [03/26/2019 [ERM 07/08/2019/- Last Price fy Mov Avgs 3D 1M 6M YTD |4¥) SY Max Dailyv |X # + Table BL 2 9777 8600 Brazil 3201 8900 Singapor 148k x 50000 12,750.0 2555 Val Key Events « C
Slide 28: 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