Company Briefs: Fortress Minerals

Fortress Minerals

Fortress Minerals, an iron-ore concentrate producer, has lodged a preliminary prospectus for a planned initial public offering (IPO) on Singapore Exchange's Catalist board.

Details of the pricing, amount to be raised and timing of the offering have not been announced.

Fortress Minerals' business is in exploration, mining, production and sale of iron-ore concentrate. It produces the concentrate from iron ore mined from its Bukit Besi Mine, and sells the concentrate primarily to steel mills and trading companies in China and Malaysia.

While business operations are principally located in Kuala Lumpur, the Bukit Besi Mine is situated in Terengganu in Malaysia.

Based on the prospectus lodged on Thursday, Fortress Minerals posted revenue of US$6.6 million (S$8.9 million) for the first half of fiscal 2019. Net profit for the period was US$2 million, from a net loss of US$546,000 the previous year.

The cost of sales was US$2.7 million, while selling and distribution expenses were US$2.3 million.

YZJ Shipbuilding

Yangzijiang (YZJ) Shipbuilding's fourth-quarter net profit rose 84 per cent, year on year, to 1.25 billion yuan (S$256 million), helped by favourable foreign exchange gains.

A final dividend of five cents per share was proposed, up from 4.5 cents a year earlier.

Gross profit margin improved to 18.2 per cent, from 14.9 per cent in the same period a year earlier, due mainly to higher interest income from financial assets held to maturity. Foreign exchange gains, lower administrative expenses and a reversal of impairment loss also lifted the bottom line.

Revenue in the three months ended Dec 31 was 4.9 billion yuan, down 22 per cent on lower revenue from shipbuilding due to progressive construction of fewer larger container ships and lower trading revenue. Eleven vessels were delivered in the fourth quarter last year, versus six in the corresponding quarter of 2017.

For the 2018 full year, net profit was 3.6 billion yuan, up 23 per cent from 2017.

Full-year revenue was 23.2 billion yuan, up 21 per cent on higher volume of shipbuilding activities, higher trading volume, higher revenue from shipping logistics, chartering and ship design services. The group delivered 46 vessels last year, versus 33 in 2017.

Total earnings per share was 91.34 fen last year, up from 75.59 fen in 2017.

A version of this article appeared in the print edition of The Straits Times on March 02, 2019, with the headline 'Company Briefs'. Print Edition | Subscribe