Posted on 03 Oct 2023
Singapore-listed Malaysian iron ore producer Southern Alliance Mining saw loss narrow in the second half-year, ended 31 July 2023, amid higher revenue, Kallanish notes.
The miner says in a statement that its net loss significantly narrowed to MYR 800,000 ($170,576) for the second half, from MYR 7 million in the first half.
The firm achieved strong sequential improvement of 37.8% in H2 group revenue to MYR 71.9m compared to MYR 52.2m in H1.
However, intense overburden removal activities, in line with the mining schedule, weighed down on the group’s profitability for the full year.
For the fiscal year through 31 July (FY2023), the group reported a decrease in revenue of 30.6% to MYR 124.1m, mainly due to decreased production of iron ore concentrate.
This resulted from the intense overburden removal activities and the transition from open pit mining to underground mining.
The lower sales volume of iron ore concentrate coupled with a lower average realised selling price for iron ore concentrate for FY2023 resulted in decreased revenue.
The group reported a net loss of MYR 7.8m in FY2023 compared to a net profit of MYR 16.3m in FY2022.
“We are monitoring global economic developments and its effect on iron ore and gold prices in order to capitalise on market opportunities in the future. We will continue to invest in our expansion and diversification strategy and focus on establishing sustainable revenue streams in order to unlock greater value for our shareholders moving forward,” says managing director Pek Kok Sam.
Source:Kallanish
