Fortress Minerals Ltd is offering 75 mil placement shares (including 51,250,000 Cornerstone Shares) for its IPO on
The IPO will raise around S$12.50 mil after deducting lisiting expenses of S$2.5 mil. The use of proceeds is as below.
The group is principally in the business of exploration, mining, production and sale of iron ore concentrate to steel mills and trading companies in the PRC and Malaysia.
FY16 to FY18 has been loss-making due to starting up cost and finally, in 1H2019 they are making a profit of $6.5mil and
What I like
Rebar price is recovering in the market from all times low.
Mining of high grade ore in turn lower mining cost but higher selling cost.
The company is finally making
What I don’t like
Blasting is environmental unfriendly.
Main export is to PRC and many steel mills are force to shut down due to environmental issue.
Steel mill are changing from blasting to EAF by using recycle steel scraps.
I personally had some contacts with lime mining company located in Malaysia and got to know that the profit margin is very low for such mining
I believe can get