Southern Alliance Mining Ltd. posted a net loss attributable to shareholders of 27.3 million Malaysian ringgit for the year ended 31 July 2025, widening from a 4.4 million loss a year earlier, as softer iron-ore prices and 26.1 million in non-cash impairments outweighed a 20 percent jump in revenue to 199.5 million ringgit.
Basic and diluted loss per share widened to 5.59 sen from 0.91 sen. The board did not declare any dividend.
Revenue growth was fuelled by the first-time contribution from bauxite sales and higher shipment volumes across all iron-ore product lines. Iron-ore concentrate tonnage rose 22 percent, crushed ore leapt 350 percent and tailings increased 5 percent, reflecting the ramp-up of underground mining at the Chaah Mine.
Gross profit slid 66 percent to 3.1 million ringgit as average realised selling prices for iron-ore products weakened. The group booked 18.9 million ringgit of impairment on mining assets due to lower price projections, 5.0 million ringgit on Sabah joint ventures after exploration licences lapsed, and 2.2 million ringgit on another Pahang investment. Excluding these charges, loss before tax would have been 5.4 million ringgit versus the reported 31.6 million ringgit.
Operating cash flow remained positive at 4.4 million ringgit, helped by disciplined cost control, while cash and bank balances stood at 113.8 million ringgit at the end of July.
During the year the company completed the transition of its flagship Chaah operation to fully underground mining, investing 33.3 million ringgit in tunnel infrastructure. Stoping in the southern zone is scheduled to begin in 2026, a move expected to lift production volumes and lower unit costs.
The group also finalised the 40 percent acquisition of rare-earth specialist MCRE Resources Sdn. Bhd. on 12 September 2025, marking its formal entry into critical minerals. Management plans to leverage existing geological and operational expertise to accelerate exploration and development in the rare-earth elements space.
Managing director Dato’ Sri Pek Kok Sam said the company’s volume growth, prudent cash management and continued investment in underground capacity have positioned it for a recovery in FY2026. He noted that diversification into rare-earths should reduce reliance on the cyclical steel sector and tap rising demand from clean-energy and high-tech industries.
Looking ahead, Southern Alliance expects higher output from the Chaah Mine’s southern zone and initial contributions from the MCRE stake to underpin an improvement in the next financial year, while it continues to monitor iron-ore price volatility and pursue further cost efficiencies.