NEWTON RES (01231) announced that the Group recorded an unaudited net loss for the nine-month period ended September 30, 2025. It is expected to report a net loss of approximately $2.2 million for the fiscal year ending December 31, 2025, compared to a net loss of around $300,000 in the previous fiscal year.
The anticipated decline in annual performance is primarily attributed to: 1. Reduced iron ore supply from key suppliers, leading to lower sales and gross profit compared to the same period last year. 2. Weak demand for the Group’s iron ore, resulting in a significant drop in unit gross profit.
Additionally, as disclosed in the October 24, 2025 announcement, a major rockfall incident occurred on the eastern footwall of the main pit at Koolan Island, operated by Koolan Iron Ore Pty Limited (Koolan). The Group has been informed that remedial work and resumption of mining operations in the affected area are unfeasible. Consequently, Koolan’s mining activities have been suspended, though shipments of low-grade iron ore (with iron content below 55%) will continue.
The Group was also recently notified of delays or cancellations for certain shipments originally scheduled for Q4 2025. Discussions with Koolan regarding future iron ore supply and potential remedial measures (if any) are ongoing as of the announcement date. The Company will continue monitoring developments and take further action as necessary.
Koolan is the primary hematite supplier under a long-term hematite supply agreement with the Group. As of September 30, 2025, the Group recognized contractual rights and obligations for hematite purchases from Koolan as other assets, with an unaudited carrying value of approximately $4.5 million. Any adjustments (including provisions, impairments, or write-offs) under applicable accounting standards would inevitably increase the net loss beyond the preliminary estimate stated above.
Meanwhile, the Group will continue exploring new iron ore and commodity supply channels to diversify its product offerings, as well as pursue mergers, acquisitions, or partnerships to ensure sustainable growth.