Southern Alliance Mining (SAM) (SGX:QNS
) has reported a net loss of RM4.2 million for 1HFY2026 ended January 31, an improvement of 59.2% y-o-y compared against the net loss of RM10.3 million a year ago.
The lower net loss was mainly attributable to the higher revenue achieved in the same period. Revenue for 1HFY2026 grew by 95.4% y-o-y to RM137.3 million.
The higher topline was driven by the recent acquisition of 40% stake in MCRE Resources Sdn Bhd (MCRE), which contributed RM63.1 million through the sale of 580 dry metric tonnes (DMT) of rare earth oxide (REO).
SAM says that additional revenue contribution came from a new bauxite sales contract at the Kahang Mine, which realised RM13.4 million from the sale of approximately 51,300 DMT, as well as crushed iron ore sales, which surged 212.5% y-o-y to 25,000 metric tonnes.
With the revenue jump, gross profit for 1HYF2026 turned positive at RM5.4 million, compared to a gross loss of RM7.1 million in 1HFY2025.
As at January 31, SAM’s cash and bank balance stood at RM111.4 million.
See also: Sunright returns to profitability in 1HFY2026, with net profit of $1.4 mil
Within its iron ore segment, SAM states that its Chaah Mine has transitioned fully to underground operations, designed to improve long-term efficiency and production stability.
At the same time, SAM is upbeat on the progress at its Tenggaroh Gold Prospect, where 21.04% of assay samples have indicated potential gold mineralisation, presenting an attractive near-term exploration opportunity in a supportive gold price environment.
"Supported by our ongoing underground iron ore developments and exciting gold exploration prospects, we are highly confident in delivering an improved performance for the full year and generating sustainable, long-term value for our shareholders," says Dato’ Sri Pek Kok Sam, managing director of SAM.
Shares in Southern Alliance Mining closed flat on March 12 at 44 cents.
