Fortress Minerals has entered two new 24-months offtake agreements with an independent third-party domestic steel mill in Malaysia through its subsidiary Fortress Resources.
An offtake agreement is a contract between a producer and a buyer to purchase a specific amount of future goods or services from a producer's upcoming project or production over a defined period and at agreed-upon terms.
Fortress Resources has agreed to deliver to the domestic steel mill in aggregate about 1.2 million wet metric tonnes (WMT) from Sept 1, 2025 to Aug 31, 2027.
The selling prices of the deliverables will be based on a formula guided by, amongst others, the average of the available daily price of Platts for 65% Fe and 58% Fe CFR North China, adjusted subject to the Fe content of each shipment of the deliverables, the release notes.
Fortress Minerals expects these agreements to contribute positively to the earnings per share for the group in FY2026.
Share in Fortress Minerals closed 0.5 cents higher or 2.273% up at 22.5 cents on Sept 8.
