Southern Alliance Mining Ltd. (SAM) trimmed its loss attributable to shareholders to RM23.27 million for the year ended 31 July 2026, an improvement from the RM27.31 million shortfall a year earlier, as the Malaysian miner booked a maiden contribution from its new rare-earths business.

Basic loss per share narrowed to 3.76 Malaysian cents from 5.59 cents in FY2025. The company did not declare a dividend, saying it intends to preserve cash to fund expansion plans.

Group revenue rose 29.3% YoY to RM257.85 million. The newly acquired 40%-owned MCRE Resources Sdn. Bhd. delivered RM132.1 million in sales from 1,150 dry metric tonnes of rare-earth oxide equivalent, lifting SAM’s gross profit almost eightfold to RM25.31 million and widening its gross margin to 9.8% from 1.6%. Segment-wise, the rare-earth unit generated profit before tax (PBT) of RM31.5 million and EBITDA of RM58.4 million (attributable), offsetting a RM40.8 million PBT loss in iron ore, where revenue slid to RM112.0 million as the Chaah Mine transitioned from open-pit to underground operations. Bauxite sales slipped to RM13.7 million from RM44.1 million.

Group loss before tax narrowed 53.2% to RM14.77 million despite three non-cash items: a RM17.5 million provision against a credit-impaired debtor and joint-venture receivable, a RM9.5 million share of losses from joint venture Rigid Temau following a licence expiry, and a RM0.6 million impairment on an inactive exploration asset. Operating cash flow surged to RM65.88 million from RM4.01 million, lifting cash balances to RM151.6 million and cutting total borrowings to RM8.0 million.

SAM said the Chaah Mine’s underground development has moved into its final phase, targeting commercial production in the second quarter of FY2027. It also plans to bring the third and largest parcel of MCRE’s Gerik rare-earth project into operation by mid-FY2027 and continues due-diligence work on the proposed acquisition of Paramount Synergy Sdn Bhd to expand its rare-earth footprint.

Managing director Dato’ Sri Pek Kok Sam noted that the robust first-year showing from rare earths validates the diversification strategy, helping to offset weakness in iron ore during the development phase at Chaah. He added that the group’s priorities for FY2027 include executing the Chaah underground ramp-up, advancing Gerik’s expansion and pursuing further rare-earth assets to broaden earnings and support the company’s next growth phase amid favourable global demand for critical minerals.