Newton Resources reports half-year loss as revenue falls 38%

Newton Resources Ltd. reported a net loss of $0.4 million for the six-month period ended June 30, 2025, a decrease from a net profit of $1.4 million in the corresponding prior period. Revenue for the period declined by 38% to $108.7 million, down from $174.8 million. Gross profit also fell to $2.2 million from $5.0 million year-over-year. This downturn was attributed to a reduction in iron ore supply from a key vendor and a significant drop in unit gross profit due to weak demand.

The Group purchased and sold approximately 1.2 million tonnes of iron ores, down about 20% period-over-period. Total assets stood at $57.4 million as of June 30, 2025, a decrease from $71.4 million at December 31, 2024, primarily due to lower trade and bills receivables. The liquidity ratio remained stable at 1.9, compared to 1.6 at December 31, 2024.

Looking ahead, Newton Resources anticipates continued challenges in the second half of 2025, with an estimated remaining mine life of 12 to 18 months for its Hematite Mine. The company plans to explore new iron ore sources, diversify product offerings, and pursue M&A opportunities for sustainable development. The board did not recommend an interim dividend.