Newton Resources forecasts wider net loss for 2025

Newton Resources Ltd has issued a profit warning, forecasting an unaudited net loss of approximately $2.2 million for the year ending December 31, 2025. This compares to a net loss of $0.3 million in the previous year. The anticipated decline is attributed to reduced sales and gross profit from a foreseeable decrease in iron ore supply from a major supplier, alongside a significant drop in unit gross profit due to weak demand for the group's iron ores.

Furthermore, a significant rockfall at the Koolan Island operations has suspended mining activities for Koolan Iron Ore Pty Limited, a major hematite ore supplier. Remediation is not viable, impacting supply. The group has been notified that several scheduled shipments for the last quarter of 2025 will be deferred or withdrawn.

As of September 30, 2025, Newton Resources recognized contractual rights and obligations to purchase hematite ores from Koolan with an unaudited carrying value of approximately $4.5 million. Any necessary adjustments to this carrying value, such as provisions or impairments, will further increase the group's net loss for the current year beyond the current preliminary estimate. The company advises shareholders and potential investors to exercise caution.