Southern Alliance Mining (SAM) has reported a significant 29.3% increase in revenue for FY2026, reaching RM257.8m, largely due to the first-time contribution from its rare earth segment. This new segment delivered RM58.4m in EBITDA attributable to the parent company and RM31.5m in profit before tax, marking a strong debut.
The company’s gross profit surged eightfold to RM25.3m, with the gross profit margin improving to 9.8%. Additionally, SAM managed to narrow its loss before tax by 53.2%, bringing it down to RM14.8m. The net cash generated from operating activities also saw a substantial increase, rising to RM65.9m from RM4m in the previous fiscal year.
SAM’s Managing Director, Pek Kok Sam, highlighted the success of the group’s diversification strategy, stating, “FY2026 demonstrated the value of the Group’s diversification strategy, with our rare earth business making a strong maiden contribution to the Group’s performance.”
The Chaah Mine’s underground development is entering its final phase, with commercial operations expected to commence in the second quarter of FY2027. SAM is also advancing its Labis rare earth project and developing its third and largest parcel at Gerik, aiming for operations to begin by mid-FY2027.
As SAM continues to expand its rare earth portfolio in Malaysia, these initiatives are expected to broaden the company’s earnings base and position it for future growth.
