NEWTON RES(01231) is expected to incur a net loss of approximately 2.2 million US dollars in 2025.

NEWTON RES (01231) announces that the group incurred unaudited net losses for the 9-month period ending on September 30, 2025; and expects to incur a net loss of approximately 2.2 million US dollars for the year ending on December 31, 2025, compared to a net loss of approximately 300,000 US dollars for the year ending on December 31, 2024. The group's annual performance for the current year is expected to decrease mainly due to a decrease in the expected iron ore supply from the main suppliers compared to the same period last year, leading to a decrease in sales and gross profit; and a significant decrease in the unit gross profit of iron ore due to weak demand in the current year. Furthermore, as disclosed in a previous announcement dated October 24, 2025, a major rockfall accident occurred in the lower eastern part of the main pit at Koolan Island operation of Koolan Iron Ore Pty Limited (Koolan). The group has been advised that remediation work and resumption of mining activities at the affected area are not feasible. As a result, mining activities at Koolan have been suspended, while low-grade iron ore with an iron content expected to be less than 55% can still be shipped. The group has recently been notified of delays or cancellations of several shipments planned for the fourth quarter of 2025. The group is currently in discussions with Koolan regarding future iron ore supply and potential remedial work. As of the date of this announcement, these discussions are ongoing, and the company will continue to monitor developments closely and take further action as necessary. Koolan is the main supplier of hematite iron ore under a long-term supply agreement with the group. As of September 30, 2025, the group confirmed that the contractual rights and obligations to purchase hematite ore from Koolan were recognized as other assets with an unaudited book value of approximately 4.5 million US dollars. Any adjustments needed to the book value of the contract in accordance with applicable accounting standards (including but not limited to provisions, impairments, or write-offs) will inevitably result in a further increase in the net losses incurred by the group for the current year compared to the initial estimates mentioned in the preceding paragraphs. At the same time, the group will continue to explore and develop new sources of iron ore and other bulk commodity supply channels, diversify the group's product supply, and explore mergers, investments, or other cooperation opportunities to achieve sustainable development.