Southern Alliance Mining Ltd. reported a net loss attributable to shareholders of RM4.2 million for the six months ended 31 January 2026, shrinking from a RM10.3 million loss a year earlier, as the first-time consolidation of rare-earth sales almost doubled group revenue to RM137.3 million, up 95.4 % year-on-year.

The company booked a basic and diluted loss per share of 0.77 sen, compared with a loss of 2.10 sen in the prior-year period. No interim dividend was declared.

Revenue growth was driven by the recently acquired 40 % stake in MCRE Resources, which delivered RM63.1 million from the sale of 580 dry-metric tonnes of rare-earth oxide. Iron-ore revenue benefited from a 212.5 % jump in crushed ore sales to 25,000 tonnes, while a new bauxite contract at the Kahang Mine contributed RM13.4 million. These gains turned a RM7.1 million gross loss into a RM5.4 million gross profit, lifting the margin to 4.0 %.

Loss before tax narrowed to RM2.0 million from RM11.5 million, reflecting stronger gross margins and tighter cost controls. The group closed the half with cash and bank balances of RM111.4 million, and net operating cash inflow reached RM9.0 million versus an outflow of RM5.6 million a year earlier.

Management said the Gerik rare-earth mine, which employs in-situ leaching and holds a high proportion of heavy rare-earth elements, positions the group in the first quartile of the global NdPr cost curve. The third and largest land plot at Gerik is scheduled to start production in FY2026/FY2027. In iron ore, the Chaah Mine has transitioned fully to underground operations to improve efficiency and output consistency, while at the Tenggaroh prospect 21.0 % of assay samples have shown potential gold mineralisation.

Managing Director Dato’ Sri Pek Kok Sam noted that integrating the rare-earth business has validated the group’s diversification strategy, boosting revenue and margins despite continuing net losses. He added that rare-earth demand from clean-energy applications, combined with ongoing underground iron-ore development and gold exploration, is expected to underpin an improved full-year performance and long-term value creation.