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Mount Gibson Iron (MGX) investor relations material
Mount Gibson Iron Q2 2026 TU earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Operations at Koolan Island were suspended in October due to a significant rockfall, shifting focus to monetizing low-grade stockpiles and reducing the workforce by 140 employees and 130 contractors.
The December quarter's financial performance exceeded expectations, generating $15 million in positive operating cash flow and increasing cash and investments to $497 million, with no bank borrowings.
Acquisition of a 50% interest in the Central Tanami Gold Project is nearing completion, with FIRB approval received and closing expected by March, marking a strategic diversification into precious metals.
Financial highlights
Koolan Island generated $15 million in positive operating cash flow for the quarter, with sales revenue of $71 million and cash operating costs of $45 million.
Total cash and investments rose to $497 million as of 31 December, up from $473 million in the previous quarter.
Shipments for the half-year totaled 1.35 million tons, including 870,000 tons of high-grade and 500,000 tons of low-grade material.
Realized average prices: high-grade at $85/ton FOB, low-grade at $42/ton FOB.
No bank borrowings; interest earnings covered all corporate, admin, and exploration costs.
Outlook and guidance
Processing and shipping of low-grade stockpile material expected to continue through late June 2026 quarter, targeting an additional 1 million tons of sales in the June 2026 half-year.
Sale of remaining low-grade material expected to significantly reduce the previously estimated $30-40 million net cost of post-rockfall activities in FY26.
Anticipated non-cash impairment of $55–65 million for Koolan Island assets in the December 2025 half-year results.
Central Tanami Gold Project acquisition expected to close before 31 March, with development activities to follow.
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