MGX Resources (MGX) H1 2026 earnings summary

Executive summary

• Recorded a net loss after tax of $20.8 million for the half-year ended 31 Dec 2025, a significant improvement from a $71.7 million loss in the prior year, despite a major rockfall at Koolan Island in October 2025 that led to significant non-cash impairments and operational changes.

• Iron ore sales reached 1.35 million wet metric tons for $147.2 million revenue, up 6% in tonnage but down in revenue year-over-year due to lower average grade.

• Completed a $50 million acquisition of a 50% interest in the Central Tanami Gold Project, marking diversification into precious and base metals and positioning for accelerated development.

• Name changed to MGX Resources Limited in December 2025, reflecting a strategic shift towards broader mineral resources.

• Maintained a robust balance sheet with cash and investment reserves between $456.2 million and $496.2 million and no bank debt.

Financial highlights

• Profit before tax and impairments rose 113% to $39.9 million on sales revenue of $147.2 million and other income of just over $10 million, compared to the same period last year.

• Non-cash impairments of just over $60 million resulted in a net loss after tax of $20.8 million for the half year.

• Gross profit increased to $14.3 million from $8.0 million year-over-year.

• Koolan Island generated $10.4 million in operating cashflow, down from $19.4 million.

• Cash and investment reserves at period end ranged from $456.2 million to $496.2 million.

Outlook and guidance

• Targeting sale of approximately 1 million tons of remaining low-grade material from Koolan Island in the June 2026 half year, after which stockpiles will be depleted.

• Focus on advancing the Central Tanami Gold Project, with more details on work streams and development schedule to be provided in coming months.

• Rehabilitation activities at Koolan Island expected to be completed by mid-2026.

• Sales guidance for FY26 was withdrawn after the Koolan Island rockfall.