MGX Resources (MGX) H2 2026 earnings summary

Executive summary

• Fiscal 2026 marked a strategic shift from iron ore to precious metals, highlighted by the acquisition of a 50% stake in the Central Tanami Gold Project and the divestment of Koolan Island operations.

• Koolan Island's low-grade sales program exceeded expectations, generating positive cash flow and funding rehabilitation and ramp-down activities.

• Maintained a strong, debt-free balance sheet with AUD 412.1 million in cash and investments at year-end.

• Key transactions included the AUD 50 million acquisition of Central Tanami and the announced AUD 50 million divestment of Koolan Island entities to Crestlink.

Financial highlights

• Total iron ore sales reached 2.68 Mwmt, with 1.81 Mwmt from low-grade stockpiles, generating revenue of AUD 204 million (FOB), down from AUD 330.5 million the prior year.

• Profit before tax and impairments improved to AUD 29.1 million, up from AUD 20.2 million year-over-year.

• Net loss after tax was AUD 30.2 million, improved from AUD 82.2 million loss last year, reflecting a AUD 58.9 million non-cash impairment from the Koolan Island rockfall.

• Cash and investment reserves at period end were AUD 412.1 million, down from AUD 484.6 million, mainly due to the Tanami acquisition and related expenditures.

• Koolan generated positive operating cash flow, with sales of AUD 204 million, costs of AUD 156.6 million, and royalties just under AUD 20 million.

Outlook and guidance

• Focus shifts to advancing the Central Tanami Gold Project, with imminent exploration decline, resource drilling, infrastructure upgrades, and regulatory approvals.

• Koolan Island divestment to Crestlink expected to close by Christmas, with timeline extendable to March next year or late 2026/early 2027.

• Continued evaluation of mineral sector opportunities and regional exploration for precious and base metals.

• CTPJV activities in FY27 to include Groundrush exploration decline and further drilling.