MGX Resources (MGX) Q1 2027 TU earnings summary

Executive summary

• Focus shifted from Koolan Island iron ore production to gold development, with Groundrush decline construction underway and Koolan rehabilitation advancing ahead of its planned divestment.

• The 50%-owned Central Tanami Project (CTP) has 2.8 Moz of gold resources; Groundrush decline work is intended to support drilling that could upgrade more than 400,000 oz of inferred resources.

Financial highlights

• Cash and investments totaled AUD 408.7 million at 30 September, versus AUD 412.1 million at the prior quarter-end; there were no bank borrowings.

• Net cash outflow was AUD 5.1 million; interest and other income was AUD 13.2 million, including AUD 9 million in insurance proceeds.

• CTPJV expenditure was AUD 14.7 million; Koolan generated AUD 0.3 million of operating cash flow, while corporate, administration and exploration costs totaled AUD 3.9 million.

• Koolan cash operating costs were AUD 9.0 million, or AUD 28 per wet metric tonne shipped; total operating and capital cash costs were AUD 10.4 million.

Outlook and guidance

• FY2027 CTP priorities include Groundrush decline construction, resource drilling, metallurgical testing, process studies, infrastructure upgrades and permitting; a development decision is targeted within 12 months.

• The 3.5 km Groundrush decline is scheduled over 14 months; approximately 33,000 m of underground drilling is planned, with work expected to start in 2027.

• Initial CTP processing throughput is expected to be ~1.5 Mtpa, subject to metallurgical testing and updated drilling results.

• Koolan sale settlement is targeted for late 2026 or early 2027; Crestlink consideration includes at least AUD 20.2 million plus up to AUD 5 million in CPI-indexed future revenue share.