MGX Resources (MGX) H1 2025 earnings summary

Executive summary

• Koolan Island delivered a strong December quarter with ore production up 40% to 643,000 tons, driven by in-pit haul ramp reconfiguration and a strong finish to 2024.

• High-grade iron ore sales reached 1.3 Mwmt at 64.6% Fe, generating $160.3 million in revenue for the half-year, down from 2.5 Mwmt and $432.0 million year-over-year.

• Net loss after tax and impairments was $71.7 million, compared to a net profit of $138.7 million in the prior period, due to non-cash impairments and derecognition of deferred tax assets.

• Safety performance improved, with a rolling 12-month LTI frequency rate of zero and a reduction in total reportable injury frequency rate to 1.5 per million man-hours.

• No interim dividend was declared for the period.

Financial highlights

• Koolan Island generated AUD 15 million cash flow from AUD 99 million sales revenue in the quarter; group cash flow for the quarter was AUD 16 million, and half-year group cash flow was AUD 21 million.

• Sales revenue dropped to $160.3 million from $432.0 million year-over-year, with gross profit at $8.0 million, down from $145.7 million.

• Cash and investment reserves stood at $437.1 million at period end, plus a 9.8% equity interest in Fenix Resources valued at $20.0 million.

• Net tangible assets decreased to $468.8 million, with net tangible asset backing per share dropping to 39.0 cents from 55.5 cents.

• Realized average price for high-grade fines was $91 FOB per ton in the quarter.

Outlook and guidance

• FY25 iron ore sales guidance maintained at 2.7–3.0 Mwmt at a targeted cash operating cost of $95–100/wmt FOB.

• Mining and shipping rates expected to increase through 2024/25 and into the following years.

• Focus remains on cost reductions, treasury management, and growth through resource acquisition.