MGX Resources (MGX) H1 2026 earnings summary

Executive summary

• Recorded steady underlying financial performance for the December 2025 half year despite the October rockfall at Koolan Island, which led to significant non-cash impairments and operational changes, resulting in a net loss after tax of $20.8M, a significant improvement from a $71.7M loss in the prior period.

• Extended low-grade sales program at Koolan Island exceeded expectations, helping offset the financial impact of the rockfall.

• Completed a $50 million acquisition of a 50% interest in the Central Tanami Gold Project, marking entry into the gold sector and positioning for accelerated development.

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

Financial highlights

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

• Non-cash impairments of just over AUD 60 million resulted in a net loss after tax of AUD 20.8 million for the half year, a significant improvement from a $71.7M loss in the prior period.

• Cash and investment reserves were $456.2M at 31 Dec 2025, with cash flow generated of $10.4 million for the half year.

• Total sales were 1.35 million wet metric tons, slightly above the prior corresponding half, with sales revenue only 9% lower year-over-year.

• Unit cash operating costs reduced to AUD 79 per ton, down from AUD 96 per ton year-over-year.

Outlook and guidance

• Targeting sale of approximately 1 million tons of remaining low-grade material in the current June 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• Sales guidance for FY26 was withdrawn after the Koolan Island rockfall.