MGX Resources (MGX) H2 2025 earnings summary

Executive summary

• High grade iron ore sales reached 2.61 million wet tonnes at 64.5% Fe, down from 4.1 million tonnes in the prior year, due to depleted stockpiles and operational challenges, generating A$330.5 million in revenue.

• Net loss after tax of A$82.2 million, impacted by A$90.4 million in non-cash impairment charges and derecognition of A$32.2 million in deferred tax assets, compared to a net profit of A$6.4 million in the previous year.

• Cash and investment reserves increased to almost A$485 million at year end, with no bank borrowings.

• Announced acquisition of a 50% interest in the Central Tanami Gold Project for A$50 million, marking entry into the gold sector.

Financial highlights

• Sales revenue totaled A$330.5 million FOB, down from the previous year due to lower volumes and prices.

• Cash operating costs increased to A$101/WMT FOB, or A$110/t including capitalized waste mining, up from A$74/t last year.

• Gross profit before tax and impairments was A$20.2 million; after impairments, net loss after tax was A$82.2 million.

• Operating cashflow from Koolan Island was A$26.5 million, with total group cashflow at A$29.1 million, both significantly lower than the prior year.

• Cash and investments totaled A$484.6 million at 30 June 2025, up from A$463.0 million a year earlier.

Outlook and guidance

• Targeting strong cash flow over the next 12–18 months as waste mining at Koolan Island nears completion.

• Fiscal 2026 guidance: high-grade iron ore sales of 3.0–3.2 million tonnes at A$80–A$85/t cash operating cost FOB.

• Production and sales expected to accelerate after the current quarter.

• Focus on advancing Central Tanami Gold Project to a development decision within 12–18 months.