MGX Resources (MGX) Q2 2025 TU earnings summary

Executive summary

• Koolan Island's December quarter performance improved due to ramp reconfiguration and increased ore production from the eastern pit, supporting a strong FY25 finish.

• Safety metrics improved, with a zero Lost Time Injury Frequency Rate and a declining Total Reportable Injury Frequency Rate to 1.5 per million man-hours.

• Ore production increased by over 40% to 643,000 tons, with a focus on high-grade ore and efficient waste removal.

• Operational improvements led to increased shipments and cashflow, with iron ore sales of 0.7 Mwmt at 65.2% Fe for $99 million revenue in the December quarter.

• Koolan Island's operational ramp-up in the eastern Main Pit drove higher ore grades and shipment volumes.

Financial highlights

• Koolan Island generated $15 million cashflow from $99 million sales revenue in the quarter, with unit cash operating costs of $94/wmt FOB.

• Group cashflow for the quarter was $16 million; half-year group cashflow reached $21 million.

• Cash and investment reserves increased to $451 million, or $0.37 per share, plus a $20 million investment in Fenix Resources.

• For the half-year, Koolan Island's cashflow was $19 million, with $160 million in ore sales and $27 million in insurance proceeds.

• Share buyback of 15.3 million shares at an average price of $0.313 per share, totaling $4.8 million.

Outlook and guidance

• On track to achieve shipping guidance of 2.7–3.0 million wet metric tons in FY25 at targeted cash operating cost of $95–100 per ton FOB, subject to wet season impacts.

• Production and shipping rates expected to improve over the remainder of FY25 and beyond.

• Positive cashflow generation expected for the remainder of the financial year, barring significant weather disruptions.

• Steady outlook for high-grade iron ore prices, with expectations of normal seasonal demand increases post-winter.

• Review of Koolan Island carrying values may result in a non-cash impairment due to iron ore price volatility.