MGX Resources Limited is advancing its transition from iron ore to precious metals following a transitional year that saw the company reshape its asset base, divest its Koolan Island operation, and build a $412.1 million cash and investment reserve to back its gold strategy.

MGX reported a net loss after tax of $30.2 million for the 2025/26 financial year, an improvement on the $82.2 million net loss recorded previously. The result included a $58.9 million non-cash impairment of Koolan Island non-current assets following an October 2025 rockfall in the Main Pit.

Iron ore sales revenue declined 38% to $204.0 million Free on Board, down from $330.5 million. This drop occurred despite sales volume rising slightly to 2.68 million wet metric tonnes from 2.61 million, reflecting a shift to lower-grade stockpiled material following mining suspension. Low-grade sales totalled 1.81 million wet metric tonnes grading 44.7% Fe, while pre-rockfall high-grade sales reached 0.87 million wet metric tonnes grading 63.7% Fe.

“MGX completed a successful transitional year with the low-grade sales program at Koolan Island surpassing expectations to generate positive cashflow to fully fund site rehabilitation and ramp-down activities.”

— Peter Kerr, Chief Executive Officer

The low-grade sales initiative generated positive operating cash flow of $1.0 million for the year after fully covering site rehabilitation and ramp-down activities. The program concluded in July 2026 with final shipments.

To exit the iron ore sector cleanly, MGX executed a binding conditional agreement to divest the Koolan Island operation to Crestlink Koolan Pty Ltd. The transaction provides for upfront and deferred cash payments totalling at least $20.2 million over five years, a revenue share component of up to $5 million, and the assumption by Crestlink of approximately $30 million in remaining rehabilitation obligations.

Completion of the Crestlink divestment is targeted for late 2026 or early 2027. The arrangement remains subject to conditions precedent, including Foreign Investment Review Board approval and clearance from the Australian Competition and Consumer Commission, alongside specific rehabilitation milestones. Traditional Owners through the Dambimangari Aboriginal Corporation support the transaction.

Total cash and investments stood at $412.1 million at 30 June 2026, compared with $484.6 million a year earlier. The reduction largely reflects the $50 million cash consideration paid to acquire a 50% interest in the Central Tanami Project Joint Venture in February 2026, alongside subsequent joint venture expenditure. Total acquisition outlay reached $59.1 million including working capital adjustments and stamp duty.

“Together with the recently announced agreement to divest Koolan Island to logistics proponent Crestlink, this helped MGX preserve its strong debt-free balance sheet which will enable the business to focus on accelerating the high-grade Central Tanami Gold Project towards a development decision.”

— Peter Kerr, Chief Executive Officer

The Central Tanami Joint Venture spans over 2,100 square kilometres in the Northern Territory and hosts an updated Mineral Resource estimate of 31 million tonnes grading 2.8 grams per tonne gold for 2.8 million ounces of contained gold. This includes 11 million tonnes grading 3.3 grams per tonne gold for 1.2 million ounces at the high-grade Groundrush deposit.

Site activities are accelerating under a joint venture program with Tanami Gold NL. Field work focuses on resource definition drilling at the Jims deposit, utilities and camp upgrades, and preparations for portal development on the Groundrush underground exploration decline, targeted for September 2026.

Read the full announcement: Financial Results for 2025/2026 Financial Year