MGX Resources reported a 44.1% increase in pre-tax profit for the fiscal year ended June 2026, despite a A$58.9 million non-cash impairment charge that pushed the net loss to A$30.2 million.
Revenue from iron ore sales reached A$204 million on the back of 2.68 million weighted metric tons sold, though high-grade sales fell to 0.87 million tons from 2.61 million in the prior year. The company attributed the decline to a rockfall at its Koolan Island mine in October 2025, which halted main pit mining and forced a six-to-eight-month reliance on low-grade stockpile reclamation. Koolan Island generated A$7.2 million in EBIT and A$27.6 million in operating cash flow, with rehabilitation expenditure of A$26.6 million fully funded by operating cash.
Cash and investment reserves totaled A$412.1 million at year-end, down from A$484.6 million the prior year. Investments included stakes in AIC Mines (4.9%), Maronan Metals (4.4%), and Fenix Resources (9.4% plus options), valued at just over A$40 million.
The company completed the acquisition of a 50% interest in the Central Tanami Gold Project for A$50 million in February 2026, acquiring the stake from Northern Star Resources at A$36 per resource ounce. The project holds a total resource base of 2.8 million ounces of gold, including 1.2 million ounces at 3.4 grams per ton at the Groundrush deposit. MGX Resources is partnered with Tanami Gold NL, which shares a common major shareholder.
MGX Resources also announced a staged divestment of its Koolan Island entities to Crestlink, backed by Cerberus Capital Management, for at least A$20.2 million in cash payments and up to A$5 million in future revenue share. Crestlink will assume an estimated A$30 million in remaining rehabilitation obligations. The deal, expected to close by December 2026, remains subject to Foreign Investment Review Board approval.
The company discontinued its share buyback program after canceling about 3.2% of issued shares since late 2024 and formally changed its name from Mount Gibson Iron to MGX Resources Limited in December 2025. The stock rose 4.29% to A$0.365 following the results, within a 52-week range of A$0.32 to A$0.495.
Chief Executive Officer Peter Kerr described the Central Tanami acquisition as an "outstanding opportunity" to bring one of Australia's best undeveloped gold projects into production, noting the A$36 per ounce cost was "compelling." He added that the Koolan Island divestment provides a "clean and value-accretive exit from iron ore," allowing the company to focus on gold.
