MGX Resources Ltd. has reported a net loss after tax of AU$30.2 million for the fiscal year ended June 30, compared to a net loss of AU$82.2 million in 2025, as the company transitions from iron ore miner to precious metals developer.
The headline loss reflects a AU$58.9 million non-cash impairment of Koolan Island’s carrying values following a major rockfall in the Main Pit in October 2025, which forced the suspension of primary mining.
In response to the incident, MGX shifted operations to monetise low-grade stockpiles. The low-grade sales program outperformed expectations, generating AU$204 million in total revenue across 2.68 million wet metric tonnes (Mwmt) of iron ore. This cash flow fully funded site rehabilitation and ramp-down activities, delivering positive site operating cashflow of AU$1 million.
MGX Resources CEO, Peter Kerr, said: “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.”
Despite operational disruptions, MGX maintained a debt-free balance sheet with AU$412.1 million in total cash and investments as of June 30. This cash reserve follows the AU$50 million acquisition of a 50 per cent interest in the Central Tanami Project Joint Venture (CTPJV) in February.
To formalise its exit from iron ore, MGX executed a binding conditional agreement to divest the Koolan Island operation to Crestlink for at least AU$20.2 million in upfront and deferred cash payments, plus up to AU$5 million in future revenue sharing.
Crestlink will also assume approximately AU$30 million in rehabilitation liabilities, with completion targeted for late 2026 or early 2027.
With iron ore shipments finished in July 2026, MGX is accelerating site activities at the Central Tanami gold project. Current work focuses on resource definition drilling at the Jims deposit, camp infrastructure upgrades, regulatory permitting, and preparations to commence the Groundrush exploration decline this quarter.
“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,” Kerr said.
“MGX is well positioned to utilise its hard-earned iron ore cash reserves to realise substantial shareholder value as it seeks to create a new high-quality Australian gold production business.”
