MGX Resources reports $30.2M net loss

• MGX Resources booked a net loss after tax of $30.2 million for the 2026 financial year following a $58.9 million non-cash impairment on its Koolan Island operation.
• Total cash and investments reached $412.1 million on June 30 after paying $50 million for a 50% stake in the Central Tanami Project joint venture.
• The business is reallocating capital towards gold development after ending its low-grade iron ore sales programme.

MGX Resources (ASX:MGX) generated $204 million in revenue from iron ore sales of 2.7 million wet metric tonnes while completing its pivot towards gold production.

The underlying profit before tax and impairments rose to $29.1 million compared to $20.2 million in the prior year.

"MGX completed a successful transitional year with the low-grade sales programme at Koolan Island surpassing expectations to generate positive cash flow to fully fund site rehabilitation and ramp-down activities," said MGX Resources CEO Peter Kerr.

The miner signed an agreement to divest the Koolan Island operation to Crestlink for at least $20.2 million in up-front and deferred cash payments.

Following the announcement, the MGX Resources share price was up at $0.36.

The company stated that the Crestlink transaction and cash reserves will allow it to focus on accelerating the Central Tanami Gold Project.

Site activities have accelerated at the joint venture, with exploration preparations scheduled to begin in the September quarter.