The MGX Resources Ltd (ASX: MGX) share price is in focus as the company reported a net loss after tax of $30.2 million and completed a major transition from iron ore to gold during FY26.
What did MGX Resources report?
- Sales revenue of $204.0 million, down from $330.5 million the previous year
- Iron ore sales of 2.68 million tonnes, including 1.81 million tonnes of low-grade material
- Profit before tax and impairments was $29.1 million
- Reported net loss after tax of $30.2 million, narrowing from $82.2 million loss in FY25
- Cash and investments of $412.1 million at 30 June 2026
- Koolan Island divestment agreement for at least $20.2 million plus revenue share and rehabilitation cost assumption
What else do investors need to know?
The year was a turning point for MGX Resources as it repositioned its business from iron ore towards precious metals. The company completed the Koolan Island low-grade iron ore sales program, generating positive cash flow and fully funding site rehabilitation and wind-down activities.
MGX executed a binding agreement to divest Koolan Island to Crestlink, helping preserve its strong, debt-free balance sheet. The company also acquired a 50% interest in the Central Tanami Project Joint Venture, fast-tracking its entry into Australian gold production.
What did MGX Resources management say?
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
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.
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.
What’s next for MGX Resources?
Looking ahead, MGX will focus on completing the Koolan Island divestment and fully transitioning operations to gold. The company is accelerating work at the Central Tanami Gold Project, including resource definition drilling, infrastructure upgrades, and pushing towards a development decision.
MGX plans to leverage its significant cash reserves and mining expertise to develop the Tanami project and grow its footprint in Australian gold production.
MGX Resources share price snapshot
Over the past 12 months, MGX Resources shares have declined 8%, trailing the All Ordinaries Index (ASX: XJO), which is flat over the same period.
The post MGX Resources narrows FY26 loss as it moves from iron ore to gold appeared first on The Motley Fool Australia.
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