MGX Resources has successfully completed a transformational pivot away from iron ore toward precious and base metals, highlighted by the February 2026 completion of its acquisition of a 50 percent interest in the Central Tanami Project Joint Venture (CTPJV) in the Northern Territory. The $50 million deal, announced in July 2025 and executed in February 2026, represents the company’s strategic repositioning following two decades as an iron ore miner. This acquisition provides MGX with exposure to one of Australia’s highest grade undeveloped gold projects, with the updated Mineral Resource Estimate of 2.8 million ounces of contained gold representing MGX’s pro-rata share of 1.4 million ounces. At $36 per ounce of contained gold, the acquisition cost compares favorably to peer valuations and positions the company for potential long-term value creation.
The financial position underpinning this transition remains robust. At 30 June 2026, MGX maintained cash and investment reserves of $412.1 million after funding the CTPJV acquisition and completing its iron ore exit strategy. This substantial balance sheet provides the financial capacity to advance the Central Tanami Project toward a development decision while maintaining operational flexibility. The company’s debt-free position offers meaningful strategic optionality as project development accelerates. Management attributed the year’s profit before tax and impairments of $29.1 million to the combination of strong iron ore sales and disciplined capital management.
The Koolan Island operation, which concluded production in July 2026, generated positive operating cashflow of $1.0 million despite the October 2025 rockfall that necessitated early mine closure. The subsequent low-grade sales program exceeded initial expectations, recovering 1.81 million wet metric tonnes of stockpiled material grading 44.7 percent Fe alongside 0.87 million wet metric tonnes of high-grade ore grading 63.7 percent Fe. Total iron ore sales revenue reached $204.0 million Free on Board. The June 2026 binding conditional agreement to divest Koolan Island to logistics specialist Crestlink represents a clean exit from the iron ore sector, with completion targeted for late 2026 or March 2027 at the latest. The transaction terms include up-front and deferred cash payments of at least $20.2 million over seven years, plus a potential revenue share of up to $5 million, while Crestlink assumes remaining rehabilitation obligations estimated at approximately $30 million.
At the Central Tanami Project, management has initiated material development activities. In April 2026, the CTPJV appointed Macmahon Underground as the preferred mining contractor for construction of a 3.5-kilometer exploration decline at the Groundrush deposit, with the $38 million contract executed subsequent to year-end and scheduled to commence in September 2026. Resource definition drilling recommenced at the Jims deposit, while engineering studies for processing plant options continued to advance. Management stated that activities in FY27 will focus on decline construction, continued resource definition work, mineral resource modelling, and advancement of permitting workstreams. Investors should monitor the timing and progress of the exploration decline construction, completion of the Crestlink transaction, and updates to the development timeline for the Central Tanami Project.
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About MGX Resources Limited (ASX: MGX)
MGX Resources Limited is an Australian mining company that primarily operates the Koolan Island hematite iron ore mine in Western Australia’s Kimberley region, with over 40 million tonnes of export history. The company is diversifying into precious and base metals exploration, including a 50% stake in the Central Tanami Gold Project in the Northern Territory, while maintaining exploration activities across Western Australia’s Mid-West and Gascoyne regions.
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