Mount Gibson Advances Koolan Island and Enters Gold with Central Tanami Deal

FY25 Performance Amid Operational Challenges

Mount Gibson Iron Limited closed the 2025 financial year with iron ore sales totaling 2.61 million wet metric tonnes (Mwmt), generating $331 million in revenue. Despite a challenging environment marked by lower iron ore prices and wet season interruptions at Koolan Island, the company maintained operational resilience. The June quarter saw sales of 0.63 Mwmt at a high average grade of 63.9% iron, though cash outflows of $13 million reflected adverse provisional pricing adjustments and preparatory mining work.

Operationally, Koolan Island faced delays due to late wet season rains and ground disturbances, which slowed mining rates and deferred some shipments into FY26. Nevertheless, the operation was only one shipment shy of its FY25 guidance. Cash operating costs were higher than forecast at $114 per wet metric tonne (wmt) FOB for the quarter, compared to guidance of $95-100/wmt, but the company expects improvements ahead.

Setting Up for Growth in FY26

Looking forward, Mount Gibson is focused on completing a $25 million waste stripping phase in the September 2025 quarter at Koolan Island. This work aims to enable substantially increased shipping rates over the remaining 12-18 months of mine life. The company’s FY26 guidance anticipates sales rising to 3.0-3.2 Mwmt with cash operating costs falling to $80-85/wmt FOB, reflecting operational efficiencies and higher throughput.

Mount Gibson’s strong cash position, with $479 million in cash and investments and no bank borrowings, provides a solid foundation to support these operational improvements and strategic initiatives.

Leadership Transition and Strategic Diversification

In April 2025, Brett Smith was appointed Chairman, succeeding Lee Seng Hui after 11 years in the role. This leadership change coincides with a significant strategic pivot for Mount Gibson.

The company announced a transformational agreement to acquire a 50% interest in the Central Tanami Gold Project in the Northern Territory from Northern Star Resources for $50 million. This marks Mount Gibson’s entry into the precious metals sector, leveraging its expertise in remote-site operations to fast-track development. The Central Tanami Project boasts over 1.6 million ounces of gold resources with strong exploration upside and existing infrastructure, including a 1.2 Mtpa processing plant awaiting refurbishment.

Capital Management and Market Position

Mount Gibson’s on-market share buyback program, initiated in September 2024 and expanded in February 2025, has been paused pending the completion of FY25 results and the Central Tanami transaction. The company holds significant equity stakes in other mining entities, including a 9.8% interest in Fenix Resources and a 5.4% stake in AIC Mines, reflecting a broader investment strategy within the minerals sector.

Safety performance remains a highlight, with zero lost time injuries over the past 12 months and a favorable total recordable injury frequency rate, underscoring the company’s commitment to workforce wellbeing.

Outlook

Mount Gibson is poised for a stronger operational year ahead at Koolan Island, with increased shipments and lower costs expected to improve cashflow. Meanwhile, the Central Tanami acquisition opens a new chapter, positioning the company to become a meaningful player in Australia’s gold sector within the next 12-18 months.