Mount Gibson’s Strategic Shift to Gold Raises Questions on Iron Ore Legacy

Strategic Gold Acquisition Signals New Direction

Mount Gibson Iron Limited has taken a decisive step to diversify its portfolio by entering into a transformational agreement to acquire a 50% interest in the Central Tanami Gold Project in Australia's Northern Territory. This acquisition, expected to complete by 31 March 2026, positions the company to transition from a primarily iron ore producer to a multi-commodity miner with a significant foothold in gold.

The Central Tanami Project is an advanced joint venture with substantial gold mineral resources exceeding 1.6 million ounces, complemented by existing infrastructure including a carbon-in-leach processing plant. Mount Gibson’s management is optimistic about leveraging its operational expertise to progress towards a mine development decision within the next 12 to 18 months.

Koolan Island Operations Maintain Steady Performance

Meanwhile, the company’s Koolan Island iron ore operation delivered a consistent start to the 2026 financial year, with sales of 0.55 million wet metric tonnes at an average grade of 64.3% iron. Despite a temporary reduction in ore production due to final bulk waste stripping activities, the operation generated $12 million in cash flow before stripping and royalties.

Mount Gibson reported cash operating costs averaging $111 per wet metric tonne FOB during the quarter, with expectations for these costs to decline as the stripping ratio improves and higher-grade ore shipments increase. The company’s FY26 guidance anticipates shipments between 3.0 and 3.2 million wet metric tonnes at a reduced cash operating cost of $80 to $85 per tonne, reflecting operational efficiencies in the mine’s final year.

Financial Strength and Capital Management

Mount Gibson’s balance sheet remains robust, with cash and investment reserves totaling $473 million as of 30 September 2025, and no bank borrowings. The company extended its on-market share buyback program to 30 September 2026, having repurchased approximately 3.2% of its shares to date, signaling confidence in its valuation and future prospects.

Corporate Evolution Reflects Broader Ambitions

Reflecting its strategic pivot, Mount Gibson will seek shareholder approval to change its name to MGX Resources Limited at the upcoming Annual General Meeting. This rebranding aligns with the company’s planned transition to a diversified mineral producer, encompassing precious and base metals beyond iron ore.

The company also noted the retirement of Non-Executive Director Ding Rucai, with a successor expected to be nominated by the significant shareholder Shougang Fushan Resources Group Limited.

Exploration and Investment Outlook

Beyond its core operations, Mount Gibson continues to pursue exploration and strategic equity investments in junior resource companies, including a near 5% stake in copper producer AIC Mines Limited and an increased interest in Maronan Metals Limited. Exploration programs are underway in Western Australia’s Mid-West and Edmund Basin regions, targeting precious and base metals with promising geological prospects.