Mount Gibson Iron diversifies into gold, acquires stake in Central Tanami project

Mount Gibson Iron Limited announced a transformational agreement in July 2025 to acquire a 50% interest in the advanced Central Tanami Gold Project in the Northern Territory for $50 million, signaling its entry into the gold business. This strategic move aims to diversify beyond iron ore, with the project expected to provide a platform for a meaningful Australian gold production business within a short timeframe. The acquisition cost equates to $61 per ounce of attributable JORC 2012 mineral resources, significantly below average comparable transactions.

Financially, Mount Gibson reported a net loss after tax of $82.2 million for the 2024/25 financial year, primarily due to non-cash impairments totaling $90.4 million on Koolan Island assets, reflecting volatile iron ore prices. Despite this, total cash and investment reserves strengthened to $484.6 million. Iron ore sales from Koolan Island totaled 2.61 million wet metric tonnes grading 64.5% Fe, generating $330.5 million FOB in sales revenue, slightly below target due to weather and ground conditions.

The company also commenced an on-market share buy-back program in September 2024, purchasing 3.2% of its issued shares by period-end, and continued to build investments in junior exploration and production companies, expanding its equity investment portfolio to $44 million at year-end. Leadership changes include Brett Smith's appointment as chairman in April 2025, succeeding Mr. Lee Seng Hui, and Mr. Ding Rucai's retirement in September 2025.