Earnings release
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MOUNT GIBSON IRON LIMITED REPORT FOR THE QUARTER ENDED 30 JUNE 2025 24 July 2025 Mount Gibson sets up Koolan Island for a stronger year ahead and reports a Transformational Entry to the Precious Metals Sector • Iron ore sales of 0.63 million wet metric tonnes (Mwmt) for the quarter at an average grade of 63.9% Fe for revenue of $65 million Free on Board (FOB). Sales for the year to 30 June 2025 (FY25) totalled 2.61 Mwmt at 64.5% Fe for revenue of $331 million FOB. • Group cash outflow of $13 million for the quarter , reflecting lower iron ore prices , resultant adverse provisional pricing adjustments of $14 million , and ground support and in-pit reconfiguration work to prepare Koolan Island for its final 12-18 months of production. Group cashflow for the FY25 financial year totalled $29 million. • Cash and investment reserves of $479 million at 30 June 2025 , equating to approximately $0.40 per share. Mount Gibson does not have bank borrowings. • Operations at Koolan Island were impacted by interruptions from late wet season rains and resultant ground disturbances which slowed mining rates. Despite this, and with some shipments deferred to FY26, the operation was only one shipment short of FY25 guidance. Cash operating costs were $114/wmt FOB for the quarter and $101/wmt FOB for FY25 (guidance for FY25 was for sales of 2.7-3.0 Mwmt at $95-100/wmt FOB). • Going forward, activities at Koolan Island in the September 2025 quarter are focused on the final circa $25 million phase of waste stripping to set up the operation for substantially increased shipping rates for the remaining 12 -18 months of its mine life . Following the September quarter, s hipments are scheduled to increase and unit costs to decrease , with guidance for FY 26 being sales of 3.0-3.2 Mwmt at an average annual cash operating cost of $80-85 (US$50-55) FOB per wmt shipped. • Mr Brett Smith was appointed Chairman on 17 April 202 5, succeeding long-serving Director Mr Lee Seng Hui. • Recently announced transformational agreement to acquire a 50% interest in the Central Tanami Gold Project from Norther n Star Resources Ltd for $50 million, marking a key initial step towards establishing a new Australian gold business. • The Company’s on-market share buyback was necessarily paused in April as the Central Tanami Gold Project transaction advanced, and the Company will reassess activity within the share buy-back program after completion of the closed trading period following publication of its FY25 financial results. Note: All currency is stated in Australian dollars unless otherwise noted. Financial results are unaudited and remain subject to final period-end adjustments. Cash operating costs are reported on a FOB basis (excluding shipping freight) and before capitalised waste mining costs, capital projects and Government and third party mineral royalties. Mount Gibson will host an analysts/institutions teleconference at 11.30am AEST (9.30am AWST) today, Thursday 24 July 2025. Investors will be able to listen to the teleconference by dialling 1800 896 323 immediately prior to the scheduled start time and entering the access code 76122632# at the prompts. A recording of the teleconference will be available via the Mount Gibson website after completion of the teleconference. In case of difficulties, operator assistance can be reached on +61 2 8088 0900. For personal use only
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2 Comment “Mount Gibson Chief Executive Officer Peter Kerr said: “Mount Gibson achieved a reasonable operating performance in the 2024/25 financial year, adding to its cash and investment reserves despite weaker prices and ground condition challenges which have required careful management. Operationally we seek to complete the final waste mining phase in the coming September quarter and to substantially increase sales and cashflow over the year ahead. “Most significantly, we are excited regarding the recently announced agreement to acquire a 50% interest in the Central Tanami Gold Project in the Northern Territory on attractive terms, which we will seek to advance towards a development decision within the next 12-18 months.” SUMMARY STATISTICS Unit Jun-24 Quarter Sep-24 Quarter Dec-24 Quarter Mar-25 Quarter Jun-25 Quarter FY25 Year Waste mined (incl. rehandle) kwmt 339 2,129 1,878 1,616 1,524 7,148 Iron ore mined kwmt 716 454 643 557 680 2,335 Total material moved kwmt 1,055 2,583 2,521 2,174 2,204 9,482 Strip ratio (excl. rehandle) Waste:Ore 0.5 4.7 2.9 2.5 2.2 3.0 Processing throughput kwmt 869 380 732 712 811 2,635 Iron ore sales - fines kwmt 872 559 709 715 632 2,615 Average grade of iron ore sold % Fe 65.2% 63.7% 65.2% 64.9% 63.9% 64.5% Platts 62% Fe CFR price, average US$/dmt 112 100 103 104 98 101 Platts 65% Fe CFR price, average US$/dmt 126 114 118 117 108 114 Grade-adjusted high grade premium % 7.6% 9.3% 8.9% 7.6% 5.7% 7.9% Foreign exchange rate, average A$/US$ 0.659 0.670 0.654 0.627 0.641 0.648 Koolan fines FOB price, pre adjustment US$/dmt 103 81 90 94 82 87 Provisional pricing adjustments* US$/dmt (22) (7) 1 2 (14) (4) Koolan fines FOB price, after adjustment US$/dmt 81 74 91 96 68 83 Koolan Island cash costs: Mining, logistics & administration $m 55.1 36.5 48.0 53.0 53.5 191.1 Sustaining capital, incl. ground support $m 10.5 8.3 7.5 6.2 6.9 28.8 Processing $m 14.3 9.4 10.4 9.5 9.7 39.0 Shiploading $m 4.4 1.0 0.7 1.3 1.9 4.9 Cash operating costs $m 84.3 55.3 66.5 70.0 72.0 263.8 Cash operating costs per tonne shipped $/wmt 97 99 94 98 114 101 Capitalised waste mining $m - 17.8 5.9 0.5 - 24.2 Capital projects (incl. footwall remediation) $m 11.7 4.8 2.4 3.4 2.3 12.9 Government and third party royalties $m 10.0 5.9 9.9 10.2 6.3 32.3 Total cash costs $m 105.9 83.8 84.6 84.1 80.6 333.2 Currency is shown in Australian dollars unless otherwise stated. Minor discrepancies may occur due to rounding. kwmt = thousand wet metric tonnes. US$/dmt = USD per dry metric tonne. CFR = cost and shipping freight included; FOB = free on board (i.e. shipping freight deducted). * Koolan iron ore prices are shown on a FOB basis after shipping freight and specification penalties. Provisional pricing adjustments reflect realised (in-period) adjustments and, for half-year and annual reporting periods, estimates (if material) of unrealised adjustments for those shipment cargoes with future pricing periods, based on post-balance date observed prices. Final pricing ultimately reflects monthly iron ore price averages up to two months after the shipment date. For the purpose of wet to dry tonnage conversion, moisture content typically averages 2-3% for Koolan Island iron ore products. For personal use only
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3 OPERATIONS Safety Safety performance continued to be positive during the quarter. The Lost Time Injury Frequency Rate remained at zero incidents per one million manhours worked as at 30 June 2025 (rolling 12 months basis), while the rolling 12-month Total Recordable Injury Frequency Rate1 ended the period at 2.3 injuries per one million manhours worked, compared with 4.4 at the start of the financial year. During the June quarter, the TRIFR increased from 1.5 at the end of March 2025, however the year-end statistics remain favourable when compared with applicable industry standards. Continuing efforts are being made by all teams to ensure the safety focus and positive longer term trend continues. Koolan Island Mining Mining in the June quarter was focused in the eastern half of the Main Pit which will remain the source of high-grade ore over the remaining life of the operation . Production from the upper eastern benches was supplemented by material from the vicinity of the August 2023 rockfall zone in the central footwall area. Ore extraction continued in parallel with ongoing removal of the former eastern haul ramp, which is necessary to widen the pit to provide future access to the lower levels of the high grade orebody. This ramp-removal work is scheduled for completion in the September 2025 quarter. Figure 1: Koolan Island Main Pit, looking west over the eastern high grade ore benches, July 2025. Total material movement (TMM) was in line with the preceding quarter at 2.2 0 Mwmt, taking the total movement for FY25 to 9.48 Mwmt. Ore mining increased by 22% quarter -on-quarter to 0. 68 Mwmt at a reduced average waste-to-ore stripping ratio of 2.2:1. The reduction in the stripping ratio reflected both the progress of work to remove the former eastern haul ramp and prior completion of a temporary access ramp needed for the future recovery of high-grade ore from under the footwall rockfall zone. Some interruption to mining was experienced following late wet season rains in April and May, as well as remedial activities associated with a localised rockfall near the main haulage ramp. 1 Mount Gibson’s definition of the Total Recordable Injury Frequency Rate (TRIFR) includes Lost Time Injuries, Restricted Work Injuries and Medically Treated Injuries. Using TRIFR provides a useful tool for safety conversations and active communication with the entire workforce to help prevent injury to Mount Gibson’s personnel in their workplaces. For personal use only
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4 Figure 2: Extraction of the former eastern haul-ramp in the Main Pit in early July 2025. This work is scheduled for completion in the September 2025 quarter. Mining, logistics and administration costs reduced 11% on the prior quarter from $27.42 per tonne of ore and waste mined in the March 2025 quarter, to $24.27 per tonne mined in the June 2025 quarter. Separately, ground support remediation progressed as scheduled in the central footwall rockfall zone during the quarter. On-wall geotechnical anchor drilling was completed, and installation of protective mesh and safety barrier fencing is underway to allow safe access to the high grade ore zones directly beneath this area. Processing Processing was aligned with ore availability from the Main Pit and increased 14% to 0.81 Mwmt in the quarter, although wet weather interruptions did result in some minor delays. With the increased processing volumes and other plant improvements, processing unit cash costs reduced by 11% from $13.41 per tonne processed in the March 2025 quarter to $11.92 per tonne in the June 2025 quarter. Shipping The Company completed eight Kamsarmax (large Panamax) shipments totalling 0.63 Mwmt in the quarter, at an average shipped grade of 63.9% Fe. As noted above, due to late vessel arrival, the final planned shipment for the quarter was delayed into early July. The mix of shipments comprised three high grade 65% Fe cargoes and five slightly lower (but still high) grade 63 .0-63.5% Fe cargoes given customer preferences and stockpile blend availability . Going forward, run-of-mine grades are anticipated to remain around 65% Fe over the remaining mine life, with occasional shipments of slightly reduced grade cargoes to take advantage of market conditions. Operating Cashflow Koolan Island incurred an operating cash outflow for the June quarter of $15 million, reflecting lower iron ore prices and adverse provisional pricing adjustments arising from weaker iron ore prices . Cashflow comprised ore sales revenue of $65 million, net of adverse provisional pricing adjustments of $1 4 million, less cash operating costs of $72 million (equating to a unit cash operating cost of $114/wmt sold), capital projects of $2 million (primarily footwall remediation ground support works) and Government and third party mineral royalties of $6 million. For the financial year ended 30 June 2025, Koolan Island generated positive cashflow of $26 million comprising ore sales revenue of $331 million and other revenue of $28 million (predominantly the receipt of insurance claim proceeds of $27 million), less cash operating costs of $ 264 million (equating to a unit cash operating cost of $ 101/wmt sold), capitalised mining costs of $24 million (largely attributable to For personal use only
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5 reconfiguration of the Main Pit haul ramp in accordance with the mine plan) , capital projects of $13 million and Government and third party mineral royalties of $32 million. CORPORATE Realised Pricing The benchmark Platts 62% Fe CFR fines price (including shipping freight) weakened in the quarter to average US$98 per dry metric tonne (dmt) compared with US$104/dmt in the preceding quarter. The price traded in a range of US$93-104/dmt in the quarter amid uncertainty related to the potential impacts on global and Chinese economies of increased US trade tariffs and Middle Eastern conflict. The price for high grade 65% Fe fines products continued to trade at a premium to the benchmark 62% Fe price. During the quarter, the 65% Fe CFR fines price averaged US$108/dmt compared with US$1 17/dmt in the prior quarter. The average grade-adjusted premium between the 65% and 62% Fe prices was 5.7% for the quarter. The impact of lower prices was also modestly exaggerated by strengthening of the Australian dollar, from $0.627 in the March 2025 quarter to $0.641 in the June 2025 quarter. Shipping freight rates for Panamax/Kamsarmax vessel journeys from Koolan Island to China averaged approximately US$11/tonne in the June quarter, similar to the prior quarter. The average realised price for Koolan Island high grade fines was US$68/dmt FOB (after impurity penalties and shipping freight) in the June quarter, compared with US$96/dmt FOB in the prior quarter. The reduction in realised prices reflected marginally lower grade products shipped, weaker iron ore prices and substantial adverse provisional pricing adjustments of $14 million (equating to US$14/dmt sold) in the period. Sales from Koolan Island are made under long term offtake agreements on FOB terms, with pricing referencing high grade (65% Fe) market indices and Panamax shipping freight rates, specification adjustments and penalties for impurities. Provisional prices reflect pricing averages prior to shipment departure, with the final pricing ultimately reflecting monthly iron ore price averages up to two months after shipment. For shipments which remain subject to provisional pricing adjustments in half -year and annual reporting periods, accrual estimates are recorded based on post -balance date observed prices, with adjustments made in subsequent periods once final prices are ascertained. Group Cashflow and Cash Position The Group incurred a cash outflow for the June quarter of $13 million, comprising a $15 million outflow from Koolan Island as noted above, plus interest and other income of $5 million, less corporate, administration and exploration costs totalling $3 million. After favourable working capital movements (reflecting the timing of receipts and payments) and $2 million of share buyback purchases in the quarter , the Company’s total cash and investment s balance increased to $479 million at 30 June 2025, equivalent to approximately $0.40 per share. For the FY25 financial year, Group cashflow totalled $29 million, reflecting the $26 million operating cashflow generated from Koolan Island as noted above, interest and other income of $22 million and corporate, administration and exploration costs of $19 million. FY26 Shipping and Cost Guidance Activities at Koolan Island in the September 2025 quarter are focused on the final $25 million phase of waste stripping to set up the operation for substantially increased shipping rates for the remaining 12 -18 months of its mine life. Following the September quarter, shipments are anticipated to increase and unit costs to decrease, with guidance for FY26 being total sales of 3.0 -3.2 Mwmt at an average cash operating cost of $80-85/wmt FOB shipped. Chairman Appointment Mr Brett Smith was appointed non -executive Chairman of Mount Gibson on 17 April 2025. Mr Smith succeeded Mr Lee Seng Hui who stepped down from the role after serving 11 years as the Company’s Chairman. Mr Lee will continue as an alternate Director for Mr Smith . For more information, refer to the Company’s announcement dated 17 April 2025. For personal use only
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6 Central Tanami Gold Project (Northern Territory) Subsequent to the end of the quarter, Mount Gibson announced it had reached agreement to acquire 50% of the Central Tanami Project Joint Venture (CTPJV) plus adjacent wholly-owned exploration tenements from Northern Star Resources Limited (Northern Star) for cash consideration of $50 million. Full details are provided in the Company’s ASX release dated 17 July 2025. The acquisition represents a compelling opportunity to enter the precious metals sector at an attractive price, with gold having strong fundamentals. It provides Mount Gibson with an opportunity to leverage its remote-site operating strengths to fast track permitting and technical work in order to be in a position to make a potential development decision within 12 -18 months and to establish the foundations of a gold production business. The CTPJV assets comprise over 2,100 sqkm of mining and exploration tenements in the Central Tanami region of the Northern Territory, hosting significant gold resources of more than 1.6 million ounces (Moz) with strong potential for increases through further drilling. Infrastructure assets within the CTPJV include a non-operating 1.2 Mtpa carbon-in-leach processing plant which presents a refurbishment option for future project development, as well as haul roads, an accommodation camp, bore field and gravel airstrip. Figure 3: CTPJV 1.2 Mtpa Processing Plant (idle since 2005, requires refurbishment) The other party in the CTPJV is Tanami Gold NL (Tanami Gold) , an ASX -listed gold exploration and development company seeking to advance the CTPJV project. Mount Gibson and Tanami Gold share a common major shareholder. The CTPJV tenements host JORC 2012 Mineral Resources of 13.8 million tonnes grading 3.6 grams per tonne gold for 1.6 Moz of contained gold . The vast majority of the Mineral Resources are located on granted mining leases, including the high grade Groundrush deposit. In addition, the CTPJV tenements also host long-standing historical estimates of mineral resources under the prior JORC 2004 Code (totalling 11.2 million tonnes at 2.7 g/t gold for 1.0 Moz of contained gold). Work is currently underway to update these historical estimates to JORC 2012 standards but pursuant to the ASX Listing Rules, it should be noted that a Competent Person has not yet completed sufficient work to classify these historical estimates in accorda nce with the JORC 2012 Code and it is uncertain that following further evaluation and/or exploration work that the historic estimates will be able to be reported as Mineral Resources in accordance with the JOR C 2012 Code. Refer to Mount Gibson’s ASX announcement dated 17 July 2025 and to Competent Person information at the end of this quarterly report relating to the Mineral Resource estimates for the CTPJV. The acquisition consideration equates to an attractive resource multiple of $61/oz for a 50% interest in the CTPJV Mineral Resources, and $38/oz inclusive of the additional historical (JORC 2004) estimates of mineral resources. For personal use only
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7 Mount Gibson considers the CTPJV to have potential for accelerated development based on its substantial current Mineral Resource estimates located on granted mining leases, notably at Groundrush, the extensive work conducted to date on technical development studies, and the strong potential to increase resources. Mount Gibson intends to work closely with Tanami Gold to actively pursue development studies and, in due course, site-based development works for the project to be placed into production, centered on the high grade Groundrush deposit. Mount Gibson has sufficient cash reserves to fund its share of anticipated CTPJV development costs. The acquisition also includes approximately 3,600 sqkm of granted and pending exploration tenements in the Central Tanami region wholly owned by Northern Star, giving Mount Gibson exposure to a dominant exploration position covering approximately 5,700 sqkm in a proven gold province with a century-long record of gold production. Key conditions to completion of the transaction, to be satisfied on or before 31 March 2026, comprise Foreign Investment Review Board approval, further extension of existing infrastructure arrangements on one tenement by the Central Land Council, non -exercise by Tanami Gold of its right of first refusal under the CTPJV, and various other pre-completion items standard for a transaction of this nature. In the period prior to completion, Northern Star will continue to conduct activities within the CTPJV in line with the approved CTPJV program and budget for the period. Northern Star is responsible for the first $3 million of its share of CTPJV expenditure in the pre -completion period, and Mount Gibson is responsible for expenditure incurred in excess of $3 million, with any reimbursement to occur at completion. Other Investments Mount Gibson continues to examine and invest in opportunities within the minerals sector. Substantial shareholdings are currently held in Mid-West iron ore producer Fenix Resources Limited ( 9.8% shareholding plus 12.5 million options exercisable at 30 cents each up to 21 July 2028) with a market value of $21 million at quarter end, and Queensland-based copper producer AIC Mines Limited in which Mo unt Gibson increased its shareholding at the end of the quarter to 5.4% after participating by $3.25 million in an equity placement (refer to Mount Gibson’s substantial shareholder notice dated 30 June 2025), bringing the value of that position to $11 million at quarter end. In addition to these investments, Mount Gibson holds non-substantial (below 5%) equity positions with an aggregate market value of $12 million in junior development companies where future financing and strategic opportunities may arise. Capital Management - On-Market Share Buyback An on-market share buyback of up to 5% of the Company’s issued shares was commenced in mid-September 2024 as part of the Company’s capital management strategy. On 19 February 2025, the Company announced an increase in the buyback program of up to 10% of its issued shares. Since commencement of the buyback, 38.8 million shares have been purchased, representing 3.2% of the Company’s issued shares at the time the buyback was announced, for just over $12 million at an average price of $0.313 per share. Buying under the program was necessarily paused in April as the Central Tanami Gold Project transaction advanced. The Company will reassess activity within the share buy back program after completion of the closed trading period following publication of its FY25 financial results. Financial Results for the 2025 Financial Year Mount Gibson is scheduled to release its FY25 financial results on 20 August 2025. Authorised by: Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +61-(0)8-9426-7500 For more information: John Phaceas Manager Investor & External Relations +61-8-9426-7500 +61-(0)411-449-621 For personal use only
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8 Competent Persons Information Refer to Mount Gibson ’s announcement dated 17 July 2025 regarding the acquisition of a 50% interest in the Central Tanami Gold Project including the Mineral Resource and historical estimates contained therein. Mineral Resource Estimates (JORC 2012) The information in this release that relates to the Mineral Resource estimates for the Central Tanami Project Joint Venture is based on information compiled by Mr Graeme Thompson, who is a Member of the Australasian Institute of Mining and Metallurgy, and is an employee of MoJoe Mining Pty Ltd and has been engaged as a consultant to Mount Gibson to act as Competent Person on Mo unt Gibson’s behalf. Mr Thompson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Mr Thompson provided written consent approving th e inclusion of the Mineral Resource estimates in this report in the form and context in which they appear. Mount Gibson confirms that it is not aware of any new information or data that materially affects the Mineral Resource estimates as reported, and the assum ptions and technical parameters underpinning the Mineral Resource estimates reported continue to apply and have not materially changed. Historical estimates (JORC 2004) The information in this release that relates to the historical estimates of mineral resources within the Central Tanami Project Joint Venture were originally published by Tanami Gold NL on the ASX on 8 June 2011 in a release titled “Tanami Lifts Gold Resources to 2.3Moz and Unveils a 400,000oz Ore Reserve”. A Competent Person has not completed sufficient work to classify the historical estimates as mineral resources in accordance with the JORC Code 2012. It is uncertain, following evaluation and/or further exploration work that the historical estimates can be reported as mineral resources in accordance with JORC 2012. For personal use only