FY2021
Equity raised as Razorback moved towards the next study phase
Equity receipts built the cash account. The positive PFS was completed immediately after the June reporting period, followed by the decision to proceed with a DFS.
ASX: MGT · Five-year financial review
(ASX: MGT) Magnetite Mines Limited Financial Review - FY2021~25
Magnetite Mines built a substantial Razorback exploration and study asset while spending down its earlier equity funding. Annual costs moderated after FY2023, but the financing story changed: an older note was repaid, then a new convertible facility helped fund FY2025. Closing cash, the growing project carrying value and the disclosed funding shortfall need to be read together.
Reading the figures: Units are stated above each table or beside the metric. Brackets denote negative amounts. Supported nil is shown as zero; unlike reporting bases remain separately labelled.
June 2025 cash
A$1.486m
Not a conclusion that the work programme is funded.
Exploration carrying value
A$39.017m
Accumulated costs after write-offs, not valuation.
FY2025 note cash drawn
A$3.541m
New C/M facility; liability value differs.
Funding position
Material uncertainty
Reported by directors and emphasised by the auditor.
Five years in context
Razorback is a South Australian iron-ore development project, not a commercial production record in these accounts. Successive studies changed the proposed scale and development pathway; spending and accumulated exploration costs are therefore more useful measures here than sales-based profitability ratios.
The latest report identifies a cash shortfall for planned expenditure over the following twelve months unless funding activities succeed. The potential JFE arrangement is a non-binding framework, and the undrawn portion of the C/M facility is conditional—not unrestricted cash already available.
Events behind the numbers
FY2022
Expansion study and substantial exploration investment
The March 2022 scoping-level Expansion Study evaluated larger staged scenarios. Annual exploration cash use and capitalised expenditure both increased, on different accounting bases.
FY2023
Optimisation work consumes prior funding
The redefined Razorback optimisation studies completed in March 2023. Significant cash spending continued without another large equity receipt during that financial year.
FY2024
Mintech note repaid
The older convertible note was repaid in December 2023. New equity supported the year, but cash still declined after operating and investing outflows.
FY2025
New convertible funding and a lodged Mining Lease Proposal
C/M Capital notes provided a new cash source. The Mining Lease Proposal was lodged in March 2025; JFE’s potential funding/offtake framework did not constitute a binding financing commitment.
FINANCIAL REVIEW / 01
Lower recent costs did not remove the annual loss
Employee costs and share-based payments were important drivers of the larger FY2023 loss. The following years reduced several overhead categories; FY2025 also brought lower professional fees and depreciation, but a higher share-based charge than FY2024 and a new convertible-note fair-value loss.
Interest and other income only partly offset expenses. The income subtotal is kept separate from cash receipts and from financing; neither a placement nor a study’s proposed production capacity is operating sales.
Five annual net losses
A$ million
Net loss after tax
AI-generated presentation · values from Five annual results: income is not iron-ore sales; no missing values plotted as zero.
People, share-based charges and professional fees
A$ million
Employee benefits expenseShare-based payment expenseProfessional fees
AI-generated presentation · values from The cost base grew, then moderated after FY2023; no missing values plotted as zero.
Five annual results: income is not iron-ore sales
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Finance / interest income | 0.020 | 0.048 | 0.274 | 0.157 | 0.055 |
| Other income excluding finance / interest | 0.037 | 0.195 | 0.213 | 0.214 | 0.171 |
| Total income | 0.058 | 0.243 | 0.486 | 0.372 | 0.226 |
| Net loss after tax | (1.733) | (3.662) | (5.331) | (4.848) | (4.188) |
Consolidated annual statements, Australian dollars. FY2021 finance and other income are separated using the segment note; their total matches the face-statement other-income heading.
Income is interest and other receipts, not a commercial iron-ore sales series. Net loss is not the same as cash spent on the project.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
The cost base grew, then moderated after FY2023
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Employee benefits expense | (0.780) | (1.435) | (2.414) | (2.257) | (1.957) |
| Share-based payment expense | (0.323) | (1.042) | (1.330) | (0.549) | (0.720) |
| Administration expense | (0.171) | (0.368) | (0.646) | (0.684) | (0.459) |
| Professional fees | (0.242) | (0.505) | (0.581) | (0.789) | (0.465) |
| Other expenses | (0.155) | (0.331) | (0.437) | (0.429) | (0.388) |
| Depreciation and amortisation | (0.009) | (0.107) | (0.256) | (0.399) | (0.282) |
| Interest expense | (0.100) | (0.107) | (0.133) | (0.093) | (0.029) |
Expenses are signed negatives. These selected drivers are not a complete reconciliation: small finance, exploration write-off and disposal lines also affect the result.
FY2025 additionally includes a A$106,584 fair-value loss on the new convertible notes. Share-based charges and fair-value movements are not cash payments.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 02
The FY2023 cash decline used funding raised in earlier years
Large earlier share receipts built cash through FY2022. In FY2023, exploration and operating payments continued while share proceeds were minimal; cash therefore fell sharply. Subsequent financing supported spending but did not restore the earlier cash peak.
FY2024 financing was reduced by repayment of the Mintech note. FY2025 instead received cash under a new convertible facility. That change explains why net financing is much larger than net equity receipts alone.
The FY2022 comparative changes the allocation of A$8,750 between interest and lease repayments. The displayed cash-flow series uses that later paired presentation consistently, rather than mixing one version’s operating subtotal with another version’s financing subtotal.
Annual cash sources and uses
A$ million
Net operating cash flowNet investing cash flowNet financing cash flow
AI-generated presentation · values from Cash flow separates funding from project spending; no missing values plotted as zero.
Cash flow separates funding from project spending
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Net operating cash flow | (1.134) | (2.303) | (3.874) | (3.666) | (2.809) |
| Net investing cash flow | (3.172) | (10.043) | (9.981) | (3.775) | (2.906) |
| Net financing cash flow | 20.064 | 15.105 | (0.358) | 3.519 | 5.988 |
FY2022 uses the FY2023 comparative presentation: A$8,750 shifts between interest paid and lease repayments relative to the original FY2022 statement. Net operating outflow is A$2.303324m and financing inflow A$15.105358m on this basis; total cash movement is unchanged.
Exploration and evaluation cash payments sit in investing activities. Financing includes equity, note receipts/repayments, issue costs and leases; it is not revenue.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Cash components behind the annual totals
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Operating supplier and employee payments | (1.083) | (2.361) | (4.167) | (3.899) | (3.043) |
| Exploration and evaluation cash payments | (3.143) | (9.833) | (9.949) | (3.552) | (2.994) |
| Plant and office equipment purchases | (0.033) | (0.133) | (0.037) | (0.036) | (0.015) |
| Proceeds from shares / shares yet to be issued | 21.018966 | 16.122051 | 0.000833 | 6.501346 | 3.576391 |
| Share-issue cash costs | (0.855) | (0.956) | (0.087) | (0.668) | (0.885) |
| Lease repayments | 0.000 | (0.061) | (0.234) | (0.339) | (0.244) |
Components are already included in the cash-flow subtotals. The very small FY2023 share proceeds are displayed precisely rather than rounded to zero.
FY2023 also includes a A$37,747 refund of option-exercise money. FY2021 includes A$100,000 borrowing repayment. Exploration cash is not identical to asset additions under accrual accounting.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
The financing mix changed from repayment to new note funding
A$ million
| Metric | FY2024 | FY2025 |
|---|---|---|
| Convertible-note cash receipts / (repayment) | (1.975) | 3.541 |
The Mintech note was repaid in December 2023. The positive FY2025 figure is cash drawn under the separate C/M Capital facility, not the fair-value liability added to the balance sheet.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 03
Razorback’s accumulated cost grew faster than liquid resources
The exploration-asset schedule provides a complete five-year bridge. The greatest capitalised additions occurred in FY2022, while the largest exploration cash payment in this period occurred in FY2023. Different accrual and cash timing means neither row should substitute for the other.
By June 2025 the exploration carrying amount dominated total assets. Management continued carrying the project pending further evaluation and reported no impairment indicators, citing current licences and planned work. That assessment does not establish a funded development decision or a market valuation.
Exploration costs retained on the balance sheet
A$ million
Closing exploration and evaluation assets
AI-generated presentation · values from A complete five-year exploration-asset bridge; no missing values plotted as zero.
Consolidated Group balances at each June year-end
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Cash and cash equivalents | 16.588 | 19.347 | 5.135 | 1.213 | 1.486 |
| Total assets | 29.702 | 45.792 | 38.971 | 38.226 | 41.302 |
| Total liabilities | 2.810 | 6.443 | 3.661 | 1.382 | 4.312 |
| Total equity | 26.893 | 39.349 | 35.310 | 36.844 | 36.989 |
| Convertible-note carrying value | 1.975 | 1.975 | 1.975 | 0.000 | 2.857 |
The older Mintech note and newer C/M Capital facility are different instruments. The row shows recognised note balances, not a continuous unchanged borrowing agreement.
Total liabilities include leases, provisions and payables as well as notes. Total equity is an accounting residual and is not available cash or a project valuation.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
A complete five-year exploration-asset bridge
A$ million
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Opening exploration and evaluation assets | 9.501 | 12.863 | 25.229 | 32.864 | 36.312 |
| Expenditure incurred and capitalised | 3.370 | 12.372 | 7.650 | 3.463 | 2.709 |
| Expenditure provided for / written off | (0.008) | (0.007) | (0.015) | (0.015) | (0.003) |
| Closing exploration and evaluation assets | 12.863 | 25.229 | 32.864 | 36.312 | 39.017 |
Opening carrying value + additions + signed write-offs = closing carrying value. FY2024 uses the explicit dollar-denominated comparative in the FY2025 schedule.
Capitalised additions differ from cash paid, especially around FY2022–FY2023. These are accounting costs, not mineral tonnes, production or the market value of Razorback.
The issuer identified no E&E impairment indicators at June 2025, while still reporting the small write-off shown in the schedule and a funding uncertainty. Those statements address different questions.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 04
Convertible funding: cash, face value and carrying value are different
The new unsecured C/M facility has a maximum A$7m size, with further drawings subject to agreement and approvals. Notes are issued at 108% of invested cash and carry no stated interest; conversion, redemption premiums and attached instruments mean “no interest” is not equivalent to cost-free finance.
The March 2025 conversion moved a financial-liability carrying amount into equity. The narrative face amount and the accounting transfer differ, and neither is a fresh cash receipt. A further conversion in August 2025 occurred after the balance date.
Conversion pricing is linked to VWAP and a minimum price, while redemption and default provisions can require settlement. These terms create funding and dilution considerations even though the balance-sheet carrying amount is below cumulative cash drawn.
FY2025 convertible-note liability: accounting movements
A$ million
| Metric | FY2025 |
|---|---|
| Recognised value of notes issued | 3.034 |
| Fair-value movement increasing the liability | 0.107 |
| Carrying value converted to shares | (0.284) |
| Closing convertible-note liability | 2.857 |
The facility supplied A$3.541m cash; the liability schedule records a different initial accounting value. Do not substitute cash proceeds for the recognised liability.
The A$350,000 face-value conversion described in the narrative transfers A$284,265 carrying value to equity. The schedule’s fair-value movement is A$106,583 versus A$106,584 in profit or loss, a A$1 difference retained as reported.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Current obligations and the rest of the latest liability balance
A$ million
| Metric | FY2024 | FY2025 |
|---|---|---|
| Current assets | 1.370 | 1.673 |
| Current liabilities, including current notes | 1.338 | 4.163 |
| Trade and other payables | 0.880 | 0.692 |
| Provisions | 0.385 | 0.425 |
| Current lease liabilities | 0.073 | 0.190 |
| Non-current lease liabilities | 0.044 | 0.149 |
The balance sheet classifies the FY2025 notes as current. The issuer’s narrative net-working-capital measure excludes them; it should not replace the full current-liability total here.
Component rows must not be added to current liabilities again. The non-current lease amount sits outside that current subtotal.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
FINANCIAL REVIEW / 05
A cash balance is not the same as a fully funded work programme
The directors’ forecast identifies insufficient cash for planned expenditure without new funding activities. Alternatives include equity, strategic partnering, further conditional note drawings, R&D receipts or a project sell-down. The auditor drew attention to the material uncertainty without modifying its opinion.
Exploration commitments are only one part of that funding context. Separate Mintech and Goldus agreements also contain resource payments, A$3m first-commercial-shipment payments and 1% mine-gate royalties on their respective tenement terms. These remain contingent and unrecognised, rather than immediate debt or evidence that production has commenced.
After June, the company reported a completed September rights issue and a follow-on placement. Those later funding events are relevant context but are not inserted into FY2025 cash receipts or the June cash balance.
Exploration commitments are additional context, not booked debt
A$ million
| Metric | FY2024 | FY2025 |
|---|---|---|
| Due within one year | 0.139 | 0.082 |
| Due after one year and within five years | 1.765 | 1.700 |
| Total exploration commitments | 1.904 | 1.782 |
These disclosed expenditure commitments are not the same as all planned exploration/DFS spending and do not supersede the forecast funding shortfall.
The broader historical commitment tables have parent/group and period-context differences; the latest clearly paired schedule is used here instead of silently mixing those scopes.
Source: Annual-report extractions; report editions are listed once in the consolidated source registry.
Reading the figures
- Five June financial years; whole Australian-dollar amounts are displayed in millions. FY2021 net loss is present in the saved face statement and is included.
- FY2022 cash-flow subtotals use the FY2023 comparative presentation. The original and later allocations differ by A$8,750 between interest and lease repayments without changing total cash movement.
- Exploration balances, capitalised additions, cash payments and write-offs are separate measures. Study scenarios and resources are not commercial production or a valuation.
- The older Mintech note and new C/M facility are separate instruments. Note cash, face value, fair value and equity-conversion amounts must not be conflated; a A$1 note/P&L fair-value difference is retained as reported.
- Funding/offtake arrangements, undrawn facilities and contingent shipment/royalty terms retain their conditions. Post-June conversions and fundraising are subsequent events, not FY2025 cash.
- Prepared from existing year-by-year extraction records only. No raw-source retrieval, database query, financial web research or MiniMax call. GPT review against saved extractions; not an independent original-document audit.
Annual-report source registry
- Magnetite Mines Limited - 2021 Annual ReportExisting annual extraction, including separately identified historical comparatives.
- Magnetite Mines Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- Magnetite Mines Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- Magnetite Mines Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
- Magnetite Mines Limited - Annual Report to shareholdersExisting annual extraction, including separately identified historical comparatives.
Prepared solely from the existing year-by-year extraction datasets. No raw annual-report body, PDF, new database lookup or financial web research was used. Review is against those stored extractions, not a new independent original-document audit.
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