Thank you for joining today's Teleconference for the Release of Mount Gibson Iron's FY 2025 Financial Results. Mount Gibson Chief Executive Officer Peter Kerr will be leading the discussion, and he's joined by Chief Financial Officer Jill Dobson and External Relations Manager John Phaceas. Mr. Kerr will provide a brief overview, after which there'll be an opportunity to ask questions. Due to time constraints, only institutional participants will be invited to ask questions at that time. A recording of the call will also be available via the Mount Gibson website shortly after the completion of today's teleconference. Thank you, and I'll now hand you over to Peter Kerr. Thanks, Peter.
Thanks, Lisa. Good morning, everyone, and thanks for joining us to discuss Mount Gibson Iron's earnings results for the 2025 financial year. As usual, I'll give a brief overview before handing back to Lisa for any questions. Also, as usual, any dollar references we state are to Australian dollars unless otherwise indicated. Mount Gibson Iron achieved a reasonable underlying financial performance in fiscal 2025, adding to its cash and investment reserves despite weaker prices and some challenging mining conditions at Koolan Island. As reported last month, sales for the year finished one shipment below the guidance range at 2.61 million wet tonnes at an average grade of 64.5% Fe. This was down from the prior year's sales of 4.1 million t when we had the benefit of substantial stockpiles to sell.
As expected, processing and ore sales during fiscal 2025 were more closely aligned to pit ore production as we set up the main pit for its final full year of operation. Combined with substantially lower iron ore prices over the year, sales revenue totaled A$330.5 million FOB, so that's after shipping prices deducted, and the lower sales volumes and the increased waste mining movement saw our cash operating costs increase and come in at A$101/WMT FOB that we shipped before royalties and capitalized waste mining costs. If we add in capitalized waste mining costs to that cost base, that came out at A$110/t that we shipped, and that was compared with A$74 in the prior year. I'll discuss those costs in more detail shortly.
The net outcome of all of that was a gross profit before tax and impairments of A$20.2 million, and after non-cash accounting impairments totaling A$90.4 million, of which the vast majority had already been booked in the December 2024 half year, plus the associated derecognition of deferred tax assets, the company recorded a net loss after tax of A$82.2 million, and that's compared with a net profit of A$6.4 million in the previous year. The impairments are accounting adjustments to the carrying values of the Koolan Island non-current assets, and that reflects recent iron ore price volatility and the more conservative iron ore market outlook. These expenses effectively bring forward depreciation and amortization charges that would in any case have been incurred over the next year or so.
In relation to cash flow, which is our key focus, we added to our cash and investment reserves to increase those to almost A$485 million at year end, and that balance equated to over A$0.40 a share, and the company has no bank borrowings. Importantly, with the temporary elevated waste mining activity associated with the main pit reconfiguration work now nearing completion, we're targeting strong cash flow over the remaining 12 months - 18 months of the operation at Koolan Island, and that's, of course, iron ore price and wet season weather permitting. As you'll be aware, we also took a significant step forward from a corporate perspective with the recent agreement to acquire a 50% interest in the advanced Central Tanami Gold Project in the Northern Territory, and we believe that was done on attractive terms.
We see that asset as offering substantial upside to Mount Gibson as a potential long-life gold operation, and that will provide a strong base to build a meaningful multi-commodity business. We are looking ahead to the 2025-2026 financial year with confidence. Now touching in a little more detail on Koolan Island, where our core objective continues to remain the safe maximization of shipments and cash flow over the operation's remaining life. As already reported, ore production and sales were just below target, mainly due to a combination of some challenging geotechnical conditions in the main pit and to some significant weather-related interruptions.
These coincided with what was always going to be a period of reduced sales while we completed the in-pit works necessary to maximize ore production from the eastern end of the pit in the year ahead, and our work teams at site have worked really well and made some great achievements on that front. This work has included substantial remedial ground support on the central footwall and the removal of the former eastern haul ramp to maximize the mining access to those lower levels. In combination, these activities resulted in a higher average waste-to-ore strip ratio in fiscal 2025 of 3:1 (waste:ore t/t).
Both of these programs will be completed by the end of the current September quarter, such that we anticipate a much lower stripping ratio of about 1.3 tonnes of waste for every tonne of ore on average over the remaining mine life. That will obviously have a significant increase in quarterly iron ore sales after this quarter and a corresponding reduction in unit costs. For fiscal 2025, Koolan Island generated operating cash flow of A$26.5 million and a profit before interest, tax, and impairments of A$29.3 million. After the impairment expenses, the site recorded a loss before interest and tax of A$61.1 million, and that compared with a profit in the prior year of A$22.2 million.
In fiscal 2026, we anticipate high-grade iron ore sales of 3 million t- 3.2 million t at an average unit cash operating cost of A$80–A$85/t shipped, and that's FOB, so that's after shipping price and before royalties and any capitalized waste mining costs. Production and sales will be lower in the current quarter and then will accelerate thereafter over the remainder of fiscal 2026. Regarding market conditions and pricing, obviously, these were weaker during fiscal 2025, and that reflected a range of things from global uncertainty associated with conflicts in Europe and the Middle East, as well as the U.S. tariff regime, which obviously has varied extensively over the period. The 62% Fe Platts Index averaged US$101/dmt , and that's inclusive of shipping price, compared with US$119/dmt in the prior year.
It fell well below US$100/t for extended periods, including a dip to US$89/t in September 2024. Importantly, the high-grade, or the price for high-grade 65% Fe fines traded at a premium and have followed a similar trajectory, averaging US$114/t in fiscal 2025 compared with US$131/t in the prior year. The average grade adjusted premium for the 65 material compared with the benchmark 62 material increased to 8% per contained metal unit, and that was up from 5% in the prior year. It's currently sitting a little higher than 8% now, somewhere around 11% or 12%. Lower prices during fiscal 2025 were also partly offset by a weaker Australian dollar, which averaged US$0.648 in the year compared with US$0.656 in the previous year.
That price regime resulted in adverse provisional pricing adjustments for us, totaling A$15.3 million, or approximately US$4/t during fiscal 2025, as our sales contracts are structured such that the ultimate price we receive is based on monthly averages up to two months after the shipment date. Koolan Island fines graded 64.5% Fe in the period and achieved an average price of US$83/t FOB, that's after shipping price is deducted, and that compared with US$110/t FOB for slightly higher material at 65.3% in the prior year. Positively, during fiscal 2025, shipping freight rates for journeys from Koolan Island to Chinese ports remained relatively steady compared with the prior year, averaging approximately US$11/t .
From a business development perspective, just stepping away from Koolan Island for the moment, fiscal 2025 was an active year, and we've made progress in charting a path for growth beyond the Koolan Island operation. The progress has been made on three main fronts. Firstly, we've stepped up our organic exploration focus and expanded our exploration work regionally in Western Australia's Midwest and Murchison-Gascoyne areas, where we see good prospectivity for gold and base metals from some of the areas that we've reviewed as part of our business development activity. Secondly, we continue to examine and invest in external opportunities within the mineral sector. In addition to our 9.8% holding in Midwest mining and logistics business, Phoenix Resources, and that holding was worth almost A$21 million at period end, we've added to our investments in development companies where we see the potential for future financing or strategic opportunities.
The most significant of these is a 5.4% interest in Queensland copper producer, AIC Mines, and that holding was worth about A$11.5 million at balance date. Our other corporate investments are all below the 5% substantial shareholding reporting threshold and at an aggregate value of about A$9 million at period end. Thirdly, of course, was our agreement announced last month to acquire a 50% interest in the Central Tanami Gold Project from Northern Star Resources for A$50 million, which equated to an acquisition price of A$61/oz o f JORC 2012 Gold Resources.
I won't rehash all the details of that transaction as they're set out in our ASX release of 16 July, but we see this as a very attractive opportunity to establish a meaningful gold business given the project's substantial current high-grade resources of 1.6Million oz , a merit average grade of 3.7g/t gold, and good upside to add to resource ounces quickly, the substantial existing infrastructure, and a strong desire from the other joint venture partner, that's ASX-listed Tanami Gold NL, to bring the project into production with us as soon as possible. Importantly, Tanami Gold last week waived its pre-emptive right under the existing joint venture agreement, and we now look forward to satisfying the other remaining conditions of the acquisition, notably further approval in coming months.
Our overall target is to complete and advance the project to a development decision within 12 months - 18 months, and we look forward to getting the keys and unlocking value from this project. Given the additional cash flow we're anticipating from the final phase of mining at Koolan Island, which will ensure we have the firepower to invest in other opportunities as well as the Central Tanami Gold Project, we are very much looking forward to the future. This brings me to the final point before I close, our capital management plans. In September last year, we commenced an on-market share buyback of up to 5% of our issued capital and increased the scope of that buyback to 10% in February this year. This was implemented in large part due to the level of cash backing in the business and the lack of available franking credits for distribution.
This remains the case, and the board has elected not to declare a dividend for the 2024-2025 financial year, preferring to focus on the share buyback and in particular on capital growth associated with the Central Tanami Gold Project acquisitions and other investment initiatives. The share buyback program advanced steadily until April when it was necessarily halted due to the progress of the Central Tanami negotiations with Northern Star Resources. To date, we've bought back 38.8 million shares, and that represents 3.2% of the company's share capital at an average price of $0.313 per share. That program currently runs to mid-September and will be reevaluated by the board at that point.
In summary, Mount Gibson remains focused on safely maximizing production and cash flow from Koolan Island over its remaining life, particularly after the current September quarter in which we expect to complete the final waste mining push and set the mine up for a period of strong shipping and cash flow generation. Secondly, we're obviously working to complete the recently announced Central Tanami Gold Project acquisition and to work closely with our joint venture partner to promptly pursue activities necessary to reach a development decision. Thirdly, we continue to hold and review strategic investments for future growth potential beyond the existing portfolio. We look forward to an exciting fiscal 2026 financial year ahead. With that, Lisa, I'll hand back to you for any questions anyone may have.
Thank you, Peter. If anybody would like to ask a question, please press star one on your phone now. Press star one if you would like to ask a question. Thanks, Peter. We don't have any questions.
Okay, Lisa, thank you. Thank you all to those who've listened in, and the recording is obviously on the website. If anyone does have questions, please contact us directly at the numbers in the release of today. Otherwise, have a good day. Thank you.