Magna Mining Quarterly Update - Q2 2025

• First full quarter of production yielded 3.05 million pounds copper equivalent payable at 3.26% grade 
• Underground development rates increased from 14.4 feet per day in April to 17.0 feet per day in June 
• Processed 70,045 tons of ore from copper and nickel zones combined 
• Cash balance of $27 million at quarter end 
• Cash costs of C$6.47 per pound, all-in sustaining costs of C$7.55 per pound

Magna Mining Inc. (TSXV: NICU) is a copper, nickel, and platinum group metals assets in Ontario's Sudbury mining district. The company's primary asset is the McCreedy West Mine, acquired on February 28, 2025, and currently in production. The company also holds past-producing properties including Levack, Crean Hill, Podolsky, and Shakespeare.

The company acquired McCreedy West earlier this year and has been implementing operational changes since taking control. Management has focused on workforce expansion, equipment investments, and development optimization to improve mine performance.

Q2 2025 Operational Performance and Production

Q2 2025 represented the first full quarter of production under Magna's operation of McCreedy West. The mine processed 59,100 tons from the 700 Footwall Copper Zone and 10,945 tons from the Intermain Nickel Zone. Production generated 3.05 million pounds of copper equivalent payable at an average grade of 3.26% copper equivalent.

April production faced constraints due to limited operating and capital development completed under previous ownership. The month also included processing of previously developed tonnage from the Intermain Nickel Zone. Production metrics improved through the quarter, with increases in monthly payable copper-equivalent pounds and grades. The company implemented workforce expansion and management changes during the quarter. 

Mine Optimization and Development Progress

Underground development rates showed improvement throughout Q2, increasing from 14.4 feet per day in April to 17.0 feet per day in June. This development work creates additional working areas within the mine and improves operational flexibility. The company completed 282 equivalent feet of capital development during the quarter.

Capital expenditures included purchase of a scoop tram and other equipment to support operations. These investments aim to improve productivity of development crews and increase the number of available workplaces within the mine. Development progress directly impacts future production capacity and mine planning flexibility.

Management reported consistent improvement in development crew productivity. CEO Jason Jessup stated that improved development rates "will lead to more workplaces in the mine and better flexibility in our mine plan."

Financial Results and Cost Management

The company reported cash costs of C$6.47 per pound (US$4.67) and all-in sustaining costs of C$7.55 per pound (US$5.45) for Q2. All-in sustaining costs included equipment purchases and capital development expenditures. Operating cash flow was negative $11.6 million, with free cash flow outflow of $10.7 million.

The quarter resulted in an adjusted net loss of $8.9 million. Financial results reflect the operational transition period following the February acquisition and ongoing capital investments in mine optimization. The company maintained $27 million in cash at quarter end.

Cost metrics include impacts from initial operational changes and capital investments made during the integration period. The financial performance represents the investment phase as the company works to optimize the newly acquired operation.

Future Outlook

Management stated that Q2 and the remainder of 2025 focus on ensuring the mine is positioned for 2026 production. The company aims to build the operation into what CEO Jessup described as "a long-life, sustainable producer that generates free cash flow." Development rate improvements and operational optimization initiatives continue as the company works toward full operational efficiency at McCreedy West.

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