Magna Mining Quarterly Update - Q3 Financial Results

• Processed 75,215 tonnes at 2.64% copper equivalent grade, producing 2.7 million pounds payable copper equivalent in the second full quarter of operations.
• Compressed air system failure and power delays restricted access to higher-grade stopes, contributing to cash costs of US$5.10 per pound.
• Sustaining capital expenditures totalled $4.1 million, including $2.7 million for underground development and $1.4 million for equipment upgrades.
• Completed 1,796 feet of underground development during the quarter.
• Cash balance of $63.1 million at quarter end, with additional $6.0 million received from warrant exercises in early November.

Magna Mining Inc. (TSXV: NICU) is a mining company operating in the Sudbury mining district of Ontario, Canada. The company's primary asset is the McCreedy West Mine, which commenced commercial production earlier in 2025. The company also holds several past-producing properties in the region, including Levack, Crean Hill, Podolsky, and Shakespeare.

McCreedy West Production Performance and Operational Challenges

McCreedy West processed 75,215 tonnes of ore from the 700 Footwall Copper Zone during Q3, producing 1.95 million pounds of copper, 193,000 pounds of nickel, 479 ounces of platinum, 641 ounces of palladium, 55 ounces of gold, and 13,105 ounces of silver. The compressed air system failure and power-related delays prevented access to planned higher-grade stopes during the quarter.

Cash costs reached $7.03 per pound of copper equivalent in Canadian dollars, compared to $6.47 per pound in Q2. The copper equivalent grade declined from 3.26% in the previous quarter to 2.64% in Q3. Net revenue from mining operations was $16.3 million, while mining and processing costs totalled $15.0 million, resulting in production costs of $200 per tonne processed.

CEO Jason Jessup stated:

"Access to higher grade stopes was achieved in early November following the resolution of the operational issues which impacted Q3 2025 production. We are on track to meet the lower end of our quarterly ore sales guidance in Q4 2025 and continue to prioritise efforts to optimise McCreedy West operations in 2026."

Sustaining Capital Investments and Underground Development

The company invested $4.1 million in sustaining capital during Q3, representing a 123% increase from Q2's $1.8 million. The expenditure included $2.7 million allocated to underground development and $1.4 million for fixed and mobile equipment upgrades.

Underground development totalled 1,796 feet during the quarter, an increase from 1,444 feet in Q2. The development work aims to provide access to new mining areas and increase operational flexibility. Management stated that development continues to be prioritised in Q4 to support operations in 2026.

All-in sustaining costs were $9.01 per pound of copper equivalent (US$6.54 per pound), compared to $7.55 per pound in Q2. The increase reflects the higher sustaining capital expenditures during the period, which included mine development, equipment purchases, and exploration activities.

Financial Results and Cash Position

Magna reported a net loss of $10.6 million, or $0.05 per share, for Q3. The adjusted net loss, which excludes integration costs related to the KGHM asset acquisition, was $10.4 million or $0.05 per share. Operating cash outflow totalled $10.8 million, while free cash outflow was $14.4 million after capital expenditures and development costs.

Cash and cash equivalents stood at $63.1 million at 30 September 2025, compared to $27.0 million at the end of Q2. Working capital was $70.4 million. Following the quarter end, the company received $6.0 million from the exercise of 14.9 million warrants that expired in early November.

Mr. Jessup commented:

"We are well-funded to complete this work as well as advance our other Sudbury projects, while continuing to aggressively explore for new copper and precious metals-rich footwall deposits following our recent brokered equity offering and from the exercise of warrants which expired in early November."

Looking Ahead

The company reported that access to higher-grade stopes was achieved in early November following resolution of the operational issues experienced in Q3. Management indicated it is on track to meet the lower end of quarterly ore sales guidance for Q4 2025. Underground development work is continuing in Q4, with the stated aim of supporting a more robust operating plan in 2026.

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