Magna Mining Reports Record Production and Cash Margin in Q2 2026

• Record Q2 2026 production of 98,446 tons processed at the McCreedy West mine, generating 4.5 million copper equivalent (CuEq) payable pounds
• Record cash margin of $8.9 million and free cash flow of $5.1 million, with operating cash flow turning positive for the quarter
• Year to date injury frequency rate down 84% from the same period in 2025, with McCreedy West completing a full year without a recordable injury
• The Levack Preliminary Economic Assessment and Crean Hill Pre-Feasibility Study both remain on track for completion in the third quarter of 2026
• A C$140 million strategic investment from Alpayana and the company's move to the Toronto Stock Exchange, announced in the quarter and shortly after

Magna Mining Inc. (TSX: NICU) is a Canada-based mining company producing copper, nickel and platinum group metals from its McCreedy West mine in the Sudbury region of Ontario. The company also holds a group of past-producing properties, including Levack, Crean Hill, Podolsky and Shakespeare, in addition to its McCreedy West operation.

Record McCreedy West Production Drives Record Cash Margin

McCreedy West set new quarterly records across several measures in the second quarter of 2026. The mine processed 98,446 tons of ore at a grade of 3.34% copper equivalent, a measure that combines the value of copper, nickel and precious metals into a single comparable figure. This translated into 4.5 million CuEq payable pounds for the quarter, with copper, platinum and gold each reaching individual production records for the mine.

Revenue from mining operations reached $32.4 million, also a quarterly record, while production costs per ton processed fell by 6.9% from the prior quarter to $199. Cash costs came in at US$3.76 per CuEq pound and all-in sustaining costs at US$4.54 per CuEq pound. Magna generated a record cash margin of $8.9 million for the quarter and turned operating cash flow positive, with free cash flow of $5.1 million compared with an outflow of $19.5 million in the first quarter. The year to date injury frequency rate declined 84% compared with the same period last year, and McCreedy West completed a full year without a recordable injury in June 2026.

CEO Jason Jessup said:

"Q2 was a landmark quarter for Magna, with several significant achievements. The team at McCreedy West set quarterly records for tonnage as well as contained copper equivalent production, while lowering production costs by almost 7% to $199 per ton processed and celebrating a full year with zero reportable injuries. Given these strong operating results in a robust commodity price environment, we generated record positive cash margin of $8.9 million and were free cash flow positive for the quarter."

Levack and Crean Hill Studies Progress Toward Q3 2026 Completion

Magna continued to advance its two near-term development projects during the quarter. Exploration and evaluation spending totalled $5.3 million, with $5.0 million directed to the Levack project, located next to McCreedy West. Work there focused on preparing the underground infrastructure needed to access early ore sources, alongside continued drilling of the R2 Footwall Zone and other targets. Refurbishment of the production hoist plant and loading pocket is underway, and existing underground equipment is being recommissioned ahead of the Levack Preliminary Economic Assessment, due for completion in the third quarter of 2026.

In July 2026, Magna acquired underground equipment and inventory from a nearby Sudbury operation that is winding down. The purchase cost approximately $1.0 million, below the price of new or comparable used equipment, with potential savings estimated between $9.0 million and $12.0 million once the equipment is deployed at Levack and other Sudbury projects.

At Crean Hill, work progressed on power supply, engineering, commercial arrangements and water pre-treatment design and installation, ahead of a future construction decision. The Crean Hill Pre-Feasibility Study, a technical and economic assessment used to evaluate whether a project is viable enough to proceed toward construction, remains on track for completion in the third quarter of 2026, alongside the Levack study.

Alpayana Investment and TSX Listing Strengthen Magna's Market Position

On June 23, 2026, Magna graduated from the TSX Venture Exchange to the Toronto Stock Exchange, a move the company expects to improve trading liquidity and broaden access to investors.

Following the end of the quarter, on July 6, 2026, Magna announced a C$140 million strategic investment from Alpayana S.A.C, a private placement in which Alpayana will purchase 62,222,222 common shares at $2.25 per share. Once the transaction closes, expected in the third quarter of 2026 subject to regulatory approval, Alpayana will hold approximately 19.9% of Magna's outstanding shares.

The quarter also brought a planned leadership transition. Chief Financial Officer Scott Gilbert intends to retire by the end of 2026, with Greg Huffman, currently Senior Vice President of Capital Markets, set to succeed him. 

CEO Jason Jessup said:

"On behalf of the Magna team, I would like to thank Scott for his exceptional leadership and contributions to the Company over the past two years. We wish Scott all the best in his retirement. Greg brings financial and capital markets experience, and I am confident he will build on the strong foundation Scott has helped create."

Milestones and Next Steps

The Levack Preliminary Economic Assessment and Crean Hill Pre-Feasibility Study are both due for completion in the third quarter of 2026. The Alpayana investment is expected to close in the same period, subject to regulatory approval. Greg Huffman's transition into the Chief Financial Officer role is expected to take place ahead of Scott Gilbert's retirement by year end. Magna ended the quarter with cash and cash equivalents of $40.0 million and reaffirmed full year 2026 production guidance of 16.0 to 18.0 million CuEq payable pounds.

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