Past Producer With Resource Expansion Upside Reviving Sudbury Nickel Mine

• Magna Mining is focused on nickel and copper exploration and development in Sudbury, Canada.
• The company has two main assets - the past-producing Crean Hill mine and the Shakespeare project.
• Magna is currently focused on exploration at Crean Hill to expand resources and advance permitting to sell ore to local mills.
• Longer-term, the company may look to combine Crean Hill and Shakespeare into a central milling hub.
• Management believes there is strong exploration upside potential to make new high-grade discoveries in the region.

Investing in Nickel - The Fundamentals

Nickel prices have slumped over 50% from their March 2022 highs, dragging down nickel mining stocks. However, the long-term investment case remains bullish. Demand is poised to surge over the next decade, driven by stainless steel and the electric vehicle revolution. Yet supply struggles to keep pace as ore grades decline and costs increase. This supply/demand imbalance suggests higher prices are inevitable once temporary bearish factors - such as recession fears and Chinese lockdowns - abate.

Magna Mining - Exploring a World-Class Nickel Camp

Magna Mining is focused exclusively on nickel and copper exploration and development in the prolific Sudbury mining camp of Canada; one of the world's premier jurisdictions for nickel. As CEO Jason Jessup explained, "We're in one of the best locations to make big nickel copper PGM discoveries". The company's two key assets provide substantial resource upside and a potential centralized production hub.

Interview with Chief Executive Officer, Jason Jessup

The Past-Producer With Exploration Upside

Magna's flagship asset is the past-producing Crean Hill nickel-copper mine. Crean Hill has an existing resource of 31 million tons grading over 2% nickel equivalent. However, the company sees strong potential to significantly expand resources through ongoing exploration. As Jessup stated: "We do think much like in the past when many of our team worked at FNX Mining, we can make a football field discovery that can be extremely highly valuable".

The company has budgeted C$15 million for 25,000 metres of drilling in 2024 to unlock this exploration potential. Investors can expect a steady news flow of drill results driving speculative interest over the coming year.

De-Risking a Potential Near-Term Cash Flow

Beyond exploration, Magna is advancing Crean Hill towards a potential resumption of mining. The company is on track to secure all permits required to dewater the old mine workings and commence small-scale production by selling nickel-copper ore to local processors.

This provides a low-risk, low-cost pathway to initiate cash flow in the near term while expanding resources for larger-scale centralized production. As Jessup explained, "We want to have everything in place ready to pull the trigger on advanced exploration later this year or potentially even next year if the market stays tough".

The Longer-Term Central Hub Concept

Looking further ahead, Magna has longer-term plans to develop Crean Hill and its Shakespeare project into a centralized mining/milling hub, stating "Sudbury probably does not need a 3rd mill but we do have that option if we need to and it is something we will explore in future technical studies". The Shakespeare project already has permits and a feasibility study for a 4,500 tonne per day operation. Combining the two assets and infrastructure could provide Magna its own production base in a Tier-1 mining jurisdiction.

Macro Thematic - Electric Vehicles and Stainless Steel Underpin Demand

While speculators primarily focus on the EV narrative, CEO Jessup succinctly explains the core demand driver: “90% of it goes into the stainless steel market so it's not all about electric cars”. This steel industry application, rather than battery supply chains, underpins the bullish demand outlook for nickel over the coming decade. And with nickel prices now at multi-year lows, the cyclical opportunity in nickel stocks looks increasingly compelling ahead of the next rally.

The Investment Thesis for Magna Mining

For investors, Magna Mining offers:

• Exploration upside in a world-class nickel district
• Near-term cash flow potential by selling ore to local mills
• A central hub concept that could underpin self-funded growth

Magna provides investors Exposure to the favorable nickel thematic via assets with exploration upside and a clear pathway to production. The current beaten-down share price represents a compelling entry point.