Magna Mining Reports First Quarter 2025 Operating and Financial Results
Magna Mining Reports First Quarter 2025
Operating and Financial Results
Sudbury, Ontario--(Newsfile Corp. - May 29, 2025) - Magna Mining Inc. (TSXV: NICU) (OTCQX:
MGMNF) (FSE: 8YD) (the "Company" or "Magna") is pleased to report first quarter 2025 operating and
financial results. Management will host a conference call tomorrow, May 30, 2025, at 08:00 a.m. EDT to
discuss the results. All amounts are expressed in Canadian dollars unless otherwise indicated.
Highlights
The acquisition of a portfolio of base metal assets in the Sudbury basin from KGHM International
closed on February 28, 2025.
The Company announced the closing of a $33.5 million private placement financing on March 5
th
,
2025.
The quarter included 1 month of production from the newly acquired McCreedy West Copper mine.
McCreedy West produced 790,000 lbs of copper equivalent payable in March. The total ore
processed was 20,388 tonnes at an average grade of 3.01% copper equivalent.
End of period cash balance of $38.3 million.
Jason Jessup, CEO, commented:
"Q1 was a transformational quarter for our company, and we continue to execute on our strategy which is
based on three pillars of growth; Production, Exploration and Acquisitions of non-core assets. Since the
acquisition, we have been focused on optimizing the current operations at McCreedy West and during
the rest of this year we will prioritise underground mine development for long term sustainability. We are
pleased with the progress of our optimization initiatives at McCreedy West, and we believe that we now
have the leadership, mining and maintenance talent and technical expertise to unlock the potential in this
mine."
Q1 2025 Operating and Financial Highlights
In 000s, except per units and per share amounts
Q1 2025
Q4 2024
Q1 2024
Financial Results
Net revenue from mining operations
4,453
-
-
Cash margin
1
269
-
-
Net income (loss)
29,098
(4,717)
(3,105)
Adjusted net loss
1
(5,442)
(5,293)
(3,893)
Earnings before interest, taxes, depreciation and amortization
1
(4,918)
(5,643)
(3,871)
Operating cash flow
(2,630)
(7,105)
(3,322)
Free cash flow
1
(10,930)
(7,115)
(3,330)
Per share information:
Net earnings (loss)
0.15
(0.03)
(0.02)
Adjusted net loss
1
(0.03)
(0.03)
(0.02)
Operating cash flow
1
(0.01)
(0.04)
(0.02)
Free cash flow
1
(0.06)
(0.04)
(0.02)
Selected Financial Statement Data:
Cash and cash equivalents
38,250
17,535
7,549
Working capital
39,330
17,373
4,449
Total assets
168,132
39,571
9,826
Total non-current liabilities
68,601
885
866
Operational Results
Ore processed (dry tons)
700 Copper Zone
13,911
-
-
Intermain Nickel Zone
6,477
-
-
Throughput
20,388
-
-
Copper equivalent grade (%)
700 Copper Zone
2
3.04
-
-
Intermain Nickel Zone
2
2.96
-
-
3.01
-
-
Cu equivalent payable pounds (000s)
2
790
-
-
Average realized price (per lb Cu Eq payable)
1
6.32
-
-
Cash costs (per lb of Cu Eq payable)
1,2
5.98
-
-
Cash margin (per lb of Cu Eq payable)
1
0.34
-
-
AISC (per lb of Cu Eq payable)
1,2
6.65
-
-
Production costs/ton processed
1
194
-
-
Exchange Rates
Average 1 USD → CAD exchange rates
1.4359
1.3990
1.3488
Cash costs (USD)
1,2
4.16
-
-
AISC (USD)
1,2
4.63
-
-
1
Refer to the section in the Q1 2025 MD&A entitled "Non-IFRS Performance Measures" for the reconciliation of these non-IFRS measurements to the
financial statements.
2
Copper equivalent payable pounds for the purpose of copper equivalent payable grade, cash cost and AISC were calculated using the following
US dollar prices:
Q1 2025: $4.40/lb Cu, $7.18/lb Ni, $15.38/lb Co, $944.31/oz Pt, $1,005.61/oz Pd, $3,135.60/oz Au, $34.61 Ag.
Q1 2025 Financial Highlights
Cash costs during the one month of production during the quarter were C$5.98 per pound or
US$4.16.
All in sustaining costs for the same month were C$6.65 per pound or US$4.63.
Operating cash outflow of $2.6 million.
Free cash outflow of $10.9 million.
Net income attributable to shareholders of $29.1 million, which was primarily affected by the after-
tax gain on the purchase of the KGHM assets.
Adjusted net loss of $5.4 million.
End of period cash balance of $38.3 million.
Further details regarding the calculation of production costs, cash margins and all in sustaining costs can
be found in the quarterly MD&A.
To support working capital requirements, the Company also completed a $33.5 million private
placement on March 5
th
, 2025. The private placement included the issuance of $23.97 million in
unsecured convertible debentures and the issuance of 6,451,620 common shares of the corporation for
aggregate pross proceeds of $10 million. In addition, the Company entered into a Letter of Credit
Facility with a maximum face amount of $12 million, and a factoring agreement allowing the Company to
sell eligible metal sale receivables. For further details regarding the convertible debentures, letter of
credit and factoring agreement please refer to the quarterly MD&A.
Q1 2025 Operational Highlights
Subsequent to the close of the transaction on Feb 28, 2025, McCreedy West produced 790,000 lbs of
copper equivalent payable, which included 631,000 lbs from the 700 Copper Zone and 159,000 lbs from
the Intermain Nickel zone. The total ore processed was 20,388 tonnes at an average grade of 3.01%
copper equivalent.
Q1 2025 Quarterly Results Conference Call and Webcast
The company will be holding its first quarterly results conference call and webcast on Friday May 30,
2025 at 8:00 am EDT. The conference call details are as follows:
Webcast Link:
https://www.gowebcasting.com/14081
Participant Dial In:
(N. America Toll Free): 1-844-763-8274
Participant International Dial In:
1-647-484-8814
Conference call participants should ask to join the Magna Mining Inc. quarterly results conference call.
Qualified Person
The scientific or technical information in this press release has been reviewed and approved by David
King, M.Sc., P.Geo. Mr. King is the Senior Vice President, Exploration and Geoscience for Magna
Mining Inc. and is a qualified person under Canadian National Instrument 43-101.
Cautionary Note Regarding Forward-Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this
press release constitute "forward-looking statements" and "forward-looking information" (collectively,
"forward-looking statements") within the meaning of applicable securities laws. Generally, these forward-
looking statements can be identified by the use of forward-looking terminology, such as "may", "might",
"potential", "expect", "anticipate", "estimate", "believe", "could", "should", "would", "will", "intend", "plan",
"forecast" or other similar words or phrases or variations thereof. Forward-looking statements are
necessarily based upon a number of assumptions that, while considered reasonable by management,
are inherently subject to business, market and economic risks, uncertainties and contingencies that may
cause actual results, performance or achievements to be materially different from those expressed or
implied by forward-looking statements, including risks relating to the failure to realize on talent and
technical expertise to unlock the long-term, sustainable potential of the McCreedy West mine and other
risks disclosed in the Company's most recent annual management discussion and analysis. Although the
Company has attempted to identify important risks, uncertainties, contingencies and factors that could
cause actual results to differ materially from those expressed or implied in forward-looking statements,
there can be no certainty or assurance that the Company has accurately or adequately captured,
accounted for or disclosed all such risks, uncertainties, contingencies or factors. Readers should place
no reliance on forward-looking statements as actual results, performance or achievements may be
materially different from those expressed or implied by such statements. Resource exploration and
development, and mining operations, are highly speculative, characterized by several significant risks,
which even a combination of careful evaluation, experience and knowledge will not eliminate. Forward-
looking statements speak only as of the date they are made. The Company does not undertake to
update any forward-looking statements, whether as a result of new information or future events or
otherwise, except in accordance with applicable securities laws.
About Magna Mining Inc.
Magna Mining is a producing mining company with a portfolio of copper, nickel and PGM projects in the
Sudbury Region of Ontario, Canada. The Company's primary assets are the producing McCreedy West
copper mine and the past producing Levack, Podolsky, Shakespeare and Crean Hill mines. Additional
information about the Company is available on SEDAR (
www.sedarplus.ca
) and on the Company's
website (
www.magnamining.com
).
For further information, please contact:
Jason Jessup
Chief Executive Officer
or
Paul Fowler, CFA
Senior Vice President
705-482-9667
Email:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this
press release.
NON-IFRS PERFORMANCE MEASURES
Please refer to the Company's Q1 2025 Management Discussion and Analysis section entitled "Non-
IFRS Performance Measures" for the reconciliation of these non-IFRS measurements to the
consolidated financial statements.
Average realized price per copper equivalent payable pound
Average realized price per copper equivalent payable pound is a non-IFRS Accounting Standards
measure and does not constitute a measure recognized by IFRS Accounting Standards and does not
have a standardized meaning defined by IFRS Accounting Standards. Average realized price per
copper equivalent payable pound is calculated by dividing total metal proceeds received by the
Company for the relevant period by the copper equivalent payable pounds. It may not be comparable to
information in other issuers' reports and filings.
In 000s, except per unit amounts
Q1 2025
Q4 2024
Q1 2024
Revenue per financial statements (a)
4,992
-
-
Copper equivalent pounds sold (000s) (b)
790
-
-
Average realized price copper equivalent sold CAD
(c) = (a) ÷ (b)
6.32
-
-
Average 1 USD → CAD exchange rate (d)
1.4359
1.3990
1.3488
Average realized price copper equivalent sold USD (c) ÷ (d)
4.40
-
-
Cash costs per copper equivalent payable pound
Cash cost per copper equivalent payable pound is a non-IFRS Accounting Standards performance
measure and does not constitute a measure recognized by IFRS Accounting Standards and does not
have a standardized meaning defined by IFRS Accounting Standards, as well it may not be comparable
to information in other issuers' reports and filings. The Company has included this non-IFRS Accounting
Standards performance measure throughout this document as Magna believes that this generally
accepted industry performance measure provides a useful indication of the Company's operational
performance. The Company believes that, in addition to conventional measures prepared in accordance
with IFRS, certain investors use this information to evaluate the Company's performance and ability to
generate cash flow. Accordingly, it is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with
IFRS. The following table provides a reconciliation of total cash costs per copper equivalent payable
pound to cost of sales per the financial statements for each of the last eight quarters:
In 000s, except per unit amounts
Q1 2025
Q4 2024
Q1 2024
Cost of sales per financial statements
4,422
-
-
Smelting, treatment and refining charges
539
-
-
Depletion and depreciation
(238)
-
-
Cash costs (a)
4,723
-
-
Copper equivalent payable pounds (000s) (b)
790
-
-
Cash costs per copper equivalent payable pound (c) = (a) ÷ (b)
5.98
-
-
Average 1 USD → CAD exchange rate (d)
1.4359
1.3990
1.3488
Cash costs per copper equivalent payable pound USD (c) ÷ (d)
4.16
-
-
Production costs per ton processed
Mine-site cost per ton processed is a non-IFRS Accounting Standards performance measure and does
not constitute a measure recognized by IFRS Accounting Standards and does not have a standardized
meaning defined by IFRS Accounting Standards, as well it may not be comparable to information in
other issuers' reports and filings. As illustrated in the table below, this measure is calculated by adjusting
cost of sales, as shown in the statements of income for non-cash depletion and depreciation, royalties
and inventory level changes and then dividing by tons processed through the smelter. Management
believes that mine-site cost per ton processed provides additional information regarding the
performance of mining operations and allows Management to monitor operating costs on a more
consistent basis as the per ton processed measure reduces the cost variability associated with varying
production levels. Management also uses this measure to determine the economic viability of mining
blocks. As each mining block is evaluated based on the net realizable value of each ton mined, the
estimated revenue on a per ton basis must be in excess of the production cost per ton processed in
order to be economically viable. Management is aware that this per ton processed measure is impacted
by fluctuations in throughput and thus uses this evaluation tool in conjunction with production costs
prepared in accordance with IFRS Accounting Standards. This measure supplements production cost
information prepared in accordance with IFRS Accounting Standards and allows investors to distinguish
between changes in production costs resulting from changes in production versus changes in operating
performance.
In 000s, except per unit amounts
Q1 2025
Q4 2024
Q1 2024
Cost of sales per financial statements
4,422
-
-
Depletion and depreciation
(238)
-
-
Royalties and streaming payments
(223)
-
-
Mining and processing costs (a)
3,961
-
-
Ore processed (tons) (b)
20,388
-
-
Production costs per ton processed (a) ÷ (b)
194
-
-
Cash Margin
Cash margin is a non-IFRS Accounting Standards measure and does not constitute a measure
recognized by IFRS Accounting Standards and does not have a standardized meaning defined by IFRS
Accounting Standards, as well it may not be comparable to information in other issuers' reports and
filings. It is calculated as the difference between total sales revenue, net of smelting, refining and
treatment costs from mining operations and cash mine site operating costs (see Cash cost per ounce of
gold sold under this Section above) per the Company's Financial Statements. The Company believes it
illustrates the performance of the Company's operating mines and enables investors to better
understand the Company's performance in comparison to other metal producers who present results on
a similar basis.
In 000s, except per unit amounts
Q1 2025
Q4 2024
Q1 2024
Copper equivalent revenue from mining operations (per above)
4,992
-
-
Cash costs (per above)
4,723
-
-
Cash margin
269
-
-
Per pound of copper equivalent payable
(Canadian dollars):
Average realized price (a)
6.32
-
-
Cash costs (b)
5.98
-
-
Cash margin (a) - (b)
0.34
-
-
All-in Sustaining Costs
All-in sustaining costs (
"AISC"
) include mine site operating costs incurred at Magna mining operations,
sustaining mine capital and development expenditures, mine site exploration expenditures and
equipment lease payments related to the mine operations and corporate administration expenses. The
Company believes that this measure represents the total costs of producing copper equivalent payable
pounds from current operations and provides Magna and other stakeholders with additional information
that illustrates the Company's operational performance and ability to generate cash flow. This cost
measure seeks to reflect the full cost of copper production from current operations on a per-pound basis
of copper equivalent payable. New project and growth capital are not included.
In 000s, except per unit amounts
Q1 2025
Q4 2024
Q1 2024
Cost of sales, per financial statements
4,422
-
-
Smelting, treatment and refining charges
539
-
-
Depletion and depreciation
(238)
-
-
Cash costs
4,723
-
-
Corporate and general
997
-
-
Less: KGHM Integration costs
(465)
-
-
All-in Sustaining costs (AISC) (a)
5,255
-
-
Pounds of copper equivalent payable (b)
790
-
-
AISC
(c) = (a) ÷ (b)
6.65
-
-
Average 1 USD → CAD exchange rate (d)
1.4359
1.3990
1.3488
AISC
USD (c) ÷ (d)
4.63
-
-
Free cash flow and operating and free cash flow per share
Free cash flow is calculated by taking net cash provided by operating activities less cash used in capital
expenditures and lease payments as reported in the Company's financial statements. Free cash flow per
share is calculated by dividing free cash flow by the weighted average number of shares outstanding for
the period.
Operating cash flow per share is a non-IFRS Accounting Standards measure and does not constitute a
measure recognized by IFRS Accounting Standards and does not have a standardized meaning defined
by IFRS Accounting Standards. Operating cash flow per share is calculated by dividing cash flow from
operating activities in the Company's Financial Statements by the weighted average number of shares
outstanding for each year. It may not be comparable to information in other issuers' reports and filings.
In 000s, except per share amounts
Q1 2025
Q4 2024
Q1 2024
Net cash provided by operating activities per financial statements (c)
(2,630)
(7,105)
(3,322)
Sustaining mine exploration and development
-
-
-
Sustaining mine capital equipment
-
-
-
Purchase of Project Nikolas Company Inc.
(5,300)
-
-
Exploration equipment
(10)
(8)
Exploration and evaluation
-
-
-
Funds held against standby letters of credit
(3,000)
-
-
Payment of lease liabilities
-
-
-
Free cash flows
(a)
(10,930)
(7,115)
(3,330)
Weighted number of shares (000s) (b)
197,739
186,593
163,380
Per Share data
Operating cash flow (c) ÷ (b)
(0.01)
(0.04)
(0.02)
Free cash flow (a) ÷ (b)
(0.06)
(0.04)
(0.02)
Adjusted net loss and Adjusted net loss per share
Adjusted net loss and adjusted net loss per share are non-IFRS Accounting Standards performance
measures and do not constitute a measure recognized by IFRS Accounting Standards and do not have
standardized meanings defined by IFRS Accounting Standards, as well both measures may not be
comparable to information in other issuers' reports and filings. Adjusted net loss is calculated by
removing the one-time gains and losses resulting from the disposition of non-core assets, non-recurring
expenses and significant tax adjustments (mining tax recognition and exploration credit refunds) not
related to current period's income, as detailed in the table below. Magna discloses this measure, which
is based on its financial statements, to assist in the understanding of the Company's operating results
and financial position.
In 000s, except per share amounts
Q1 2025
Q4 2024
Q1 2024
Net income (loss) per financial statements
29,098
(4,717)
(3,105)
Adjustments for:
Gain on bargain purchase of KGHM assets
(57,227)
Project Nikolas Company Inc. Integration costs
779
-
-
Transaction Costs
2,426
-
-
Flow-through premium income
-
(929)
(788)
Other
-
-
-
Total adjustments
(54,022)
(929)
(788)
Related income tax effect
10,236
246
209
Recognition of mining taxes
9,246
-
-
(34,540)
(683)
(579)
Adjusted net loss (a)
(5,442)
(5,400)
(3,684)
Weighted number of shares (000s) (b)
197,739
186,593
163,380
Per Share data
Adjusted net loss (a) ÷ (b)
(0.03)
(0.03)
(0.02)
EBITDA
Earnings before interest, taxes and depreciation and amortization ("
EBITDA
") is a non-IFRS Accounting
Standards financial measure which excludes the following items from net income (loss): interest
expense; mining and income taxes, depletion and depreciation expenses, the one-time gains and
losses resulting from the disposition of non-core assets, non-recurring expenses and significant tax
adjustments (mining tax recognition and exploration credit refunds) not related to the current period's
income. The Company believes that, in addition to conventional measures prepared in accordance with
IFRS Accounting Standards, the Company and certain investors use EBITDA as an indicator of Magna's
ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt
obligations and fund capital expenditures. EBITDA is intended to provide additional information to
investors and analysts and does not have any standardized definition under IFRS and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with
IFRS Accounting Standards. EBITDA excludes the impact of cash costs of financing activities and taxes,
and the effects of changes in operating working capital balances and therefore are not necessarily
indicative of operating profit or cash flow from operations as determined under IFRS Accounting
Standards. Other producers may calculate EBITDA differently. The following table provides a
reconciliation of net income in the Company's financial statements to EBITDA:
In 000s
Q1 2025
Q4 2024
Q1 2024
Net income (loss) per financial statements
29,098
(4,717)
(3,105)
Adjustments for:
Depletion and depreciation
238
-
21
Non-recurring income
(34,540)
(929)
(788)
Interest expense
286
172
1
EBITDA
(4,918)
(5,474)
(3,871)
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