Magna Mining Reports Second Quarter 2025 Operating and Financial Results
Magna Mining Reports Second Quarter 2025
Operating and Financial Results
Sudbury, Ontario--(Newsfile Corp. - August 27, 2025) - Magna Mining Inc. (TSXV: NICU) (OTCQX:
MGMNF) (FSE: 8YD) (the "Company" or "Magna") is pleased to report second quarter 2025 operating
and financial results. Management will host a conference call tomorrow, August 28, 2025, at 08:00 a.m.
EDT to discuss the results. All amounts are expressed in Canadian dollars unless otherwise indicated.
Highlights
April-June 2025 ("Q2") was the first full quarter of production from the McCreedy West copper
mine under Magna's operation.
Total ore processed in Q2 was 59,100 tons from the 700 Footwall Copper Zone and 10,945 tons
from the Intermain Nickel Zone, for a combined total of 70,045 tons.
Combined ore grade for the quarter was 3.26% Copper Equivalent ("Cu Eq").
End of period cash balance of $27 million.
Jason Jessup, CEO, commented, "Since we acquired the McCreedy West Mine on February 28, 2025,
we have implemented multiple mine optimization initiatives and invested substantial capital in equipment
and underground development to improve the operation. During the quarter we increased our staff and
workforce, made management changes and realized a material increase in the amount of daily
development completed at the mine. Throughout Q2, we started to see evidence of these operational
improvements, with month over month increases in the amount of payable copper-equivalent pounds as
well as improved grades within the operation. More importantly, we are consistently improving on the
productivity of our development crews, which will lead to more workplaces in the mine and better
flexibility in our mine plan. The second quarter, and the remainder of 2025, is focused ensuring the mine
is in a strong position for 2026 production. I am pleased with the results to date and look forward to
building this operation into a long-life, sustainable producer that generates free cash flow."
Table 1: Magna Mining Q2 2025 Tons Mines, Payable Copper Equivalent Pounds and Grades
Q2 2025
April
May
June
Tons Processed
15,580
26,905
27,560
Cu Eq Grade (%)
1
(contained)
2.54
3.34
3.56
Cu Eq lbs
1
(payable)
442,000
1,172,000
1,439,000
1
Copper equivalent payable pounds and copper equivalent payable grade were calculated using the following US dollar prices:
Q2 2025: $4.29/lb Cu, $6.88/lb Ni, $15.81/lb Co, $1,072.35/oz Pt, $990.29/oz Pd, $3,301.29/oz Au, $33.64 Ag.
Table 2: McCreedy West Q1 and Q2 2025 Development Rates
Month
Development (ft/day)
Jan / Feb (Under Prior Operator)
6
March
6.9
April
14.4
May
16.2
June
17
Table 3: Q2 2025 Operating and Financial Highlights
In 000s, except per units and per share amounts
Q2 2025
Q1 2025
Q2 2024
Financial results
Net revenue from mining operations
18,465
4,453
-
Cash margin
1
(1,191)
2,69
-
Net income (loss)
(9,501)
29,098
(3,948)
Adjusted net loss
1
(8,930)
(5,442)
(4,442)
Operating cash flow
(11,560)
(2,584)
(3,747)
Free cash flow
1
(10,714)
(10,584)
(3,921)
Per share information:
Net earnings (loss)
(0.05)
0.15
(0.03)
Adjusted net loss
1
(0.04)
(0.03)
(0.03)
Operating cash flow
1
(0.06)
(0.01)
(0.02)
Free cash flow
1
(0.05)
(0.05)
(0.02)
Selected Financial Statement data:
Cash and cash equivalents
27,018
38,250
4,419
Working capital
31,914
39,330
1,371
Total assets
163,534
168,132
24,509
Total non-current liabilities
65,276
68,601
871
Operational results
Ore Processed (Dry tons)
700 Copper Zone
59,100
13,911
-
Intermain Nickel Zone
10,945
6,477
-
Throughput
70,045
20,388
-
Copper equivalent grade (%)
700 Copper Zone
2
3.35
3.04
-
Intermain Nickel Zone
2
2.77
2.96
-
3.26
3.01
-
Metals Payable
Copper (000s lbs)
1,629
552
-
Nickel (000s lbs)
327
132
-
Cobalt (000s lbs)
4
2
-
Platinum (ozs)
1,156
-
-
Palladium (ozs)
1,218
13
-
Gold (ozs)
284
-
-
Silver (ozs)
9,499
1638
-
Cu equivalent payable pounds (000s)
2
3,053
790
-
Average realized price (per lb Cu Eq payable)
1
6.08
6.32
-
Cash costs (per lb Cu Eq payable)
1,2
6.47
5.98
-
Cash margin (per lb Cu Eq payable)
1
(0.39)
0.34
-
AISC (per lb Cu Eq payable)
1,2
7.55
6.65
-
Production costs/ton processed
1
219
194
-
Exchange Rates
Average 1 USD → CAD exchange rates
1.3841
1.4359
1.3684
Cost Metrics (in USD)
Cash costs
1,2
4.67
4.16
-
AISC
1,2
5.45
4.63
-
1
For the reconciliation of these non-IFRS measures to the consolidated financial statements, please see the reconciliations at the end of this
news release. Magna uses non-IFRS performance measures in this news release as it believes that these generally accepted industry
performance measures provide a useful indication of the Company's operational performance. Non-IFRS performance measures do not have
standardized meanings defined by IFRS Accounting Standards and may not be comparable to information in other issuers' reports and filings.
They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting
Standards.
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:
Q2 2025: $4.29/lb Cu, $6.88/lb Ni, $15.81/lb Co, $1,072.35/oz Pt, $990.29/oz Pd, $3,301.29/oz Au, $33.64 Ag.
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.
Q2 Financial Highlights
Q2 cash costs were C$6.47 per pound or US$4.67.
All in sustaining costs for the same quarter were C$7.55 per pound or US$5.45, which includes the
purchase of a scoop tram, and developing 282 equivalent feet of capital development.
Operating cash outflow of $11.6 million.
Free cash outflow of $10.7 million.
Adjusted net loss of $8.9 million.
End of period cash balance of $27 million.
Further details regarding the calculation of production costs, cash margins and all in sustaining costs can
be found in the quarterly MD&A.
Q2 Operational Highlights
McCreedy West produced 3.05 million pounds of copper equivalent payable in the quarter at an
average grade of 3.26% Cu Eq.
Total ore processed in Q2 was 59,100 tons from the 700 Footwall Copper Zone and 10,945 tons
from the Intermain Nickel Zone.
April production was affected by a lack of operating and capital development completed in the
preceding quarters while the mine was under prior ownership (Table 1 and Table 2). Production in
April also included tonnage from the Intermain nickel zone that was previously developed by the
prior operators.
In anticipation of bringing future mines into commercial production, the company added technical
and administrative staff in Q2 who are currently focused on the optimization of the McCreedy West
mine.
Table 4: McCreedy West Q2 2025 Cu Eq Contained Grade (%) By Zone
April
May
June
700 Zone
2.53
3.43
3.70
Intermain Zone
2.65
2.95
2.60
Total
2.54
3.34
3.56
Webcast Link
Webcast Link:
https://www.gowebcasting.com/14155
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", "prospective", "significant" 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 anticipated or assumed production and operational improvements from
current or planned optimization initiatives at the McCreedy West mine, the failure to commence or
complete as quickly as planned additional development work at McCreedy West, the failure to
successfully realize on talent and technical expertise to unlock the long-term, sustainable potential of
McCreedy West or other assets of the Company and other risks disclosed in the Company's most recent
annual management discussion and analysis, available on the SEDAR+ website (at:
www.sedarplus.ca
).
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 Inc.
is a producing mining company with a strong portfolio of copper, nickel, and
platinum group metals (PGM) assets located in the world-class Sudbury mining district of Ontario,
Canada. The Company's primary asset is the
McCreedy West Mine
, currently in production, supported
by a pipeline of highly prospective past-producing properties including
Levack
,
Crean Hill
,
Podolsky
,
and
Shakespeare
.
Magna Mining is strategically positioned to unlock long-term shareholder value through continued
production, exploration upside, and near-term development opportunities across its asset base.
Additional corporate and project information is available at
www.magnamining.com
and through the
Company's public filings on the SEDAR+ website at
www.sedarplus.ca
.
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 see below for the reconciliation of non-IFRS measures referred to in this news release 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
Q2 2025
Q1 2025
Revenue per financial statements (a)
18,465
4,453
Treatment and refining charges
1,634
539
Recognition of deferred streaming revenue
(1,549)
-
Copper equivalent revenue from mining operations (a)
18,550
4,992
Copper equivalent pounds sold (000s) (b)
3,053
790
Average realized price copper equivalent sold CAD (c) = (a) ÷ (b)
6.08
6.32
Average 1 USD → CAD exchange rate (d)
1.3841
1.4359
Average realized price copper equivalent sold USD (c) ÷ (d)
4.39
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
Q2 2025
Q1 2025
Cost of sales per financial statements
20,275
4,422
Smelting, treatment and refining charges
1,634
539
Depletion and depreciation
(2,168)
(238)
Cash costs (a)
19,741
4,723
Copper equivalent payable pounds (000s) (b)
3,053
790
Cash costs per copper equivalent payable pound (c) = (a) ÷ (b)
6.47
5.98
Average 1 USD → CAD exchange rate (d)
1.3841
1.4359
Cash costs per copper equivalent payable pound USD (c) ÷ (d)
4.67
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
Q2 2025
Q1 2025
Cost of sales per financial statements
20,275
4,422
Depletion and depreciation
(2,168)
(238)
Royalties and streaming expense
(2,772)
(223)
Mining and processing costs (a)
15,335
3,961
Ore processed (tons) (b)
70,046
20,388
Production costs per ton processed (a) ÷ (b)
219
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
Q2 2025
Q1 2025
Copper equivalent revenue from mining operations (per above)
18,550
4,992
Cash costs (per above)
19,741
4,723
Cash margin
(1,191)
269
Per pound of copper equivalent payable
(Canadian dollar):
Average realized price (a)
6.08
6.32
Cash costs (b)
6.47
5.98
Cash margin (a) - (b)
(0.39)
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
Q2 2025
Q1 2025
Cost of sales, per financial statements
20,275
4,422
Smelting, treatment and refining charges
1,634
539
Depletion and depreciation
(2,168)
(238)
Cash costs
19,741
4,723
Sustaining mine exploration and development
468
-
Sustaining mine capital equipment
1,381
-
Corporate and general
2,191
997
Less: KGHM Integration costs
(742)
(465)
All-in Sustaining costs (AISC) (a)
23,039
5,255
Pounds of copper equivalent payable (b)
3,053
790
AISC
(c) = (a) ÷ (b)
7.55
6.65
Average 1 USD → CAD exchange rate (d)
1.3841
1.4359
AISC
USD (c) ÷ (d)
5.45
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
Q2 2025
Q1 2025
Net cash provided by operating activities per financial statements (c)
(11,560)
(2,584)
Sustaining mine exploration and development
(468)
-
Sustaining mine capital equipment
(1,381)
-
Purchase of Project Nikolas Company Inc.
-
(5,000)
Site maintenance capital equipment
(231)
-
Funds held against standby letters of credit
2,926
(3,000)
Free cash flows
(a)
(10,714)
(10,584)
Weighted number of shares (000s) (b)
203,647
197,739
Per Share data
Operating cash flow (c) ÷ (b)
(0.06)
(0.01)
Free cash flow (a) ÷ (b)
(0.05)
(0.05)
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
Q2 2025
Q1 2025
Net income (loss) per financial statements
(9,501)
29,098
Adjustments for:
Gain on bargain purchase of KGHM assets
-
(57,227)
Project Nikolas Company Inc. Integration costs
742
779
Transaction Costs
35
2,426
Total adjustments
777
(54,022)
Related income tax effect
(206)
10,236
Recognition of mining taxes
-
9,246
571
(34,540)
Adjusted net loss (a)
(8,930)
(5,442)
Weighted number of shares (000s) (b)
203,647
197,739
Per Share data
Adjusted net loss (a) ÷ (b)
(0.04)
(0.03)
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