Magna Mining (NICU) Q1 2025 earnings summary

Executive summary

• Completed acquisition of KGHM's Sudbury Basin base metal assets, marking a transition to a producing mining company and initiating first production at McCreedy West Copper mine.

• Raised CAD 33.5 million through convertible debentures and equity/private placement to support mine development, working capital, and operations.

• Focused on optimizing McCreedy West operations and prioritizing underground mine development for long-term sustainability.

Financial highlights

• Recorded a preliminary bargain purchase gain of $36.6 million from the KGHM asset acquisition; net income was $29.1 million, mainly from this one-time gain, with an adjusted net loss of $5.4 million.

• Net revenue from mining operations was $4.45 million in Q1 2025.

• Generated CAD 0.3 million in cash margin in March 2025; cash costs of CAD 5.98/lb and all-in sustaining costs of CAD 6.65/lb.

• Q1 2025 operating cash outflow was CAD 2.6 million; free cash outflow was CAD 10.9 million.

• Cash balance at March 31, 2025, was CAD 38.3 million.

Outlook and guidance

• Targeting sustainable production at McCreedy West by 2026, with ongoing optimization and development and a focus on underground mine development.

• Expecting to provide production and cost guidance for H2 2025 in early Q3.

• Anticipates average throughput above 1,000 tons per day by year-end, subject to grade optimization.

• Resource update for McCreedy West possible in Q1 2026, pending drilling results.