Magna Mining (NICU) Q2 2025 earnings summary

Executive summary

• Achieved first full quarter as a producing mining company at McCreedy West, with significant operational improvements, workforce growth, equipment investment, and management changes.

• Underground development rates improved from under 7 ft/day in March to 17 ft/day in June, supporting increased production and mine flexibility.

• Focused on mine optimization, safety, quality, and building a multi-mine producer vision in the Sudbury Basin.

• Capital investment in equipment and underground development positioned the company for stronger 2026 production.

Financial highlights

• Net revenue from mining operations was $18.5 million in Q2 2025, up from $4.5 million in Q1 2025.

• Adjusted net loss was $8.9 million, with a reported net loss of $9.5 million for the quarter.

• Recorded a negative cash margin of $1.2 million in Q2 2025; cash costs were CAD 6.47/lb ($4.67 US), and all-in sustaining costs were $7.55/lb ($5.45 US).

• Operating cash outflow was $11.6 million; free cash outflow was $10.7 million, including $2.1 million in capex.

• Cash balance at June 30, 2025, was $27 million, with working capital of $31.9 million.

Outlook and guidance

• Targeting 30,000 tons of ore per month at McCreedy West in 2026, with a focus on quality tons and grade control.

• Efficiency improvements and cost reductions expected as development reaches higher-grade areas and in-house crews replace contractors.

• Additional technical and administrative staff were added in Q2 to support optimization and future mine development.

• No specific cash cost guidance for 2026 yet, but management anticipates improvements.