Q1 2025 Magna Mining Inc Earnings Call

Operator: Thank you for standing by.

Operator 2: Thank you for standing by. This is the conference operator. Welcome to the Magna Mining Inc. Q1 2025 Earnings Conference Call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Paul Fowler, Senior Vice President. Please go ahead.

Thank you for standing by this is the conference operator.

Operator: This is the conference operator. Welcome to the Magna Mining Inc. 3rd Quarter 2025 Earnings Conference Call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero.

Speaker Change: Welcome to the back of the mining Inc. First quarter 2025 earnings conference call.

As a reminder, all participants are in a listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions.

To join the question queue you May Press Star then one on your telephone keypad.

Should you need assistance during the conference call you may signal, an operator by pressing star zero.

Paul Fowler: I would now like to turn the conference over to Paul Fowler, Senior Vice President. Please go ahead. Thank you, thank you and good morning everyone.

Speaker Change: I would now like to turn the conference over to Paul Taylor Senior Vice President. Please go ahead.

Paul Fowler: Thank you. Thank you, and good morning, everyone. Before getting started, I'd like to mention that we may make forward-looking statements or provide forward-looking information on this call in accordance with applicable securities laws. Please review our most recent corporate presentation available on our website for cautionary language regarding the use of and reliance on forward-looking statements, which may be materially different from the actual results obtained by the company, and for the risk factors applicable to such forward-looking statements that could cause actual results to be materially different from the statements that are set out in the company's annual MD&A. Any scientific or technical commentary on this call today has been reviewed and approved by David King, our SVP, Exploration, who is a qualified person under National Instrument 43-101.

Speaker Change: Thank you. Thank you and good morning, everyone before getting started I'd like to me.

Paul Fowler: Before getting started I'd like to mention that we may make forward-looking statements or provide forward-looking information on this call in accordance with applicable security laws. Please review our most recent corporate presentation available on our website for cautionary language regarding the use of and reliance on forward-looking statements which may be materially different from the actual results obtained by the company and for the risk factors applicable to such forward-looking statements that could cause actual results to be materially different from the statements that are set out in the company's annual MD&A.

Speaker Change: Mentioned that we may make forward looking statements or provide forward looking information on this call in accordance with applicable securities laws.

Speaker Change: Please review our most recent corporate presentation available on our website for cautionary language regarding the use and reliance on forward looking statements, which may be materially different from the actual results obtained by the company and for the risk factors applicable to such forward looking statements that could cause actual results to be met.

Speaker Change: Terribly different.

Speaker Change: That's gonna sit out in the company's annual MD&A.

Paul Fowler: Any scientific or technical commentary on this call today has been reviewed and approved by David King, RSVP Exploration, who is a qualified person under National Instrument 43-101.

David: Any scientific what's that commentary on this call today has been reviewed and approved by David <unk>, Our SVP exploration who's qualified person on the national instrument 43, one to one.

Paul Fowler: With respect to non-IFRS performance measures that are referred to in this call, please refer to the Reconciliation to Measures of Performance prepared in accordance with IFRS accounting standards of the company's most recently filed MD&A. All figures are in Canadian Dollars and as otherwise noted our press release, NBNA and financial statements are available on CedarPlus and our corporate website.

Paul Fowler: With respect to non-IFRS performance measures that are referred to on this call, please refer to the reconciliation to measures of performance prepared in accordance with IFRS accounting standards of the company's most recently filed MD&A. All figures are in Canadian dollars, unless otherwise noted. Our press release, MD&A, and financial statements are available on SEDAR+ and our corporate website. With us today on the call alongside myself are Magna Mining CEO, Jason Jessup, Chief Operating Officer, Jeff Huffman, Chief Financial Officer, Scott Gilbert, and Senior Vice President of Exploration, David King. Following formal remarks from management, we will open the lines for further questions. I would now like to introduce Magna Mining CEO, Jason Jessup, to present our quarterly results.

David: With respect to non as far as performance measures that are referred to on this call. Please refer to the reconciliations.

David: And that's prepared in accordance with all that far as accounting standards in the company's most recently filed N DNA.

David: All figures are in Canadian dollars, unless otherwise noted our press release MD&A financial statements are available on SEDAR, plus and our corporate website.

Paul Fowler: With us today on the call alongside myself are Magna Mining CEO Jason Jessop, Chief Operating Officer Geoff Huffman, Chief Financial Officer Scott Gilbert and Senior Vice President of Exploration Dave King. Following formal remarks from management, we will open the lines for further questions.

Michelle Mcnamara: With us today on the call alongside Michelle Mcnamara CEO, Jason Jessup, Chief Operating Officer, Jeff Hoffman, Chief Financial Officer, Scott, Gilbert and senior Vice President of exploration, Dave King.

Michelle Mcnamara: Following formal remarks from management, we will open the lines for further questions.

Jason Jessop: And I would now like to introduce Magna Mining CEO, Jason Jessop, to present our quarterly results. Good morning. Q1 2025 was a transformative quarter for our company. On February 28, 2025, we completed the acquisition of a portfolio of base metal assets located in the Sudbury Basin from KGHM International, including the producing McCree US Copper Mine, the Levack and Podolsky Mines, which are permanent and on care and maintenance, as well as five exploration properties. The closing of this acquisition takes us from an exploration and development company to Canada's newest copper, nickel and precious metals mining company.

Michelle Mcnamara: And I would now like to introduce <unk> CEO, Jason just to present, our quarterly results.

Michelle Mcnamara: Okay.

Jason Jessup: Good morning. Q1 2025 was a transformative quarter for our company. On 28 February 2025, we completed the acquisition of a portfolio of base metal assets located in the Sudbury Basin from KGHM International, including the producing McCreedy West copper mine, the Levack and Podolsky mines, which are permitted and on care and maintenance, as well as five exploration properties. The closing of this acquisition takes us from an exploration and development company to Canada's newest copper, nickel, and precious metals mining company. We also closed a CAD 33.5 million financing through the issuance of a CAD 23.5 million convertible debenture and a CAD 10 million equity raise. We were pleased to be able to welcome several new institutional investors to our capital structure and retain the support and commitment of our cornerstone investor, Dundee Corporation.

Good morning.

Michelle Mcnamara: Q1 2025.

Michelle Mcnamara: <unk> formative quarter for our company on February 28, 2025, we completed the acquisition of a portfolio of base metal assets located in the Sudbury basin from TJ gym international including the producing the <unk> copper mine, the lock and podolsky mines, which are permanent and on care and maintenance as well as five X.

Michelle Mcnamara: Flourish properties.

Michelle Mcnamara: Loathing of this acquisition takes us from an exploration and development company to Canada's newest copper nickel and precious metals mining company.

Jason Jessop: We also closed a $33.5 million financing through the issuance of a $23.5 million convertible debenture and a $10 million equity raise. We were pleased to be able to welcome several new institutional investors to our capital structure and retain the support and commitment of our cornerstone investor, Dundee Corporation. This financing puts us in a position to be able to invest in the underground capital and operating development at our MacReady West mine to get it to an optimal, sustainable production level by 2026.

Michelle Mcnamara: We also closed a 33 and a half million dollar financing through the issuance of a $23 $5 million convertible debenture and a $10 million equity raise.

Michelle Mcnamara: We were pleased to be able to welcome several new institutional investors to our capital structure and retain the support and commitment of our cornerstone Investor Dundee Corporation.

Jason Jessup: This financing puts us in a position to be able to invest in the underground capital and operating development at our McCreedy West mine to get it to an optimal, sustainable production level by 2026. I would now like to hand it over to COO Jeff Huffman to present an overview of our operational performance in Q1.

Michelle Mcnamara: This financing puts us in a position to be able to invest in the underground capital and operating development I don't know.

Michelle Mcnamara: <unk> West mine to get it to an optimal sustainable production level by 2026.

Geoff Huffman: I would now like to hand it over to COO Jeff Huffman to present an overview of our operational performance in Q1. Thank you, Jason, and good morning, everybody. Subsequent to the transaction close on February 28, 2025, MacReady West produced 790,000 pounds of copper equivalent payable. which included 631,000 pounds from the 700 copper zone and 159,000 pounds from the intermain nickel zone. The total ore processed was 20,388 tonnes at an average grade of 3.01 copper equivalent.

Speaker Change: I would now like to hand, it over to Cielo, Jeff Hoffman to present, an overview of our operational performance in Q1.

Jeff Huffman: Thank you, Jason, and good morning, everybody. Subsequent to the transaction close on 28 February 2025, McCreedy West produced 790,000 pounds of copper equivalent payable, which included 631,000 pounds from the 700 Copper Zone and 159,000 pounds from the Intermain nickel zone. The total ore processed was 20,388 tons at an average grade of 3.01 copper equivalent. In March, we made some organizational changes and started to get a detailed understanding of the mine plan in its current form. We have made good progress in strategizing and communicating what is going to drive improvement to the mine plan and ultimately realize value creation for our business. At current prices, the decision was made to cease planning towards any further Intermain nickel production areas and focus on the 700 Copper Zone.

Jeff Hoffman: Thank you, Jason and good morning, everybody.

Jeff Hoffman: Subsequent to the transaction closed on February 28, 2020, Fives Mccreedy West produced 790000 pounds of copper equivalent payable.

Jeff Hoffman: Which included 631000 pounds from the 700 copper zone and 159000 pounds from the intervene Nichols zone.

Jeff Hoffman: The total ore processed was 20388 tons at an average grade of 3.01 copper equivalent.

Geoff Huffman: In March, we made some organizational changes and started to get a detailed understanding of the mine plan in its current form. We have made good progress in strategizing and communicating what is going to drive improvement to the mine plan and ultimately realize value creation for our business. At current prices, the decision was made to cease planning towards any further inter-main nickel production areas and focus on the 700 copper zone. We will mine the remaining intermain stopes that are already into the production cycle. However, we will begin diverting focus towards the 700 copper zone in March.

Jeff Hoffman: In March we made some organizational changes and started to get a detailed understanding of the mine plan in its current form.

Jeff Hoffman: We have made good progress in strategizing and communicating what it's going to drive improvement to the mine plan and ultimately realize value creation for our business.

Jeff Hoffman: At current prices. The decision was made to cease planning towards any further intervening nickel production areas and focus on the 700 copper zone.

Jeff Huffman: We will mine the remaining Intermain stopes that are already into the production cycle. We will begin diverting focus towards the 700 copper zone in March. Also in March, immediate focus was to increase mine development output along with contractor management, and assessing our resources, including labor and mobile equipment. Magna's management team was also able to perform an analysis of general business functions with respect to processes, business routines, and reporting structures. Many initiatives commenced immediately in March towards improving the functions of the business, including improving overall culture and ensuring goals and key performance indicators were identified, communicated to the workforce, and are being used to improve day-to-day operations. I would now like to hand over to our Chief Financial Officer, Scott Gilbert, for the financial highlights of the quarter.

Jeff Hoffman: We will mine the remaining in their main stopes that are already into the production cycle.

Jeff Hoffman: However, we will begin diverted focus towards the 700 copper zone.

Jeff Hoffman: March.

Geoff Huffman: Also in March, immediate focus was to increase mine development output, along with contractor management and assessing our resources, including labor and mobile equipment.

Jeff Hoffman: Also in March immediate focus was to increase mine development output.

Jeff Hoffman: Along with our contractor management.

Jeff Hoffman: In assessing our resources, including labor and mobile equipment.

Geoff Huffman: Magna's management team was also able to perform an analysis of general business functions with respect to processes, business routines, and reporting structures. Many initiatives commenced immediately in March towards improving the functions of the business, including improving overall culture and ensuring goals and key performance indicators were identified, communicated to the workforce, and are being used to improve day-to-day operation.

Jeff Hoffman: Magnus management team was also able to perform an analysis of general business functions with respect to processes business routines and reporting structures.

Jeff Hoffman: Many initiatives commenced immediately in march towards improving the functions of the business, including improving overall culture and ensure.

Jeff Hoffman: Turing goals and key performance indicators were identified.

Jeff Hoffman: Communicated to the workforce and are being used to improve day to day operations.

Scott Gilbert: I would now like to hand over to our Chief Financial Officer, Scott Gilbert, for the financial highlights of the quarter. Thanks, Jeff. In accordance with the Acquisition Method of Accounting, the acquisition cost of the KGHM assets was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The Preliminary Purchase Price Allocation resulted in a Bargain Purchase Gain of $36.6 million. The allocation is preliminary and the fair values are subject to change as there has not been sufficient time to complete the valuation. Evaluation work must be finalized within 12 months following the acquisition date.

Jeff Hoffman: I would now like to hand over to our Chief Financial Officer, Scott Gilbert for the financial highlights of the quarter.

Scott Gilbert: Thanks, Jeff. In accordance with the acquisition method of accounting, the acquisition cost of the KGHM assets was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The preliminary purchase price allocation resulted in a bargain purchase gain of CAD 36.6 million. The allocation is preliminary, and the fair values are subject to change as there has not been sufficient time to complete the valuation process. The valuation work must be finalized within 12 months following the acquisition date. Mineral properties

Scott Gilbert: Thanks, Jeff.

Jeff Hoffman: In accordance with the acquisition method of accounting the acquisition cost of the K G H M asset allocated.

Jeff Hoffman: Located to the underlying assets acquired and liabilities assumed based upon their estimated fair value at the date of acquisition.

Jeff Hoffman: Poorer preliminary purchase price allocation resulted in a bargain purchase gain of $36 $6 million, yeah location, its preliminary and the fair values are subject to change because there has not been sufficient time to complete the evaluation process.

Jeff Hoffman: Evaluation work must be finalized within 12 months following the acquisition date mineral properties.

Scott Gilbert: Mineral properties, plant and equipment, exploration and evaluation assets, reclamation applications, deferred revenue and deferred taxes are all subject to change. Any adjustments made will be recognized retrospectively, and comparative information will be revised. The mine generated $0.3 million Canadian in cash margin during the month of March 2025 with cash costs of $5.98 per pound Canadian or $4.16 US. All interstating costs of $6.65 per pound or $4.63 U.S.

Scott Gilbert: Planned equipment, exploration and evaluation assets, reclamation obligations, deferred revenue, and deferred taxes are all subject to change. Any adjustments made will be recognized retrospectively and comparative information will be revised. The mine generated CAD 20.3 million in cash margin during the month of March 2025, with cash costs of CAD 5.98 per pound, or $4.16 US. All-in sustaining costs of CAD 6.65 per pound or $4.63 US. For Q1 2025, the company had operating cash outflow of CAD 2.6 million and free cash outflow of CAD 10.9 million. Our cash balance at 31 March 2025 was CAD 38.3 million. The company raised CAD 33.5 million of proceeds through the private placement, which closed on 5 March 2025, which included CAD 23.5 million from convertible debentures and CAD 10 million from equity.

Jeff Hoffman: Finally equipment exploration and evaluation assets reclamation obligations deferred revenue and deferred taxes are all subject to change.

Jeff Hoffman: Any adjustments made will be recognized retrospectively and comparative information will be revised.

Jeff Hoffman: The mine generated 40.

Jeff Hoffman: $3 million Canadian and cash margin during the month of March 'twenty, 'twenty, five with cash costs of $5.98 per pound Canadian or $4 16.

Jeff Hoffman: U S.

Jeff Hoffman: All in sustaining costs of 665 per pound or.

Jeff Hoffman: 463 U S for.

Scott Gilbert: Q1 2025, the company had operating cash flow, cash outflow of $2.6 million and free cash outflow of $10.9 million. Our cash balance at March 31st, 2025 was $38.3 million. The company raised $33.5 million of proceeds through the private placement, which closed on March 5th, 2025, which included $23.5 million from Convertible Ventures and $10 million In connection with the acquisition of the KGHM assets, the company entered into a letter of credit facility with the Federation de Castes-Béjardins de Québec. pursuant to which the company can obtain letters of credit having an aggregate maximum face amount of $12 million.

Jeff Hoffman: For Q1 2025, the company had operating cash flow cash outflow of $2 6 million and free cash outflow of $10 9 million.

Jeff Hoffman: Our cash balance at March 31st identified $38 million.

Jeff Hoffman: We raised $33 5 million of proceeds through the private placement, which closed on March 2025, which included $23 5 million.

Jeff Hoffman: Payable debentures and 10 million from equity.

Scott Gilbert: In connection with the acquisition of the KGHM assets, the company entered into a letter of credit facility with Fédération des caisses Desjardins du Québec, pursuant to which the company can obtain letters of credit having an aggregate maximum face amount of CAD 12 million. At 31 March 2025, the company had drawn down CAD 10.3 million under the LC facility. On 31 March 2025, PNCI, the subsidiary of the company, entered into a factoring agreement with Desjardins. The aggregate amount factored under the agreement at any one time is limited to CAD 24 million. At 31 March 2025, the company has not factored any of the receivables. I will now hand the call back to Jason for some final comments on the quarter.

Jeff Hoffman: In connection with the acquisition of the K G. H M assets the company entered into a letter of credit facility.

Jeff Hoffman: Iteration to cast beige are down.

Jeff Hoffman: Correct.

Jeff Hoffman: She went to which the company cannot obtain letters of credit having an aggregate maximum face amount of $12 million at March 31st 2025, The company had drawn down $10 3 million and do the LC facility.

Scott Gilbert: At March 31, 2025, the company had drawn down $10.3 million under the LC facility.

Scott Gilbert: On March 31st, 2025, PNCI, the subsidiary of the company, entered into a factoring agreement with Desjardins. The aggregate amount factored under the agreement at any one time is limited to $24 million. At March 31st, 2025, the company has not factored any of the receivables.

Jeff Hoffman: At March 31, 25 P M C I.

Jeff Hoffman: The subsidiary of the company and entered into a factoring agreement with Desjardin.

Jeff Hoffman: The aggregate amount factor B agreement at any one time.

Jeff Hoffman: $24 million at March 31st 2025, the company has not factored any of the receivables I will now hand, the call back to Jason for some final comments on the quarter.

Jason Jessop: I will now hand the call back to Jason for some final comments on the quarter. Thanks, Scott.

Jason Jessup: Thanks, Scott. I'll now give a brief overview of current activities at McCreedy West, Levack, and Crean Hill, followed by a question and answer session, closing remarks. At our McCreedy West mine, we're focused on optimizing the current operation, the key to this optimization is increased underground development footage and sustaining capital investment at the mine. The previous owner of this mine did not view McCreedy West as a core asset, therefore it did not receive the capital and attention that we believe it deserved. I believe that we have the operations leadership, the mining and maintenance talent, and the technical expertise to unlock the potential in this mine. The rest of this year will be focused on underground mine development for long-term sustainability and providing access to the unmined western extension of the 700 copper zone.

Jason: Thanks Scott.

Jason Jessop: I'll now give a brief overview of current activities at McCree, West, Levack and Crane Hill, followed by a question and answer session and then closing remarks. So at our MacReady West mine, we're focused on optimizing the current operation, and the key to this optimization is increased underground development footage and sustaining capital investment at the mine. The previous owner of this mine did not view Macquarie West as a core asset, therefore it did not receive the capital and attention that we believe it deserves. I believe that we have the operations leadership, the mining and maintenance talent, and the technical expertise to unlock the potential in this mine.

Jeff Hoffman: I'll now give a brief overview of current activities at who you are slovakian cranial followed by a question and answer session and then closing remarks.

Speaker Change: So I don't know <unk> mine, we're focused on optimizing the current operation and the key to this optimization is increased underground development footage and sustaining capital investment at the mine.

Speaker Change: The previous owner of this mine did not view mccree last as a core asset. Therefore, it did not receive the capital and attention that we believe it deserved.

Speaker Change: I believe that we have the operations leadership, the mining and maintenance talent and the technical expertise to unlock the potential in this mine.

Jason Jessop: The rest of this year will be focused on underground mine development for long-term sustainability and providing access to the unmined western extension of the 700 copper zone. Diamond drilling at MacCready West in Q1 focused on production support, primarily in the 1010 and the 1150 levels of the 700 copper zone. Two drill rigs are active in the area, defining remnant mineralization adjacent to historical stoping, which will support detailed mine planning. As development progresses this year, it will provide new diamond drill platforms to drill holes outside of existing resources. I would expect that the first results from this drilling will be reported in Q4 this year.

Speaker Change: Rest of this year will be focused on underground mine development for long term sustainability and providing access to the unwind western extension of the 700 copper zone.

Jason Jessup: Diamond drilling at McCreedy West in Q1 focused on production support, primarily in the 1010 and the 1150 levels of the 700 copper zone. Two drill rigs are active in the area, defining remnant mineralization adjacent to historical stoping, which will support detailed mine planning. As development progresses this year, it will provide new diamond drill platforms to drill holes outside of existing resources. I would expect that the first results from this drilling will be reported in Q4 of this year. The Levack mine was operated by KGHM International until 2019 and is currently under care and maintenance. There are two surface diamond drill rigs active at Levack, and a third drill was mobilized to site in late April. The 2025 drilling program at Levack is designed to support Magna's internal Levack mine restart study and exploration for new footwall and contact style deposits.

Speaker Change: Diamond drilling at Mccreedy West in Q1 focused on production support primarily in the 10 10, and 11 50 levels of the 700 copper zone.

Speaker Change: Two drill rigs are active in the area defining remanent mineralization adjacent historic historical stoping, which will support detailed mine planning.

Speaker Change: Development progresses. This year, it will provide new diamond drill platforms to drill holes outside of existing resources.

Speaker Change: I would expect that the first results from this drilling will be reported in Q4 of this year.

Jason Jessop: The Levac Mine was operated by KGHM International until 2019 and is currently under care and maintenance. There are two surface diamond drill rigs active at Lavac and a third drill was mobilized to site in late April. The 2025 drilling program at LEVAC is designed to support MAGNA's Internal LEVAC Mine Restart Study. and exploration for new footwall and contact style deposits. Since the end of March, drilling at Levac has been targeting the near-surface keel footwall copper zone and deep footwall copper targets in previously underexplored areas of the Levac mine. The drilling done in the keel zone has provided Magna with more certainty in the orientation of the vein trend and provided fresh core which can be used for metallurgical testing as required.

Speaker Change: The Lavage mine was operated by K G. HN International until 2019 and is currently under care and maintenance.

Speaker Change: There are two surface diamond drill.

Speaker Change: Rigs active out in Nevada, and a third drill was mobilized to site in late April.

Speaker Change: The 2025 drilling program at Lavage is designed to support Magna's internal lavage mine restart study.

Speaker Change: And exploration for new foot wall and contact style deposits.

Jason Jessup: Since the end of March, drilling at Levack has been targeting the near surface keel footwall copper zone and deep footwall copper targets in previously underexplored areas of Levack mine. The drilling done in the keel zone has provided Magna with more certainty in the orientation of the vein trend and provided fresh core, which can be used for metallurgical testing as required. We are now able to move away from the known keel zone mineralization and begin expansion drilling with the goal of growing the resource closer to surface and to the east towards the main ore body. Now moving on to Crean Hill. In Q1 of 2025, we continued to advance engineering and technical work at our Crean Hill project.

Speaker Change: At the end of March drilling out Levade, because it's been targeting the near surface keel footwall copper zone and deep footwall copper targets in previously under explored areas of black box.

Speaker Change: The drilling done and the Killzone has provided magna with more certainty and the orientation of the vein trend and provided fresh core which can be used for medical metallurgical testing that's required.

Jason Jessop: We are now able to move away from the known field zone mineralization and begin expansion drilling with the goal of growing the resource closer to surface and to the east towards the main ore body.

Speaker Change: We are now able to move away from the known appeals, though mineralization and begin expansion drilling with the goal of growing the resort closer to surface and to the east coast the main ore body.

Jason Jessop: Now moving on to Crane Hill. In Q1 of 2025, we continue to advance engineering and technical work at our Crane Hill project. The second half of 2025 will be moving forward with power engineering, further commercial discussions, and water pretreatment design and installation activities as we continue to advance that project.

Speaker Change: Now moving onto Crane Hill in Q1 of 2025, we continue to advance engineering and technical work at our Greenfield project.

Jason Jessup: The H2 2025, we'll be moving forward with power engineering, further commercial discussions, and water pretreatment design and installation activities as we continue to advance that project. I will now open up the line for questions.

Jeff Hoffman: Second half of 2025 will be moving forward with power engineering further commercial discussions and water pretreatment design and installation activity as we continue to advance that project.

Operator: I will now open up the line for questions. We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing the button. To withdraw your questions, please press star, then two. We will pause for a moment as callers join the queue.

Jeff Hoffman: I will now open up the line for questions.

Jeff Hoffman: Yeah.

Operator 2: We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question today comes from Brandon Gaspar with SCP Resource Finance. Please go ahead.

Jeff Hoffman: We will now begin the question and answer session.

Speaker Change: He joined the question queue you May Press Star then one on your telephone keypad.

Cowen: You look here at Cowen acknowledging your request.

Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: So let's try your question. Please press Star then two.

Jeff Hoffman: We will pause for a moment as callers join the queue.

Brandon Gaspar: The first question today comes from Brandon Gaspar with SCP Resource Finance. Please go ahead. Hi, Dents. Good update here today. I was just wondering about maybe a little bit more detail on the initiatives that you guys have initiated since taking over the asset in terms of development rates and costs or whatever. or throughput. So maybe you could just touch on that sort of what were they doing before when KGHM was operating it and and how you guys improved it all right.

Speaker Change: The first question today comes from Brandon Gaslog with S. C. P resource finance. Please go ahead.

Brandon Gaspar: Hi, gents. Good update here today. I was just wondering about maybe a little bit more detail on the initiatives that you guys have initiated since taking over the asset in terms of development rates, and costs or throughput. Maybe you could just touch on that, sort of what were they doing before, when KGHM was operating it and how you guys improved it already?

Brandon Gaslog: Hi, Gents, a good update here today.

Brandon Gaslog: Just wondering about maybe a little bit more detail on the initiatives that you guys have and initiative.

Jeff Hoffman: <unk> since taking over the asset in terms of development rates and costs or or.

Jeff Hoffman: Our throughput so maybe you could just touch on that sort of what were they doing before.

Jeff Hoffman: When K G. H M was operating it and and how you guys are approved it already.

Geoff Huffman: Jeff, you want to take that one? Yeah, absolutely. Brandon, thanks for the question. Great question. As Jason said, development has really been the focus, you know, as far as key performance indicators and just understanding resources. So, you know, from a labour perspective, the mine operated up until we took over in March on a shift schedule that only allowed 12 out of 14 shifts to be manned up at the mine. So, nobody was working within the underground McCready West operation on Saturday nights and Sunday nights. So, we moved to maximized, you know, just coverage there by changing the shift schedule immediately.

Jason Jessup: Jess, you want to take that one?

Jeff Hoffman: Jeff you want to take that one.

Jeff Huffman: Yeah, absolutely. Brandon, thanks for the question. Great question. As Jason said, development has really been the focus as far as key performance indicators, and just understanding resources. From a labor perspective, the mine operated up until we took over in March on a shift schedule that only allowed 12 out of 14 shifts to be manned up at the mine. Nobody was working within the underground McCreedy West operation on Saturday nights and Sunday nights. We moved to maximized coverage there by changing the shift schedule immediately. Due to the fact we're in a unionized environment, we did have some dealings with the workforce and the union to make sure that that was a smooth transition, which happened in April.

Jeff Hoffman: Yeah, absolutely Brandon Thanks for the question a great question.

Speaker Change: As Jason said development has really been the focus are you know as far as key performance indicators.

Jeff Hoffman: And just understanding resources. So you know from a from a labor perspective are the mine operated up until we took over in March on a ship schedule that only allowed 12 out of 14 shifts to be manned up at the mine. So nobody was a working within the Undergrounds mccurdy.

Jeff Hoffman: West Operation on Saturday Night, and Sunday Night, So we moved to maximized.

Jeff Hoffman: Coverage, thereby changing the shift schedule immediately so you.

Geoff Huffman: So, you know, due to the fact we're in a unionized environment, we did have some you know, dealings with the workforce in the union to make sure that that was a smooth transition, which happens in April. In order to do that as well, we started to recruit to fill more positions as we spread those shift schedules out across a complete sort of 24-7 coverage. So lots going on with respect to the labor workforce with equipment as well, doing an analysis, essentially, of what we had for, you know, development and production gear. A lot of the equipment is quite aged.

Jeff Hoffman: Due to the fact, we're in a unionized environment, we did have some.

Jeff Hoffman: You know dealings with the with the workforce of the unions to make sure that that was a smooth transition.

Jeff Hoffman: Which happens in.

Jeff Hoffman: In April.

Jeff Huffman: In order to do that as well, we started to recruit to fill more positions as we spread those shift schedules out across a complete sort of 24/7 coverage. Lots going on with respect to the labor workforce. With equipment as well, doing an analysis essentially of what we had for development and production gear. A lot of the equipment is quite aged, so we've moved on our fleet management strategy. In March, I would say, we moved to understanding the fleet management strategy and putting that strategy together, and we will begin to execute that in Q2 with some new equipment coming into the mine. As far as output, as Jason alluded to, this was a non-core asset, not a whole lot of development being put into the operation historically. We moved to increase, I believe we started development on 7 March.

Jeff Hoffman: In order to do that as well we started to recruit to fill more positions as we spread those shift schedules out across a complete sort of $24 seven coverage. So a lots going on with respect to the labor workforce with equipment as well doing that analysis.

Jeff Hoffman: This essentially.

Jeff Hoffman: What we had for development and production gear them, while the equipment is quite aged and so we've moved our fleet management strategy.

Geoff Huffman: So, you know, we've moved on our fleet management strategy. We received well, in March, I would say we moved to understanding the fleet management strategy and putting that strategy together and we will begin to execute that in Q2 with some new equipment coming into the mine. As far as output, as Jason alluded to, this was a non-core asset, not a whole lot of development being put into the operation historically, so we moved to increase, I believe we started development on March 7th. We increased immediately by 10% to 15% on just average daily output and will continue to Q4 to increase that.

Jeff Hoffman: We received.

Jeff Hoffman: Well in March I would say, we moved to understanding the fleet management strategy and putting that strategy together and we will begin to execute that in.

Jeff Hoffman: In Q2, with some new equipment coming into the mine.

Speaker Change: As far as output as Jason alluded to this was a non core asset not a whole lot of developments being put into the operation historically.

Jeff Hoffman: So we moved to increase our I believe we started development on March 7th we.

Jeff Huffman: We increased immediately by 10% to 15% on just average daily output, and will continue into Q4 to increase that. Lots of initiatives going that's just specifically development, general business, essentially, every department, Brandon, we've got working on business improvement initiatives. Lots identified. Yeah, lots going on.

Jeff Hoffman: We increased immediately by 10% to 15% on.

Jeff Hoffman: Average daily output and continue will continue into Q4 too to increase that.

Geoff Huffman: So, lots of initiatives going, that's just specifically in development, general business, essentially every department, Brandon, we've got working on business improvement initiatives, lots identified and yeah, lots going on.

Jeff Hoffman: So lots of initiatives going.

Jeff Hoffman: You don't just specifically in development.

Jeff Hoffman: General business essentially.

Brandon Gaslog: Every department Brandon, we've got working on our business improvement initiatives lots identified them.

Speaker Change: Yeah, well at school.

Brandon Gaspar: Excellent, thanks for that.

Brandon Gaspar: Excellent. Thanks for that. What does steady state sort of look like for you guys by the end of the year, in terms of throughput? The implied tons per day by this 1 month obviously isn't that 600, 700 tons per day, for the quarter that was when you guys took it over. Is steady state towards H2 of the year still on that sort of above 1,000 targeted?

Jeff Hoffman: Excellent thanks for that.

Jeff Hoffman: What sort of.

Brandon Gaspar: What does steady state sort of look like for you guys by the end of the year in terms of throughput? The implied tons per day by this one month obviously isn't that 6-700 tons per day for the quarter that was, you know, when you guys took it over. Is steady state towards the second half of the year still not sort of above 1,000 targeted?

Jeff Hoffman: What the steady state sort of looked like for you guys by the end of the year in terms of throughput.

Jeff Hoffman: The implied tons per day by this one months, obviously isn't that.

Jeff Hoffman: Six 700 tonnes per day for.

Jeff Hoffman: For the quarter that was you know when you guys took it over.

Speaker Change: Is it steady state towards the second half, you're still not sort of above a thousand targeted.

Jeff Hoffman: Yes.

Jeff Hoffman: Yes.

Geoff Huffman: Yeah, I mean, yeah, Jason, I'll, I'll just maybe put it across to you. I'm not 100% sure how forward looking we we want to discuss on this call. Sure.

Jeff Huffman: Yeah. Jason, I'll just maybe put it across to you. I'm not 100% sure how forward-looking we want to discuss on this call.

Jeff Hoffman: Yeah, I mean, yeah, Jason I'll I'll, just maybe put it across the year I'm not 100% sure how forward looking we want to discuss on this call.

Jason Jessup: Sure. Yeah, that was going to be part of my answer. We still see a great potential in increasing throughput, but we also recognize there is a very big importance on quality. So it's a balance between getting the overall tonnage to at the optimal level where we can maximize revenues and really maximize profits. That comes down to both grade and tons. So to answer your question, I do believe we're on track to produce an average of more than 1,000 tons per day. What that final number looks like, it's really going to depend on the grade, and we still have more work to do in diamond drilling on that, and this will be a continual optimization out to the end of the year.

Jeff Hoffman: Sure.

Jason Jessop: Yeah, and that was gonna be part of my answer. We, you know, we still see a great potential in increasing throughput, but we also recognize there is a very big importance on quality. And so it's a balance between getting, you know, the overall tonnage. of Canada.

Jeff Hoffman: Yeah, and that was going to be part of my answer.

Jeff Hoffman: No, we still see a great potential and increasing throughput, but we also recognize there is a very big importance on quality and so it's a balance between getting you know the the overall tonnage.

Jeff Hoffman: Chad the optimal level, where we can maximize revenues and really maximize profits and.

Jason Jessop: Today, we are going to be looking at how to maximize revenues and profits at the optimal That comes down to both grade and tonnes. To answer your question, I do believe we are on track to produce an average of more than 1,000 tonnes per day. What that final number looks like is really going to depend on the grade. We still have more work to do in diamond drilling on that and this will be a continual optimization out to the end of the year.

Jeff Hoffman: And that comes down to both grade and tonnes. So to answer your question I do believe we're on track to.

Jeff Hoffman: Produce an average of more than 1000 tonnes per day.

Jeff Hoffman: What that final number looks like its really going to depend on you know the grade and and we still have more work to do in diamond drilling on that in and this will be a continual optimization up to the end of the year.

Brandon Gaspar: Understood. My last question is just about the exploration that you have planned. Is there plans to do a resource update after all this drilling is done, and when would you look to do that?

Jeff Hoffman: Understood.

Brandon Gaspar: My last question is just about the exploration that you have planned. Is there plans to do a resource update after all this drilling is done and when would you look to do that? At this time, I can't give firm guidance on when we will put out another resource update at the MacReady West Mine. We will be looking at that in Q4, and our ambition, our hope, is to be in a position where we'll be able to give some guidance and perhaps an updated resource in Q1 of 2026, but at this time, that's not certain. It could be later.

Jeff Hoffman: And my last question.

Jeff Hoffman: It is just about the exploration that you have planned is there plans to do a resource update after all this drilling is done and sort of when when would you look to to do that.

Jason Jessup: At this time, I can't give firm guidance on when we will put out another resource update at the McCreedy West mine. We will be looking at that in Q4. Our ambition, our hope is to be in a position where we'll be able to give some guidance and perhaps an updated resource in Q1 of 2026. At this time, that's not certain. It could be later.

Jeff Hoffman: At this time.

Jeff Hoffman: I can't give firm guidance on when we will put out another resource update at the <unk> mine.

Jeff Hoffman: We'll be looking at that in Q4.

Jeff Hoffman: And our ambition our hope is to be in a position, where we will be able to give them.

Jeff Hoffman: Some guidance and perhaps an updated resource.

Jeff Hoffman: In Q1 of 'twenty 'twenty six but at this time.

Jeff Hoffman: That's not certain it could be later.

Brandon Gaspar: Okay. Thanks, guys. I'll leave the questions to everyone else. Cheers.

Jeff Hoffman: Okay.

Brandon Gaspar: Thanks, guys. I'll leave the questions to everyone else. Cheers.

Jeff Hoffman: Thanks, guys.

Jeff Hoffman: I'll leave the questions everyone else.

Operator: As a reminder, if you would like to ask a question, please press star, then 1 to join the question queue.

Operator 2: This concludes our question and answer session. I would like to turn the conference back over to Jason Jessup for any closing remarks.

Jeff Hoffman: As a reminder, if you would like to ask a question. Please press Star then one to join the question queue.

Operator: This concludes our question and answer session.

Jeff Hoffman: This concludes our question and answer session.

Jason Jessop: I would like to turn the conference back over to Jason Jessup for the closing remarks. Thank you. Again, Q1 was a transformative quarter for our company and we continue to execute on our strategy for growth around three pillars, production, exploration and acquisitions of non-core assets. We are planning on providing some guidance as to the production and costs for the second half of the year sometime in early Q3. We'll be continuing our exploration and infill drilling for the rest of the year, and we'll provide results on a regular basis. We are also expecting to close the previously announced property acquisition from Northex, which will grow our exploration property portfolio in Sudbury quite substantially.

Jason: Like to turn the conference back over to Jason for any closing remarks.

Jason Jessup: Thank you. Again, Q1 was a transformative quarter for our company, and we continue to execute on our strategy for growth around three pillars, production, exploration, and acquisitions of non-core assets. We are planning on providing some guidance as to the production and costs for the H2 of the year sometime in early Q3. We'll be continuing our exploration and infill drilling for the rest of the year, and we'll provide results on a regular basis. We're also expecting to close the previously announced property acquisition from NorthX, which will grow our exploration property portfolio in Sudbury quite substantially. We have up-listed recently from the OTCQB to the OTCQX, and plan to up-list to the TSX from the TSX Venture later this year.

Jeff Hoffman: Thank you.

Jeff Hoffman: Again, Q1 was a transformative quarter for our company and we continue to execute on our strategy for growth around three pillars production exploration and acquisitions of noncore assets.

Jeff Hoffman: We are planning on providing some guidance as to the production and costs for the second half of the year sometime in early Q3.

Jeff Hoffman: We will be continuing our exploration and infill drilling for the rest of the year and will provide results on a regular basis.

Jeff Hoffman: We're also expecting to close the previously announced property acquisition from North X, which will grow our exploration property portfolio in Sudbury quite substantially.

Jason Jessop: We have uplisted recently to the OTCQB, from the OTCQB to the OTCQX. and plan to uplist to the TSX from the TSX Venture later this year. I believe that over the next two quarters we will begin to demonstrate the impact of the changes and optimization initiatives we are currently undertaking at MacReady West and this will set up Magna Mining for a strong 2026. Thank you very much.

Jeff Hoffman: We've uplifted recently to the OTC QB from the OTC QB each of the OTC.

Jeff Hoffman: And plan to uplift to the PSX from the venture later this year.

Jason Jessup: I believe that over the next 2 quarters, we will begin to demonstrate the impact of the changes and optimization initiatives we are currently undertaking at McCreedy West, and this will set up Magna Mining for a strong 2026. Thank you very much.

Jason Jessop: I believe that.

Jeff Hoffman: Over the next two quarters, we will begin to demonstrate the impact of the changes and optimization initiatives. We are currently undertaking at Mccreedy West and this will set up magna mining for a strong 2026.

Jeff Hoffman: Thank you very much.

Operator: This brings to a close today's conference call. You may now disconnect your line. Thank you for participating and have a pleasant day.

Operator 2: This brings to a close today's conference call. You may now disconnect your lines. Thank you for participating and have a pleasant day.

Speaker Change: This brings to close today's conference call you may now disconnect your lines. Thank you.

Jeff Hoffman: You for participating and have a pleasant day.

Jeff Hoffman: Okay.

Jeff Hoffman: [music].

Jeff Hoffman: Yeah.