Q4 2025 Magna Mining Inc Earnings Call

April 21, 2026

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Magna Mining Inc. Q4 Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. To ask a question via the web, please type your question into the Q&A box and click submit. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Paul Fowler, Executive Vice President. Please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone; you will then hear an automated message advising your hand is raised.

Speaker #1: To withdraw your question, please press star 11 again. To ask a question via the web, please type your question into the Q&A box and click Submit.

Speaker #1: And please be advised that today's conference is being recorded. I would now like to turn the conference over to Paul Fowler, Executive Vice President.

Speaker #1: Please go ahead.

Paul Fowler: Thank you very much and good morning, everyone. Before getting started, I would 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 the press release announcing our Q4 operating and financial results 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 those expressed or implied by such statements. Any scientific or technical commentary on this call has been reviewed and approved by David King, our Senior Vice President, Exploration and Geoscience, who is a qualified person under National Instrument 43-101.

Speaker #2: Thank you very much, and good morning, everyone. Before getting started, I would like to mention that we may make forward-looking statements or provide forward-looking information on this call in accordance with applicable securities laws.

Speaker #2: Please review the press release announcing our Q4 operating and financial results 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.

Speaker #2: And for the risk factors applicable to such forward-looking statements that could cause actual results to be materially different from those expressed or implied by such statements.

Speaker #2: Any scientific or technical commentary on this call has been reviewed and approved by David King, our Senior Vice President, Exploration and Geoscience, who is a qualified person under National Instrument 43-101.

Paul Fowler: With respect to non-IFRS performance measures that are referred to on this call, please refer to the reconciliations and measures of performance prepared in accordance with IFRS accounting standards in 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 me today on the call, CEO, Jason Jessup, COO, Jeff Huffman, CFO, Scott Gilbert, our Senior Vice President, Exploration and Geoscience, Dave King, General Counsel, Tim Bradburn, and SVP, Capital Markets, Greg Huffman. Following formal remarks from management, we will open the line for further questions. We may be able to take some calls submitted via webcast as well. I would now like to introduce Magna Mining CEO, Jason Jessup, to comment on the quarterly results. Over to you, Jason.

Speaker #2: 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 in the company's most recently filed MD&A.

Speaker #2: All figures are in Canadian dollars unless otherwise noted. Our press release, MD&A, and financial statements are available on Cedar Plus and our corporate website.

Speaker #2: With me today on the call are CEO Jason Jessup, COO Jeff Huffman, CFO Scott Gilbert, our Senior Vice President of Exploration and Geoscience, Dave King, General Counsel Tim Bradburn, and SVP, Capital Markets, Greg Huffman.

Speaker #2: Following formal remarks from management, we will open the line for further questions. We may be able to take some calls submitted via webcast as well.

Speaker #2: I would now like to introduce Magna Mining CEO Jason Jessup to comment on the quarterly results. Over to you, Jason.

Jason Jessup: Thank you, Paul. Q4 2025 was Magna's third full quarter operating the McCreedy West Mine in Sudbury, Ontario. Our team at McCreedy West safely mined and shipped 84,954 tons from the 700 Footwall Copper Zone to Vale's Clarabelle Mill, an increase of 13% over Q3. I am proud to report that Magna realized zero reportable injuries in Q4. The mine continued to focus on accessing new mining areas, having multiple mucking horizons, and bringing flexibility and consistency to the operation. During Q4, we continued to grow our workforce at the McCreedy West Mine, as well as our project team within Magna. Growing our team with key personnel supports our vision of becoming a multi-mine producer in the Sudbury Basin over the next three years.

Speaker #3: Thank you, Paul. The fourth quarter of 2025 was Magna's third full quarter operating the McCready West Mine in Sudbury, Ontario. Our team at McCready West safely mined 84,954 tons from the 700-foot wall copper zone to Vale's Clarabelle Mill, an increase of 13% over Q3.

Speaker #3: I am proud to report that Magna realized zero reportable injuries in Q4. The mine continued to focus on accessing new mining areas, having multiple mucking horizons, and bringing flexibility and consistency to the operation.

Speaker #3: During the fourth quarter, we continued to grow our workforce at the McCready West Mine, as well as our project team within Magna. Growing our team with key personnel supports our vision of becoming a multi-mine producer in the Sudbury Basin over the next three years.

Jason Jessup: During Q4, we continued to advance work at the adjacent Levack mine towards a potential restart decision. The work at Levack included initiating development in the 3,900 level ramp to connect to the 3,600 level, as well as beginning an underground exploration diamond drilling program, and commencing a preliminary economic assessment study on Levack. We are well-funded to continue this work, and following significant investment during Q2 and Q3, we generated a positive cash margin at McCreedy West in Q4 that can contribute to funding our future growth plans. I would now like to hand over to our CFO, Scott Gilbert, to present an overview of our financial performance in Q4.

Speaker #3: During Q4, we continued to advance work at the adjacent Lavac Mine towards a potential restart decision. The work at Lavac included initiating development in the 3,900-level ramp to connect to the 3,600-level, as well as beginning an underground exploration diamond drilling program and commencing a preliminary economic assessment study on Lavac.

Speaker #3: We are well funded to continue this work, and following significant investment during Q2 and Q3, we generated a positive cash margin at McCready West in Q4 that can contribute to funding our future growth plans.

Speaker #3: I would now like to hand over to our CFO, Scott Gilbert, to present an overview of our financial performance in Q4.

Scott Gilbert: Thanks, Jason. In Q4 2025, the McCreedy West Mine generated CAD 24.8 million of net revenue and CAD 3.3 million in cash margin, with cash costs of $3.08 and all-in sustaining costs of $3.49 per copper equivalent pound. Under the streaming agreement at McCreedy West, we sold 1,627 gold equivalent ounces in Q4 at $1,200 per ounce US, which generated $2 million US. The streaming expenses are reclassified from cost of sales to revenue, which has resulted in a reduction in revenue, cost of sales, average realized price per copper equivalent payable pound, cash cost per copper equivalent pound, and all-in sustaining cost per copper equivalent payable pound. For Q4 2025, the company had operating cash outflow of CAD 10.2 million and free cash outflow of CAD 11.3 million. Our cash balance at December 31, 2025, was CAD 55.9 million.

Speaker #4: Thanks, Jason. In Q4 2025, the McCready West Mine generated $24.8 million of net revenue, and $3.3 million in cash margin, with cash costs of $3.08 and all-in sustaining costs of $3.49 per copper equivalent pound.

Speaker #4: Under the streaming agreement at McCready West, we sold 1,627 gold equivalent ounces in Q4 at $1,200 per ounce US, which generated $2 million US.

Speaker #4: The streaming expense has been reclassified from cost of sales to revenue, which has resulted in a reduction in revenue, cost of sales, average realized price per copper equivalent payable pound, cash cost per copper equivalent pound, and all-in sustaining cost per copper equivalent payable pound.

Speaker #4: For Q4 2025, the company had an operating cash outflow of $10.2 million and a free cash outflow of $11.3 million. Our cash balance at December 31, 2025, was $55.9 million.

Scott Gilbert: In Q4 2025, we finalized the purchase price allocation for the acquisition of the KGHM mining operations and exploration assets. The bargain purchase gain decreased by CAD 17.1 million, from CAD 36.6 million to CAD 19.5 million, primarily due to the updated McCreedy West life of mine model. I will now hand the call over to our COO, Jeff Huffman, for an overview of our operational performance in the quarter.

Speaker #4: In Q4 2025, we finalized the purchase price allocation for the acquisition of the KGHM mining operations and exploration assets. The bargain purchase gain decreased by $17.1 million, from $36.6 million to $19.5 million, primarily due to the updated McCready West life-of-mine model.

Speaker #4: I will now hand the call over to our COO, Jeff Huffman, for an overview of our operational performance for the quarter.

Jeff Huffman: Thanks, Scott, and good morning, everybody. As stated by Jason, in Q4, no reportable injuries were realized across the company. With the amount of change this workforce has seen in the 10 months under Magna ownership leading up to the end of 2025, this is a noteworthy achievement. Our end of year total reportable injury frequency rate, or TRIFR, is industry-leading at 1.51, with all hours worked on Magna sites, including those of the many contracting firms we work with alongside. In Q4, McCreedy West produced 5 million pounds of copper equivalent at an average copper equivalent grade of 3.41%. As outlined in our Q4 production results press release, access to higher grade stopes was achieved in early November and resulted in a significant increase in precious metals production compared to Q3.

Speaker #2: Thanks, Scott, and good morning, everybody. As stated by Jason in Q4, no reportable injuries were realized across the company. With the amount of change this workforce has seen in the 10 months under Magna ownership leading up to the end of 2025, this is a noteworthy achievement.

Speaker #2: Our end-of-year total reportable injury frequency rate, or TRIFR, is industry-leading at 1.51, with all hours worked on Magna sites, including those of the many contracting firms we work with alongside.

Speaker #2: In Q4, McCready West produced 5 million pounds of copper equivalent at an average copper equivalent grade of 3.41%. As outlined in our Q4 production results press release, access to higher-grade stopes was achieved in early November and resulted in a significant increase in precious metals production compared to Q3.

Jeff Huffman: Underground development remained a focus and totaled 1,688 feet in Q4, which was in line with our expectations. Magna's development crews are now fully staffed, and we are no longer using mining contractors for the underground development at McCreedy West. Sustaining capital expenditures on equipment, development, and exploration in the quarter was CAD 1.1 million. In late September, a third diamond drill was mobilized underground. This contributed, alongside efficiencies realized in the drills already on site, to almost doubling the diamond drill footage at McCreedy West in Q4, totaling 29,334 feet to support both our 12-month mine plan and longer-term planning. I would now like to hand it over to Jason Jessup for some additional comments.

Speaker #2: Underground development remained a focus and totaled 1,688 feet in Q4, which was in line with our expectations. Magna's development crews are now fully staffed, and we are no longer using mining contractors for the underground development at McCreedy West.

Speaker #2: Sustaining capital expenditures on equipment, development, and exploration in the quarter was $1.1 million. In late September, a third diamond drill was mobilized underground. This contributed, alongside efficiencies realized in the drills already on site, to almost doubling the diamond drill footage at McCreedy West in Q4, totaling 29,334 feet to support both our 12-month mine plan and longer-term planning.

Speaker #2: I would now like to hand it over to Jason Jessup for some additional comments.

Jason Jessup: Thanks, Jeff. I believe that we ended 2025 well-positioned to benefit from the current metal price environment in 2026. The improvements to the operations at McCreedy West are a testament to the quality of people we employ and the culture within our organization that we have fostered. We have turned the corner at McCreedy West, with it becoming a safe, profitable mining operation. On the back of these strong Q4 results, we reiterate our previous operational guidance for 2026, which will be slightly weighted to the H2 2026 due to stope sequencing. At our adjacent Levack mine, we have made great progress in advancing the project towards a restart decision. A PEA is well underway and will incorporate the NI 43-101 resource estimate released last fall. The PEA is on track to be completed in Q3 2026.

Speaker #3: Thanks, Jeff. I believe that we ended 2025 well-positioned to benefit from the current metal price environment in 2026. The improvements to the operations at McCready West are a testament to the quality of people we employ and the culture within our organization that we have fostered.

Speaker #3: We have turned the corner at McCready West, with it becoming a safe, profitable mining operation. On the back of these strong Q4 results, we reiterate our previous operational guidance for 2026, which will be slightly weighted to the second half of 2026 due to stope sequencing.

Speaker #3: At our adjacent Lavac Mine, we have made great progress in advancing the project towards a restart decision. A PEA is well underway and will incorporate the NI 43-101 resource estimate released last fall.

Speaker #3: The PEA is on track to be completed in Q3 2026. The study will not incorporate our recently discovered R2 footwall zone, as it does not yet have a compliant resource estimate.

Jason Jessup: The study will not incorporate our recently discovered R2 footwall zone, as it does not yet have a compliant resource estimate. We view the R2 footwall zone as potential upside to the PEA. In 2026, we are continuing to diamond drill from surface and underground drilling platforms to further expand and delineate the R2 footwall zone. Following the completion of the 3,900 level up ramp to facilitate connection to the adjacent Coleman mine, we have recently accessed the intermediate ore body at Levack with new development and will soon be developing an exploration drift horizontally from the 2,950 level towards the R2 footwall zone. This drive will provide a drilling platform where shorter diamond drill holes can delineate the veins at R2 and could be used for future access to this zone.

Speaker #3: We view the R2 footwall zone as potential upside to the PEA. In 2026, we are continuing to diamond drill from surface and underground drilling platforms to further expand and delineate the R2 footwall zone.

Speaker #3: Following the completion of the $3,900 level up ramp to facilitate connection to the adjacent Coleman mine, we have recently accessed the intermediate ore body at Lavac with new development and will soon be developing an exploration drift horizontally from the 2,950 level towards the R2 footwall zone.

Speaker #3: This drive will provide a drilling platform where shorter diamond drill holes can delineate the veins at R2, and could be used for future access to this zone.

Jason Jessup: To aid in exploration development at Levack, we are working towards recommissioning the loading pocket in order to start hoisting waste to surface during 2026. This will also put us in a strong position to move forward with Levack following a restart decision. At our permitted Crean Hill mine, a pre-feasibility study is underway which builds on the 2024 PEA. Work continues on-site to prepare for grid power connection and installation of dewatering infrastructure. The pre-feasibility study is scheduled to be completed by the end of Q3 2026. In addition, we aim to finalize our up-listing to the TSX during the current quarter, as all documents have been submitted. Due to the shortening reporting timelines for issuers listed on the TSX and in line with common practice of our peer companies, as of Q1 2026, we will no longer release quarterly production results prior to our financial results.

Speaker #3: To aid in exploration development at Lavac, we are working towards recommissioning the loading pocket in order to start hoisting waste to surface during 2026.

Speaker #3: This will also put us in a strong position to move forward with Lavac following a restart decision. At our permitted Crane Hill Mine, a pre-feasibility study is underway, which builds on the 2024 PEA.

Speaker #3: Work continues on site to prepare for a grid power connection and insulation of dewatering infrastructure. The pre-feasibility study is scheduled to be completed by the end of Q3 2026.

Speaker #3: In addition, we aim to finalize our uplisting to the TSX during the current quarter, as all documents have been submitted. Due to the shortened reporting timelines for issuers listed on the TSX, and in line with the common practice of our peer companies, as of Q1 2026, we will no longer release quarterly production results prior to our financial results.

Jason Jessup: Finally, last week, we gathered in Sudbury to celebrate Magna's 10-year anniversary. I'd like to personally take this opportunity to thank all of our First Nation partners, local stakeholders, government representatives, employees, contractors, consultants, and shareholders for their loyal support as we look forward to the next 10 years of growth in Sudbury. Operator, we would now like to open up the line for questions.

Speaker #3: Finally, last week, we gathered in Sudbury to celebrate Magna's 10-year anniversary. I'd like to personally take this opportunity to thank all of our First Nation partners, local stakeholders, government representatives, employees, contractors, consultants, and shareholders for their loyal support as we look forward to the next 10 years of growth in Sudbury.

Speaker #3: Operator, we would now like to open up the line for questions.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. To ask a question via the web, please type your question into the Q&A box and click submit. Please stand by while we compile the Q&A roster. The first question will come from Dalton Baretto with Canaccord. Your line is now open.

Speaker #1: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Speaker #1: To ask a question via the web, please type your question into the Q&A box and click Submit. And please stand by while we compile the Q&A roster.

Speaker #1: And the first question will come from Dalton Barretto with Canaccord. Your line is now open.

Dalton Baretto: Yeah. Thanks, operator. Good morning, Jason and team. Congrats on turning McCreedy West around in Q4. Q1's behind us now. I'm just wondering if you can give us a sneak preview in terms of how things went. Thanks.

Speaker #4: Hey, thanks, Operator. Good morning, Jason and team. Congrats on turning McCready West around in Q4. Q1's behind us now. I'm just wondering if you can give us a sneak preview in terms of how things went.

Speaker #4: Thanks.

Jason Jessup: Yeah. What I can tell you is, we started off very strongly, and we finished very strongly, but we will not get into any more detail on the production. We will be putting out our financials and our financial statements in the next five weeks or so. I even say generally, I'm very pleased with Q1, and I think we are on track to do exactly what we said and reiterate our production guidance for 2026.

Speaker #3: Yeah, we are. What I can tell you is, you know, we started off very strongly, and, you know, we finished very strongly. But we will not, you know, get into any more detail on the production.

Speaker #3: We will be putting out our financials and our financial statements in the next five weeks or so. You know, I can say generally I'm very pleased with Q1.

Speaker #3: And I think we are on track to do exactly what we said. And I want to reiterate our production guidance for 2026.

Dalton Baretto: Great. Thanks, Jason. It was worth a shot. Just on the cost side. Congrats on bringing the costs down. It looks like the most onerous pieces are the Franco-Nevada stream as well as the Vale payables. Can you comment on whether these are open for discussion at all?

Speaker #4: Great. Thanks, Jason. It was worth a shot. Just on the cost side—you know, congrats on bringing the cost down. But it looks like the most onerous pieces are the Franco stream as well as the Vale payabilities.

Speaker #4: Can you comment on whether these are open for discussion at all?

Jason Jessup: What I can say is that the short answer is yes. They're definitely open for discussion, and we have a team led by Paul Fowler in our commercial department that are in regular dialogue, with both Vale and Franco-Nevada. We do think there is potential in the future for some changes that may be beneficial to Magna.

Speaker #3: What I can say is that the short answer is yes. They're definitely open for discussion. And we have a team, led by Paul Fowler and our commercial department, that are in regular dialogue.

Speaker #3: With, you know, both Valet and Franco, we do think there is potential in the future for some changes that may be beneficial to Magna.

Dalton Baretto: Thanks, Jason. I've got a few more, but I'll jump back in queue.

Speaker #4: Thanks, Jason. I've got a few more, but I'll jump back in the queue.

Operator: Thank you. The next question comes from Bryce Adams with Desjardins. Your line is now open. Bryce, your line is now open. Okay, our next question will come from Dalton Baretto with Canaccord. Your line is open.

Speaker #1: Thank you. And the next question comes from Bryce Adams with Desjardins. Your line is now open. Bryce, your line is now open. Okay. And our next question will come from Dalton Barretto with Canaccord.

Speaker #1: Your line is open.

Dalton Baretto: Thank you again. I'll stop if Bryce jumps back on. A couple of more from me. I guess number one, we're back at $6 copper. Are you guys considering hedging at all?

Speaker #4: Thank you again. I'll stop if Bryce jumps back on. A couple more from me. I guess, number one, you know, we're back at $6 copper.

Speaker #4: Are you guys considering hedging at all?

Jason Jessup: At this time, we've had limited discussion on hedging, and it isn't something we're looking at doing in the near future.

Speaker #3: At this time, you know, we've had limited discussion on hedging, and it isn't something we're looking at doing in the near future.

Dalton Baretto: Okay, great. Nickel looks like it's woken up a little bit, and there was commentary last quarter around maybe restarting some of the nickel stopes. Any progress or on your thinking on that front?

Speaker #4: Okay, great. And then, you know, nickel looks like it's woken up a little bit. And, you know, those commentary last quarter around maybe restarting some of the nickel stopes.

Speaker #4: Any progress on your thinking on that front?

Jason Jessup: What I can say is that we have done work on a nickel restart. I would say that when nickel dropped below $8, it fell a little bit onto the back burner, so to speak. Now that we've seen sort of a strong move in nickel, it is still a very, I would say, topical subject at McCreedy West Mine, and it is something that potentially we could pull the trigger on and start shipping some nickel this year.

Speaker #3: What I can say is that we have done work on a nickel restart. I would say that when nickel dropped below $8, it fell a little bit down through the back burner, so to speak.

Speaker #3: But now that we've seen sort of a strong move in nickel, it is still a very, I would say, topical subject at McCreedy West Mine.

Speaker #3: And it is something that, potentially, we could pull the trigger on and start shipping some nickel this year.

Dalton Baretto: Great. Thanks. Maybe just one last one. We've been talking over the last several months about potential government money from the government of Ontario. What's the latest on that front?

Speaker #4: Great, thanks. And then maybe just one last one. We've been talking over the last several months about, you know, potential money from the government of Ontario.

Speaker #4: What's the latest on that front?

Jason Jessup: I can't say too much about it other than we have pretty regular dialogue with people within the Ontario government and some of the programs that they have to support critical minerals and critical minerals mining in Ontario. So, active dialogue. I think there is some opportunities that may fit with Magna. I look forward to being able to just tell more in the future, but at this point, I can't say much more.

Speaker #3: You know, I can't say too much about it other than, you know, we have pretty regular dialogue with people within the Ontario government and some of the programs that they have to support critical minerals and critical minerals mining in Ontario.

Speaker #3: So, active dialogue—I think there are some opportunities that may fit with Magna. And, you know, I look forward to being able to tell more in the future.

Speaker #3: But at this point, I can't say much more.

Dalton Baretto: Great. Thanks, Jason. That's all from me. Thanks for letting me monopolize the queue.

Speaker #4: Great. Thanks, Jason. That's all from me. Thanks for letting me monopolize the queue.

Operator: Okay. Thank you. I show no further questions via the phone. I will now turn the call back over to Paul.

Speaker #1: Hey, thank you. I have no further questions via the phone. I will now turn the call back over to Paul.

Paul Fowler: Thank you, operator. There actually aren't any relevant questions on the webcast at this time, so I'll hand it back to you, operator, for closing remarks, please.

Speaker #5: Thank you, Operator. There are actually not any relevant questions on the webcast at this time, so I will hand it back to you, Operator, for closing remarks, please.

Operator: Thank you for participating. This does conclude today's conference call. You may now disconnect.

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