Magna Mining – Key Takeaways From The Levack Mine PEA and Board Approval To Restart Production

Jason Jessup, CEO and Director of Magna Mining Inc. (TSX: NICU) (OTCQX: MGMNF) (FSE: 8YD), joins me to review the key takeaways from the Preliminary Economic Assessment (“PEA”) released after the market close on October 7th, for the restart of the fully-permitted Levack Mine, located in the North Range of the Sudbury Basin, northeastern Ontario, Canada.   We also discuss the potential for the dual-track development of 2 mines, because the Company plans to release the PFS on Crean Hill in the next few weeks.

Levack PEA Highlights: (All amounts are expressed in Canadian dollars)

Solid production profile and short time frame to commercial production: The Levack PEA contemplates underground mining of 5.75 million short tons with 7.3 years of commercial production and average annual payable copper equivalent (“CuEq”) production of 36.8 million pounds (“lbs”) at all-in sustaining costs (“AISC”) of US$3.71 per CuEq payable pound and commercial production anticipated in mid-2028.

Low initial capital and robust pre-commercial production operating cash flows: Initial capital costs from January 1, 2027 to the start of commercial production are estimated to be $70.1 million, after incorporating equipment financing timing effects. This initial capital is estimated to be offset by refundable tax credits of approximately $5.6 million and expected pre-commercial production operating cash flow of approximately $55.9 million using base case price assumptions1, leaving a calculated net initial funding requirement of $8.6 million.

Rapid payback and robust base case economics: Assuming base case commodity prices, the Levack PEA estimates payback in 0.6 years with a base case after-tax Internal Rate of Return (“IRR”) of 92.4% and an after-tax NPV7% of $227.0 million. Pre-tax cash flows in 2028 and 2029 are estimated to be approximately $96.5 million per year. Using September 2026 average commodity prices, the after-tax NPV7% increases to $313.6 million and the IRR improves to 115.8%, with average pre-tax cash flows of approximately $120.6 million per year in 2028 and 2029.

Positive potential impact from the recently announced Productivity Mega Deduction:  Incorporation of the Productivity Mega Deduction (“PMD”) could reduce the estimated federal taxes payable over the life of mine. The Levack PEA after-tax NPV7% improves by $5.1 million to $232.1 million and the IRR increases to 99.2%, by reducing total federal taxes paid by $1.6 million and accelerating the utilizati