Magna Mining Reports Results of Levack Mine Preliminary Economic Assessment and Approves Restart of Production

Magna Mining Inc. (NICU) released the Levack Mine Preliminary Economic Assessment (PEA) and, on the strength of it, the Board formally approved the restart of the fully-permitted Levack Mine. This is a technical-study-plus-capital-decision release, not an earnings release.

The mine plan calls for 5.75 million short tons and 7.3 years of commercial production, with a mining rate of approximately 2,141-2,200 tons per day. The CuEq head grade is 3.42%, with an average annual payable CuEq production of 36.8 million lbs, comprising 12.9M lbs Cu, 10.9M lbs Ni, and 21.4 koz Pt+Pd+Au.

Costs include a LOM production cost of C$157.80/ton processed, cash costs of US$3.23/lb CuEq payable, and AISC of US$3.71/lb CuEq payable.

Capital requirements include an initial capital of C$70.1M from January 2027 to June 2028, including C$12.6M contingency. This is offset by C$5.6M of refundable tax credits and approximately C$55.9M of expected pre-commercial operating cash flow, leaving a stated net initial funding requirement of C$8.6M. LOM sustaining capital is C$168.0M.

Economics show an after-tax NPV(7%) of C$227.0M, an after-tax IRR of 92.4%, and a payback of 0.6 years at base case (US$5.10/lb Cu, US$8.00/lb Ni). At September 2026 spot prices, the after-tax NPV(7%) is C$313.6M and the IRR is 115.8%.

The proposed Productivity Mega Deduction adds C$5.1M to NPV (C$232.1M) and lifts IRR to 99.2%; a C$20.4M LOM Clean Technology Manufacturing ITC is already inside the base case.

Resources include Indicated 7.798 Mst at 3.50% CuEq and Inferred 5.832 Mst at 3.61% CuEq, updated from the November 18, 2025 MRE, adding the No.7 Contact Zone and more Morrison Footwall material. The plan uses only 5.75 Mst — 42% of the 13.63 Mst resource base — and excludes the R2 Footwall Zone entirely.

At 36.8M lbs CuEq/yr, Levack is roughly 2.0-2.3x the current McCreedy West guided range of 16.0-18.0M lbs CuEq/yr (prior-period context from the February 5, 2026 guidance release — not restated today). The base-case after-tax NPV equals approximately 30% of the current market capitalisation; the spot case approximately 42%.

Magna Mining Inc. (NICU) has released the first hard economics for its Levack project and announced a formal board decision to spend capital on the restart. The company faces a net funding requirement of C$8.6 million against a treasury of roughly C$175 million, comprised of C$40.0 million at June 30, 2026, plus approximately C$140 million of Alpayana gross proceeds, less a 2.5% finder's fee. The bulk of the build is funded by pre-commercial cash flow from the mine itself. The project is fully permitted, brownfield, and utilizes pre-existing shaft and ramp infrastructure.

The project economics are based on a Preliminary Economic Assessment (PEA) with no mineral reserves. The company states that the restart decision "has not based... on a feasibility study of mineral reserves, demonstrating economic and technical viability." Of the 5.75 million short tons of inventory, 2.1 million short tons are classified as Inferred. The mine plan’s economics hinge on a short, high-grade window. The base-case after-tax net present value (NPV) is approximately 30% of market cap, and the mine adds years 2028-2035, rather than immediate cash flow.

Since the prior earnings release on August 12, 2026, the stock has moved from $2.75 to $2.41, a decline of roughly 12%.

Magna Mining Inc. (NICU) is a producing copper-nickel-precious metals company operating entirely within the Sudbury Basin, Ontario, roughly 400 km north of Toronto. The company positions itself as one of only three significant property holders in the district alongside Vale and Glencore.

Its McCreedy West asset is currently producing from the 700 Footwall Copper Zone, with ore shipped to Vale's Clarabelle mill. While copper is the headline metal, the ore is polymetallic, containing Cu, Ni, Pt, Pd, Au, and Ag. The company is evaluating the restart of the Intermain Nickel Zone since February 2026. The project holds a Probable Reserve of 987,000 st, an Indicated resource of 5.63 Mt, and an Inferred resource of 874 kt.

The Levack mine, a past-producing nickel-copper-PGE operation last operated in 2018, has received approval for restart. The fully permitted site benefits from the No. 2 production shaft, an internal No. 3 shaft and ramp system down to the 5,300 Level, plus an on-site paste plant. Commercial production is targeted for mid-2028.

At Crean Hill, a past-producing site permitted for advanced exploration, a Preliminary Feasibility Study (PFS) is underway. A September 2024 Preliminary Economic Assessment (PEA) outlined 13 years at 2,200 t/d, C$27.7M in pre-production capital, an after-tax NPV(8%) of C$194.1M, and a 129% IRR. The project features an Indicated resource of 18.44 Mt at 1.96% NiEq.

Additional assets including Podolsky, Shakespeare, and Kirkwood serve as past-producing or exploration properties, providing pipeline optionality. All processing is conducted via third parties, specifically Vale Clarabelle and Glencore Strathcona, which minimizes capital requirements but leaves the company with tolling and counterparty exposure.