Generation Mining Reports First 30% of Marathon Capital Costs Bid at or Below Feasibility Study Estimates

Generation Mining Limited (GENM) provided an operations update on procurement and construction readiness for its 100%-owned Marathon Copper-Palladium Project in Northwestern Ontario. Following the appointment of Ausenco as the EPCM partner in March 2026, the team has advanced procurement packages representing approximately 30% of the project’s total estimated capital cost. Aggregate bid pricing received to date for these major equipment and construction packages is at or below the corresponding cost allowances in the 2025 Feasibility Study.

Major packages that have progressed include grinding mills, a high-voltage substation, a thickener, a primary crusher, hydrocyclones, and a pre-engineered process plant building. On the workforce accommodation front, the company has secured a 263-bed camp with an option to purchase, while progressing procurement for an additional approximately 286 beds and a approximately 500-bed overflow camp, bringing the peak capacity to approximately 786 beds.

Regarding infrastructure, Generation Mining has selected an OEM for the mining fleet, with maintenance and repair contract discussions underway, and has selected a fuel supplier. The company is also advancing temporary powerline agreements with Hydro One, targeting a 4 MW peak, alongside permanent powerline agreements. Detailed engineering efforts include process plant optimization, safety management plans, earthworks sequencing, site access road upgrades, and risk review sessions. The VP Projects stated that the early procurement results provide additional confidence in the overall capital cost estimate.

The update is unequivocally positive—confirming that early procurement costs are tracking at or below feasibility study estimates—but it is not materially market‑moving in isolation. The market has already absorbed a series of more significant financing milestones over the preceding two months (senior lender credit approval on June 17, CIB subordinated debt commitment on June 22, totalling ~$969 million in secured financing). Today’s news is an expected, incremental progress report on execution readiness. While it de‑risks the construction budget and reinforces lender confidence, it does not alter the project’s valuation, timeline, or the outstanding requirement for equity financing. The stock price (last $0.71) had already re‑rated following the financing news and is now consolidating. Therefore, the release qualifies as Routine – Positive.

Generation Mining Ltd. is a Canadian development-stage company focused on its 100%-owned Marathon Copper-Palladium Project in Northwestern Ontario. The project is one of the largest undeveloped palladium-copper deposits in North America. An updated Feasibility Study, effective Nov 1, 2024, outlined robust economics for the site.

• After-tax NPV (6%): C$1.07 billion (US$703 million at spot prices).
• IRR: 28% (42% at spot).
• Initial capex: C$992 million.
• Payback: 1.9 years.
• 13-year mine life producing ~2.16 moz palladium, 532 M lbs copper, 488 koz platinum, 160 koz gold, and 3.05 moz silver.
• Revenue mix (first 3 years): Copper 47%, Palladium 38%, Platinum 10%, Silver 3%, Gold 2%.

The project is shovel-ready, with all major construction permits in place and an Environmental Assessment decision expected in H2 2026. The site benefits from excellent infrastructure, including the Trans-Canada Highway, CPR rail, airport, deep-water port, and a 230 kV power line nearby. It also enjoys strong Indigenous support via a Community Benefits Agreement with Biigtigong Nishnaabeg First Nation.