The KE Report

Jason Jessup, CEO and Director of Magna Mining (TSX: NICU) (OTCQX: MGMNF), joins me for a review of Q2 financials and operations at the McCreedy West Mine and the expedited development pathway for the Levack and Crean Hill mines located in Sudbury, Ontario. We also discuss the larger exploration strategy across many projects, and how the company is continuing to recruit and grow a quality base of employees.

 

Q2 Highlights:

 

In Q2 2026, Magna achieved record production with 98,446 tons of ore processed from the 700 Footwall Copper Zone at the McCreedy West copper-precious metals-nickel Mine in Sudbury, Ontario, Canada at a grade of 3.34% copper equivalent (“CuEq”) and 6.6 million CuEq contained pounds (“lbs”) based on realized metal prices in the quarter.

The Company produced 4.5 million CuEq payable lbs in Q2 2026 and 8.6 million CuEq payable lbs in the first half of 2026. The Company continues to expect to achieve full year 2026 guidance for all metrics, including production of 16.0-18.0 million CuEq payable lbs.

The Company’s Q2 2026 year-to-date Total Recordable Injury Frequency Rate (TRIFR) was 0.63, compared to 3.87 during the same period in 2025, representing an 84% reduction. Additionally, McCreedy West Mine achieved a significant milestone in June 2026 by completing one year without a recordable injury.

During Q2 2026, Magna generated record positive cash margin3 of $8.9 million and free cash flow of $5.1 million.

Quarterly cash costs and All-in sustaining costs (“AISC”) of US$3.76 per CuEq lb, and US$4.54 per CuEq lb, respectively. Production costs per ton processed in Q2 2026 declined by 6.9% from the prior quarter to $199 per ton.

Exploration and evaluation expenses in Q2 2026 of $5.3 million, including $5.0 million at Levack Mine with a focus on infrastructure readiness to support early ore sources and establishing underground exploration platforms to continue drill testing the R2 Footwall Zone as well as other targets. Both the Levack Preliminary Economic Assessment (“PEA”) and the Crean Hill Pre-Feasibility Study (“PFS”) are on track to be completed during Q3 2026.

Ended Q2 2026 with cash and cash equivalents of $40.0 million and a working capital balance of $45.3 million.

On June 23, 2026, the Company graduated from the TSX Venture Exchange (“TSXV”) to the Toronto Stock Exchange (“TSX”). The TSX uplisting is expected to enhance the Company’s profile within the investment community, improve trading liquidity, and provide greater access to a broader range of investors.

Subsequent to the end of Q2 2026, on July 6, 2026, the Company announced a strategic investment by Alpayana S.A.C (“Alpayana”) via a non-brokered private placement financing to purchase 62,222,222 common shares of the Company at a price of $2.25 per common share for aggregate gross proceeds of approximately $140.0 million. Upon closing, Alpayana is expected to hold approximately 19.9% of the issued and outstanding shares of the Company and closing of the Offering is anticipated during Q3 2026, subject to receipt of all required regulatory approvals.

Magna’s Chief Financial Officer, Scott Gilbert, has advised the Company of his intention to retire by the end of 2026. Greg Huffman, Senior Vice President, Capital Markets, will formally assume the role of Chief Financial Officer upon Scott’s retirement. Greg will work closely with Scott over the coming months to support a smooth transition.

 

 

Click here to follow along with the news at Magna Mining

 

 

If you have questions for Jason regarding Magna Mining, then please email me at Shad@kereport.com.

 

In full disclosure, Shad is a shareholder of Magna Mining at the time of this recording, and may choose to buy or sell shares at any time. 

 

 

 

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Investment disclaimer:

This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.

Paul Colborne, President and CEO, of Surge Energy Inc. (TSX: SGY) (OTCQX: SGYEF), joins us to for a comprehensive overview of the value proposition in this leading intermediate Canadian public oil company that produces ~24,000 boepd (89% light and medium gravity conventional crude oil). Surge has a dominant operational position in two core areas in some of the most economic oil plays in North America. Its Sparky and SE Saskatchewan premium, low risk, conventional oil assets possess large reservoirs, low recovery factors, high netbacks, quick well payouts, and a significant 12+ year development drilling inventory.

 

As a result of continued successful drilling and waterflood results, on June 1, 2026 the Company upwardly revised its 2026 capital budget and production guidance. Surge's 2026 exit production guidance increased from 23,000 boepd to 24,000 boepd, and 2026 average production guidance increased from 23,000 boepd to 23,375 boepd. Budgeted capital expenditures for 2026 are now estimated to be $175 million, as compared to Surge's original capital guidance of $150 million, with $16 million of the incremental capital being allocated to additional drilling, and the remaining $9 million being directed towards accelerating Surge's waterflood programs, primarily focused in the Sparky core area.

 

During Q2/26, Surge generated adjusted funds flow ("AFF")1 of $91.5 million ($0.92 per share), and cash flow from operating activities of $95.3 million ($0.95 per share). This represents an increase of 26 percent in AFF, as compared to Q2/25 AFF of $72.8 million, and a 69 percent increase in cash flow from operating activities, as compared to $56.3 million in Q2/25.

During Q2/26, the Company spent $32.8 million on property, plant, and equipment expenditures. On this basis, Surge generated $58.7 million in free cash flow ("FCF")1 in the second quarter, representing 64 percent of Q2/26 AFF.

With the Company's longer-term primary corporate goals of maximizing FCF, enhancing shareholder returns, and reducing net debt, Surge's Board and Management allocated Q2/26 FCF to the following initiatives:

$12.9 million to the Company's monthly cash dividend ($0.52 per share, per annum);

$15.0 million towards share buybacks under Surge's Normal Course Issuer Bid ("NCIB"), repurchasing 1,564,300 shares;

$16.7 million reduction in net debt, reducing net debt by 8 percent during the quarter, from $213.3 million as at March 31, 2026, to $196.6 million as at June 30, 2026; and

$10.8 million of FCF was allocated to the strategic acquisition of the Hansman Lake gas plant, centrally located in the Sparky core area, which was previously leased by the Company. The Hansman Lake plant has 14 mmcf/d of capacity and controls a significant portion of the gas produced by both Surge and third parties in the Provost/Cadogan area. This acquisition of a 100 percent owned and operated gas plant in this core operating area is expected to increase Surge's FCF by an estimated $4.6 million annually, beginning in Q3/26.

 

Surge's Q2/26 drilling program consisted of 12 gross (11.5 net) wells drilled during the quarter, comprised of the following:

 

4 gross (4.0 net) producing wells drilled in Sparky;

5 gross (5.0 net) dedicated injectors drilled in Sparky; and

3 gross (2.5 net) producing wells drilled in SE Saskatchewan.

 

Due to wet spring weather, only 4 of the producing wells were brought on production late in Q2/26, with the remaining wells being brought on production in Q3/26.

 

Paul then takes us through a high level review of their company strategy on returning capital to shareholders, their growth wedge, their hedging strategy, and key value drivers on tap for the balance of this year and looking out many years into the future.

 

 

If you have any questions for Paul regarding Surge Energy then please email those into us at Fleck@kereport.com or Shad@kereport.com.

 

 

Click here to follow the latest news from Surge Energy

 

 

For more market commentary & interview summaries, subscribe to our Substacks:

 

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Investment disclaimer:

This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.

In today’s Daily Editorial, we chat with Joel Elconin, Co-Host of the PreMarket Prep show and Founder of the Stock Trader Network, to analyze the persistent strength across U.S. equity markets and explore where capital is rotating next.

Key Discussion Points:

Market Momentum & Technical Breakouts: A look at the velocity behind recent all-time highs in the S&P 500, why pullbacks have been minimal, and how stable interest rate expectations are fueling institutional confidence.

The Evolution of the AI Trade: An examination of how market sentiment is shifting from penalizing heavy corporate expenditure to rewarding companies that demonstrate real efficiency gains and margin expansion through AI integration.

Energy Demand & Infrastructure Pick-and-Shovel Plays: Discussion surrounding the massive surge in power requirements for AI data centers and why utilities, nuclear energy, and natural gas infrastructure are emerging as key beneficiaries.

Robotics, Space, and Long-Term Market Timelines: A reality check on consumer robotics, public sentiment toward space technology, and why investors need patience when evaluating visionary growth projections.

Evaluating High-Profile Pre-IPO Opportunities: Tactical guidance on analyzing Net Asset Values before buying into funds or holding companies with exposure to private tech mega-caps like Anthropic and SpaceX.

Stocks & Ticker Symbols Mentioned: S&P 500 ($SPX / $SPY), Microsoft ($MSFT), Alphabet ($GOOGL), Meta Platforms ($META), PowerLaw ($PWRL), Fundrise Innovation Fund ($VCX), Destiny Tech100 ($DXYZ), Tesla ($TSLA).

 

Click here to visit Joel’s PreMarket Prep website - https://www.premarketprep.com/

 

Click here to visit the Stock Trader Network - https://www.stocktradernetwork.com/

 

------------------------------

For more market commentary & interview summaries, subscribe to our Substacks: 

The KE Report: https://kereport.substack.com/ 

Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

 

Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.

In this Company Update, I chat with Mike Burke, Director and Vice President of Corporate Development at Sitka Gold Corp. (TSXV: SIG | OTCQB: SITKF | FSE: 1RF). Mike recaps the August 10th drill results from the RC Gold Project's Blackjack deposit, highlighting broad high-grade gold intercepts, potential underground resources, and the active exploration across multiple target zones.

Key Discussion Points:

Breakdown of Drill Hole 132: Mike details the key intercept, including 218.6 metres of 1.25 g/t gold, and a deeper higher-grade interval, including 44.4 metres of 3.86 g/t gold.

Underground Resource Potential: Insight into how deeper, higher-grade mineralization outside the current resource area could pave the way for a future underground resource estimate.

Geological Significance of Hole 129: Exploring the extension of mineralization toward the Saddle zone and how this data helps connect distinct deposit areas while reducing overall waste ratios.

Scale of Active Drill Program: An overview of operations across Blackjack, Saddle, Eiger, and Rhosgobel, plus details on the newly mobilized 7th drill rig and upcoming news flow.

 

If you have any follow up questions for the team at Sitka Gold please email me at Fleck@kereport.com. 

 

Click here visit the Sitka Gold website to learn more about the Company - https://sitkagoldcorp.com/

 

For more market commentary & interview summaries, subscribe to our Substacks: 

The KE Report: https://kereport.substack.com/ 

Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

 

Investment Disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.

Mark Cruise, Executive Chairman of BP Silver Corp. (TSX.V: BPAG) (OTCQB: BPSCF), joins me for a big picture overview of the value proposition in the Company, why he joined the board and believes in the team, why he is bullish on discoveries being made in Bolivia as an emerging jurisdiction, the potential he sees across multiple targets at the Cosuño Silver Project, and then we dive into an updated exploration strategy for 2026.

 

The 2,000-meter Phase 2 drill program is well underway at Cosuño, and is just the first part of a broader ~8,000 m diamond drilling campaign anticipated for 2026.

 

The Phase 2 drill program is designed to test the broader scale potential of the Cosuño lithocap-hosted hydrothermal system and build on the positive results of the Company’s Phase 1 drill program; and will comprise approximately 20 to 24 diamond drill holes. The first drill hole is currently following up on high-grade silver mineralization intersected at the Pocañita Chica target, where discovery drilling returned 5 m grading 600.40 g/t silver, including 1 m grading 1,655 g/t silver.

 

We then discuss the series of other exploration workstreams that will be commencing over the next couple months, such as: the MAG Survey, IP Survey, more mapping and sampling. Together, these datasets are expected to improve significantly the Company’s understanding of the geometry, continuity, scale, and tenor of the vein and breccia systems across Cosuño.

 

Once this new data gets incorporated into the geological model, then it will lead into prioritizing the targets for the 6,000-meter Phase 3 drill program later this year. Tim also highlighted that Pocañita Grande will be getting its maiden drilling during the Phase 3 program, now that they have been developing roads and site access to this important target.

 

Click here to follow the latest news from BP Silver Corp

 

 

 

For more market commentary & interview summaries, subscribe to our Substacks:

 

The KE Report: https://kereport.substack.com/

Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

 

 

Investment disclaimer:

This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.