Titan Reports First Quarter 2023 Results
May 11 2023 - 6:08PM
Titan Mining Corporation (TSX: TI) (“
Titan”
or the "
Company") announces the results for the
quarter ended March 31, 2023. (All amounts are in U.S. dollars
unless otherwise stated)
Don Taylor, President and Chief Executive
Officer of Titan, commented, “Titan’s ESM operations had an
outstanding beginning to 2023 with a solid first quarter hitting or
exceeding targets for the major metrics in safety and production
while continuing to pay a quarterly dividend. Development planning
and execution as well equipment purchases for the Sphaleros project
continued on target for the quarter.”
Q1 2023 HIGHLIGHTS:
- Zinc production of 13.8 million
payable pounds and sales of 14.8 million payable pounds, up 37% and
43% respectively when compared to Q1 2022
- $16.7 million in revenue, up 20%
when compared to Q1 2022
- Cash flow of $3.35 million, up 60%
when compared to Q1 2022
- Paid a cash dividend of C$0.01 per
share on April 14, 2023 in respect of Q1 2023
- Entered into a fixed
zinc pricing arrangement for approximately 30% of the Company’s
forecasted zinc production for the remainder of 2023. The
arrangement is for an eleven-month period covering February 2023 to
December 2023 at a price of $1.55 per pound of zinc
- Cash balance of $7.4 million at
March 31, 2023
TABLE 1 Financial and Operating Highlights
|
|
|
|
|
|
|
|
|
|
|
Q1 2023 |
Q4 2022 |
Q1 2022 |
Q1 2023 vs. Q4
2022 |
Q1 2023 vs. Q1
2022 |
Operating |
|
|
|
|
|
|
|
|
Payable Zinc Produced |
mlbs |
13.80 |
14.4 |
|
10.1 |
|
-4 |
% |
37 |
% |
|
Payable
Zinc Sold |
mlbs |
14.80 |
13.0 |
|
10.4 |
|
14 |
% |
43 |
% |
|
Average Realized Zinc
Price |
$/lb |
1.42 |
1.36 |
|
1.57 |
|
4 |
% |
-10 |
% |
|
|
|
|
|
|
|
|
Financial |
|
|
|
|
|
|
|
|
Revenue |
$m |
16.74 |
13.95 |
|
13.96 |
|
20 |
% |
20 |
% |
|
Net
Income (loss) before tax |
$m |
1.10 |
(4.08 |
) |
(2.62 |
) |
127 |
% |
142 |
% |
|
Earnings (loss) per share - basic |
$/sh |
0.01 |
(0.03 |
) |
(0.02 |
) |
133 |
% |
150 |
% |
|
Cash Flow from Operating
Activities before changes in non-cash working capital |
$m |
3.35 |
2.32 |
|
2.10 |
|
45 |
% |
60 |
% |
|
|
|
|
|
|
|
|
Financial
Position |
|
|
31-Mar-23 |
31-Dec-22 |
|
|
Change |
|
Cash
and Cash Equivalents |
$m |
7.41 |
6.72 |
|
|
|
0.69 |
|
|
Net Debt 1 |
$m |
23.34 |
23.31 |
|
|
|
0.03 |
|
1 Net Debt is a non-GAAP measure. This term is not a
standardized financial measure under IFRS and might not be
comparable to similar financial measures disclosed by other
issuers. See Non-GAAP Performance Measures below for additional
information.
OPERATIONS REVIEW
Mining efforts in the first quarter of 2023
focused on the Mahler, New Fold, Mud Pond and N2D zones. Waste
development continued to advance on the Mahler ramp system which
continues to provide access to a high-grade ore horizon in the
Lower Mahler mining zone. It is expected that ore from this zone
will support head grade at planned levels for the remainder of the
year. The long hole stoping program for New Fold continued in the
first quarter but is being paused in the second quarter to focus on
improving ground control and engineering design. Production from
this area is scheduled to restart in the second half of the
year.
Engineering and design efforts are well underway
for the development of the Sphaleros underground project. Equipment
required for the development has been identified and the
acquisition process is underway. To help facilitate planning for
the Sphaleros development an extensive LiDAR survey has been
completed mapping the existing underground workings of the historic
#2 Mine. During Q1 electrical infrastructure was installed at the
portal site to supply the required power. Final road capping of the
haul road from Sphaleros to the #4 mill will occur in the second
half of 2023.
EXPLORATION UPDATE
Underground:
Drill programs in the first quarter of 2023
focused on advancing definition drilling in Lower Mahler and N2D. A
total of 30 holes totaling 8,477 ft were completed. Definition
drilling will continue to focus on Mahler and N2D in the second
quarter of 2023. Underground exploration continued in the first
quarter of 2023 with two holes completed, for a total of 1,612 ft
drilled. This program continues to test the identified
mineralization between New Fold and Mahler. Exploration drilling
will continue to test this area throughout 2023.
Surface:
Surface drilling in the first quarter of 2023
focused on delineating and expanding the known near surface
mineralization within the footprint of the Sphaleros project area.
A total of 17 holes totaling 6,089 ft were completed testing the
Streeter target. Surface drilling will continue to test near
surface mineralization at Sphaleros through the end of the second
quarter 2023.
One district exploration hole was completed in
the first quarter at 24 Crescent, a near mine district target,
totaling 1,227 ft. A second hole will be completed at the start of
the second quarter, before moving the rig back to Sphaleros for
definition drilling. Regional drill targets have been identified
for testing in the third and fourth quarters of 2023.
Qualified Person
The scientific and technical information
contained in this news release and the sampling, analytical and
test data underlying the scientific and technical information has
been reviewed, verified and approved by Donald R. Taylor, MSc., PG,
President and Chief Executive Officer of the Company, a qualified
person for the purposes of NI 43-101. Mr. Taylor has more than 25
years of mineral exploration and mining experience and is a
Registered Professional Geologist through the SME (registered
member #4029597). The data was verified using data validation and
quality assurance procedures under high industry standards.
Non-GAAP Performance
Measures
This document includes non-GAAP performance
measures, discussed below, that do not have a standardized meaning
prescribed by IFRS. The performance measures may not be comparable
to similar measures reported by other issuers. The Company believes
that these performance measures are commonly used by certain
investors, in conjunction with conventional GAAP measures, to
enhance their understanding of the Company's performance. The
Company uses these performance measures extensively in internal
decision-making processes, including to assess how well the Empire
State Mine is performing and to assist in the assessment of the
overall efficiency and effectiveness of the mine site management
team. The tables below provide a reconciliation of these non-GAAP
measures to the most directly comparable IFRS measures as contained
within the Company's issued financial statements.
Net Debt
Net debt is calculated as the sum of the current
and non-current portions of long-term debt, net of the cash and
cash equivalent balance as at the balance sheet date. A
reconciliation of net debt is provided below.
|
Three months endedMarch 31,
2023 |
|
Year endedDecember 31, 2023 |
|
|
|
|
Current portion of debt |
$ |
732 |
|
$ |
176 |
|
Non-current portion of debt |
|
30,023 |
|
|
29,856 |
|
Total debt |
$ |
30,755 |
|
$ |
30,032 |
|
Less: Cash and cash equivalents |
|
(7,411 |
) |
|
(6,720 |
) |
Net debt |
$ |
23,344 |
|
$ |
23,312 |
|
About Titan Mining
Corporation
Titan is an Augusta Group company which produces
zinc concentrate at its 100%-owned Empire State Mine located in New
York state. Titan is built for growth, focused on value and
committed to excellence. For more information on the Company,
please visit our website at www.titanminingcorp.com
Contact
For further information, please contact: Investor
Relations: Email: info@titanminingcorp.com
Cautionary Note Regarding
Forward-Looking Information
Certain statements and information contained in
this new release constitute "forward-looking statements", and
"forward-looking information" within the meaning of applicable
securities laws (collectively, "forward-looking statements"). These
statements appear in a number of places in this news release and
include statements regarding our intent, or the beliefs or current
expectations of our officers and directors, including that it is
expected that ore from the Lower Mahler mining zone will support
head grade at planned levels for the remainder of the year;
production from New Fold is scheduled to restart in the second half
of the year; that final road capping of the haul road from
Sphaleros to the #4 mill will occur in the second half of 2023;
that definition drilling will continue to focus on Mahler and N2D
in the second quarter of 2023; that the underground drilling
program continues to test the identified mineralization between New
Fold and Mahler; and that exploration drilling will continue to
test the mineralization between New Fold and Mahler throughout
2023. When used in this news release words such as “to be”, "will",
"planned", "expected", "potential", and similar expressions are
intended to identify these forward-looking statements. Although the
Company believes that the expectations reflected in such
forward-looking statements and/or information are reasonable, undue
reliance should not be placed on forward-looking statements since
the Company can give no assurance that such expectations will prove
to be correct. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to vary materially from those anticipated in such
forward-looking statements, including the risks, uncertainties and
other factors identified in the Company's periodic filings with
Canadian securities regulators. Such forward-looking statements are
based on various assumptions, including assumptions made with
regard to the ability to advance exploration efforts at ESM; the
results of such exploration efforts; the ability to secure adequate
financing (as needed); the Company maintaining its current strategy
and objectives; and the Company’s ability to achieve its growth
objectives. While the Company considers these assumptions to be
reasonable, based on information currently available, they may
prove to be incorrect. Except as required by applicable law, we
assume no obligation to update or to publicly announce the results
of any change to any forward-looking statement contained herein to
reflect actual results, future events or developments, changes in
assumptions or changes in other factors affecting the
forward-looking statements. If we update any one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements. You should not place undue importance
on forward-looking statements and should not rely upon these
statements as of any other date. All forward-looking statements
contained in this news release are expressly qualified in their
entirety by this cautionary statement.
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