Titan Mining Corporation (TSX: TI) (“
Titan”
or the "
Company") announces the results for the
quarter ended June 30, 2024. (All amounts are in U.S. dollars
unless otherwise stated)
Don Taylor, President and Chief Executive
Officer of Titan, commented, “During the quarter, ESM operations
continued to outperform with respect to safety, production and
costs. Increased zinc prices for the period coupled with
cost-cutting measures and lower smelter treatment charges
contributed to improved operating margins and increased revenue
helping to build our cash position. Also during the period,
underground drilling was successful in expanding the Mud Pond and
New Fold resource areas which will be reported in the second half
of the year with an updated Life of Mine plan. Additionally, Phase
I drilling was completed on the Kilbourne graphite project.
Evaluation of the drill results is underway by an independent
engineering firm with a maiden mineral resource estimate to be
released in the second half of the year. In tandem with the
resource evaluation, large scale metallurgical testing is underway
to further determine purity, concentrate grades and grain
morphology expected in the final product.”
Q2 2024 HIGHLIGHTS:
- Zero Lost Time Injuries in the
second quarter.
- Produced 14.5 million pounds of
payable zinc in the second quarter of 2024.
- Revenues of $17,969 in Q2 2024, an
increase from $11,731 in Q1 2024, and $8,952 in Q2 2023.
- AISC1 of $0.79/lb in Q2 2024, a
decrease from $1.00/lb in Q1 2024 and $1.12/lb in Q2 2023.
- Completion of Phase 1 drilling at
the Kilbourne Exploration Target with a total of 39 holes totalling
11,916 ft.
- 20 holes totalling 5,044 ft
completed in Q2 2024
- Highlights include 92.8 ft at 3.5%
graphitic carbon
1 AISC 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.
TABLE 1 Financial and Operating Highlights
|
|
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Operating |
|
|
|
|
|
|
Payable Zinc Produced |
mlbs |
14.5 |
14.7 |
|
13.9 |
|
18.3 |
15.0 |
|
Payable
Zinc Sold |
mlbs |
14.7 |
14.4 |
|
13.9 |
|
18.3 |
15.0 |
|
Average Realized Zinc
Price |
$/lb |
1.30 |
1.11 |
|
1.13 |
|
1.10 |
1.15 |
|
|
|
|
|
|
|
|
Financial |
|
|
|
|
|
|
Revenue |
$m |
17.97 |
11.73 |
|
10.91 |
|
15.50 |
8.95 |
|
Net
Income (loss) before tax |
$m |
2.62 |
(2.63 |
) |
(6.96 |
) |
0.50 |
(4.84 |
) |
Earnings (loss) per share - basic |
$/sh |
0.02 |
(0.02 |
) |
(0.05 |
) |
0.00 |
(0.03 |
) |
Cash Flow from Operating
Activities before changes in non-cash working capital |
$m |
6.97 |
0.26 |
|
(1.36 |
) |
4.21 |
(0.11 |
) |
|
|
|
|
|
|
|
Financial
Position |
|
|
|
|
|
|
Cash
and Cash Equivalents |
$m |
5.55 |
4.18 |
|
5.03 |
|
4.32 |
2.90 |
|
Net Debt 1 |
$m |
30.63 |
32.44 |
|
30.75 |
|
32.93 |
33.43 |
|
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.
Revenues were higher during the three and six
months ended June 30, 2024, largely due to a positive provisional
pricing adjustment in 2024 compared to a negative provisional
pricing adjustment that was realized in 2023, as well as lower
smelting and refining charges compared to the same period in the
prior year. AISC decreased to $0.79/lb in Q2 2024 from $1.00/lb in
Q1 2024 and $1.12/lb in Q2 2023, primarily as a result of a
recovery of treatment charges from Q1 2024 recognized in Q2 2024,
and lower operating costs as compared to Q1 2024 and Q2 2023.
OPERATIONS REVIEW
Mining efforts in the second quarter of 2024
focused on the Mahler, New Fold, and Mud Pond zones. Mining
activities remain suspended in the N2D zone in response to lower
zinc prices. Deepening of the lower Mahler ramp system provided
access to high-grade ore in the Lower Mahler mining zone that
supported higher than budgeted grades. Longhole stope mining in New
Fold provided above target grades and tons. Ore recovery from the
longhole stoping in New Fold will continue into August. It is
expected that ore from New Fold and Lower Mahler zones will
continue to support head grades at planned levels for the remainder
of the year. Mining is expected to continue in the same zones in
the third quarter of 2024.
Work on projects, including the Turnpike
project, has been limited since Q2 of 2023 to preserve cash in
response to lower zinc prices. Rod mill liners were received and
will be installed in the third quarter of 2024. In the third
quarter of 2024, the Company plans to initiate a market search for
a replacement UG haulage truck and a mechanical bolter.
The Company’s dewatering and other necessary
activities to prepare equipment and infrastructure for
recommencement of operations following the flooding from Tropical
Storm Debby (see the Company’s press release dated August 12, 2024)
are continuing as planned.
EXPLORATION UPDATE
Underground:
Drill programs in the second quarter of 2024
targeted Lower Mahler and Fowler. Underground drilling totalled
3,315 ft (1,010 m) across six holes. All underground drilling was
completed with Company-owned underground drills by Company
employees. Of the total drilling, two exploration holes were
completed targeting the down dip extensions of Lower Mahler with a
third hole targeting this area underway.
Surface:
Surface drilling was limited to the Kilbourne
Project in the second quarter of 2024. An exploration plan for the
remainder of 2024 and 2025 has been developed with six regional
zinc targets currently being evaluated and prioritized.
Kilbourne:
Titan has continued work on defining the
Kilbourne graphite target, a graphite exploration target hosted
within the same stratigraphic sequence as ESM’s zinc
mineralization. The host unit is Unit 2 of the lower marbles.
Historic mapping and drilling have documented roughly 25,000 ft
(7.6 km) of strike length, from surface to a depth of over 3,000 ft
(914 m). Roughly 8,500 ft (2.5 km) of this strike length is within
the affected area of the Empire State Mine and is covered by
current permitting. The remaining strike length is securely within
mineral rights held by ESM.
Kilbourne exploration activities in the second
quarter of 2024 were focused on drilling, with a total of 20 holes
totalling 5,044 ft (1,537 m) drilled. All drilling was completed
with a Company owned drill by Company employees. The initial phase
of Kilbourne exploration targeted mineralization within the
Company’s active-use permit. Graphite mineralization has been
intercepted in all 39 holes of the program, with assays returned on
the graphitic intercepts from all 39 of those holes. The results
received to date continue to show promising results (see Titan’s
news releases “Titan Mining Provides Initial Drill Results On the
Kilbourne Graphite Project, results include 173.5 Ft At 3.75%
Graphitic Carbon” dated April 9, 2024 and “Titan Mining Completes
Phase I Drilling at the Kilbourne Graphite Project, Additional
Assays Returned including 143 ft at 3.6% Graphitic Carbon” dated
June 26, 2024). A bulk sample was collected in January 2024 with
anticipated usage in material classification.
Phase I of Kilbourne drilling successfully
tested 8,255 ft of strike length within the ESM active use permit.
The program has helped identify two distinct zones of
mineralization within Unit 2. The upper zone averages 54 ft (16.5
m) in thickness with an average grade of 3.1% graphitic carbon
(Cg), and the lower zone averages 28.9 ft (8.8 m) in thickness with
an average grade of 3.0% Cg. Phase I of metallurgical work began in
the fourth quarter of 2023 with SGS in Lakefield, ON, and
demonstrated the ability of Kilbourne graphite to be concentrated
and purified to qualities suitable for modern industrial
applications. Phase II of metallurgy began in the second quarter of
2024 with Forte Analytical of Wheat Ridge, CO. Testing has built
off the initial results of Phase I, with preliminary results
expected in the third quarter of 2024.
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.
C1 cash cost per payable pound
sold
C1 cash cost is a non-GAAP measure. C1 cash cost
represents the cash cost incurred at each processing stage, from
mining through to recoverable metal delivered to customers,
including mine site operating and general and administrative costs,
freight, treatment and refining charges.
The C1 cash cost per payable pound sold is
calculated by dividing the total C1 cash costs by payable pounds of
metal sold.
All-In Sustaining Cost
(AISC)
AISC measures the estimated cash costs to
produce a pound of payable zinc plus the estimated capital
sustaining costs to maintain the mine and mill. This measure
includes the C1 cash cost and capital sustaining costs divided by
pounds of payable zinc sold. AISC does not include depreciation,
depletion, amortization, reclamation and exploration expenses.
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2024 |
2023 |
|
2024 |
|
2023 |
C1 cash cost per payable pound |
|
Total |
|
Perpound |
|
Total |
|
Perpound |
|
Total |
|
Perpound |
|
Total |
|
Perpound |
Pounds of payable zinc sold (millions) |
|
|
|
14.7 |
|
|
|
15.0 |
|
|
|
29.1 |
|
|
|
30.0 |
Operating expenses and selling costs |
$ |
9,652 |
$ |
0.66 |
$ |
11,085 |
$ |
0.74 |
$ |
19,914 |
$ |
0.69 |
$ |
25,230 |
$ |
0.85 |
Concentrate smelting and refining costs |
|
1,913 |
|
0.13 |
|
4,600 |
|
0.31 |
|
5,581 |
|
0.19 |
|
8,656 |
|
0.29 |
Total C1 cash cost |
$ |
11,565 |
$ |
0.79 |
$ |
15,685 |
$ |
1.05 |
$ |
25,495 |
$ |
0.88 |
$ |
33,886 |
$ |
1.14 |
Sustaining Capital Expenditures |
$ |
- |
$ |
0.00 |
$ |
1,042 |
$ |
0.07 |
$ |
439 |
$ |
0.02 |
$ |
1,519 |
$ |
0.05 |
AISC |
$ |
11,565 |
$ |
0.79 |
$ |
16,727 |
$ |
1.12 |
$ |
25,934 |
$ |
0.89 |
$ |
35,405 |
$ |
1.19 |
|
Sustaining capital
expenditures
Sustaining capital expenditures are defined as
those expenditures which do not increase payable mineral production
at a mine site and excludes all expenditures at the Company’s
projects and certain expenditures at the Company’s operating sites
which are deemed expansionary in nature. Expansionary capital
expenditures are expenditures that are deemed expansionary in
nature. The following table reconciles sustaining capital
expenditures and expansionary capital expenditures to the Company’s
additions to mineral, properties, plant and equipment (or total
capital expenditures):
|
Six months ended June 30, |
|
|
|
2024 |
|
2023 |
Sustaining capital expenditures |
|
$ |
438 |
$ |
1,519 |
Expansionary capital expenditures |
|
|
2 |
|
401 |
Additions to mineral, properties, plant and equipment |
|
$ |
440 |
$ |
1,920 |
|
|
|
|
|
|
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.
|
Six months ended |
|
Year ended |
|
June 30, 2024 |
|
December 31, 2023 |
|
Current portion of debt |
$ |
36,177 |
|
$ |
35,779 |
|
Non-current portion of debt |
|
- |
|
|
- |
|
Total debt |
$ |
36,177 |
|
$ |
35,779 |
|
Less:
Cash and cash equivalents |
|
(5,547 |
) |
|
(5,031 |
) |
Net debt |
$ |
30,630 |
|
$ |
30,748 |
|
|
|
|
|
|
|
|
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
underground drilling that was successful in expanding the Mud Pond
and New Fold resource areas will be reported on in the second half
of the year with an updated Life of Mine plan; evaluation of the
Kilbourne drill results is underway by an independent engineering
firm with a maiden mineral resource estimate to be released in the
second half of the year; large scale metallurgical testing is
underway to further determine purity, concentrate grades and grain
morphology expected in the final product; ore recovery from the
longhole stoping in New Fold will continue into August; it is
expected that ore from New Fold and Lower Mahler zones will
continue to support head grades at planned levels for the remainder
of the year; mining is expected to continue in the same zones in
the third quarter of 2024; rod mill liners were received and will
be installed in the third quarter of 2024; in the third quarter of
2024, the Company plans to initiate a market search for a
replacement UG haulage truck and a mechanical bolter; A bulk sample
was collected in January 2024 with anticipated usage in material
classification; and preliminary results of the Phase II metallurgy
program are expected in the third quarter of 2024. 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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