Telson Announces Financial and Operating Results for the 1st Quarter 2021
Telson Mining Corporation
1000 – 1111 Melville Street
Vancouver, BC, V6E 3V6,
Canada
TSX.V: TSN
Page 1 of 4
Telson Announces Financial and Operating Results for the 1st Quarter 2021
Vancouver, British Columbia, May 28 2021
Telson Mining Corporation (TSXV: TSN) (OTC Pink: SOHFF) (FSE: TSGN) (" Telson" or the " Company") is pleased to
announce the three months ended March 31, 2021 (“Q1 2021”) management prepared financial results reflecting
a $5.25 million operating profit, which reflects steady quarter over quarter improved operating results over the
last year of operations at the Company’s Campo Morado Mine. All financial information included in this release are
reported in Canadian dollars, unless otherwise stated.
Q1 2021 Financial Highlights
• Mine quarterly operating profit substantially increased to $5.25M compared to a $0.26M loss during Q4
2020.
• Gross Revenue increased to $21.2M compared to $19.0M during Q4 2020.
• C1 Cash Cost improved to US$0.72/lb Zn, 43% improvement compared to US $1.28/lb Zn in Q4 2020.
• All-In Sustaining Costs reduced 35% to US $0.90/lb Zn, compared to US $1.39/lb Zn in Q4 2020.
• Basic Earnings per share was positive $0.02 per share compared to a loss of $0.06 per share in Q4
2020.
Q1 2021 Operational Highlights
• Total ore processed increased to 174,382 tonnes compared to 168,310 tonnes in Q4 2020.
• Zinc concentrate production increased to 11,013 tonnes compared to 9,974 tonnes in Q4 2020.
• Average realized zinc price per tonne increased to US$2,687 per tonne compared to US$2,360 per
tonne in Q4 2020.
• Zn recoveries improved to 74% compared to 69% in Q4 2020.
Campo Morado Operational and Financial Comparison (Over Last 5 Quarters)
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Operational
Ore Processed (ton) 88,386 70,490 127,438 168,310 174,382
Zn concentrate produced (ton) 6,380 3,899 7,778 9,974 11,013
Average realized zinc price per tonne (US$) 1,858$ 1,921$ 2,332$ 2,360$ 2,687$
Pb concentrate produced (ton) 1,346 923 1,609 1,916 1,908
Average realized lead price per tonne (US$) 1,694$ 1,679$ 1,848$ 1,863$ 1,709$
Cost Analysis
C1 Cash Cost (US$/lb) 0.78$ 1.26$ 1.26$ 1.28$ 0.70$
All-in Sustaining Cost (US$/lb) 1.00$ 2.17$ 0.80$ 1.39$ 0.90$
Financial
Gross revenues (000's) 7,727$ 6,608$ 11,148$ 18,960$ 21,216$
Mine operating profit (000's) 63$ (756)$ 473$ (260)$ 5,189$
Earnings per share
Basic earnings (loss) per share $ (0.01) $ (0.03) $ 0.03 $ (0.06) $ 0.02
Diluted earnings (loss) per share $ (0.01) $ (0.03) $ 0.03 $ (0.06) $ 0.02
Telson Mining Corporation
1000 – 1111 Melville Street
Vancouver, BC, V6E 3V6,
Canada
TSX.V: TSN
Page 2 of 4
The increased operating profit was a result of significantly decreased C1 Cash Costs and All in Sustaining Costs
which are a result of management implemented efficiencies in operations and costs reductions at the mine.
“I am pleased to see that all the hard work is paying off” stated Omar Garcia Abrego, the Company’s CFO “Campo
Morado operating figures have improved significantly over the last year , this along with cost reduction initiatives and
increased metal prices have resulted in strong results reported for Q1 2021. Overall, the Company is now well positioned
to have a very successful year with funding secured for the completion of Tahuehueto’s mine construction and the pending
restructure of the Company’s debt which in my opinion, all provide the foundation to continue delivering strong results
to our shareholders”.
This news release should be read in conjunction with Telson’s Management’s Discussion and Analysis and the
Unaudited Condensed interim Consolidated Financial Statements for the three months ended March 31, 2021
and 2020, which are available at www.telsonmining.com and filed on SEDAR.
* Non-GAAP Performance Measures
The Company has included certain non-GAAP performance measures in this press release. These non-GAAP performance measures
do not have any standardized meaning. Accordingly, these performance measures are intended to provide additional information and
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to the
Non-GAAP Measures section of Telson ’s Management Discussion and Analysis for an explanation and reconciliation of these
measures.
• C1 Cash Costs per pound of payable zinc for the Campo Morado Mine operation are estimated by adding the total cost to
produce concentrate (mining, milling, site general and administration), adding the cost of transporting concentrate to the point
of sale, adding the cost of smelter treatment and refinin g charges, subtracting the by -product credits estimated from sales of
lead, silver, gold and dividing by the pounds of payable zinc. By-product credits are calculated using the realized weighted average
metal price, during the year.
• All-in sustaining costs (“AISC”). The Company believes that AISC more fully defines the total costs associated with producing
zinc. The Company calculates all-in sustaining costs as the sum of total cash costs (as described above), corporate general and
administrative expense (net of stock-based compensation), reclamation cost accretion and amortization and sustaining capital,
all divided by the zinc pounds produced to arrive at a per pound figure.
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver, and
base metal mining projects.
Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently
producing at an average of 2,100 tonnes per day and is currently estimated to be Mexico’s 6th largest zinc
producer.
Telson's Tahuehueto mining project located in north -western Durango State, Mexico is a gold mi ne currently
under construction and advanced to an estimated 60% of completion. The Company recently announced a US$25
million s yndicated funding package , and subsequently closed a US$ 8 million equity private placement and
Telson Mining Corporation
1000 – 1111 Melville Street
Vancouver, BC, V6E 3V6,
Canada
TSX.V: TSN
Page 3 of 4
executed a silver streaming funding agreement with Empress Royalty to receive an initial US$2million 1st tranche
funding advance resulting in US $10 million of the syndicated funding package being available to immediately fund
construction efforts at Tahuehueto and provide working capital. Upon closing of the last US $12 million portion
of the funding package triggering the 2nd tranche US$3 million from Empress Royalty, Telson will have full funding
available to finish construction of its 1,000 tonne per day processing facility and related m ine infrastructure to
initiate production of gold, silver, lead, and zinc in concentrates at Tahuehueto. The Company is targeting to start
pre-production by the end of 2021 and ramping up to full production capacity during Q1 2022.
Visit: www.telsonmining.com
On Behalf of the Board of Directors
(signed) “Ralph Shearing”
Ralph Shearing, P. Geol, President and Director
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
It should be noted that Telson declared commercial production at Campo Morado prior to completing a feasibility study of
mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Telson’s
production decision has been made without a comprehensive feasibility study of established reserves such that there is greater
risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than
would be the case if a feasibility study were completed and relied upon to make a production decision. Telson has completed
a preliminary economic assessment (“PEA”) mining study on the Campo Morado mine that provides a conceptual life of mine
plan and a preliminary economic an alysis based on the previously identified mineral resources (see News Release dated
November 8, 2017, and April 4,2018).
Statements contained in this news release that are not historical facts are “forward -looking information” or “forward -looking
statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward
Looking Information includes, but is not limited to, disclosure regarding the planned recommencement of mining operations
at Campo Morado; and other possible events, conditions or financial performance that are based on assumptions about future
economic conditions and courses of action; the timing and costs of future activities on the Company’s properties, such as
production rates and increases; success of exploration, development and bulk sample processing activities, and timing for
processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information
can be identified using words and p hrases such as “plans,” “expects,” “scheduled,” “estimates,” “forecasts,” “intends,”
“anticipates” or variations of such words and phrases. In preparing the Forward -Looking Information in this news release, the
Company has applied several material assumptions, including, but not limited to, that the current exploration, development,
environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that
recommencement of operations at Campo Morado will proceed as planned; the continuity of the price of gold and other
metals, economic and political conditions, and operations. Forward -Looking Information involves known and unknown risks,
uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be
materially different from any future results, performance or achievements expressed or implied by the Forward -Looking
Information. There can be no assurance that Forward -Looking Information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue
reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release
publicly any revisions to Forward -Looking Information contained in this news release to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
Telson Mining Corporation
1000 – 1111 Melville Street
Vancouver, BC, V6E 3V6,
Canada
TSX.V: TSN
Page 4 of 4
Neither TSX Venture Exchange nor its Regulatio n Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information about Telson Mining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071