Titan Hits Upper Range of Production Guidance and Beats Cost Guidance
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Titan Hits Upper Range of Production Guidance and Beats Cost Guidance
Vancouver, BC – March 20, 2025 – Titan Mining Corporation (TSX: TI, OTCQB: TIMCF) (“Titan”
or the " Company") is pleased to announce the results for the year ended December 31, 2024 .
The Company has achieved the top end of its 2024 production guidance and costs were 10%
lower than the low end of its AISC guidance, at its wholly owned Empire State Mines (“ESM”) ,
despite the production suspension caused by Storm Debby in Q3 2024. (All amounts are in U.S.
dollars unless otherwise stated).
FY 2024 HIGHLIGHTS:
• Produced 21.7 million pounds of payable zinc in Q4 2024 up 56% when compared to Q4 2023
and total production of 59.5 million pounds of payable zinc for FY 2024.
• Revenues of $26.3 million in Q4 2024, up 318% when compared to Q3 2024 and up 241%
when compared to Q4 2023.
• C1 cash costs per payable pound sold of $0.81 for Q4 2024, down 30% when compared to
Q4 2023 . C1 cash costs were also down to $0.91 for FY 2024, a decrease of 1 3% when
compared to FY 2023. The C1 cash cost achieved is 7% lower than the low end of the C1
cash cost guidance range of $0.98-1.02/lb for 2024.
• AISC of $0.86 for Q4 2024, down 26% when compared to Q4 2023. AISC for FY 2024 was
down to $0.94, a 13% decrease when compared to FY 2023. The achieved AISC is 10% lower
than the low end of the AISC guidance range of $1.04-1.10/lb for 2024.
• Cash flows from operations of $16.5 million for FY 2024, up 170% when compared to F Y
2023.
• Another record year in safety at the Empire State Mine since re -opening, with an injury
frequency rate of 0.7, more than 70% lower than the national average.
• Completion of an updated mineral resource estimate and extended mine life for ESM’s zinc
operations until 2033, reporting a 22% increase in measured and indicated contained pounds
of zinc compared to the Company’s 2020 zinc mineral resource estimate.
• Completion of a maiden mineral resource estimate for the Kilbourne Graphite Project,
resulting in an open-pit constrained inferred mineral resource estimate of 22 million US short
tons at an average grade of 2.91% (Cg) containing 653,000 tons of graphite, based on a cut-
off grade of 1.50%.
• An aggregate of US$22 million principal repaid on the Company’s credit facility with National
Bank of Canada.
Don Taylor, Chief Executive Officer of Titan, commented, “ The operational, safety and cost
performance in 2024 reflects the solid foundation established at ESM, where the team achieved
the upper end of production guidance at lower-than-forecast costs, despite the disruption caused
by Storm Debby. The improving TC environment for miners with forecast TCs below $150/t will
further enhance profitability in 2025 as we continue to expand operations, reduce costs, and
execute our growth plans.”
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Rita Adiani, President of Titan commented: “ The Company generated approximately $17 million
in cash flow from operations and has retired $22 million of third party debt in 2024, demonstrating
a solid and growing operation. Titan is well poised to execute its announced growth projects in
2025 strengthening its role as a key player in domestic critical minerals supply chains.”
TABLE 1 Financial and Operating Highlights
FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024
Operating
Payable Zinc Produced mlbs 59.5 21.7 8.3 14.5 14.6
Payable Zinc Sold mlbs 59.6 22.3 8.2 14.7 14.4
Average Realized Zinc Price $/lb 1.23 1.28 1.27 1.30 1.11
C1 cash cost(1) $/lb 0.91 0.81 1.32 0.79 0.97
AISC(1) $/lb 0.94 0.86 1.35 0.79 1.00
Financial
Revenue $m 64.3 26.3 8.3 18.0 11.7
Net Income (loss) after tax $m 6.5 11.4 (4.9) 2.6 (2.6)
Earnings (loss) per share - basic $/sh 0.05 0.09 (0.04) 0.02 (0.02)
Cash Flow from Operating Activities before
changes in non-cash working capital $m 16.5 10.9 (1.7) 7.0 0.3
31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 31-Dec-23
Financial Position
Cash and Cash Equivalents $m 10.2 5.8 5.5 4.2 5.0
Net Debt(1) $m 21.9 30.8 30.6 32.4 30.7
Note: The sum of the quarters in the table above may not equal the full-year amounts disclosed elsewhere due to rounding.
1 C1 Cash Cost, All-In Sustaining Cost (“AISC”) and Net Debt are non-GAAP measure s. Accordingly, these financial
measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures
disclosed by other issuers. These financial measures have been calculated on a basis consistent with historical periods.
Information explaining these non-GAAP measures is provided below under “Non-GAAP Performance Measures”.
For further details the reader is directed to the Company’s year ended December 31, 2024 Financial Statements and
Management Discussion and Analysis available on the Company’s website and sedarplus.ca.
OPERATIONS REVIEW
Mining in the fourth quarter of 2024 focused on the Mahler, New Fold, and Mud Pond zones.
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 by 10%. Longhole stope mining
in New Fold provided above -target grades and tons. Mining has continued in these same key
zones during the first quarter of 2025.
While crushing and hoisting activities were halted from August 12, 2024, to September 26, 2024,
mining activities continued and ore was stockpiled in the underground. Ore tons that were
stockpiled in Q3 2024, during the rehabilitation of the crusher, were hoisted and milled in Q4 2024.
This contributed significantly to higher tons and zinc metal produced in Q4 2024. With the excess
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capacity in the mill, the Company was able to achieve the top end of full guidance while beating
cost guidance.
Work on projects in the fourth quarter of 2024 focused mainly on completion of an updated NI 43-
101 technical report which was released in January 2025, a power upgrade in the Mahler mining
zone, and final work on the crusher recovery project.
GRAPHITE UPDATE
The Company’s 100% owned Kilbourne Graphite Project is almost entirely located within the
active use permit of the Company’s ESM #4 mine and within 400ft of the mill. In December 2024,
the Company announced a maiden inferred mineral resource estimate of 22 million US short tons,
at an average grade of 2.91% graphitic carbon (Cg), based on a cut-off grade of 1.5% Cg. A total
of 39 diamond drill holes were completed on the property between the fourth quarter of 2023 and
the second quarter of 2024, totaling 11,916 ft (3,362 m) drilled and testing roughly 8,300 ft (2,530
m) of Unit 2 (the Kilbourne host lithology) strike length within the Company’s permitted surface
ownership.
Surface mapping, supported by historic drill logs, suggests an additional ~8,000 ft (2,438 m) of
open strike length to the east, and ~7,500 ft (2,286 m) of open strike length to the south. The
mapped historic extents of Unit 2 are within the Company’s owned mineral rights package.
During the fourth quarter of 2024 the Company began Phase III of metallurgical test work on
graphitic material from the Kilbourne project. Samples representing 118 mineralized intercepts
from four drill holes (KX23-001, KX24-002, KX24-003, and KX24-004) were used in the process
optimization program.
The optimization program produced a flowsheet capable of producing a 98.8% C(t) concentrate
from the master composite, with a recovery of 87.3%, graphite recovery is projected to increase
to 90-91% in a closed-circuit.
With the positive metallurgical results of Phase III, Titan is in the final phases of completing
engineering for a commercial demonstration plant (the “ Facility”). The Facility is expected to
produce 1,000 -1,200t per annum of graphite concentrate and aims for modular expansion to
baseline production of 40,000t per annum with further growth capability. The Facility will be fed
Kilbourne mineralized material and will be co -located in the ESM mill area. It will benefit from
leveraging personnel and infrastructure from the existing zinc ESM mill operations thereby
reducing capital and operating costs.
The Company is progressing financing alternatives for the facility and will provide material
updates as they occur.
Scientific and Technical Information
The scientific and technical information contained herein related to the mineral resource estimates
at ESM and related matters is based upon the technical report titled "Empire State Mines 2024 NI
43-101 Technical Report Update Gouverneur, New York, USA" which has an effective date of
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December 3, 2024, and was approved by the following qualified persons: Donald R. Taylor, MSc.,
PG, Todd McCracken, P. Geo., Deepak Malhotra, P. Eng., and Oliver Peters, MSc, P. Eng., MBA.
Mr. Taylor is the Chief Executive Officer of the Company. Messrs McC racken, Malhotra, and
Peters are independent of the Company. Additional scientific and technical information contained
herein related to the Kilbourne project is based on the Company's press release titled "Titan
Mining Announces Phase III Metallurgy Resul ts and Outlines Plans for Natural Flake Graphite
Processing Facility in New York State", dated January 16, 2025, which was approved by Oliver
Peters, MSc, P. Eng., MBA. Mr. Peters is a Qualified Person as defined by National Instrument
43-101 and is independent of Titan.
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 t o
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 Costs
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.
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FY2024 FY2023
$ $/lb $ $/lb
Pounds of payable zinc sold (millions) 59.6 62.0
Operating expenses and selling costs 42,787 0.72 46,774 0.75
Concentrate smelting and refining costs 11,564 0.19 18,540 0.30
Total C1 cash cost 54,352 0.91 65,314 1.05
Sustaining capital expenditures 1,891 0.03 2,029 0.03
AISC 56,243 0.94 67,343 1.08
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.
December 31,
2024
December 31,
2023
Current portion of third party debt $ 10,058 $ 31,655
Current portion of related party debt 22,023 4,124
Non-current portion of debt - -
Total debt 32,081 35,779
Less: Cash and cash equivalents (10,163) (5,031)
Net debt $ 21,918 $ 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: [email protected]
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 future results of
operations; future exploration plans; the improving TC environment for miners with forecast TCs below $150/t will
further enhance profitability in 2025 as we continue to expand operations, reduce costs, and execute our growth
plans; Titan is well poised to execute its announced growth projects in 2025 strengthening its role as a key player
in domestic critical minerals supply chains; projected graphite recovery; details regarding the proposed Facility,
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including that the Facility is expected to produce 1,000-1,200t per annum of graphite concentrate and aims for
modular expansion to baseline production of 40,000t per annum with further growth capability, the Facility will be
fed Kilbourne mineralized material and will be co -located in the ESM mill area, the Facility will benefit from
leveraging personnel and infrastructure from the existing zinc ESM mill operations thereby reducing capital and
operating costs; the Company is progressing financing alternatives for the facility and will provide material updates
as they occur.. 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.