Titan Reports First Quarter 2023 Results
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Titan Reports First Quarter 2023 Results
Vancouver, BC – May 11, 2023 – 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
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.
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
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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 z one. 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 de velopment has been identified and the
acquisition process is underway. To help facilitate planning for the Sp haleros 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.
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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 wi th 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 ended
March 31, 2023
Year ended
December 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
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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 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 e xploration 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.