Talon Metals Reports First Quarter 2026 Results
Talon Metals Reports First Quarter 2026
Results
Road Town, Tortola, British Virgin Islands--(Newsfile Corp. - May 15, 2026) - Talon Metals Corp. (TSX:
TLO) (OTCID: TLOFF) ("
Talon
" or the "
Company
") today reported its first quarter 2026 financial
results. This is the first quarter in which results from the recently acquired Eagle Mine and Humboldt Mill
("Eagle") are included. Results from Eagle have been included commencing January 9, 2026, the
closing date of the Company's acquisition of Eagle from Lundin Mining Corporation. All dollar amounts
presented in this news release are in U.S. dollars. On January 1, 2026, the Company changed its
presentation currency from Canadian dollars to U.S. dollars.
Highlights
For the three-month period ending March 31, 2026, the Company reported:
Revenue of $46.9 million (Q1 2025: $nil million);
Net income of $1.6 million or $0.01 per share (basic and diluted) (Q1 2025: net loss of $0.6 million
or ($0.01) per share (basic and diluted));
EBITDA
1
of $7.8 million (Q1 2025: negative EBITDA of $0.6 million);
Adjusted EBITDA
1
of $8.7 million (Q1 2025: negative EBITDA of $0.6 million);
Cash provided by operating activities was $5.2 million (Q1 2025: $5.1 million);
Capitalized exploration and evaluation costs on the Tamarack Nickel-Copper-Cobalt Project for
the three months ended March 31, 2026, amounted to $7.2 million (Q1 2025: $4.0 million).
As at March 31, 2026, the Company reported:
Cash, cash equivalents, treasury bills, and term deposits of $31.5 million (December 31, 2025 -
$25.4 million);
Working capital of $48.6 million (December 31, 2025 - $19.3 million).
As at May 15, 2026, the Company reported cash, cash equivalents, treasury bills, and term deposits of
$55.1 million.
Darby Stacey, Chief Executive Officer of Talon, commented:
"We're pleased to report our first quarterly
results since our transformational acquisition of Eagle Mine on January 9, 2026. The integration of the
Eagle assets has progressed to plan, and we're excited to see these excellent teams begin working
together toward our exciting future for the Company. Operationally, it was a challenging period with
historical snowfall and issues related to excessive blocky material in the active mining stopes that
negatively impacted ore flow. Our operations teams have successfully navigated through these
challenges, and now resolved, we're executing well with stable performance in Q2. With $55.1 million
of cash and short-term investments as of May 15, 2026, the Company is well-positioned to execute on
its exploration and development plans in Minnesota and Michigan."
Consolidated Financial Statements for the three months ending March 31, 2026, and 2025, together with
Management's Discussion and Analysis, have been filed under the Company's profile on SEDAR+ and
are available at
www.sedarplus.ca
.
Table 1 - Financial and Operating Metrics
4
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1
Cash cost includes at-mine cash operating costs, treatment and refining charges, selling costs, and transportation costs, and is reported on a $/lb
of nickel sold basis. Cash cost may also include royalties, and so cash cost has been presented excluding and including royalties.
2
Royalties include state and private royalties, and Michigan severance tax. Michigan severance tax, which is in lieu of state tax, is calculated
similarly to a royalty as a percentage of revenue.
3
All-in sustaining cost ("AISC") includes cash cost (as defined above), sustaining capital expenditure, current period closure costs (cash basis),
and lease payments (cash basis).
4
EBITDA, Adjusted EBITDA, cash costs, AISC, and sustaining capital expenditures are non-GAAP financial measures or ratios. Refer to the "Non-
Performance Measures" section in this News Release for more information, including reconciliations to the nearest comparable IFRS measure.
5
Results from Eagle have been included commencing January 9, 2026.
Qualified Person
Etienne Dinel, Vice President, Geology of Talon, is a Qualified Person within the meaning of National
Instrument 43-101. Mr. Dinel has reviewed and approved the scientific and technical information
disclosed in this news release.
Non-GAAP Performance Measures
The Company uses certain performance measures in its analysis and disclosure. These performance
measures have no standardized meaning within generally accepted accounting principles under IFRS
Accounting Standards, and, therefore, amounts presented may not be comparable to similar data
presented by other mining companies. This data is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS Accounting Standards. The following are non-GAAP performance measures that the Company
uses as key performance indicators that are included in this news release. The tables below provide a
reconciliation of these non-GAAP performance measures to the most directly comparable IFRS
measure as contained within the Company's issued financial statements for the three months ended
March 31, 2026.
EBITDA and Adjusted EBITDA
EBITDA represents net earnings or loss for the period before income tax expense or recovery,
depreciation and amortization, and finance costs, net.
Adjusted EBITDA removes the effects of items that do not reflect the Company's underlying operating
performance and are not necessarily indicative of future operating results. These may include: unrealized
foreign exchange, unrealized gains or losses from derivative contracts, revaluation gains or losses on
marketable securities, derivative liabilities, contingent consideration and purchase options, expenses for
acquisition-related fair value adjustments to inventory, non-cash impairment charges and reversals, non-
cash stockpile inventory or fixed asset write-downs or reversals, goodwill impairment, insurance
proceeds, and litigation and settlements. The following is a reconciliation from net income (loss) under
IFRS to EBITDA and Adjusted EBITDA:
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Cash Cost Including and Excluding Royalties
Cash cost excluding royalties includes costs directly attributable to mining operations (including mining,
processing, and administration), treatment, refining, and transportation charges, but excludes royalty
expenses, expenses associated with non-cash fair value adjustments to inventory, depreciation and
amortization, and capital expenditures. Revenue from sales of by-products reduce cash cost.
Cash cost, including royalties, includes cash cost excluding royalties plus state royalties, private
royalties, and state severance tax, which is administered as a royalty.
Cash cost per pound sold is calculated by dividing cash cost, including or excluding royalties, by the
sales volume of the primary metal, which is nickel in the case of Eagle.
All-in Sustaining Costs
All-in sustaining cost ("AISC") includes cash cost (as defined above), sustaining capital expenditure
(including underground mine development), current period closure costs (cash basis), and lease
payments (cash basis). As this measure seeks to reflect the full cost of production from current
operations, expansionary capital and certain exploration costs are excluded as these are costs typically
incurred to extend mine life or materially increase the productive capacity of existing assets, or for new
operations. Corporate general and administrative expenses have also been excluded, as any attribution
of these costs to an operating site would not necessarily be reflective of costs directly attributable to the
administration of the site. Certain other cash expenditures, including tax payments, financing charges
(including capitalized interest), and costs related to business combinations, asset acquisitions, and
asset disposals, are also excluded.
AlSC per pound sold is calculated by dividing AISC by the sales volume of the primary metal, which is
nickel in the case of Eagle. The following is a reconciliation from total production costs under IFRS to
cash cost, including and excluding royalties, and to AISC.
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Sustaining capital expenditures
The following is a reconciliation from total property, plant, and equipment additions under IFRS to
sustaining capital expenditures:
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ABOUT TALON
Talon is a TSX-listed base metals company advancing and operating high-grade nickel-copper assets
in the United States, including 100% ownership of the Eagle Mine and Humboldt Mill in Michigan, the
only primary nickel mine currently operating in the United States, and the
Tamarack Nickel-Copper-
Cobalt Project
in Minnesota. Talon is in a joint venture with
Rio Tinto
on the high-grade Tamarack Nickel-
Copper-Cobalt Project located in central Minnesota. Talon's shares are also traded in the US over the
OTC market under the symbol TLOFF. The Tamarack Nickel-Copper-Cobalt Project comprises a large
land position (18km of strike length) with additional high-grade intercepts
outside the current resource
area
. Talon has an earn-in right to acquire up to 60% of the Tamarack Nickel-Copper-Cobalt Project and
currently owns 51%. Talon has a
neutrality and workforce development agreement
in place with the
United Steelworkers union. Talon's Beulah Mineral Processing Facility in Mercer County was
selected by
the US Department of Energy
for a US$114.8 million funding grant from the Bipartisan Infrastructure
Law, and the
US Department of War awarded Talon a grant of US$20.6 million
to support and
accelerate Talon's exploration efforts in both Minnesota and Michigan. Talon has well-qualified and
experienced exploration, mine permitting, mine development, operations, and community relations
teams.
For additional information on Talon, please visit the Company's website at
www.talonmetals.com
or
contact:
Media Contact:
Jen Heikkila
Investor Contact:
Mike Kicis
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements". All statements, other than statements
of historical fact, that address activities, events, or developments that the Company believes, expects, or
anticipates will or may occur in the future are forward-looking statements. These forward-looking
statements reflect the current expectations or beliefs of the Company based on information currently
available to the Company. Such forward-looking statements include statements relating to delivering
stable performance in Q2 2026 and the Company being well-positioned to execute on its exploration
and development plans in Minnesota and Michigan. Forward-looking statements are subject to
significant risks and uncertainties and other factors that could cause the actual results to differ materially
from those discussed in the forward-looking statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will have the expected consequences to, or
effects on, the Company.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be
required by applicable securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future events, or results or otherwise.
Although the Company believes that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent uncertainty therein.
1
EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to the "Non-GAAP Performance Measures" section in this news release for
more information, including reconciliations to the nearest comparable IFRS measure.
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