Titan Mining : Q3 2020 - Financial Statements

TITAN MINING CORPORATION

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020

(Unaudited)

Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements

The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Canadian Institute of Professional Chartered Accountants for a review of interim financial statements by an entity's auditor.

TITAN MINING CORPORATION

Condensed Consolidated Interim Statement of Financial Position

(Expressed in thousands of US dollars - Unaudited)

			September 30,		December 31,
	Notes		2020		2019
Assets
Current assets
Cash and cash equivalents		$	7,018	$	1,709
Trade and other receivables	4		1,497		655
Inventories	5		2,158		2,626
Other current assets			603		789
			11,276		5,779
Non-current assets
Mineral properties, plant and equipment	6		65,434		70,593
Right-of-use assets	7a		164		385
Restricted cash			1,751		1,743
Total assets		$	78,625	$	78,500
Liabilities
Current liabilities
Accounts payable and accrued liabilities		$	3,356	$	4,435
Lease liabilities	7b		144		271
Debt	8		10,178		180
Loan from related party	9a		24,095		21,093
Acquisition obligations			1,025		1,025
			38,798		27,004
Non-current liabilities
Lease liabilities	7b		32		146
Debt	8		2,431		10,022
Other payables	9b		193		192
Reclamation and remediation provision			17,636		15,946
Total liabilities			59,090		53,310
Shareholders' equity
Equity attributable to shareholders of the Company
Share capital			61,076		56,704
Reserves			7,723		4,975
Deficit			(49,264)		(36,489)
Total equity			19,535		25,190
Total liabilities and shareholders' equity		$	78,625	$	78,500
Nature of operations and going concern (Note 1)

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

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TITAN MINING CORPORATION

Condensed Consolidated Interim Statement of Loss and Other Comprehensive Loss

(Expressed in thousands of US dollars - Unaudited)

			Three months ended		Nine months ended
			September 30,			September 30,
	Note		2020		2019		2020		2019
Revenue	10	$	9,135	$	454	$	21,311	$	1,600
Cost of Sales
Operating expenses			6,773		-		20,409		-
Depreciation and depletion			2,566		-		7,202		-
			9,339		-		27,611		-
Earnings (loss) from mine operations			(204)		454		(6,300)		1,600
Exploration and evaluation expenses			245		261		1,118		2,519
General and administration expenses			960		963		2,380		3,249
Interest and other finance expenses			785		757		2,314		2,216
Accretion expense			(7)		81		7		269
Interest income			(3)		(3)		(13)		(19)
Foreign exchange loss (income)			(712)		(8)		788		(59)
Other income			(14)		-		(119)		-
Gain on derivative liability			-		-		-		(181)
Loss on loan extinguishment			-		-		-		1,702
			1,254		2,051		6,475		9,696
Net loss for the period			1,458		1,597		12,775		8,096
Other comprehensive loss (gain)
Items that may be reclassified to profit or loss
Unrealized loss on translation to reporting
currency			721		(66)		(674)		34
Total comprehensive loss for the period		$	2,179	$	1,531	$	12,101	$	8,130
Basic and diluted loss per share (in US $)	$	0.01	$	0.02	$	0.10	$	0.08
Weighted average shares outstanding
(in '000)			124,015	104,971		123,321		103,158

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

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TITAN MINING CORPORATION

Condensed Consolidated Interim Statement of Changes in Equity (Expressed in thousands of US dollars - Unaudited)

	Share capital				Reserves
					Share
					options		Currency
	Number				and		translation						Total
Notes	('000s)		Amount		warrants		adjustment		Total		Deficit		equity
Balances, January 1, 2019, as
previously reported	101,971	$	51,859	$	2,741	$	(406)	$	2,335	$	(26,955)	$	27,239
Impact of change in accounting policy	-		-		-		-		-		1,352		1,352
Adjusted balance, January 1, 2019	101,971		51,859		2,741		(406)		2,335		(25,603)		28,591
Shares and share purchase warrants
issued as borrowing costs	3,000		919		493		-		493		-		1,412
Shares and share purchase warrants
issued in private placements	18,000		3,926		812		-		812		-		4,738
Share based compensation	-		-		804		-		804		-		804
Issue of share purchase warrants	-		-		1,028		-		1,028		-		1,028
Total comprehensive loss for the
period	-		-		-		(497)		(497)		(10,886)		(11,383)
Balance, December 31, 2019	122,971	$	56,704	$	5,878	$	(903)	$	4,975	$	(36,489)	$	25,190
Units issued in private placements	16,008		4,372		1,616		-		1,616		-		5,988
Share based compensation	-		-		458		-		458		-		458
Total comprehensive gain for the
period	-		-		-		674		674		(12,775)		(12,101)
Balance, September 30, 2020	138,979	$	61,076	$	7,952	$	(229)	$	7,723	$	(49,264)	$	19,535

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

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