Q2 2023 HIGHLIGHTS:
- No Lost Time Injuries and a recordable injury frequency rate at half the national average for underground metal mines.
- Zinc production of 15.0 million payable pounds, up 9% from the prior quarter;
- Zinc sales of 15.0 million payable pounds, up 1% from the prior quarter;
$9.0 million in revenue, down 47% when compared to the prior quarter due to significantly lower realized zinc prices and negative provisional and final pricing adjustments;- Announced results of surface and underground drilling programs. The surface drilling program included a total of 16,240 ft targeting modeled extents of near mine, near surface mineralization at the planned Turnpike (formerly Sphaleros) expansion project. Significant mineralized intercepts from surface include:
- 49.5 feet assaying 9.3% zinc, 3.2% lead, and 24.3 g/t silver
- Including 15.1 feet assaying 16.1% zinc, 5.2% lead, and 37.8 g/t silver
- 27 feet assaying 13.2% zinc, 3.6% lead, and 30.6 g/t silver
- Including 12.6 feet assaying 19.8% zinc, 5.6% lead, and 49.4 g/t silver
- 26.3 feet assaying 14.9% zinc, 3.9% lead, and 34.9 g/t silver
- 23.9 feet assaying 14% zinc, 3.7% lead, and 33.4 g/t silver
- 15.5 feet assaying 14.9% zinc, 0.6% lead, and 6.9 g/t silver
- Underground exploration continues to target a newly identified zone of mineralization between the Mahler and New Fold mining areas. Assays from drill holes completed to date continue to support the robust nature of the zone.
- Cash balance of
$2.9 million atJune 30, 2023
TABLE 1 FINANCIAL and OPERATING HIGHLIGHTS
Q2 2023 | Q1 2023 | Q2 2022 | Q2 2023 vs. Q1 2023 | Q2 2023 vs. Q2 2022 | |||
Operating | |||||||
Payable Zinc Produced | mlbs | 15.0 | 13.8 | 16.5 | 9% | -9% | |
Payable Zinc Sold | mlbs | 15.0 | 14.8 | 15.0 | 1% | 0% | |
Average Realized Zinc Price | $/lb | 1.15 | 1.42 | 1.74 | -19% | -34% | |
Financial | |||||||
Revenue | $m | 8.95 | 16.74 | 20.13 | -47% | -56% | |
Net Income (loss) before tax | $m | (4.84) | 1.10 | 5.92 | -540% | -182% | |
Earnings (loss) per share - basic | $/sh | (0.03) | 0.01 | 0.04 | -400% | -175% | |
Cash Flow from Operating Activities before changes in non-cash working capital | $m | (0.11) | 3.35 | 9.42 | -103% | -101% | |
Financial Position | Change | ||||||
Cash and Cash Equivalents | $m | 2.90 | 6.72 | (3.82) | |||
Net Debt 1 | $m | 33.43 | 23.31 | 10.12 | |||
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.
OPERATIONS REVIEW
Mining efforts in the second quarter of 2023 focused on the Mahler, New Fold, and
Work on projects was minimal as muted zinc prices led the Company to reduce spending at the mine. While planning for future development of the
EXPLORATION UPDATE
Underground:
Drill programs in the second quarter of 2023 focused on exploring near mine targets within proximity to active mine areas. All underground drilling was completed with Company-owned underground drills by Company employees. A total of 12 holes totaling 6,235 ft were completed targeting mineralized extensions of New Fold and Mahler. Drilling will continue to target Mahler and commence at Fowler in the third quarter of 2023.
Surface:
Surface drilling in the second quarter of 2023 focused on delineating and expanding the known near surface mineralization within the footprint of the Turnpike project area. A total of eight holes totaling 4,628 ft were completed testing the Streeter target.
One district exploration hole was completed in the second quarter at 24 Crescent, a near mine district target, totaling 796 ft. Regional drill targets have been identified for testing in the fourth quarter of 2023 with planning underway for 2024.
Additional information on the drilling results described herein are set out in the Company's press release dated
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
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 to assess how well the
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.
2023 | 2022 | |||||
Current portion of debt | $ | 226 | $ | 176 | ||
Non-current portion of debt | 36,101 | 29,856 | ||||
Total debt | $ | 36,327 | $ | 30,032 | ||
Less: Cash and cash equivalents | (2,895 | ) | (6,720 | ) | ||
Net debt | $ | 33,432 | $ | 23,312 |
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For further information, please contact: Investor Relations: Email: info@titanminingcorp.com
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; that Titan is committed to investing in the
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2023 GlobeNewswire, Inc., source