Titan Mining (TI) Q3 2024 earnings summary

Executive summary

• Tropical Storm Debby halted crushing and hoisting from Aug. 12 to Sept. 26; full commercial production resumed after repairs completed ahead of schedule and under budget, with no employee injuries or mobile fleet damage.

• Management reiterated FY2024 production guidance, expecting Q4 costs to offset Q3's higher costs and stockpiled ore to support budgeted mill tonnage.

Financial highlights

• Q3 revenue was $8.27M, versus $17.97M in Q2 2024 and $15.50M in Q3 2023; storm-related suspension reduced revenue in both Q3 and 9M 2024.

• Q3 loss before tax was $4.86M and basic loss per share was $0.04, compared with Q2 income before tax of $2.62M and EPS of $0.02.

• Q3 operating cash flow before non-cash working-capital changes was negative $1.68M; cash and equivalents were $5.84M at Sept. 30, 2024.

Outlook and guidance

• FY2024 production guidance was reiterated; Q4 plans call for budgeted tonnage plus Q3 underground stockpiles to be hoisted and milled.

• New Fold and Lower Mahler ore is expected to support budgeted head grades through FY2024; mining and New Fold ore recovery are expected to continue in Q4.

• Q4 plans include an updated zinc Life of Mine Plan and a maiden Kilbourne graphite resource estimate.

• Phase III Kilbourne metallurgy at SGS Lakefield was expected to be completed by Q4 2024; timing and outcomes remain subject to forward-looking risks.