Titan Mining (NYSEAMERICAN:TII) reported a 35% increase in third-quarter revenue as higher zinc prices boosted earnings, while the company advanced plans for an integrated graphite project in New York and Alabama.
Revenue rose to $22.6 million in the third quarter of 2026, and adjusted earnings before interest, taxes, depreciation and amortization increased 111% to $6.2 million from $2.9 million a year earlier. The company posted a net loss of $2.8 million, or $0.03 per share, reflecting graphite investment and a $1.1 million non-cash fair value adjustment on warrants, Chief Financial Officer Rick Pozzebon said.
The average provisional zinc price was $1.74 per pound, up 35% from a year earlier and 11% from the second quarter. Titan produced 13.7 million payable pounds of zinc during the quarter, bringing its nine-month total to 45.3 million pounds.
Zinc production outlook
Vice President of Operations Joel Rheault said quarterly output reflected maintenance timing and the mining sequence at the Mahler and New Fold zones. Titan expects higher grades and production in the fourth quarter as mining moves to a new level at New Fold and retreat pillar recovery begins in other areas.
The company reaffirmed its full-year guidance of 62 million to 66 million payable pounds of zinc, C1 cash costs of $0.93 to $1.01 per pound and all-in sustaining costs of $1.07 to $1.17 per pound. For the first nine months, C1 costs were $1.01 per pound and all-in sustaining costs were $1.09 per pound.
During the analyst question-and-answer session, Rheault said the next phases of shaft-rail replacement and ore-bin chute work were not expected to interrupt production. A production hoist upgrade could require a five-production-day shutdown in the first quarter of 2027, he said, adding that the downtime had already been budgeted.
Titan ended September with $16.8 million in cash and $4.8 million in cash collateral deposited on forward sales. Available liquidity totaled $28.6 million, including $11.8 million of undrawn capacity under its EXIM credit facility, Pozzebon said.
Army lease framework and graphite plans
President and CEO Rita Adiani said Titan signed an Oct. 7 term sheet with the U.S. Department of the Army for a proposed enhanced use lease covering approximately 90 acres at Anniston Army Depot in Alabama. The agreement sets out principal terms; the next step is to complete a definitive lease, subject to customary conditions.
Under the proposed structure, Empire State Mines would develop, finance, build, own and operate a commercial-scale graphite processing facility. The facility would initially produce products including purified micronized graphite, followed by coated spherical purified graphite as customer qualifications progress, Adiani said.
The proposed lease would have an initial 50-year term and two 25-year renewal options. The Army would receive fair-market-value-based rent and participation rent once commercial operations begin, with a preference for in-kind improvements. It would also have a right of first offer on uncommitted product, capped at 10% of annual facility production.
Adiani said Titan is also working with EXIM on underwriting long-term debt for its Kilbourne graphite project. The fully funded feasibility study for a proposed 40,000-ton-per-year facility remains on track for completion in early 2027. Rheault said $9.7 million of the approximately $20.7 million study budget had been incurred as of Sept. 30.
The federal FAST-41 permitting schedule targets issuance of all federal permits by no later than August 2027, Rheault said. A final investment decision is subject to board approval, the study results, permitting and financing. In response to an analyst’s question, Adiani said the targeted decision by the end of 2027 would cover both Kilbourne and the potential Alabama facility as an integrated project.
Germanium evaluation
Titan is evaluating germanium grades and tonnages in four zinc ore bodies and two tailings facilities, while an independent laboratory works on recovery parameters. The company is also defining feed specifications for germanium concentrate under its cooperation agreement with Teck, Adiani said.
Adiani told analysts that Titan expects to include a germanium resource in an updated technical report in early 2027, followed by a scoping study or preliminary economic assessment. She described germanium as a potential byproduct of the zinc operation and said the company was considering both pre-concentration for delivery under the Teck agreement and a possible independent processing route.
About Titan Mining (NYSEAMERICAN:TII)
Titan Mining Corporation is a mining company focused on zinc production and mineral exploration. Its main operating asset is the Empire State Mine in northern New York, where the company mines and processes zinc ore into concentrate for customers. Titan acquired the Empire State Mine in 2017 and restarted production in 2018. The mine is located in the historic St. Lawrence County mining district, where zinc mining has been an important industry for many years. The company is headquartered in Vancouver, Canada, and also pursues exploration opportunities around its New York operations.
