Titan Mining (NYSEAMERICAN:TII) reported record second-quarter financial results as higher zinc production, lower unit costs and stronger zinc prices lifted revenue and adjusted EBITDA. The company also highlighted early commercial progress at its Kilbourne Graphite project, including two customer agreements announced after the quarter ended, while advancing germanium recovery studies at its Empire State Mines operations.
“Zinc remains the engine funding everything else we are doing,” Vice President of Operations Joel Rheault said during the company’s second-quarter 2026 investor call.
Zinc Production, Revenue and EBITDA Rise
Mining activity was focused on the Mahler, New Fold and Mud Pond zones. Recovery of high-grade pillars in Lower Mahler and long-hole stoping in the Mud Pond Apron supported above-target grades and tonnage, according to the company.
Chief Financial Officer Rick Pozzebon, who joined Titan in July, said second-quarter revenue rose 57% year over year and 31% sequentially to $25.7 million. The company sold 17.2 million payable pounds of zinc at an average provisional zinc price of $1.57 per pound, a 31% increase from the prior-year period.
Adjusted EBITDA reached $9.6 million, nearly four times the comparable quarter of 2025 and 135% above the first quarter. First-half adjusted EBITDA totaled $13.6 million. Titan reported net income before tax of $6.1 million, including a $2.7 million non-cash gain on derivative instruments related to an IFRS fair-value adjustment on warrants. Net income after tax was $5.4 million, or $0.06 per share.
C1 cash costs were $0.88 per payable pound, while all-in sustaining costs were $0.96 per pound. Both measures were below Titan’s full-year guidance ranges. However, Rheault said sustaining capital spending is weighted toward the second half, meaning first-half costs should not be viewed as the full-year run rate.
- Full-year zinc production guidance: 62 million to 66 million payable pounds.
- Full-year C1 cash cost guidance: $0.93 to $1.01 per pound.
- Full-year all-in sustaining cost guidance: $1.07 to $1.17 per pound.
The company spent $1.8 million in capital during the quarter, primarily on underground development and mobile equipment. Projects underway include a production shaft rail replacement, Number 2 shaft secondary-egress rehabilitation, a mill fine-ore-bin chute rebuild and power expansion at Mud Pond.
Graphite Project Moves Toward Commercialization
President and CEO Rita Adiani said Titan signed its first two customer agreements for the Kilbourne Graphite project after the quarter ended. One was a conditional supply agreement with refractory products company RHI Magnesita, while the other was a non-binding letter of intent with a U.S. manufacturer serving aerospace, defense and advanced industrial markets.
RHI Magnesita’s laboratory qualification confirmed that Kilbourne graphite meets its refractory specifications, and commercial-scale testing has begun in the customer’s manufacturing operations, Adiani said. The agreement covers an initial volume and could expand to as much as 10% of Kilbourne’s projected commercial production, subject to a successful production trial.
The U.S. manufacturer has initiated its own qualification testing using demonstration-plant samples and has reported early positive results, according to Titan. Both agreements remain subject to customary conditions.
The feasibility study for a proposed 40,000-tonne-per-year Kilbourne facility is fully funded and on schedule. Titan had spent $5.3 million of the study’s approximately $20.7 million budget as of June 30. The company said the work includes mine design, resource-to-reserve conversion, metallurgical flowsheet refinement, site layout, and capital and operating cost estimates.
Titan also said it confirmed battery-grade graphite production across its full process chain, from ore concentration to spherical graphite, after quarter-end. Rheault said the result supports assumptions in the project’s preliminary economic assessment and de-risks the downstream flowsheet.
The company remains targeting an early 2027 construction decision, subject to board approval, completion of the feasibility study, permitting and financing. Titan said it is conducting due diligence and finalizing business terms with the U.S. Army after receiving conditional selection notices for Enhanced Use Lease opportunities at defense installations in Arkansas and Alabama. The company is considering Army property for a Kilbourne graphite purification plant.
Germanium Work Broadens Across District
Titan continued work with Teck Resources following a May cooperation agreement to assess recovery of germanium from existing process streams. Adiani described germanium as a potential low-capital opportunity because some of the material being evaluated has already been mined and processed.
A property-wide sampling program covering six underground ore bodies, along with the Number 4 and Edwards historic tailings facilities, confirmed germanium enrichment across the district, Titan said. The company is evaluating two potential routes: producing a pre-concentrate for Teck, or assessing a standalone processing facility based on broader district-scale potential.
Titan said it is prioritizing higher-grade material while conducting deportment, mineralogical and recovery test work. Adiani said the company expects future disclosures to provide estimates of the germanium opportunity and related test-work results, though assays and certain recovery results remain pending.
Balance Sheet and Funding Position
Graphite-related expenditures were $4.8 million in the second quarter and $7.1 million during the first half, including spending on the demonstration facility and Kilbourne feasibility work. Titan completed its first at-the-market equity financing during the quarter, issuing 520,000 shares for gross proceeds of $2.1 million.
The company ended June with $13.3 million in cash and $29.1 million in available liquidity, including $15.8 million of undrawn capacity under its EXIM facility. Net debt was $12.8 million, down 47% from a year earlier.
During the question-and-answer session, Adiani said Titan continues to engage with the U.S. Department of Energy, Department of Defense and Export-Import Bank regarding potential non-dilutive government investment. She also said the company is discussing potential price-floor mechanisms, particularly for germanium.
Adiani attributed elevated zinc prices to contraction in the concentrate market, including smelter shutdowns and maintenance downtime in Asia that have contributed to inventory shortages. She said Titan expects zinc prices could remain elevated over the next several quarters, while noting the company plans to continue funding some growth initiatives through cash reserves if zinc prices remain robust.
About Titan Mining (NYSEAMERICAN:TII)
Titan Mining Corporation, a natural resource company, acquires, explores, develops, produces, and extracts mineral properties. The company explores for zinc and graphite, as well as iron-oxide copper gold deposits. Its principal asset is the Empire State Mine project covering an area of approximately 80,000 acres located in the Balmat Edwards mining district in northern New York. The company was formerly known as Triton Mining Corporation and changed its name to Titan Mining Corporation in November 2016.
