Canadian zinc miner posts markable earnings gains supported by zinc prices
Titan Mining Corporation has reported a record performance in the quarter ended June 30, with adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) having quadrupled year-on-year to $9.6-million which CEO Rita Adiani says reflects the strength of the group's zinc operations.
The group produced 17.5-million payable pounds of zinc in the quarter, which marked a 13% increase compared with the same quarter last year and an achievement ahead of the mine plan.
The company’s full-year zinc production guidance is set between 62-million and 66-million payable pounds of zinc, which are produced at the Empire State Mine operation, near Gouverneur, in New York State.
With adjusted Ebitda having grown by 272% year-on-year and 135% quarter-on-quarter, the company is on track to meet its full-year guidance of between $20-million and $28-million.
Titan’s net income amounted to $5.4-million, or $0.06 apiece, in the reporting quarter, compared with $500 000 in the same quarter last year.
While Titan realised a zinc price of $1.57/lb in the quarter, which increased by 7% quarter-on-quarter, the company expects more gains as spot zinc prices rose significantly since the end of June to four-year-highs of about $1.70/lb.
Titan generated operating cashflow before changes in non-cash working capital of $4.9-million, up 156% from the first quarter of the year.
The company posted net debt of $12.8-million in the quarter under review, which has decreased by 47% compared with the same quarter last year, while it has available liquidity of $29.1-million.
Meanwhile, Titan is working to commercialise its Kilbourne graphite project, also at Empire State Mine, having signed two customer agreements in recent weeks and aiming to announce a construction decision early next year.