Titan Mining delivered record financial results for the second quarter of 2026, with revenue climbing 57 percent year-over-year to $25.7 million and adjusted EBITDA nearly quadrupling to $9.6 million, according to the company's earnings call transcript published on Investing.com on August 12, 2026. The mining company's strong operational performance reflected higher zinc prices and increased production. Zinc production reached 17.5 million payable pounds in the quarter, up 13 percent year-over-year and 23 percent sequentially from the first quarter.
The company sold 17.2 million payable pounds at an average provisional zinc price of $1.57 per pound, representing a 31 percent increase from the prior year period. Net income after tax totaled $5.4 million, or $0.06 per share, compared to net income before tax of $6.1 million, which included a $2.7 million non-cash gain on derivative instruments. Cash costs improved substantially, with C1 cash costs at $0.88 per payable pound and all-in sustaining costs (AISC) at $0.96 per pound, both below the company's full-year guidance ranges.
Market reaction to the results was positive. Titan Mining shares rose 16.22 percent to $3.87 from a previous close of $3.33, gaining $0.54. While the stock remains below its 52-week high of $7.73, it trades above the 52-week low of $1.73.
Management attributed the strong performance to better operating execution at the zinc operation and successful recovery of production lost earlier in the year due to a hoisting disruption in January. The company produced ahead of mine plan and fully recovered the deferred zinc output by quarter end. Beyond zinc, Titan advanced its critical minerals strategy.
The company signed its first two customer agreements for the Kilbourne Graphite project after quarter end: a conditional supply agreement with RHI Magnesita, a global refractory products leader, and a non-binding letter of intent with a U.S. aerospace and defense manufacturer. Both agreements remain subject to customary conditions, but they represent initial steps toward commercial development. The Kilbourne feasibility study for a proposed 40,000-ton-per-year facility is fully funded and on schedule, with $5.3 million of a roughly $20.7 million budget spent as of June 30.
The company targeted a construction decision for early 2027, subject to board approval, completion of the feasibility study, permitting, and financing. Titan also made progress on germanium exploration. In May, the company signed a cooperation agreement with Teck Resources to assess germanium recovery from existing process streams.
A property-wide sampling program completed during the quarter confirmed district-wide germanium enrichment across multiple ore bodies and tailings facilities, not just in isolated zones. Financial strength improved notably. The company ended the quarter with $13.3 million in cash and available liquidity of $29.1 million, including $15.8 million of undrawn capacity under its Export-Import Bank facility.
Net debt fell 47 percent from a year earlier to $12.8 million. During the quarter, Titan completed its first equity offering under an At-the-Market program, issuing 520,000 shares for gross proceeds of $2.1 million. Graphite-related expenditures totaled $4.8 million in the second quarter, with first-half spending of $7.1 million total.
Capital spending in the quarter was $1.8 million, weighted toward underground development and mobile equipment. Management reaffirmed full-year 2026 zinc guidance: production of 62 million to 66 million payable pounds, C1 cash costs of $0.93 to $1.01 per pound, and AISC of $1.07 to $1.17 per pound. Management noted that second-quarter cost performance was below the full-year range because sustaining capital spending is weighted toward the second half of the year.
On zinc price dynamics, CEO Rita Adiani attributed elevated prices to contraction in global concentrate supply. China has shut down or placed numerous smelters on maintenance and downtime, largely in Asia, causing severe inventory shortages. Management expects zinc prices to remain elevated for several quarters as industrial demand for steel and infrastructure continues.
Titan also received conditional selection from the U.S. Army for Enhanced Use Lease opportunities at two strategic defense installations, one in Arkansas and another in Alabama, for construction and operation of the Kilbourne Graphite Purification Plant. The company is conducting detailed due diligence and finalizing business term agreements.
Rick Pozzebon, the newly appointed Chief Financial Officer who joined in July, brings more than 23 years of finance and capital markets experience, including 15 years in the resource sector, according to the transcript.
Source: investing.com