Titan Mining Corp. · TSX:TI
Titan Mining — BMO Capital Markets 27th Global Metals & Mining Conference 2018
34 slides from Titan Mining's conference presentation, February 2018
Slide 1: The Newest U.S. Zinc Producer
TSX: TI THE NEWEST U.S. ZINC PRODUCER LEVERING EXCESS CAPACITY TO DRIVE CASH FLOW GROWTH BMO CAPITAL MARKETS 27TH GLOBAL METALS & MINING CONFERENCE FEBRUARY 25-28, 2018
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation contains "forward-looking information" within the meaning of Canadian securities laws. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "unique in
Slide 3: Titan Investment Highlights
TITAN INVESTMENT HIGHLIGHTS Proven track record – the Augusta Group has generated significant shareholder returns by advancing five public companies in the last 12 years Experienced Extensive experience – COO and General Manager have over 70 years of Management combined experience building and o
Slide 4: The Augusta Group Track Record
THE AUGUSTA GROUP TRACK RECORD Significant shareholder value created by successfully advancing five public companies, including Titan, in the last 12 years(1) La Bodega gold project (Colombia) Rosemont copper project (Arizona) SOLD for ~C$1.6B in 2011 SOLD for ~C$666M in 2014 12,960% Share Price Inc
Slide 5: Experienced Management, Strong Balance Sheet
EXPERIENCED MANAGEMENT, STRONG BALANCE SHEET Toronto Stock Exchange Symbol TI Shares Outstanding 102.0 million Options 5.8 million Share Ownership Fully Diluted Shares Outstanding 107.8 million Share Price (2/21/2018) C$1.50 Market Capitalization C$153 million 19% Cash & Cash Equivalents (as of 10/3
Slide 6: Empire State Mine: Reviving a 100-Year-Old Zinc District
EMPIRE STATE MINE: REVIVING A 100-YEAR-OLD ZINC DISTRICT Established mining district in upper New York State Empire State Mine #4 (restarted) and six historic mines Historical production – 44M tons milled at average grade of 9.4% zinc >80,000 acres of mineral rights controlled by Titan Excel
Slide 7: Underutilized Mine and Mill Complex
UNDERUTILIZED MINE AND MILL COMPLEX Office building and 3,800 tpd shaft Mill recommissioned and first ore hoisted on schedule and budget Mill – 5,000 tpd capacity #4 shaft adjacent to mill – 3,800 tpd capacity(1) Underground development commenced Fully-developed access to multiple levels Sec
Slide 8: Base Case Financial & Operating Highlights
BASE CASE FINANCIAL & OPERATING HIGHLIGHTS(1,2) Key Operating Statistics Financial Highlights Unit Value Unit Value Mine Life Years 8 Pre-Production Capital Expenditures $M $10.7 Planned Tons Mined Mt 4.3 Total LOM Capital Expenditures $M $69.2 Annualized Throughput tpd 1,465 NSR (Net of 0.3% Averag
Slide 9: Three-Pronged Growth Strategy
THREE-PRONGED GROWTH STRATEGY Cash flow growth from levering excess shaft and mill capacity Fill the shaft (3,000 tpd) and extend mine life with in-mine mineral resource additions Fill the mill (5,000 tpd) strategy supported by regional exploration Modernize the operation, improving efficienci
Slide 10: History of Exploration Success Plus Potential for Additional Discoveries
HISTORY OF EXPLORATION SUCCESS PLUS POTENTIAL FOR ADDITIONAL DISCOVERIES Many discoveries made during almost a century of mining operations Minimal exploration during 2000-2010 period District remains highly prospective – refocus on exploration concurrent with ramp up of production Long Producti
Slide 11: First Priority – Mining Historical Data
FIRST PRIORITY – MINING HISTORICAL DATA Compiling and digitizing existing data 100 years of historical exploration ‒ ~800 kilometers of available drill data Consolidating and assessing exploration data from multiple programs and operators Previous (re)discoveries based on examination of histor
Slide 12: Mineral Resource Expansion Potential
MINERAL RESOURCE EXPANSION POTENTIAL Potential to expand production and increase mine life Excellent potential to extend open mineralized zones Previous development provides access to higher-grade areas such as New Fold Mahler #2366 New Fold #2052-F NE Mud Pond Fowler #1097-F’ #847-F Davis Sylvi
Slide 13: Filling the Shaft (3,000 tpd)
FILLING THE SHAFT (3,000 TPD) Targeting incremental (+1,200 tpd) mine production from multiple sources Historic mineral reserves of ~4 million tons in Empire State Mine #2 and #4 (shown left)(1) Remnant mining potential – historic mining left significant tonnage in place for structural support (
Slide 14: Filling the Mill (5,000 tpd)
FILLING THE MILL (5,000 TPD) Regional exploration – 2018 budget US$5M Gap Zone – high priority target; potential down-plunge extension of known mineralized zones Sully prospect – follow up on high-grade intercepts: 19.5 feet at 16.7% Zn, 10.3 feet at 22.6% Zn, 5.8 feet at 34.1% Zn TSX: TI 14
Slide 15: Filling the Mill (5,000 tpd), Cont'd
FILLING THE MILL (5,000 TPD), CONT’D New district opportunities Untested geophysical targets generated from 2008 VTEM North Gouverneur, Moss Ridge SW, Colton Gravity survey TSX: TI 15
Slide 16: A Catalyst-Rich Path to Phase 1 Production
A CATALYST-RICH PATH TO PHASE 1 PRODUCTION(1) #4 Headframe Re-commissioning program to refurbish existing infrastructure and equipment Reconditioning and re-starting the mobile Q4 2017 equipment fleet General rehabilitation of the underground workings to allow for full access Development o
Slide 17: Valuation Upside – Trading at a Discount
VALUATION UPSIDE – TRADING AT A DISCOUNT Executing to a premium valuation Titan is currently trading at only 2.3x estimated EBITDA once in full production in 2019 Source: Scotiabank, February 21, 2018 TSX: TI 17
Slide 18: Impressive Leverage to Zinc Price
IMPRESSIVE LEVERAGE TO ZINC PRICE Titan offers the highest leverage amongst peers to a 10% increase in zinc prices Source: Scotiabank, February 20, 2018 TSX: TI 18
Slide 19: Appendix
TSX: TI Appendix 19
Slide 20: Opportunities to Enhance Economics Relative to the PEA
OPPORTUNITIES TO ENHANCE ECONOMICS RELATIVE TO THE PEA Explanation Potential Benefit Use sorting technology to reject waste rock Lower rate of dilution and increased head grade Plant Feed Sorting mixed with mineralized mill feed entering the mill Simpler materials handling and reduction of Use Railv
Slide 21: Experienced Management
EXPERIENCED MANAGEMENT Management Richard Warke is a Vancouver-based mining executive and the Executive Chairman of Titan Mining, part of the Augusta Group of Companies which he founded in 2005. The Augusta Group previously included Ventana Gold Corp., which sold for C$1.6 billion Richard Warke in 2
Slide 22: Experienced Management, Cont'd
EXPERIENCED MANAGEMENT, CONT’D Management (Continued) Scott Burkett joined Titan in February 2018, and has over 10 years of experience in mineral exploration, ore control, geologic modeling, resource estimation and database management. Mr. Burkett earned his BSc in Geology from the University of Ida
Slide 23: Directors & Advisors
DIRECTORS & ADVISORS Directors Richard Warke is a Vancouver-based mining executive and the President & CEO of Titan Mining, part of the Augusta Group of Companies which he founded in 2005. The Augusta Group previously included Ventana Gold Corp., which sold for C$1.6 billion in Richard W. Warke 2011
Slide 24: Analyst Coverage
ANALYST COVERAGE Analyst Company Dalton Baretto Canaccord Genuity Orest Wowkodaw Scotiabank TSX: TI 24
Slide 25: Zinc Prices Have Re-Rated Higher
ZINC PRICES HAVE RE-RATED HIGHER As a 100% zinc producer, Titan is poised to benefit as zinc inventories appear to be approaching a critical level(1) $3.00 1,400,000 LME Real Zinc Spot Price ($/lb; LHS) LME Zinc Warehouse Stocks (metric tonnes; RHS) 1,200,000 $2.50 1,000,000 $2.00 800,000 $1.50 600,
Slide 26: Mineral Resources
MINERAL RESOURCES Measured Indicated M&I Inferred Mineralized Zones ‘000 tons Grade (% Zn) ‘000 tons Grade (% Zn) ‘000 tons Grade (% Zn) ‘000 tons Grade (% Zn) Mud Pond 336.7 10.40% 273.9 10.89% 610.6 10.62% 392.9 10.70% New Fold 68.0 12.75% 249.6 11.72% 317.6 11.94% 539.4 13.97% Mahler 400.5 15.89%
Slide 27: Historic Mineral Ore Write-Downs
HISTORIC MINERAL ORE WRITE-DOWNS(1) Proven Ore (2) Probable Ore (2) Proven Ore and Probable Ore Inferred Ore (2) Contained Contained Contained Contained Year Area Tons Grade Tons Grade Tons Grade Tons Grade Zinc Zinc Zinc Zinc Balmat (No. 2 and 1985 824,225 7.11% 58,602 860,620 7.41% 63,772 1,684,84
Slide 28: Initial Pre-Production Capital Cost Breakdown
INITIAL PRE-PRODUCTION CAPITAL COST BREAKDOWN(1) Cost Item (US $M) Mining 5.3 Mineral Processing 1.1 Tailings Management - Infrastructure 0.8 Indirect Costs including EPCM 0.4 Owners Costs 0.1 Other - Contingency (10%) 1.0 Subtotal Refurbishment 8.6 Capitalized Pre-Commercial Production Operating Co
Slide 29: Sensitivity Analysis
SENSITIVITY ANALYSIS(1) Post-Tax NPV8% Sensitivities Summary of Economic Results US$ Millions US$ Millions Zinc Price Head Grade Unit Value C1 Cash Cost Capital Expenditures 300 After-Tax NPV 0% $M $206 After-Tax NPV 8% $M $150 After-Tax NPV 10% $M $139 After-Tax IRR % 121% 200 After-Tax Payback yea
Slide 30: Dilution Control
DILUTION CONTROL Rigorous grade control is key On-shift grade control geologist Disciplined approach to sourcing incremental zinc mineralization Implementation of optical ore/waste sorting technology Tighter stope design TSX: TI 30
Slide 31: Historical Production
HISTORICAL PRODUCTION TSX: TI 31
Slide 32: Empire State Mine Ore Types
EMPIRE STATE MINE ORE TYPES Primary (Parent) Ore Conformable lenses (175m x 750m) Sphalerite with pyrite and minor galena ~1.0-3.0 Mt @ 11.5-14.5% Zn Remobilized (Daughter) Ore Cross-cutting, elongate trends (125m x ~2000m) Sphalerite with minor pyrite ~1.5-4.5 Mt @ 8% Zn TSX: TI 32
Slide 33: Technical Report Qualified Persons
TECHNICAL REPORT QUALIFIED PERSONS Professional Qualified Person Company Designation Garett Macdonald JDS Energy & Mining Inc. P. Eng Mike Makarenko JDS Energy & Mining Inc. P. Eng Formerly of JDS Energy & Mike Creek PE Mining Inc. Indi Gopinathan JDS Energy & Mining Inc. P. Eng Allan Reeves Tuun Co
Slide 34: For More Information Contact
TSX: TI FOR MORE INFORMATION CONTACT: Jerrold Annett Senior Vice President, Corporate Development 416-366-5678 Ext. 207 jannett@titanminingcorp.com Jacqueline Allison Vice President, Investor Relations and Strategic Analysis 416-366-5678 Ext. 205 jallison@titanminingcorp.com
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