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Titan Minerals Limited Limited

ASX:TTM

Last Price:

$0.061

Our Investment Summary

Date of
Initial Coverage

08-Jul-20

Initial
Entry Price

$0.067

Returns from
Initial Entry

-9%



Investment Memo: Titan Minerals Limited (ASX:TTM) - LIVE

Opened: 01-Mar-2022

Shares Held at Open: 4,249,250


What does TTM do?

Titan Minerals Ltd (ASX:TTM) is an exploration and development company on the hunt for world class gold and copper assets in the emerging global minerals hotspot, Ecuador.

What is the macro theme?

Gold remains a safe haven investment and hedge against inflation, and has historically outperformed in times of volatility (e.g market bubble crash, armed conflicts…).

Bullish gold market conditions persist, particularly with the go-to response to the pandemic being unprecedented worldwide monetary and fiscal stimulus (i.e. ripe conditions for sustained inflation).

Copper demand is set to grow from its already robust position on the back of unprecedented stimulus spending on infrastructure and construction projects globally.

Why did we invest in TTM?

Prime gold/copper real estate

TTM is an early mover in securing prime real estate within one of the world’s latest exploration and mining hotspots - Ecuador. TTM owns several exploration and development assets in the country. Ecuador has only recently become an attractive exploration and mining jurisdiction through improved and stable legislation. With Ecuador mirroring the geology of several of its mining-rich neighbouring nations, there is a good opportunity for big discoveries still to be made here. TTM could appeal to larger mining groups now seeking to attain or grow a significant land position within this hotspot.

Flagship project already with a big resource base

TTM’s Dynasty gold project has a “foreign resource estimate” of 14.5Mt @ 4.53 g/gold + 36g/t silver for a total contained resource of 2.1Moz gold + 16.8Moz silver. TTM is drilling in order to re-classify the resource to JORC standards, with potential upside of further growing the deposit. This could form the basis of a possible local mining operation down the track.

Copper side bets

TTM has two highly prospective copper projects in their pipeline, not far from where several major copper discoveries have been made of late. These provide blue-sky potential upside, should a discovery be made.

What do we expect TTM to deliver in 2022?

Objective #1: Resource conversion to JORC standards at Dynasty

  • We would like to see TTM convert their existing ‘foreign estimate’ resource into a maiden JORC resource estimate this year.
  • We also want to see extensional drilling produce an expanded exploration target that highlights the potential to grow the current resource base.

Here is how we will rank the JORC resource estimate result (our opinion only):

Objective #2: Follow-up drilling at Linderos

  • With promising early exploration results late last year, it shouldn’t take too long for TTM to prioritise the prospects at Linderos, and generate numerous drill targets.
  • Follow-up drilling at the targets is already underway, and we anticipate assays in 2Q22.

Objective #3: Commence drilling at Copper Duke

  • Following the recent recon-drilling program alongside ongoing geophysical surveys and geochemical soil sampling, TTM should be in a position to define drill targets for 2H22.
  • We want to see an extensive drilling program later this year, with initial assay results before year-end. This will shed light on the potential for Copper Duke.

What could go wrong?

Capital requirements

TTM is not a producer, remaining an explorer, and so requires continuous funding as it continues to advance its assets. As such, the company will be required to raise capital for survival when the current cash at bank drains. However, there is no guarantee that capital markets will be conducive at that point. We note that they have a substantial cash balance at present, which minimises this risk for 2022.

Underlying commodity risk

TTM is exposed to commodity price risk, which depends on macroeconomic factors and demand and supply dynamics of the underlying commodities, i.e. gold and copper. Market sentiment closely correlates with commodity prices, and hence TTM’s valuation will be impacted by commodity prices as well. There is no guarantee that gold and/or copper sentiment will trend positively this year.

Geological risk

The resource for the flagship project is an estimate only, and there is no guarantee that the current “Foreign resource estimates” is substantially converted into JORC resources. Even if the JORC reclassification occurs, it could be at a much lower grade, size or level of confidence, which would impact its value.

Sovereign risk

TTM’s prospects are all located in the developing nation of Ecuador. There is no guarantee that local authorities and/or communities will favour development of TTM’s prospects, and so could hinder advancement.

What is our investment plan?

We first invested in TTM at 6.67c and increased our position again at 10c in anticipation of the JORC resource estimate on its Dynasty gold project.

We intend to de-risk our investment keeping 80% of our position in the lead up to the JORC resource definition.

We plan to sell up to 50% of our investment in TTM if the share price increases 4-fold from our initial investment price in the lead up to the JORC resource.

Depending on the outcome of the JORC resource estimate, our investment strategy for TTM will change:

  • TOP OF CLASS OUTCOME - We will de-risk our position if the share price increases 4-fold from our initial investment price.
  • PASS OUTCOME - we will likely hold on to our TTM position and evaluate the project's merits going forward based on the gold price at the time.
  • FAIL OUTCOME - we will need to evaluate the merits of TTM’s other projects at the time, either buying back into the stock at a lower price or selling a portion of our holding to de-risk.

Disclosure: The authors of this article and owners of Next Investors, S3 Consortium Pty Ltd, and associated entities, own 4,249,250 TTM shares at the time of publication. S3 Consortium Pty Ltd has been engaged by TTM to share our commentary and opinion on the progress of our investment in TTM over time.



Investor Presentation

Promising sampling at Linderos copper/ gold project

ASX:TTM Jun 09, 2022 Announcement


INVESTMENT MEMO: TTM 2022

GENERAL: Exploration results


Our exploration investment Titan Minerals (ASX:TTM) announced early exploration results from its Linderos project in Southern Ecuador earlier today.

Channel sampling at the Copper Ridge porphyry copper prospect returned promising copper and coincident molybdenum results, including:

  • 46m @ 0.24% copper, 9.71ppm molybdenum in channel CRC040
  • 32m @ 0.21% copper, 3.91ppm molybdenum in channel CRC051

At the nearby Meseta Gold prospect, promising gold results from channel sampling included:

  • 4.5m @ 12.69g/t gold and 3.48g/t silver in channel MGC22-025
  • 2.9m @ 9.81g/t gold and 2.69g/t silver in channel MGC22-024

These results have led to numerous drilling targets ahead of the initial drilling to test the potential of these high priority targets in 2H22.

Today’s news fits in with our #2 Objective we’d like to see management deliver this year:

We take confidence that a turn around is not too far away with TTM, noting that several directors have being increasing their holdings recently:

  • Managing Director Matt Carr purchased $102.5k in shares on market
  • Newly appointed director Tamara Brown purchased $20k in shares on market
  • Non-Exec chairman Peter Cook purchased $152k in shares on market.

We consider directors purchasing shares in times where a company’s share price is depressed off the back of a news vacuum is generally a positive sign, as the people closest to the company see value in topping up their shareholdings.

To see all of the key objectives we want to see TTM achieve in 2022, the reasons why we continue to hold TTM in our portfolio and the key risks to our Investment thesis, check out our 2022 TTM Investment Memo here.


Managing Director purchases more shares on market

ASX:TTM May 18, 2022 Announcement


Investment Memo: TTM 2022

General: Director Buying


Just last week we saw the three of TTM’s directors step up and purchase ~$275k in shares on market.

This morning we saw a filing made by Managing Director Matt Carr who purchased another $52.5k in shares on market at ~7c per share.

Combined with last week's purchases, Matt has now brought ~$155k in shares on market around these levels.

We always like seeing the directors of our portfolio companies step up and buy shares on market, as it signals to us that the people closest to the company clearly see some value in topping up their shareholdings.

To see all of the key objectives we want to see TTM achieve in 2022, the reasons why we continue to hold TTM in our portfolio and the key risks to our Investment thesis, check out our 2022 TTM Investment Memo here.


Directors buying shares on market

ASX:TTM May 16, 2022


Investment Memo: TTM 2022

General: Director Buying


The last few weeks have been rough across the entire micro cap market and this has been reflected in the TTM share price which has gone from ~10c per share to now trade around the ~7.2c per share mark.

The company’s directors have taken this as an opportunity to add to their shareholdings with 3 directors purchasing ~$275k in total.

  • Managing Director Matt Carr purchased $102.5k in shares on market
  • Newly appointed director Tamara Brown purchased $20k in shares on market
  • Non-Exec chairman Peter Cook purchased $152k in shares on market.

We think directors purchasing shares in times where a company’s share price has moved off the back of no news is generally a good sign, as the people closest to the company see value in topping up their shareholdings.

To see all of the key objectives we want to see TTM achieve in 2022, the reasons why we continue to hold TTM in our portfolio and the key risks to our Investment thesis, check out our 2022 TTM Investment Memo here.


High grade gold and silver results in

ASX:TTM May 05, 2022 Announcement


Titan Minerals Limited (ASX:TTM) has now received all assays from its maiden 2021 drill campaign of the high-grade, epithermal gold veining at Cerro Verde Prospect within its Dynasty Gold Project in Southern Ecuador.

The Dynasty gold project has a “foreign resource estimate” of 14.5Mt @ 4.53 g/gold + 36g/t silver for a total contained resource of 2.1Moz gold + 16.8Moz silver.

The drilling and trenching results confirm extension of mineralisation at depth and along the length of the foreign resource.

The latest assays are from 12 diamond drill holes for approximately 3,510 metres of diamond drilling from the Cerro Verde prospect.

These diamond holes primarily targeted the extension and infill of the known epithermal veins and secondly intercept the structural ore shoots in the Cerro Verde prospect located on the western part of the Dynasty Gold Project.

TTM also reported that assay results have been received for twelve trenches totalling 398.18m This is part of the total length of 1,797.06m of trench sample that has been conducted in 51 trenches.

This channel sampling was completed in conjunction with geological mapping to better define the surface projection of mineralised veins for the resource evaluation.

This latest infill drilling at Cerro Verde is only a portion of the overall Dynasty resource as estimated in the previous foreign resource estimate by Core Gold Inc. in 2019. The project’s nine kilometres of the strike is split into three main prospects: Papayal, Iguana, and Cerro Verde.

The results include further indications for potential increases in resource volume that wasn’t included in the previous resource estimation.

However, assay turn-around time has been very slow for the final batches of assays submitted for the 2021 drill campaign.

TTM had expected to complete the reclassification of its foreign resource to a JORC resource estimate by the end of 2021, but the company says that this was not possible due to the additional time taken to complete the drilling and receive assays.

This was our primary objective that we wanted to see TTM achieve this year, so while disappointed in the delay, will be watching closely for further updates on this.


As indicated in the announcement today, once TTM completes the geological works on the old drill holes and the re-modelling of wireframes incorporating the new data, it will be able to provide a direct comparison of a JORC 2012 standard resource for this subset of the Dynasty ore system.

Assay results from a final six drill holes at the Iguana prospect in the second drilling campaign are expected in the coming weeks.

Further insight into why we invested in TTM and what we expect the company to achieve in 2022 can be found in our TTM Investment Memo.