Titan Mining Corporation (TSX: TI, NYSE-A: TII) has unveiled project economics that make a compelling case for domestic graphite investment, while simultaneously demonstrating how federal financing mechanisms are being deployed to reduce dependence on foreign critical mineral supply chains.
The preliminary economic assessment (PEA) for the Kilbourne Graphite Project — located in Gouverneur, New York, adjacent to the company's existing Empire State Mine zinc operations — shows an after-tax net present value of $513 million at a 7% discount rate, a pre-tax NPV of $581 million, and an after-tax internal rate of return of 37.0%. Capital payback is projected at 2.7 years.
Capital Structure and Federal Financing
Total project CAPEX is estimated at $431.7 million, broken down into an initial construction phase of $155.8 million, an expansion phase of $175.9 million, and $100 million in sustaining capital over a 13-year mine life. A $47 million contingency is also included.
The financing picture is where the project's supply chain resilience angle becomes most tangible. The U.S. Export-Import Bank has issued a non-binding Letter of Interest for $120 million under its Make More in America (MMIA) initiative — covering the substantial majority of the initial construction CAPEX. Titan has also received a separate $5.5 million non-dilutive MMIA grant to fund the feasibility study, which the company describes as the first EXIM-funded feasibility study for a domestic project. The project is additionally eligible for Section 45X Advanced Manufacturing Tax Credits for anode material and critical mineral production.
This layering of federal support — construction financing, pre-development grants, and production tax credits — reflects a broader U.S. government strategy to de-risk private investment in critical mineral infrastructure. For project finance practitioners, the structure illustrates how public instruments are being used to bring IRRs to levels competitive with alternative capital deployment in less strategically sensitive sectors.
Production Economics and Market Positioning
At nameplate capacity, Kilbourne is designed to produce 40,000 tonnes of graphite concentrate annually, equivalent to roughly 50% of current U.S. natural graphite demand. Average annual EBITDA over the life of mine is projected at $125 million, with margins ranging from 58% to 69% — figures that reflect a product mix strategy weighted toward higher-value downstream materials.
The project plans to produce four product grades: standard purity flake concentrate at $1,575 per tonne, micronized natural flake graphite at $3,770 per tonne, purified micronized graphite at $5,185 per tonne, and coated spherical purified graphite (CSPG) anode grades — commencing in year five — at $11,193 per tonne. Average annual operating costs are estimated at $68 million, with total life-of-mine OPEX of $886 million.
Resource and Timeline
The mineral resource stands at 22.4 million tons grading 2.91% carbon graphite (inferred classification), containing 653,000 tons of graphite. Notably, only 30% of the deposit's strike length has been drilled, leaving material upside in resource expansion. A feasibility study is targeted for 2026, with construction start set for 2027. Qualification sales production was initiated in Q4 2025, with customer qualifications underway in Q1 2026.
The project would add 160 permanent jobs at Kilbourne, bringing total workforce across Titan's New York State operations to more than 300.
Supply Chain Implications
Graphite is a Tier 1 critical mineral for lithium-ion battery anodes, defense applications, and semiconductor manufacturing — sectors where U.S. policymakers have identified acute supply chain vulnerability. Currently, China controls the dominant share of global graphite processing capacity. Projects like Kilbourne, backed by EXIM's institutional balance sheet rather than purely private capital markets, represent an emerging model for critical mineral project finance where strategic rationale supplements — and in some cases, substitutes for — purely commercial return calculations.
For investors, the key risk factor remains the inferred-only resource classification, which carries higher geological uncertainty than measured or indicated resources and limits the bankability of final project financing until the feasibility study is complete.