Talon Metals Q2 Results: Net profit turns to $3.2M, revenue hits $51.5M

Talon Metals Corp. (TSX: TLO) (OTC: TLOFF) reported a return to profitability in its second quarter of 2026, driven by the inclusion of results from its acquired Eagle Mine and Humboldt Mill operations. The company posted a net income of $3.2 million, or $0.02 per share, compared to a net loss of $0.8 million in Q2 2025. This marks the second consecutive quarter that Eagle Mine results have been consolidated into Talon’s financial statements following the acquisition closing on January 9, 2026.

Financial Performance

Revenue for the three months ended June 30, 2026, stood at $51.5 million, up from nil in the prior year period. EBITDA improved to $11.4 million from a negative $0.8 million in Q2 2025. Adjusted EBITDA, which excludes non-recurring items such as unrealized foreign exchange and acquisition-related fair value adjustments, reached $12.6 million, compared to negative adjusted EBITDA of $0.6 million in the previous year.

Cash provided by operating activities was $1.3 million, an increase from $0.1 million in Q2 2025. Additionally, Talon received a $11.5 million cash payment during the quarter pursuant to a working capital adjustment related to the Eagle acquisition.

Metric:	Q2 2026	Q2 2025
Revenue:	$51.5 million	$nil million
Net Income:	$3.2 million	($0.8) million
Earnings Per Share:	$0.02	($0.01)
EBITDA:	$11.4 million	($0.8) million
Adjusted EBITDA:	$12.6 million	($0.6) million

Balance Sheet and Liquidity

As of June 30, 2026, Talon reported total cash, cash equivalents, treasury bills, and term deposits of $46.6 million, a significant increase from $25.4 million at the end of December 2025. Working capital expanded to $61.3 million from $19.3 million in the prior period. As of August 13, 2026, the company held $45.3 million in cash and cash equivalents.

Operational Updates

Darby Stacey, Chief Executive Officer, noted that operations at Eagle Mine faced early-quarter challenges due to mobile equipment availability, which negatively affected production and mined grades. These issues were resolved in the second half of the quarter, allowing operations to finish strongly.

On the exploration front, Talon mobilized two rigs back into Michigan and advanced the feasibility study for the Tamarack Nickel-Copper-Cobalt Project. Capitalized exploration and evaluation costs for Tamarack amounted to $5.3 million for the quarter, slightly higher than the $5.0 million spent in Q2 2025. The company also reached a permitting milestone with the Minnesota Department of Natural Resources initiating the Environmental Impact Statement scoping process.

What the Numbers Show

The shift from a net loss to a net profit is directly attributable to the consolidation of Eagle Mine revenues, as the company had no comparable revenue in Q2 2025. The $11.5 million working capital adjustment received from Lundin Mining Corporation further bolstered the cash position, contributing to the jump in total cash reserves from $25.4 million to $46.6 million in just one quarter.

Board Changes

Gregory Kinross and John Kaplan resigned from the Board of Directors effective August 13, 2026. Kinross had served since 2005, while Kaplan joined in 2013. Victoria McMillan, Chief Financial Officer of Versamet Royalties Corporation, was appointed to the Board on the same date. McMillan brings over 20 years of financial experience and currently serves on the board of Lundin Mining Corporation.

Juan Andrés Morel, Chairman of the Board, thanked Kinross and Kaplan for their longstanding leadership and welcomed McMillan for her experience and perspective.

Talon Metals Corp. (TSX: TLO) (OTCID: TLOFF) has advanced the proposed Tamarack Nickel-Copper-Cobalt Project into the public scoping comment period, a critical step in Minnesota's state-led environmental review process. The Minnesota Department of Natural Resources (MN DNR) released scoping documents for public comment, marking a transition from years of baseline work and technical studies to formal environmental assessment. This phase allows stakeholders to review and comment on the proposed scope of the Environmental Impact Statement (EIS) before the MN DNR issues a Final Scoping Decision.

The public scoping comment period is open until 4:30 p.m. on Monday, September 14, 2026. The MN DNR has scheduled two public meetings to facilitate comment: Wednesday, August 5, 2026, from 5 p.m. to 9 p.m. at McGregor High School in McGregor, Minnesota, and Wednesday, August 12, 2026, from 5 p.m. to 9 p.m. at the National Sports Center in Blaine, Minnesota. Comments received during this period will inform the EIS scoping process, to which the MN DNR will respond in its Final Scoping Decision.

Talon has spent several years conducting environmental baseline work, technical studies, and project design refinements to support the scoping process. This upfront work included reviewing and categorizing more than 1,700 comments into themes that guided avoidance and minimization measures, engineering controls, and design changes. The company engaged in 33 engagement meetings over 15 months, held 15 technical meetings totaling 46 hours, and facilitated approximately 1,360 estimated participant-hours, including 14 water-focused meetings.

These efforts resulted in project design refinements intended to reduce Minnesota-based surface impacts. The proposed conceptual design includes an approximately 19-acre reduction in long-term surface facilities, decreasing from 83 acres in the original project submittal to 64 acres in the current design. Key design features include enclosed ore handling, a direct decline tunnel, no exposed surface waste rock stockpiles, offsite processing, and no tailings generated or stored in Minnesota.

In parallel with the EIS scoping process, Talon has awarded contracts to support preparation for future state and federal permit applications. The company contracted Stantec Consulting Services Inc. to assist with the future Permit to Mine application. Additional contracts cover air quality, surface water discharge, stormwater, underground disposal, and federal wetlands permitting, including the Air Permit, National Pollutant Discharge Elimination System Individual Wastewater and Stormwater permits, State Disposal System permit, and Clean Water Act Section 404 Permit.

Tamarack Environmental Review and Future Permitting Pathway

Step	What It Means	Status
Environmental baseline work and early scoping	Talon collects environmental data, advances technical studies, engages with agencies and Tribal governments, gathers local input through informal community engagement, and refines the proposed project design.	Substantial work completed over several years
Scoping Environmental Assessment Worksheet and Draft Scoping Decision Document public comment period	The public may comment on the proposed scope of the EIS, including issues, alternatives, mitigation measures, and data needs to be studied.	Current step
Final Scoping Decision	The MN DNR reviews comments and determines what will be included in the state EIS.	Future step
Draft EIS	The MN DNR prepares a Draft EIS analyzing the topics identified in the Final Scoping Decision. The Draft EIS will be released for public comment.	Future step
Final EIS	The MN DNR prepares a Final EIS after reviewing comments on the Draft EIS.	Future step
Adequacy determination	The MN DNR determines whether the Final EIS adequately evaluates the proposed project.	Future step
Permit decisions	Permit decisions may occur only after the Final EIS is deemed adequate.	Future step

Front-End Scoping Work Completed to Support the EIS Process

Front-End Scoping Work	What It Means for the EIS Process
Environmental data collection dating back to 2007	Long-standing baseline data to support EIS scoping and future EIS preparation.
Three-year DNR-led pre-scoping process	Extensive agency and Tribal government feedback was incorporated before public scoping, while Talon's informal community engagement provided additional local input.
1,700+ comments reviewed and categorized	Comments were mapped into recurring themes that helped inform project design.
33 engagement meetings over 15 months	Sustained technical and stakeholder engagement before public scoping.
15 technical meetings	Focused review of key environmental and design topics.
46 hours of direct meetings	Substantial technical discussion before public scoping.
1,360+ estimated participant-hours	Broad participation across agencies, Tribal governments, Talon, and technical teams.
14 water-focused meetings	Approximately 25 hours of water-focused discussion and roughly 745 invitee-hours.

Project Design Refinements Intended to Reduce Minnesota-Based Surface Impacts

Project Design Refinement	What It Addresses
Reduced surface footprint	Reduces surface disturbance, including potential wetland impacts, stormwater contact areas, and areas requiring long-term reclamation and closure management.
Enclosed ore handling	Reduces potential surface exposure of ore and limits contact water generation from ore handling.
Direct decline tunnel	Reduces the proposed ground disturbance and the amount of development rock requiring management during construction.
No exposed surface waste rock stockpiles	Reduces potential risks associated with exposed surface stockpiles, including contact water and material management.
Offsite processing	Removes the need for a processing facility in Minnesota and reduces the infrastructure proposed in an area with wetlands and connected surface waters.
No tailings generated or stored in Minnesota	Removes the need for tailings storage at the proposed Tamarack mine site and reduces Minnesota-based long-term water management requirements associated with tailings storage.