Eagle Production Miss in Q1; Stronger Performance Expected Through Rest of Year

Research evidence excerpt

Eagle Production Miss in Q1; Stronger Performance Expected Through Rest of Year

Metals & Minerals

Talon Metals Corp.

TD SECURITIES INC. - CANADA QUICK TAKE: COMPANY UPDATE

May 19, 2026

Price: C$6.53 (05/15/2026) Eagle Production Miss in Q1; Stronger

Price Target: C$7.50 Performance Expected Through Rest of Year

BUY (1)

ESG SCORE: 62/100

Craig Hutchison, P. Eng^ THE TD COWEN INSIGHT

416 982 3474

On Friday after the close, TLO reported lower-than-expected Eagle production in Q1 due to

craig.hutchison@tdsecurities.com

heavy snowfall and mining related issues. However, the company noted these challenges

Dennis Zhang^ have been resolved, with production shifting later in the year. Separately, TLO reported assay

416 965 6012 results from previously reported drill results within the Vault Zone which continue to highlight

dennis.zhang@tdsecurities.com

the high-grade target.

Key Data

Symbol TSX: TLO-T Impact: NEUTRAL

Market Cap C$1.0B

Eagle production miss driven by heavy snowfall and block material issues. Eagle produced

1.6kt of Ni and 1.6kt of Cu, below our estimates of 2.5kt and 2.4kt, respectively. The company

reported C1 cash costs of $3.73/lb Ni, above our estimate of $3.22/lb. Management noted

that Q1 operations were impacted by heavy snowfall and issues related to excessive

'blocky' material in the active mining stopes, which negatively affected ore flow. However,

management indicated that these challenges have now been resolved, and that the company

is executing well with stable performance in Q2. The mine plan and operating efficiency

initiatives are expected to shift production from Q1 2026 to the latter months of 2026.

As a reminder, TLO released the Eagle technical report in late April, highlighting an extension

of the mine life to H2/30 (see details).