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07-05-2025
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Torex Gold Reports Q1 2025 Results
"With our highest cash outflow and lowest production quarter of the year now behind us, our focus is set on further unlocking value for our shareholders through returning to positive free cash flow, executing our exploration program across the entire Morelos Property, implementing a formal return of capital policy, delivering on full-year guidance for the seventh consecutive year, and ramping up Media Luna to the designed mining rate by mid-2026." "As is typical of our cash flow seasonality, the first quarter was the highest for tax and royalty payments for the year. These payments, coupled with the final capital spend on Media Luna and limited production, necessitated the net $130 million draw on our credit facility per our plan. As we hit our projected free cash flow inflection point mid-year with completion of Media Luna Project spending, we expect to repay the modest amount of debt drawn quickly, particularly as production ramps up under a backdrop of record gold prices. "Production levels for the quarter were in line with our expectations given the four-week shutdown at the processing plant. Production is expected to pick up during the second quarter through the early stages of ramp up and increase further through the back half of the year, with annual guidance being maintained. All-in sustaining costs 1 for Q1 were much better than originally anticipated as initial sales from Media Luna did not commence until early April. As a result, the higher cost ore associated with the commissioning phase of the Media Luna mine will now be recognized in Q2, aligning with initial sales from Media Luna. "The first quarter was marked with significant milestones for Torex. We completed the tie-ins at the processing plant not only on time but, more importantly, safely. We also delivered first concentrate production, with regular shipments commencing in April. Earlier this week, we proudly declared commercial production at Media Luna, marking the conclusion of the project phase and the beginning of our transition back to positive free cash flow 1 generation. Toronto, Ontario--(Newsfile Corp. - May 7, 2025) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) reports the Company's financial and operational results for the three months ended March 31, 2025. Torex will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the results. Story Continues FIRST QUARTER 2025 HIGHLIGHTS Safety performance: The Company recorded one lost-time injury during the quarter when a contractor suffered an ankle fracture. As at March 31, 2025, the lost-time injury frequency ("LTIF") for the Morelos Complex was 0.59 per million hours worked for both employees and contractors on a rolling 12-month basis. During the quarter, the internal investigation into the fatal carbon monoxide exposure that occurred in December 2024 was concluded and follow up action items are being tracked to completion. In addition, the Company has embarked on a comprehensive 'Next Level Safety' program with a view to ensuring that the operations resumes and maintains its prior fatality free status. Gold payable production: On a gold equivalent ounce ("oz AuEq") basis, payable production for the quarter was 59,630 oz AuEq 2 , including 58,330 oz Au. Production in the quarter was as expected and driven by the planned four-week tie-in period at the processing plant in connection with the Media Luna Project. The Company is on track to achieve annual payable production guidance of 400,000 to 450,000 oz AuEq 2 . Gold sold: The Company sold 60,568 oz AuEq 2 at a record quarterly average realized gold price 1 of $2,793 per oz, contributing to revenue of $170.0 million, which was lower than the quarterly average as sales of metal produced from the new circuits as part of the Media Luna Project commenced in April. All-in sustaining costs 1 : All-in sustaining costs of $1,405 per oz AuEq sold 2 relative to guidance of $1,400 to $1,600 per oz AuEq sold 2 . All-in sustaining costs margin 1 of $1,388 per oz AuEq sold, implying an all-in sustaining costs margin 1 of 50%. Cost of sales was $94.1 million or $1,554 per oz AuEq sold in the quarter. Net income and adjusted net earnings 1 : Reported net income of $39.0 million or earnings of $0.45 per share on both a basic and dilutive basis. Adjusted net earnings of $35.9 million or $0.42 per share on a basic basis and $0.41 per share on a diluted basis. EBITDA 1 and adjusted EBITDA 1 : Generated EBITDA of $88.1 million and adjusted EBITDA of $91.8 million. Cash flow generation: Net cash used in operating activities totalled $9.9 million and $17.7 million before changes in non-cash operating working capital. Net cash used in operating activities (including changes in non-cash operating working capital) of $9.9 million including income taxes paid of $101.6 million, reflecting the annual payment of mining taxes and annual true-up of corporate income taxes, and payment of the 0.5% royalty in respect of 2024 of $4.7 million. Negative free cash flow 1 of $133.3 million is net of cash outlays for capital expenditures, lease payments, and interest, including borrowing costs capitalized. Negative free cash flow was a result of the lower sales volumes due to the four-week tie-in period at the processing plant and capital expenditures of $123.5 million in the first quarter of 2025. Financial liquidity: The quarter closed with $197.6 million in available liquidity 1 , including $106.5 million in cash and $91.1 million available on the $300.0 million credit facilities, net of borrowings of $195.0 million and letters of credit outstanding of $13.9 million. Media Luna Project: In late March, the tie-in period was completed at the processing plant and the Company achieved first production of copper concentrate, marking the substantial completion of the Media Luna Project. Effective April 26, 2025, Media Luna reached the production stage, and commercial production was declared. During the quarter, $55.5 million was invested in the project and as of March 31, 2025, physical progress on the Project was approximately 98%. Exploration and Drilling Activities: In February, the Company announced results from the ongoing drilling program at Media Luna West and results from initial drill testing at Media Luna East 3 . The advanced exploration drilling program at Media Luna West has defined a mineralized footprint of 600 metres ("m") by 400 m with multiple high-grade intercepts. The intercepts indicate the exploration upside to the west of the defined resource boundaries of Media Luna and EPO. Initial drill testing at Media Luna East returned strong results, with multiple high-grade intercepts, many with copper ("Cu") grades in excess of 2%. Drilling at both targets is part of the Company's exploration strategy, which is focused, in part, on unlocking the resource potential of the Morelos Complex in order to enhance and extend the production profile. Year-end Mineral Reserves & Resources4: At EPO, an inaugural Probable Reserve of 781 koz AuEq was declared in September 2024 and an updated reserve estimate for EPO is currently being undertaken as part of the internal feasibility study. Due to drilling undertaken in 2024 north of the EPO deposit, Inferred Resources at EPO increased 32% to 954 koz AuEq from 721 koz AuEq. At ELG Underground, drilling was successful at replacing depletion with Proven and Probable Reserves increasing 1% to 662 koz AuEq during the year, supporting a reserve life through early 2029, which assumes an average mining rate of 2,800 tpd through 2026 and approximately 2,000 tpd thereafter. At Media Luna, updated mineral reserves and mineral resources primarily reflect results of definition drilling as well as modest refinements to some stope shapes. With the completion of the Media Luna Project, step-out and infill drilling at Media Luna is set to resume in 2025, with the goal of expanding and upgrading mineral resources as well as replacing mineral reserves. The positive results from the 2024 drilling program solidifies annual payable production of at least 450,000 koz AuEq through 2030 and a reserve life out to at least 2035. With approximately 125,000 m of drilling planned in 2025, almost double the metres drilled in 2024, the Company is focused on enhancing the base case production profile beyond 2030, extending the reserve life of the underground deposits, and further showcasing the underlying potential of the broader Morelos Property by testing several regional targets. 1. These measures are non-GAAP financial measures ("Non-GAAP Measures") which are not standardized financial measures under IFRS, the framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures used by other companies. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the IFRS, see Tables 2 to 11 of this press release. For additional information on these Non-GAAP Measures, please refer to the Company's MD&A for the three months ended March 31, 2025, dated May 7, 2025, which is incorporated by reference into this news release. The MD&A and the Company's unaudited condensed consolidated interim financial statements and related notes for the three months ended March 31, 2025, are available on Torex's website ( and under the Company's SEDAR+ profile ( 2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. For the three months ended March 31, 2025, market prices averaged $2,860/oz gold, $31.88/oz silver, and $4.24/lb copper. Guidance for 2025 assumed metal prices of $2,500/oz gold, $28/oz silver, and $4.30/lb copper. 3. For more information on Media Luna drilling results, see the Company's news release titled "Torex Gold Reports Excellent Drill Results from Media Luna West and Initial Results from Media Luna East" issued on February 24, 2025, and filed on SEDAR+ at and on the Company's website at 4. Mineral reserve and mineral resource estimates for the Morelos Complex can be found in tables 12 and 13, respectively, of this press release. AuEq values account for underlying metal prices and metallurgical recoveries used in reserve and resource estimates. For additional information on the mineral reserve and mineral resource estimates for the Morelos Complex, please see the Company's annual information form for the year ended December 31, 2024, or the Company's news release titled "Torex Gold Reports Year-end 2024 Reserves & Resources" issued on March 19, 2025, and filed on SEDAR+ at and on the Company's website at CONFERENCE CALL AND WEBCAST DETAILS The Company will host a conference call tomorrow at 9:00 AM (ET) where senior management will discuss the first quarter operating and financial results. For expedited access to the conference call, registration is open to obtain an access code in advance, which will allow participants to join the call directly at the scheduled time. Alternatively, dial-in details are as follows: Toronto local or International: 1-647-846-8914 Toll-Free (North America): 1-833-752-3842 A live webcast and replay of the conference call will be available on the Company's website at The webcast will be archived on the Company's website. Table 1: Operating and Financial Highlights Three Months Ended Mar 31, Dec 31, Mar 31, In millions of U.S. dollars, unless otherwise noted 2025 2024 2024 Safety Lost-time injury frequency1 /million hours 0.59 0.61 0.15 Total recordable injury frequency1 /million hours 1.52 1.48 0.97 Operating Results - Gold Equivalent basis Gold equivalent payable produced2 oz AuEq 59,630 105,132 117,054 Gold equivalent sold2 oz AuEq 60,568 110,419 114,106 Total cash costs2,3 $/oz AuEq 1,020 932 944 Total cash costs margin2,3 $/oz AuEq 1,773 1,555 1,079 All-in sustaining costs2,3 $/oz AuEq 1,405 1,112 1,222 All-in sustaining costs margin2,3 $/oz AuEq 1,388 1,375 801 Average realized gold price2,3 $/oz 2,793 2,487 2,023 Financial Results Revenue $ 170.0 295.0 236.5 Cost of sales $ 94.1 153.5 157.4 Earnings from mine operations $ 75.9 141.5 79.1 Net income $ 39.0 60.4 43.1 Per share - Basic $/share 0.45 0.70 0.50 Per share - Diluted $/share 0.45 0.69 0.50 Adjusted net earnings3 $ 35.9 70.6 35.9 Per share - Basic3 $/share 0.42 0.82 0.42 Per share - Diluted3 $/share 0.41 0.81 0.42 EBITDA3 $ 88.1 162.8 98.0 Adjusted EBITDA3 $ 91.8 154.3 113.2 Cost of sales - gold equivalent basis $/oz AuEq 1,554 1,390 1,378 Net cash (used in) generated from operating activities $ (9.9 ) 122.8 79.8 Net cash (used in) generated from operating activities before changes in non-cash operating working capital $ (17.7 ) 136.3 72.5 Free cash flow3 $ (133.3 ) (7.7 ) (59.4 ) Cash and cash equivalents $ 106.5 110.2 113.2 Debt, net of deferred finance charges $ 193.1 62.9 - Lease-related obligations $ 86.5 78.3 44.0 Net (debt) cash3 $ (175.0 ) (33.1 ) 69.2 Available liquidity3 $ 197.6 331.5 405.3 1. On a 12-month rolling basis, per million hours worked. 2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website ( and under the Company's SEDAR+ profile ( 3. Total cash costs, total cash costs margin, all-in sustaining costs, all-in sustaining costs margin, average realized gold price, adjusted net earnings, adjusted net earnings per share, EBITDA, adjusted EBITDA, free cash flow, net (debt) cash and available liquidity are non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the IFRS as issued by the International Accounting Standards Board see Tables 2 to 11 of this press release. For additional information on these Non-GAAP Measures, please refer to the Company's MD&A for the three months ended March 31, 2025, dated May 7, 2025. The MD&A and the Company's the Company's unaudited condensed consolidated interim financial statements and related notes for the three months ended March 31, 2025, are available on Torex's website ( and under the Company's SEDAR+ profile ( Table 2: Reconciliation of Total Cash Costs and All-in Sustaining Costs to Production Costs and Royalties Three Months Ended Mar 31, Dec 31, Mar 31, In millions of U.S. dollars, unless otherwise noted 2025 2024 2024 Gold sold oz 59,756 108,647 111,642 Total cash costs per oz sold Production costs1 $ 56.2 94.7 100.8 Royalties $ 6.0 8.2 6.9 Less: Silver sales $ (1.1 ) (1.8 ) (1.5 ) Less: Copper sales $ (1.2 ) (3.1 ) (3.7 ) Less: Realized gain on foreign currency contracts $ (0.4 ) - - Total cash costs $ 59.5 98.0 102.5 Total cash costs per oz sold $/oz 996 902 918 All-in sustaining costs per oz sold Total cash costs $ 59.5 98.0 102.5 General and administrative costs2 $ 8.7 7.3 8.0 Reclamation and remediation costs $ 1.0 1.0 1.3 Sustaining capital expenditure $ 13.6 11.6 22.4 Total all-in sustaining costs $ 82.8 117.9 134.2 Total all-in sustaining costs per oz sold $/oz 1,386 1,085 1,202 Gold equivalent sold3 oz AuEq 60,568 110,419 114,106 Total cash costs per oz AuEq sold Production costs1 $ 56.2 94.7 100.8 Royalties $ 6.0 8.2 6.9 Less: Realized gain on foreign currency contracts $ (0.4 ) - - Total cash costs $ 61.8 102.9 107.7 Total cash costs per oz AuEq sold3 $/oz AuEq 1,020 932 944 All-in sustaining costs per oz AuEq sold Total cash costs $ 61.8 102.9 107.7 General and administrative costs2 $ 8.7 7.3 8.0 Reclamation and remediation costs $ 1.0 1.0 1.3 Sustaining capital expenditure $ 13.6 11.6 22.4 Total all-in sustaining costs $ 85.1 122.8 139.4 Total all-in sustaining costs per oz AuEq sold3 $/oz AuEq 1,405 1,112 1,222 1. This amount excludes temporary suspension costs of $nil, $3.1 million and $nil for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. 2. This amount excludes a loss of $7.6 million, loss of $6.8 million and loss of $4.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively, in relation to the remeasurement of share-based payments. This amount also excludes corporate depreciation and amortization expenses totalling $0.1 million, $0.2 million and $0.1 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively, within general and administrative costs. Included in general and administrative costs is share-based compensation expense in the amount of $2.3 million or $38/oz ($38/oz AuEq) for the three months ended March 31, 2025, $1.6 million or $15/oz ($14/oz AuEq) for the three months ended December 31, 2024, $2.3 million or $21/oz ($20/oz AuEq) for the three months ended March 31, 2024. This amount excludes other expenses totalling $nil, $1.4 million and $1.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. 3. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website ( and under the Company's SEDAR+ profile ( Table 3: Reconciliation of Sustaining and Non-Sustaining Capital Expenditures to Additions to Property, Plant and Equipment Three Months Ended Mar 31, Dec 31, Mar 31, In millions of U.S. dollars 2025 2024 2024 Sustaining $ 13.6 11.6 21.6 Capitalized Stripping (Sustaining) $ - - 0.8 Total Sustaining $ 13.6 11.6 22.4 Non-sustaining Media Luna Project1 $ 55.5 100.5 126.4 EPO Project $ 4.0 0.6 - Media Luna Cluster Drilling and Other $ 0.2 2.4 1.3 Working Capital Changes and Other $ 50.2 12.7 (24.0 ) Capital expenditures2 $ 123.5 127.8 126.1 1. This amount includes a realized gain (or an increase in the capitalized expenditures) of $nil, loss of $0.1 million and gain of $0.8 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively, in relation to the settlement of foreign exchange zero cost collars that were entered into to manage the capital expenditure risk related to a further strengthening of the Mexican peso. 2. The amount of cash expended on additions to property, plant and equipment in the period as reported in the Condensed Consolidated Interim Statements of Cash Flows. Table 4: Reconciliation of Average Realized Gold Price and Total Cash Costs Margin to Revenue Three Months Ended Mar 31, Dec 31, Mar 31, In millions of U.S. dollars, unless otherwise noted 2025 2024 2024 Gold sold oz 59,756 108,647 111,642 Revenue $ 170.0 295.0 236.5 Less: Silver sales $ (1.1 ) (1.8 ) (1.5 ) Less: Copper sales $ (1.2 ) (3.1 ) (3.7 ) Less: Realized loss on gold contracts $ (0.8 ) (19.9 ) (5.4 ) Total proceeds $ 166.9 270.2 225.9 Average realized gold price $/oz 2,793 2,487 2,023 Less: Total cash costs $/oz 996 902 918 Total cash costs margin $/oz 1,797 1,585 1,105 Total cash costs margin % 64 64 55 Gold equivalent sold1 oz AuEq 60,568 110,419 114,106 Revenue $ 170.0 295.0 236.5 Less: Realized loss on gold contracts $ (0.8 ) (19.9 ) (5.4 ) Total proceeds $ 169.2 275.1 231.1 Average realized gold price $/oz 2,793 2,487 2,023 Less: Total cash costs1 $/oz AuEq 1,020 932 944 Total cash costs margin1 $/oz AuEq 1,773 1,555 1,079 Total cash costs margin % 63 63 53 1. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website ( and under the Company's SEDAR+ profile ( Table 5: Reconciliation of All-in Sustaining Costs Margin to Revenue Three Months Ended Mar 31, Dec 31, Mar 31, In millions of U.S. dollars, unless otherwise noted 2025 2024 2024 Gold sold oz 59,756 108,647 111,642 Revenue $ 170.0 295.0 236.5 Less: Silver sales $ (1.1 ) (1.8 ) (1.5 ) Less: Copper sales $ (1.2 ) (3.1 ) (3.7 ) Less: Realized loss on gold contracts $ (0.8 ) (19.9 ) (5.4 ) Less: All-in sustaining costs $ (82.8 ) (117.9 ) (134.2 ) All-in sustaining costs margin $ 84.1 152.3 91.7 Average realized gold price $/oz 2,793 2,487 2,023 Total all-in sustaining costs margin $/oz 1,407 1,402 821 Total all-in sustaining costs margin % 50 56 41 Gold equivalent sold1 oz AuEq 60,568 110,419 114,106 Revenue $ 170.0 295.0 236.5 Less: Realized loss on gold contracts $ (0.8 ) (19.9 ) (5.4 ) Less: All-in sustaining costs $ (85.1 ) (122.8 ) (139.4 ) All-in sustaining costs margin $ 84.1 152.3 91.7 Average realized gold price $/oz 2,793 2,487 2,023 Total all-in sustaining costs margin1 $/oz AuEq 1,388 1,375 801 Total all-in sustaining costs margin % 50 55 40 1. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website ( and under the Company's SEDAR+ profile ( Table 6: Reconciliation of Adjusted Net Earnings to Net Income Three Months Ended In millions of U.S. dollars, unless otherwise noted Mar 31, Dec 31, Mar 31, 2025 2024 2024 Basic weighted average shares outstanding shares 86,125,855 85,988,115 85,949,559 Diluted weighted average shares outstanding shares 87,326,899 87,414,063 86,499,360 Net income $ 39.0 60.4 43.1 Adjustments: Temporary suspension costs $ - 3.1 - Unrealized foreign exchange gain $ (0.7 ) (2.0 ) (0.6 ) Unrealized (gain) loss on derivative contracts $ (3.2 ) (16.4 ) 11.6 Loss on remeasurement of share-based payments $ 7.6 6.8 4.2 Derecognition of provisions for uncertain tax positions $ (9.2 ) - (12.1 ) Tax effect of above adjustments $ 1.2 4.6 (3.3 ) Tax effect of currency translation on tax base $ 1.2 14.1 (7.0 ) Adjusted net earnings $ 35.9 70.6 35.9 Per share - Basic $/share 0.42 0.82 0.42 Per share - Diluted $/share 0.41 0.81 0.42 Table 7: Reconciliation of EBITDA and Adjusted EBITDA to Net Income Three Months Ended Mar 31, Dec 31, Mar 31, In millions of U.S. dollars 2025 2024 2024 Net income $ 39.0 60.4 43.1 Finance costs (income), net $ 2.6 (0.3) (1.7) Depreciation and amortization1 $ 32.0 47.7 49.8 Current income tax expense $ 6.0 42.9 26.2 Deferred income tax expense (recovery) $ 8.5 12.1 (19.4) EBITDA $ 88.1 162.8 98.0 Adjustments: Temporary suspension costs $ - 3.1 - Unrealized (gain) loss on derivative contracts $ (3.2) (16.4) 11.6 Unrealized foreign exchange gain $ (0.7) (2.0) (0.6) Loss on remeasurement of share-based payments $ 7.6 6.8 4.2 Adjusted EBITDA $ 91.8 154.3 113.2 1. Includes depreciation and amortization included in cost of sales, general and administrative expenses and exploration and evaluation expenses. Table 8: Reconciliation of Free Cash Flow to Net Cash Generated from Operating Activities Three Months Ended Mar 31, Dec 31, Mar 31, In millions of U.S. dollars 2025 2024 2024 Net cash (used in) generated from operating activities $ (9.9 ) 122.8 79.8 Less: Additions to property, plant and equipment1 $ (123.5 ) (127.8 ) (126.1 ) Value-added tax receivables, net $ 7.6 3.1 (10.3 ) Lease payments $ (3.4 ) (2.9 ) (1.4 ) Interest and other borrowing costs paid2 $ (4.1 ) (2.9 ) (1.4 ) Free cash flow $ (133.3 ) (7.7 ) (59.4 ) 1. The amount of cash expended on additions to property, plant and equipment in the period as reported on the Condensed Consolidated Interim Statements of Cash Flows. 2. Including borrowing costs capitalized to property, plant and equipment. Table 9: Reconciliation of Net (Debt) Cash to Cash and Cash Equivalents Mar 31, Dec 31, Mar 31, In millions of U.S. dollars 2025 2024 2024 Cash and cash equivalents $ 106.5 110.2 113.2 Less: Debt $ (193.1) (62.9 ) - Lease-related obligations $ (86.5 ) (78.3 ) (44.0 ) Deferred finance charges $ (1.9 ) (2.1 ) - Net (debt) cash $ (175.0 ) (33.1 ) 69.2 Table 10: Reconciliation of Available Liquidity to Cash and Cash Equivalents Mar 31, Dec 31, Mar 31, In millions of U.S. dollars 2025 2024 2024 Cash and cash equivalents $ 106.5 110.2 113.2 Add: Available credit of the Debt Facility $ 91.1 221.3 292.1 Available liquidity $ 197.6 331.5 405.3 Table 11: Reconciliation of Unit Cost Measures to Production Costs Three Months Ended In millions of U.S. dollars, unless otherwise noted Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Gold sold (oz AuEq) 60,568 110,419 114,106 Gold sold (oz) 59,756 108,647 111,642 Tonnes mined - ELG open pit (kt) 672 2,400 8,981 Tonnes mined - ELG underground (kt) 187 207 168 Tonnes processed (kt) 705 1,094 1,194 Total cash costs: Total cash costs ($) - gold equivalent basis 61.8 102.9 107.7 Total cash costs per oz AuEq sold ($) 1,020 932 944 Total cash costs ($) - gold only basis 59.5 98.0 102.5 Total cash costs per oz sold ($) 996 902 918 Breakdown of production costs $ $/t $ $/t $ $/t Mining - open pit 6.0 8.87 14.1 5.85 31.6 3.52 Mining - underground 15.0 80.45 12.4 60.07 13.8 82.34 Processing 25.2 35.72 42.9 39.21 42.5 35.64 Site support 8.1 11.53 16.0 14.60 14.3 12.00 Mexican profit sharing (PTU) 2.1 2.98 4.7 4.30 3.0 2.50 Capitalized stripping - - (0.8 ) Inventory movement (1.5 ) 6.6 (4.3 ) Other 1.3 1.1 0.7 Production costs 56.2 97.8 100.8 Table 12: Mineral Reserve Estimate - Morelos Complex (December 31, 2024)(2*) Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (gpt) (gpt) (%) (koz) (koz) (Mlb) (gpt) (koz) Media Luna Underground Proven 2,834 3.14 31.0 1.01 286 2,826 63 5.18 471 Probable 21,347 2.42 24.7 0.86 1,661 16,962 404 4.14 2,840 Proven & Probable 24,180 2.50 25.5 0.88 1,946 19,788 467 4.26 3,311 ELG Underground Proven 1,441 4.89 8.0 0.26 226 372 8 5.41 251 Probable 2,578 4.47 7.9 0.24 370 657 14 4.96 411 Proven & Probable 4,019 4.62 8.0 0.25 597 1,029 22 5.12 662 EPO Underground Proven - - - - - - - - - Probable 5,029 2.27 29.8 1.29 367 4,820 143 4.83 781 Proven & Probable 5,029 2.27 29.8 1.29 367 4,820 143 4.83 781 ELG Open Pit Proven 62 2.78 8.3 0.14 6 16 0 2.86 6 Probable 883 2.53 12.6 0.37 72 357 7 2.68 76 Proven & Probable 945 2.55 12.3 0.36 77 373 7 2.69 82 Surface Stockpiles Proven 6,235 1.19 4.2 0.12 239 842 16 1.30 261 Probable - - - - - - - - - Proven & Probable 6,235 1.19 4.2 0.12 239 842 16 1.30 261 Total Morelos Complex Proven 10,571 2.23 11.9 0.37 756 4,056 87 2.91 988 Probable 29,836 2.57 23.8 0.86 2,470 22,796 568 4.28 4,108 Proven & Probable 40,408 2.48 20.7 0.74 3,226 26,851 656 3.92 5,096 Notes to accompany the mineral reserve table: 1. Mineral reserves were developed in accordance with CIM (2014) guidelines. 2. Mineral reserves are founded on Measured and Indicated Mineral Resources, with an effective date of December 31, 2024 (unless otherwise noted). 3. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content. Surface Stockpile mineral reserves are estimated using production and survey data and apply the gold equivalent ("AuEq") formula for the intended processing method. 4. AuEq of Total Morelos Complex is established from combined contributions of the various deposits. 5. The qualified person for the mineral reserve estimate is Johannes (Gertjan) Bekkers, P. Eng., VP of Mines Technical Services. 6. The qualified person is not aware of mining, metallurgical, infrastructure, permitting, or other factors that materially affect the mineral reserve estimates. Notes to accompany the Media Luna Underground mineral reserves: 1. Media Luna Underground mineral reserves are reported above an in-situ ore cut-off grade of 2.4 g/t AuEq. 2. Media Luna Underground cut-off grades and mining shapes are considered appropriate for a metal price of $1,500/oz gold ("Au"), $19/oz silver ("Ag") and $3.50/lb copper ("Cu") and metal recoveries of 90% Au, 86% Ag, and 93% Cu. 3. Mineral reserves within designed mine shapes assume long-hole open stoping, supplemented with mechanized cut-and-fill mining and includes estimates for dilution and mining losses. 4. Media Luna Underground (including Media Luna surface stockpiles) AuEq = Au (g/t) + Ag (g/t) * (0.0121) + Cu (%) * (1.6533), accounting for metal prices and metallurgical recoveries. Notes to accompany the ELG Underground mineral reserves: 1. El Limón Underground mineral reserves are reported above an in-situ ore cut-off grade of 2.8 g/t AuEq and an in-situ incremental cut-off grade of 1.6 g/t AuEq. 2. Cut-off grades and mining shapes are considered appropriate for a metal price of $1,500/oz Au, $19/oz Ag, and $3.50/lb Cu and metal recoveries of 90% Au, 86% Ag, and 93% Cu, accounting for the planned copper concentrator. 3. Mineral reserves within designed mine shapes assume mechanized cut and fill supplemented with long hole mining method and include estimates for dilution and mining losses. 4. ELG Underground AuEq = Au (g/t) + Ag (g/t) * (0.0121) + Cu (%) * (1.6533), accounting for metal prices and metallurgical recoveries. Notes to accompany the EPO Underground mineral reserves: 1. Mineral reserves for EPO Underground have an effective date of June 30, 2024. 2. *Mineral reserves are based on EPO Underground Indicated Mineral Resources with an effective date of December 31, 2023. 3. EPO Underground mineral reserves are reported above an in-situ ore cut-off grade of 2.5 gpt AuEq. 4. EPO Underground cut-off grade and mining shapes are considered appropriate for a metal price of $1,500/oz Au, $19/oz Ag, and $3.50/lb Cu and metal recoveries of 87% Au, 85% Ag, and 92% Cu. 5. Mineral reserves within designed mine shapes assume long-hole open stoping and include estimates for dilution and mining losses. 6. EPO Underground AuEq = Au (gpt) + Ag (gpt) * (0.0124) + Cu (%) * (1.6920), accounting for metal prices and metallurgical recoveries. Notes to accompany the ELG Open Pit mineral reserves and Surface Stockpiles: 1. ELG Open Pit mineral reserves are reported above an in-situ cut-off grade of 1.2 g/t Au and including low grade mineral reserves are reported above an in-situ cut-off grade of 0.88 g/t Au. 2. It is planned that ELG low grade mineral reserves within the designed pit will be stockpiled during pit operation and processed during pit closure. 3. Mineral reserves within the designed pit include assumed estimates for dilution and ore losses. 4. Cut-off grades and designed pits are considered appropriate for a metal price of $1,500/oz Au and metal recovery of 89% Au. 5. Mineral reserves are reported using an Au price of $1,500/oz, Ag price of $19/oz, and Cu price of $3.50/lb. 6. Average metallurgical recoveries of 89% for Au, 30% for Ag, and 15% for Cu. 7. ELG Open Pit (including open pit surface stockpiles) AuEq = Au (g/t) + Ag (g/t) * (0.0043) + Cu (%) * (0.2697), accounting for metal prices and metallurgical recoveries. Table 13: Mineral Resource Estimate - Morelos Complex (December 31, 2024) Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (gpt) (gpt) (%) (koz) (koz) (Mlb) (gpt) (koz) Media Luna Underground Measured 2,994 3.95 40.0 1.30 380 3,855 86 6.55 630 Indicated 26,120 2.83 30.2 1.05 2,374 25,385 603 4.90 4,114 Measured & Indicated 29,114 2.94 31.2 1.07 2,754 29,240 689 5.07 4,744 Inferred 7,675 2.38 22.8 0.90 587 5,632 152 4.12 1,017 ELG Underground Measured 3,164 5.04 7.4 0.27 512 751 19 5.56 566 Indicated 5,287 4.42 8.9 0.28 752 1,521 33 4.99 848 Measured & Indicated 8,451 4.65 8.4 0.28 1,264 2,272 51 5.20 1,414 Inferred 1,961 3.86 7.8 0.21 243 490 9 4.30 271 EPO Underground Measured - - - - - - - - - Indicated 7,060 2.66 31.2 1.28 604 7,082 200 5.18 1,176 Measured & Indicated 7,060 2.66 31.2 1.28 604 7,082 200 5.18 1,176 Inferred 6,883 1.76 39.3 1.24 390 8,690 188 4.31 954 ELG Open Pit Measured 189 3.89 7.0 0.20 24 43 1 3.97 24 Indicated 865 2.46 9.0 0.43 69 251 8 2.62 73 Measured & Indicated 1,054 2.72 8.7 0.38 92 294 9 2.86 97 Inferred 6 3.56 5.9 0.24 1 1 0 3.65 1 Total Morelos Complex Measured 6,347 4.49 22.8 0.75 916 4,649 105 5.98 1,220 Indicated 39,332 3.00 27.1 0.97 3,798 34,239 844 4.91 6,211 Measured & Indicated 45,679 3.21 26.5 0.94 4,714 38,888 949 5.06 7,431 Inferred 16,526 2.30 27.9 0.96 1,222 14,813 349 4.22 2,243 Notes to accompany the mineral resource table: 1. Mineral resources were prepared in accordance with the CIM Definition Standards (May 2014). 2. The effective date of the estimates is December 31, 2024. 3. Mineral resources are depleted above a mining surface or to the as-mined solids as of December 31, 2024. 4. Gold equivalent ("AuEq") of total mineral resources is established from combined contributions of the various deposits. 5. Mineral resources for all deposits are based on an underlying gold ("Au") price of $1,650/oz, silver ("Ag") price of $22/oz, and copper ("Cu") price of $3.75/lb. 6. Mineral resources are inclusive of mineral reserves (ex-stockpiles). Mineral resources that are not mineral reserves do not have demonstrated economic viability. 7. Numbers may not add due to rounding. 8. Mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 9. The estimate was prepared by Mrs. Rochelle Collins, (Ontario), Principal, Mineral Resources. Notes to accompany Media Luna Underground mineral resources: 1. Mineral resources for Media Luna Underground are reported above a 2.0 gpt AuEq cut-off grade. The assumed underground mining methods are a combination of long-hole open stoping and mechanized cut-and-fill. 2. Mineral resources were estimated using ID3 methods applied to 1.0 m capped downhole assay composites within lithology domains and internal grade domains. Block model size is 5 m x 5 m x 5 m with 2.5 m x 2.5 m x 2.5 m sub-blocks. 3. Metallurgical recoveries at Media Luna Underground average 90% Au, 86% Ag, and 93% Cu. 4. The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.2 g/cm3. 5. Media Luna Underground AuEq = Au (gpt) + (Ag (gpt) * 0.0127) + (Cu (%) * 1.6104), accounting for underlying metal prices and metallurgical recoveries. Notes to accompany ELG Underground mineral resources: 1. Mineral resources for ELG Underground are reported above a cut-off grade of 2.2 gpt AuEq. The assumed underground mining method is mechanized cut-and-fill. 2. Mineral resources were estimated using ID3 methods applied to 1.0 m capped downhole assay composites within lithology domains and internal grade domains. Block model size is 5 m x 5 m x 5m with 2.5 m x 2.5 m x 2.5m sub-blocks. 3. Average metallurgical recoveries are 90% Au, 86% Ag, and 93% Cu, accounting for recoveries with planned copper concentrator. 4. The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.4 g/cm3. 5. ELG Underground AuEq = Au (gpt) + (Ag (gpt) * 0.0127) + (Cu (%) * 1.6104), accounting for underlying metal prices and metallurgical recoveries. Notes to accompany EPO Underground mineral resources: 1. Mineral resources for EPO Underground are reported above a 2.0 gpt AuEq cut-off grade. The assumed mining method is from underground methods, using long-hole open stoping. 2. Mineral resources were estimated using ID3 methods applied to 1.0 m capped downhole assay composites within lithology domains and internal grade domains. Block model size is 5 m x 5 m x 5m with 2.5 m x 2.5 m x 2.5 m sub-blocks. 3. Metallurgical recoveries at EPO average 87% Au, 85% Ag, and 92% Cu. 4. The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.5 g/cm3. 5. EPO Underground AuEq = Au (gpt) + (Ag (gpt) * 0.0130) + (Cu (%) * 1.6480), accounting for underlying metal prices and metallurgical recoveries. Notes to accompany the ELG Open Pit mineral resources: 1. Mineral resources for ELG Open Pit are reported above an in-situ cut-off grade of 0.78 gpt Au. 2. Mineral resources were estimated using ID3 methods applied to 1.0 m capped downhole assay composites within lithology domains and internal grade domains. Block model size is 5 m x 5 m x 5m with 2.5 m x 2.5 m x 2.5 m sub-blocks. Mineral resources are reported inside an optimized pit shell, underground mineral reserves at ELD within the El Limón pit shell have been excluded from the open pit mineral resources. 3. Average metallurgical recoveries are 89% Au, 30% Ag, and 15% Cu. 4. The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.4 g/cm3. 5. ELG Open Pit AuEq = Au (gpt) + (Ag (gpt) * 0.0045) + (Cu (%) * 0.2627), accounting for underlying metal prices and metallurgical recoveries. ABOUT TOREX GOLD RESOURCES INC. Torex Gold Resources Inc. is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property (the "Morelos Property"), an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company's principal asset is the Morelos Complex, which includes the producing Media Luna Underground, ELG Underground, and ELG Open Pit mines, the development stage EPO Underground Project, a processing plant, and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex's key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. In addition to realizing the full potential of the Morelos Property, the Company is seeking opportunities to acquire assets that enable diversification and deliver value to shareholders. FOR FURTHER INFORMATION, PLEASE CONTACT: TOREX GOLD RESOURCES INC. Jody Kuzenko President and CEO Direct: (647) 725-9982 Dan Rollins Senior Vice President, Corporate Development & Investor Relations Direct: (647) 260-1503 QUALIFIED PERSONS The scientific and technical data contained in this news release pertaining to mineral resources have been reviewed and approved by Rochelle Collins, Principal, Mineral Resource Geologist with Torex Gold, who is a qualified person as defined by NI 43-101. The scientific and technical data contained in this news release pertaining to mineral reserves have been reviewed and approved by Johannes (Gertjan) Bekkers, the Vice-President, Mines Technical Services for Torex Gold, who is a qualified person as defined by NI 43-101. CAUTIONARY NOTES ON FORWARD-LOOKING INFORMATION This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information also includes, but is not limited to, statements that: the Company is at the beginning of its transition back to positive free cash flow generation; production is expected to pick up during the second quarter through the early stages of ramp up and increase further through the back half of the year, with annual guidance being maintained; as the Company hits its projected free cash flow inflection point mid-year with completion of Media Luna Project spending, the Company expects to repay the modest amount of debt drawn quickly, particularly as production ramps up under a backdrop of record gold prices; the Company's focus is set on further unlocking value for our shareholders through returning to positive free cash flow, executing its exploration program success across the entire Morelos Property, implementing a formal return of capital policy, delivering on full-year guidance for the seventh consecutive year, and ramping up Media Luna to the designed mining rate by mid-2026; the Company is on track to achieve annual payable production guidance of 400,000 to 450,000 oz AuEq; the Company's exploration strategy is focused, in part, on unlocking the resource potential of the Morelos Complex in order to enhance and extend the production profile; the Company is focused on enhancing the base case production profile beyond 2030, extending the reserve life of the underground deposits, and further showcasing the underlying potential of the broader Morelos Property by testing several regional targets and key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. Generally, forward-looking information and statements can be identified by the use of forward-looking terminology such as "forecast," "plans," "expects," or "does not expect," "is expected," "strategic," "to be" or variations of such words and phrases or statements that certain actions, events or results "will", "may," "could," "would," "might," "on track,", or "well positioned to" occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks and uncertainties identified in the technical report (the "Technical Report") released on March 31, 2022, entitled "NI 43-101 Technical Report ELG Mine Complex Life Of Mine Plan and Media Luna Feasibility Study", which has an effective date of March 16, 2022, and the Company's annual information form ("AIF") and management's discussion and analysis ("MD&A") or other unknown but potentially significant impacts. Forward-looking information and statements are based on the assumptions discussed in the Technical Report, AIF and MD&A and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws. The Technical Report, MD&A and AIF are filed on SEDAR+ at and available on the Company's website at To view the source version of this press release, please visit
Yahoo
01-05-2025
- Business
- Yahoo
Torex Gold Declares Commercial Production at Media Luna
Milestone marks the Company's official transition to become both a gold and copper producer (All amounts expressed in U.S. dollars unless otherwise stated) Toronto, Ontario--(Newsfile Corp. - May 1, 2025) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) is pleased to announce it has achieved commercial production at the Media Luna mine, concluding the development phase of the Media Luna Project. Amongst other criteria, commercial production is declared when construction is substantially complete, mine and mill throughput have averaged over 40% and 60% of design rates for 30 days, respectively, product is saleable, and metallurgical recoveries have averaged at least 60% of the design recovery levels. Unless otherwise stated, progress and milestones referenced in this press release are as of March 31, 2025. Jody Kuzenko, President & CEO of Torex, stated: "I'm proud to announce that we have accomplished one of the last key milestones associated with the Media Luna Project by achieving commercial production. The delivery of Media Luna and our transition to become both a gold and copper producer, substantially within budget and schedule, demonstrates Torex as not only a consistent and reliable operator, but also a company capable of achieving excellence in the execution of major and complex projects. "Notably, our strong operational performance through the build period, supported by a backdrop of record gold prices, allowed us to accomplish what is largely unheard of in the industry - funding the project almost entirely through the generation of cash from our existing operations at ELG. The modest level of net debt accumulated through the build period will be repaid quickly as the Company pivots to positive free cash flow generation in the middle of 2025. "Following the safe, successful tie-in of the flotation circuits to the processing plant, the project team is now focused on ramping up the underground mine to the design level of 7,500 tonnes per day ("tpd") by mid-2026, six months ahead of the schedule set out in the Feasibility Study. With underground development ahead of schedule and close to a year of stopes now drilled off, mining rates will steadily increase upon successful completion and commissioning of the paste plant and paste distribution system later this quarter. "With the Media Luna Project now substantially complete and ramping up to full operations, this will be our last quarterly project update to the market. I want to extend my sincere gratitude to our shareholders for your continued trust in Torex to deliver on this massive project as we committed, and to our employees and contractors at Morelos for their unwavering dedication to deliver excellence as we set the foundation for continued growth in Mexico and beyond." CAPITAL EXPENDITURES As a result of rescheduling the processing plant tie-ins to February 2025 (originally November 2024), expenditures on Media Luna continued to be classed as non-sustaining prior to the declaration of commercial production on April 26, 2025. For accounting purposes, the transition to the production phase will be reflected commencing May 1, 2025. During Q1 2025, $55.5 million was spent on Media Luna. A modest level of non-sustaining capital expenditures will be incurred post the declaration of commercial production, primarily related to completion and commissioning of the paste plant and paste distribution system. PROJECT COMPLETION As of the end of Q1 2025, overall construction of Media Luna was 98% complete, up from 94% at the start of the quarter. Underground development/construction sat at 98% complete with the largest outstanding component being the finalization of the tailings and paste distribution lines within the mine. Surface construction was 96% complete at the end of the quarter, with commissioning of the paste plant on track for completion in Q2. First concentrate was produced on March 24th and commercial production has now been achieved. Table 1: Media Luna Project - Project Completion (April 1, 2022 through March 31, 2025)Project To DateQ1 2025 Procurement 100% Engineering 100% Underground development/construction 98% Surface construction (including paste plant) 96% Total Project 98% Notes to Table 1) Physical progress measured starting as of April 1, 2022; excludes progress made prior to Board approval on March 31, 2022. 2) Project period is defined as April 1, 2022 through declaration of commercial production. 3) Total Project is weighted average based on activity levels. Underground Development and Construction Underground development and construction are essentially complete, sitting at 98% at the end of the quarter. Importantly, the Guajes Tunnel conveyor was commissioned during the quarter and has been steadily transporting ore to the processing plant on the north side of the Balsas River (Figure 1). Significant progress continues to be made on definition drilling, with 51 of the 60 stopes planned to be mined in the 2025 mine plan drilled off, 40 from 2026, and 14 from 2027. Development rates remain above budget with 1,304 metres completed in March compared to a budget of 1,200 metres per month. With paste plant commissioning scheduled to be completed in the second quarter, mining rates are expected to steadily increase through the year and remain on track to achieve the designed rate of 7,500 tpd by mid-2026. Other notable areas that were completed in the quarter included the electrical connection and commissioning of rock breaker #4 and development of waste pass #2. Key areas that remain outstanding include the installation of the underground paste distribution piping and the remaining underground material handling systems, that will support both Media Luna and EPO. Figure 1: Commissioning of the Guajes Tunnel conveyor was completed during the quarter. Ore is being transported through the tunnel out of the Guajes Portal for processing on the north side of the Balsas River. To view an enhanced version of this graphic, please visit: Surface Construction At the end of March, surface construction sat at 96% complete, up from 85% at the start of the quarter. Through close coordination between the project and operation teams, the tie-in of the copper and iron sulphide flotation circuits at the processing plant were completed safely and on time. In total, 83 tie-ins were completed and 136 separate systems commissioned. The completion of the tie-in period marked the handover of the new processing facilities to the operations team, resulting in first concentrate production delivered to the on-site storage facility on March 24th (Figure 2) and concentrate shipments from site to the port commencing the first week of April. The largest components of surface construction that remain outstanding are commissioning of the paste plant and connection of the updated power infrastructure to the national grid. Paste plant construction and commissioning are progressing well. The paste plant filter presses were assembled during the quarter and water testing commenced on the paste plant thickener (Figures 3 and 4). Pipe and instrumentation installation remains a key area for completion ahead of commissioning which is on track to commence over the next several weeks. Installation of power infrastructure is complete and the energy regulator, Comisión Federal de Electricidad ("CFE"), is on site to complete their final checks and commissioning process before the 230 kV transmission line can be tied into the national grid. The tie-in is expected to be completed over the coming weeks, aligned with commissioning of the paste plant. Other notable surface construction achievements during the quarter included preparation of the base of the Guajes Pit for in-situ tailings disposal, testing of tailings pumping systems to the Guajes thickener, and commissioning of the underground control room for remote operation of the new rock breakers, Guajes conveyor and associated infrastructure. Figure 2: First concentrate production marked a significant milestone in the completion of the Media Luna Project. To view an enhanced version of this graphic, please visit: Figure 3: Paste plant filter installation. To view an enhanced version of this graphic, please visit: Figure 4: Paste plant thickener ready for water testing. To view an enhanced version of this graphic, please visit: Operational Readiness In parallel with development and construction activities, the surface and underground operational readiness plan is nearing completion. Commissioning and operational readiness activities for the underground infrastructure, water treatment plant, and flotation circuits were delivered and as the paste plant nears mechanical completion, commissioning and operational readiness deliverables have been finalized to support startup. The operational readiness team continues to develop and advance Standard Operating and Maintenance procedures for the remaining new assets and is tracking to plan at over 91% complete. The Human Resources, Safety, and Operational teams coordinated the recruitment and training of the final group of employees required to operate the Media Luna mine and the modified process plant. From January 2024 to the end of March 2025, approximately 200 employees were transferred from the ELG Open Pits to the underground mine and more than 160 employees were recruited. The teams also coordinated the redeployment, hiring, and training of just over 110 positions in the processing plant to meet the new operating requirements, all with a key focus on local recruitment. ABOUT TOREX GOLD RESOURCES INC. Torex Gold Resources Inc. is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property (the "Morelos Property"), an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company's principal asset is the Morelos Complex, which includes the producing Media Luna Underground, ELG Underground, and ELG Open Pit mines, the development stage EPO Underground Project, a processing plant, and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex's key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. In addition to realizing the full potential of the Morelos Property, the Company is seeking opportunities to acquire assets that enable diversification and deliver value to shareholders. FOR FURTHER INFORMATION, PLEASE CONTACT: TOREX GOLD RESOURCES INC. Jody KuzenkoPresident and CEODirect: (647) Dan RollinsSenior Vice President, Corporate Development & Investor RelationsDirect: (647) QUALIFIED PERSON The technical and scientific information in this press release has been reviewed and approved by Dave Stefanuto, P. Eng, Executive Vice President, Technical Services and Capital Projects of the Company, and a qualified person under National Instrument 43-101. CAUTIONARY NOTES ON FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements that: the modest level of net debt accumulated through the build period will be repaid quickly as the Company pivots to positive free cash flow generation in the middle of 2025; with underground development ahead of schedule and close to a year of stopes now drilled off, mining rates will steadily increase upon successful completion and commissioning of the paste plant and paste distribution system later this quarter; a modest level of non-sustaining capital expenditures will be incurred post the declaration of commercial production; with paste plant commissioning expected to be completed in the second quarter, mining rates are expected to steadily increase through the year and remain on track to achieve the designed rate of 7,500 tpd by mid-2026 and key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expect", "plan", "strategy", "schedule", "guide", "continue", "future" or variations of such words and phrases or statements that certain actions, events or results "will" occur or are "on track" to occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks and uncertainties identified in the technical report ("Technical Report") titled ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study, with an effective date of March 16, 2022, and a filing date of March 31, 2022 and in the Company's annual information form ("AIF") and management's discussion and analysis ("MD&A") or other unknown but potentially significant impacts. Forward-looking information is based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and perception of trends, current conditions and expected developments as set out in the Technical Report, AIF and MD&A, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws. The Technical Report, AIF and MD&A are filed on SEDAR+ at and available on the Company's website at To view the source version of this press release, please visit
Yahoo
24-03-2025
- Business
- Yahoo
Torex Gold Reports First Copper Concentrate Production from Media Luna
Processing plant tie-ins and restart complete; commercial production expected in coming weeks(All amounts expressed in U.S. dollars unless otherwise stated) Toronto, Ontario--(Newsfile Corp. - March 24, 2025) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) announces completion of the four-week tie-in period for the Media Luna Project ("Media Luna") and first production of precious metal-rich copper concentrate. Jody Kuzenko, President and CEO of Torex, stated: "Following almost three years to the day of the release of our feasibility study for the Media Luna Project, we have completed the tie-in period at our processing plant and achieved first production of copper concentrate. This milestone represents substantial completion of the project and the beginning of the next chapter in the evolution and growth of Torex as we become a gold and copper producer. "Execution of this tie-in period was a massively complex undertaking; however, in true Torex style, it was executed with precision and excellence. In total, 83 tie-ins were completed and 136 separate systems commissioned. We expect to begin trucking copper concentrate in the coming days and have contracts in place to deal with all facets of sales and logistics. Commercial production remains on track to be achieved over the coming weeks. "Mining has continued throughout with production rates at Media Luna ramping up and ore is now being transported via the Guajes Tunnel conveyor. Monthly development rates remain above the budgeted 1,200 metres and we have now drilled off 88 stopes, including 46 of the 60 stopes planned to be mined in 2025, 35 from 2026, and 7 from 2027. Throughput levels are expected to increase further once the paste plant is commissioned in the second quarter. Based on current development rates, we remain confident in our ability to deliver steady-state mining rates of 7,500 tonnes per day by mid-2026, six months ahead of the schedule set out in the Feasibility Study. "I would like to thank all the Torex employees and contractors that made the development of Media Luna a success, as well as our shareholders who have supported us throughout the build. As we pivot to strong free cash flow generation mid-year, we are confident that we will significantly enhance shareholder value by reinvesting in drilling to further grow reserves and resources, developing our next mine at EPO, returning capital through dividends and share buybacks, and strengthening the balance sheet to support accretive growth opportunities." ABOUT TOREX GOLD RESOURCES is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company's principal asset is the Morelos Complex, which includes the El Limón Guajes ("ELG") Mine Complex, the Media Luna Mine, the EPO Project, a processing plant, and related infrastructure. Production from the Morelos Complex commenced in 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex's key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. FOR FURTHER INFORMATION, PLEASE CONTACT: TOREX GOLD RESOURCES KuzenkoPresident and CEODirect: (647) Dan RollinsSenior Vice President, Corporate Development & Investor RelationsDirect: (647) QUALIFIED PERSONThe technical and scientific information in this press release has been reviewed and approved by Dave Stefanuto, P. Eng, Executive Vice President, Technical Services and Capital Projects of the Company, and a qualified person under National Instrument 43-101. CAUTIONARY NOTES ON FORWARD-LOOKING STATEMENTSThis press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding: commercial production remains on track to be achieved in coming weeks; Torex will become a gold and copper producer; the Company expects to begin trucking copper concentrate in the coming days; throughput levels are expected to increase further once the paste plant is commissioned in the second quarter; based on current development rates, the Company remains confident in its ability to deliver steady-state mining rates of 7,500 tonnes per day by mid-2026, six months ahead of the schedule set out in the Feasibility Study; as the Company pivots to strong free cash flow generation mid-year, the Company is confident that it will significantly enhance shareholder value by reinvesting in drilling to further grow reserves and resources, developing the next mine at EPO, returning capital through dividends and share buybacks, and strengthening the balance sheet to support accretive growth opportunities; Torex's key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "planned", "guided", "strategy", "target", "goal", "objective", "aim" or variations of such words and phrases or statements that certain actions, events or results "will", or "is expected to" occur or the Company "remains confident" will occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks and uncertainties identified in the Company's technical report (the "Technical Report") released on March 31, 2022, entitled "NI 43-101 Technical Report ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study", which has an effective date of March 16, 2022, Company's annual information form ("AIF") and management's discussion and analysis ("MD&A") or other unknown but potentially significant impacts. Forward-looking information is based on the reasonable assumptions, estimates, analyses, and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws. The Technical Report, AIF, and MD&A are available filed on SEDAR+ at and available on the Company's website at To view the source version of this press release, please visit Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Torex Gold Reports Q4 and Full Year 2024 Results
2024 marks another solid year of operational and financial results; on track to return to positive free cash flow generation by mid-2025 (All amounts expressed in U.S. dollars unless otherwise stated) Toronto, Ontario--(Newsfile Corp. - February 19, 2025) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) reports the Company's financial and operational results for the three months and year ended December 31, 2024. Torex will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the results. Jody Kuzenko, President & CEO of Torex, stated: "2024 marked another year of consistently strong operational results from Morelos. With gold production of more than 452,000 ounces, we met our annual guidance for the sixth year in a row. The team continued to deliver new operational firsts, achieving a new annual average gold recovery record of 90.6% at the processing plant and a record annual mining rate from ELG Underground of close to 2,100 tonnes per day. In addition, significant progress was made on the Media Luna Project, with first copper concentrate production tracking to plan for the end of March and commercial production expected to be declared shortly thereafter. "We also set new financial records in 2024. After generating record annual revenue of more than $1.1 billion, our balance sheet remains in excellent condition, with more than $330 million of available liquidity1 including $110 million of cash as of year end. The performance of our operations, supported by a record realized gold price, resulted in a record annual adjusted EBITDA1 of more than $540 million and a robust all-in sustaining costs margin1 of 49%. With only a few months left to go on the Media Luna Project, we are well-positioned to exit the build with only a modest level of net debt, which will be repaid quickly when we pivot to positive free cash flow generation mid-year. With an expanded exploration and drilling program, development activities at EPO on track to commence in the third quarter and an inaugural return of capital program to be formalized mid-year, 2025 is expected to be yet another exciting and prosperous year for Torex as we enter the next chapter at Morelos. "Against the backdrop of this exceptional performance, we will never forget the profound tragedy and loss we experienced in December with the loss of three of our colleagues. As we continue to look toward the future, we are more resolved than ever to reset the bar on safety leadership and set the highest standards of safety performance in the mining industry, just as our shareholders have come to expect." 1. These measures are non-GAAP financial measures. Refer to footnote 3 under the section "Fourth Quarter 2024 Highlights" and Tables 2 to 11 of this press release for further information and a detailed reconciliation to the comparable measures in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board. FULL YEAR 2024 HIGHLIGHTS Working toward next-level safety: On December 5th, 2024, a fatal carbon monoxide gas exposure occurred, which claimed the lives of two employees and one contractor worker at the ELG Underground. In the wake of the tragedy, all operational and project activities at the Morelos Property were suspended for just over a week to allow for inspections by the relevant agencies. The Company also initiated its own internal investigation to determine how, despite multiple levels of safety controls, such an exposure could have taken place, and to prevent a similar incident from ever occurring. In addition, in August, a fatal injury occurred involving a contractor worker within the Guajes Tunnel while conducting work on the overhead conveyor associated with the Media Luna Project. As at December 31, 2024, the lost-time injury frequency ("LTIF") for the Morelos Complex was 0.61 per million hours worked for both employees and contractors on a rolling 12-month basis. Recognizing the Company's previous excellence in safety performance, in October, the Mexican Mining Chamber (CAMIMEX) granted Torex the 'Silver Hard Hat Award' in the Open Pit Mining category (over 500 employees) for the excellent safety record at ELG in 2023. Production guidance achieved for sixth consecutive year: Delivered annual gold production of 452,523 ounces ("oz"), within the upwardly revised1 guidance range of 450,000 to 470,000 oz and above original guidance of 400,000 to 450,000 oz, marking the sixth consecutive year that production guidance has been achieved. The Company also achieved a record annual average gold recovery of 90.6% and a record annual mining rate from ELG Underground of 2,092 tonnes per day ("tpd"). On a gold equivalent ounce basis ("oz AuEq"), the Company produced 461,420 oz AuEq2 for the year, within the revised1 guidance range of 460,000 to 480,000 oz AuEq2 and above original guidance of 410,000 to 460,000 oz AuEq2. Record annual revenue: Annual gold sold of 455,932 oz at an annual average realized gold price3 of $2,254 per oz, contributing to record annual revenue of $1,115.5 million. On a gold equivalent ounce basis, the Company sold 465,829 oz AuEq2 for the year. The average realized gold price in 2024 includes a realized loss of $64.1 million or $141 per oz on gold forward contracts. In January 2025, the Company entered into gold put options to sell 155,000 oz of gold in 2025 at a strike price of $2,500 per oz. These options provide full upside exposure to the gold price while providing a floor of $2,500 per oz. Robust all-in sustaining margins: Total cash costs3 of $940 per oz sold, 3% above the upper end of the guided range of $860 to $910 per oz sold. All-in sustaining costs3 of $1,156 per oz sold, at the upper end of the guided range of $1,100 to $1,160 per oz sold. Full year costs were impacted by higher gold prices given the $354 per oz increase in average realized gold price relative to guidance (guidance based on a gold price of $1,900 per oz) resulting in increased Mexican profit sharing (year-to-date 2024 impact of $27 per oz) and royalties (year-to-date 2024 impact of $15 per oz), as well as higher consumption of cyanide within the process plant. All-in sustaining costs margin3 of $1,098 per oz sold, implying an all-in sustaining costs margin3 of 49%. Cost of sales was $647.3 million or $1,420 per oz sold. On a gold equivalent ounce basis, total cash costs were $972 per oz AuEq sold2 and all-in sustaining costs were $1,183 per oz AuEq sold2 relative to guidance of $900 to $950 per oz AuEq sold2 and $1,130 to $1,190 per oz AuEq sold2, respectively. Strong profitability and record adjusted EBITDA3: Reported net income of $134.6 million, or earnings of $1.57 per share on a basic basis and $1.55 per share on a diluted basis, significantly impacted by deferred income tax expense of $66.5 million, largely due to the 20% depreciation of the Mexican peso, which closed the year at 20.3:1 against the U.S. dollar versus the annual average of 18.3:1. Adjusted net earnings3 of $224.4 million, or $2.61 per share on a basic basis and $2.58 per share on a diluted basis. Net income includes a net derivative loss of $46.1 million related to gold forward contracts and foreign exchange collars and forwards entered into to mitigate downside price risk and capital expenditure risk during the construction of the Media Luna Project and on operating expenditures in 2025. Generated EBITDA3 of $539.4 million and a record annual adjusted EBITDA3 of $541.1 million. Strong cash flow generation: Net cash generated from operating activities totalled $449.5 million and $458.9 million before changes in non-cash operating working capital, including income taxes paid of $89.0 million. Negative free cash flow3 of $122.9 million is net of cash outlays for capital expenditures, lease payments and interest, including borrowing costs capitalized. Negative free cash flow in 2024 was a direct result of $449.0 million invested in the Media Luna Project. Strong financial liquidity: The Company extended the credit facilities with a syndicate of international banks in the third quarter of 2024, providing a total of $300.0 million through a revolving credit facility maturing in 2027, and added a $150.0 million accordion feature which is available at the discretion of the lenders. The year closed with $331.5 million in available liquidity3, including $110.2 million in cash and $221.3 million available on the credit facilities of $300.0 million, net of borrowings of $65.0 million and letters of credit outstanding of $13.7 million. Media Luna Project: During 2024, $449.0 million was invested in the project, within the revised annual project guidance of $430.0 to $450.0 million. As of December 31, 2024, physical progress on the Project was approximately 94%, with engineering concluded, procurement substantially complete, underground development tracking well ahead of schedule, and surface construction advancing per plan. First concentrate production is expected at the end of the first quarter of 2025, and the declaration of commercial production shortly thereafter. Return of Capital to Shareholders: In November, the Company received approval from the Toronto Stock Exchange (the "TSX") of its notice of intention to commence a normal course issuer bid (the "NCIB"). The Company has not yet repurchased any common shares under the NCIB. Exploration and Drilling Activities: In November, the Company announced assay results from the ongoing 2024 drilling program at EPO4. The results to date support the Company's goal of expanding resources to the north of the deposit and upgrading Inferred Resources to Indicated Resources. In December, the Company also announced further assay results from the Company's 2024 drilling program at ELG Underground5. The results to date support the Company's target of extending the mine life of ELG Underground by identifying new zones of higher-grade mineralization, expanding resources, and replacing and growing reserves. Q4 2024 HIGHLIGHTS Safety performance: In addition to the fatal incident in December, there were two lost-time injuries ("LTIs") at the Media Luna Project in the fourth quarter, including a contractor worker who fell from a walkway under construction, and a second contractor worker who was injured while carrying out work on the Guajes Tunnel conveyor belt installation. Gold production: Delivered gold production of 103,795 oz for the quarter (105,305 oz AuEq2), benefiting from an average gold recovery of 90.5% and impacted by the temporary suspension in December. Gold sold: Sold 108,647 oz of gold (110,419 oz AuEq2) at a record average quarterly realized gold price3 of $2,487 per oz, contributing to quarterly revenue of $295.0 million. The average realized gold price in the fourth quarter of 2024 includes a realized loss of $19.9 million or $183 per oz on gold forward contracts. Total cash costs3 and all-in sustaining costs3: Total cash costs of $902 per oz sold ($932 per oz AuEq sold2) and all-in sustaining costs of $1,085 per oz sold ($1,112 per oz AuEq sold2). All-in sustaining costs margin3 were $1,402 per oz sold, implying an all-in sustaining costs margin3 of 56%. Cost of sales was $153.5 million or $1,413 per oz sold in the quarter Net income and adjusted net earnings3: Reported net income of $60.4 million or earnings of $0.70 per share on a basic basis and $0.69 per share on a diluted basis. Adjusted net earnings of $70.6 million or $0.82 per share on a basic basis and $0.81 per share on a diluted basis. Net income includes a net derivative loss of $3.6 million related to gold forward contracts and foreign exchange collars and forwards. In the fourth quarter of 2024, the Company entered into an additional series of zero-cost collars to hedge against changes in foreign exchange rates of the Mexican peso between January 2025 and December 2025 for a total notional value of $28.0 million. In the fourth quarter of 2024, the Company also entered into foreign exchange forward contracts to purchase 924.3 million Mexican pesos ("MXN") for $44.0 million between January 2025 and December 2025 at a weighted average MXN/USD foreign exchange rate of 21.01:1. EBITDA3 and adjusted EBITDA3: Generated EBITDA of $162.8 million and adjusted EBITDA of $154.3 million. Cash flow generation: Net cash generated from operating activities totalled $122.8 million and $136.3 million before changes in non-cash operating working capital, including income taxes paid of $17.3 million and negative free cash flow3 of $10.8 million. Media Luna Project: During Q4 2024, $100.5 million was invested in the project. 1. 2024 production guidance was revised to reflect higher production, as disclosed in the Company's MD&A dated November 5, 2024.2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to the sections "Gold Equivalent Reporting" for the relevant average market prices by commodity and "2024 Performance and 2025 Guidance" for 2024 guidance assumptions in the Company's MD&A dated February 19, 2025.3. These measures are non-GAAP financial measures ("Non-GAAP Measures") which are not standardized financial measures under IFRS, the framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures used by other companies. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the IFRS, see Tables 2 to 11 of this press release. For additional information on these Non-GAAP Measures, please refer to the Company's MD&A for the three months and year ended December 31, 2024, dated February 19, 2025. The MD&A and the Company's audited consolidated financial statements and related notes for the year ended December 31, 2024, are available on Torex's website ( and under the Company's SEDAR+ profile ( For more information on EPO drilling results, see the Company's news release titled "Torex Gold Reports Results from the Ongoing 2024 EPO Exploration Program" issued on November 13, 2024, and filed on SEDAR+ at and on the Company's website at For more information on ELG Underground drilling results, see the Company's news release titled "Torex Gold Reports Compelling New Results from the 2024 ELG Underground Drilling Program" issued on December 2, 2024, and filed on SEDAR+ at and on the Company's website at CONFERENCE CALL AND WEBCAST DETAILS The Company will host a conference call tomorrow at 9:00 AM (ET) where senior management will discuss the fourth quarter and year-end operating and financial results. For expedited access to the conference call, registration is open to obtain an access code in advance, which will allow participants to join the call directly at the scheduled time. Alternatively, dial-in details are as follows: Toronto local or International: 1-647-484-8814 Toll-Free (North America): 1-844-763-8274 A live webcast and replay of the conference call will be available on the Company's website at The webcast will be archived on the Company's website. Table 1: Operating and Financial Highlights Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, In millions of U.S. dollars, unless otherwise noted 2024 2024 2023 2024 2023 Safety Lost-time injury frequency1 /million hours 0.61 0.28 0.31 0.61 0.31 Total recordable injury frequency1 /million hours 1.48 1.46 1.23 1.48 1.23 Operating Results - Gold only basis Gold produced oz 103,795 119,412 137,993 452,523 453,778 Gold sold oz 108,647 122,130 138,794 455,932 444,750 Total cash costs2 $/oz 902 926 885 940 866 All-in sustaining costs2 $/oz 1,085 1,101 1,073 1,156 1,200 Average realized gold price2 $/oz 2,487 2,313 1,995 2,254 1,952 Operating Results - Gold Equivalent basis Gold equivalent produced3 oz AuEq 105,305 122,525 139,394 461,420 459,380 Gold equivalent sold3 oz AuEq 110,419 125,414 139,828 465,829 451,220 Total cash costs2,3 $/oz AuEq 932 969 893 972 882 All-in sustaining costs2,3 $/oz AuEq 1,112 1,139 1,080 1,183 1,210 Financial Results Revenue $ 295.0 313.7 282.4 1,115.5 882.6 Cost of sales $ 153.5 170.1 191.6 647.3 600.1 Earnings from mine operations $ 141.5 143.6 90.8 468.2 282.5 Net income $ 60.4 29.2 50.4 134.6 204.4 Per share - Basic $/share 0.70 0.34 0.59 1.57 2.38 Per share - Diluted $/share 0.69 0.34 0.58 1.55 2.34 Adjusted net earnings2 $ 70.6 65.5 49.1 224.4 148.4 Per share - Basic2 $/share 0.82 0.76 0.57 2.61 1.73 Per share - Diluted2 $/share 0.81 0.75 0.57 2.58 1.72 EBITDA2 $ 162.8 155.3 115.4 539.4 422.6 Adjusted EBITDA2 $ 154.3 152.4 142.6 541.1 442.2 Cost of sales - gold only basis $/oz 1,413 1,393 1,380 1,420 1,349 Net cash generated from operating activities $ 122.8 149.5 120.0 449.5 300.8 Net cash generated from operating activities before changes in non-cash operating working capital $ 136.3 137.6 133.5 458.9 340.8 Free cash flow2 $ (10.8 ) (0.7 ) (24.3 ) (122.9 ) (185.4) Cash and cash equivalents $ 110.2 114.5 172.8 110.2 172.8 Debt, net of deferred finance charges $ 62.9 57.7 – 62.9 – Lease-related obligations $ 78.3 69.4 32.0 78.3 32.0 Net (debt) cash2 $ (33.1 ) (14.9 ) 140.8 (33.1 ) 140.8 Available liquidity2 $ 331.5 346.6 464.9 331.5 464.9 1. On a 12-month rolling basis, per million hours worked.2. These measures are Non-GAAP Measures. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the IFRS as issued by the International Accounting Standards Board see Tables 2 to 11 of this press release. For additional information on these Non-GAAP Measures, please refer to the Company's MD&A for the three months and year ended December 31, 2024, dated February 19, 2025. The MD&A and the Company's audited consolidated financial statements and related notes for the year ended December 31, 2024, are available on Torex's website ( and under the Company's SEDAR+ profile ( Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to "Gold Equivalent Reporting" on page 6 of the Company's MD&A for the relevant average market prices by commodity. Table 2: Reconciliation of Total Cash Costs and All-in Sustaining Costs to Production Costs and Royalties Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, In millions of U.S. dollars, unless otherwise noted 2024 2024 2023 2024 2023 Gold sold oz 108,647 122,130 138,794 455,932 444,750 Total cash costs per oz sold Production costs1 $ 94.7 112.9 116.5 421.4 371.5 Royalties $ 8.2 8.6 8.4 31.2 26.5 Less: Silver sales $ (1.8 ) (2.2 ) (0.9 ) (7.1 ) (4.7) Less: Copper sales $ (3.1 ) (6.2 ) (1.2 ) (16.8 ) (8.0) Total cash costs $ 98.0 113.1 122.8 428.7 385.3 Total cash costs per oz sold $/oz 902 926 885 940 866 All-in sustaining costs per oz sold Total cash costs $ 98.0 113.1 122.8 428.7 385.3 General and administrative costs2 $ 7.3 8.8 7.3 31.4 26.0 Reclamation and remediation costs $ 1.0 1.0 1.5 4.5 5.3 Sustaining capital expenditure $ 11.6 11.6 17.3 62.6 116.9 Total all-in sustaining costs $ 117.9 134.5 148.9 527.2 533.5 Total all-in sustaining costs per oz sold $/oz 1,085 1,101 1,073 1,156 1,200 Gold equivalent sold3 oz AuEq 110,419 125,414 139,828 465,829 451,220 Total cash costs per oz AuEq sold Production costs1 $ 94.7 112.9 116.5 421.4 371.5 Royalties $ 8.2 8.6 8.4 31.2 26.5 Total cash costs $ 102.9 121.5 124.9 452.6 398.0 Total cash costs per oz AuEq sold3 $/oz AuEq 932 969 893 972 882 All-in sustaining costs per oz AuEq sold Total cash costs $ 102.9 121.5 124.9 452.6 398.0 General and administrative costs2 $ 7.3 8.8 7.3 31.4 26.0 Reclamation and remediation costs $ 1.0 1.0 1.5 4.5 5.3 Sustaining capital expenditure $ 11.6 11.6 17.3 62.6 116.9 Total all-in sustaining costs $ 122.8 142.9 151.0 551.1 546.2 Total all-in sustaining costs per oz AuEq sold3 $/oz AuEq 1,112 1,139 1,080 1,183 1,210 1. This amount excludes temporary suspension costs of $3.1 million, $nil and $nil for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and $3.1 million and $nil for the years ended December 31, 2024 and December 31, 2023, respectively.2. This amount excludes a loss of $6.8 million, loss of $3.9 million and gain of $0.5 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and a loss of $15.7 million and gain of $1.8 million for the years ended December 31, 2024 and December 31, 2023, respectively, in relation to the remeasurement of share-based payments. This amount also excludes corporate depreciation and amortization expenses totalling $0.2 million, $nil and $nil for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, $0.3 million and $0.2 million for the years ended December 31, 2024 and December 31, 2023, respectively, within general and administrative costs. Included in general and administrative costs is share-based compensation expense in the amount of $1.6 million or $15/oz ($14/oz AuEq) for the three months ended December 31, 2024, $1.6 million or $13/oz ($13/oz AuEq) for the three months ended September 30, 2024, $1.1 million or $8/oz ($8/oz AuEq) for the three months ended December 31, 2023, $7.1 million or $16/oz ($15/oz AuEq) for the year ended December 31, 2024 and $5.4 million or $12/oz ($12/oz AuEq) for the year ended December 31, 2023. This amount excludes other expenses totalling $1.4 million, $2.4 million and $2.1 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and $7.1 million and $6.7 million for the years ended December 31, 2024 and December 31, 2023, respectively.3. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to "Gold Equivalent Reporting" in the Company's MD&A for the three months and year ended December 31, 2024, dated February 19, 2025, for the relevant average market prices by commodity. Table 3: Reconciliation of Sustaining and Non-Sustaining Capital Expenditures to Additions to Property, Plant and Equipment Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, In millions of U.S. dollars 2024 2024 2023 2024 2023 Sustaining $ 11.6 11.6 17.3 61.2 67.9 Capitalized Stripping (Sustaining) $ – – – 1.4 49.0 Non-sustaining $ – – 0.3 – 2.2 Total ELG $ 11.6 11.6 17.6 62.6 119.1 Media Luna Project1 $ 100.5 113.9 124.0 449.0 366.3 Media Luna Cluster Drilling and Other $ 3.0 4.4 3.8 10.6 16.0 Working Capital Changes and Other $ 12.7 14.4 (4.0 ) 31.5 (23.4) Capital expenditures2 $ 127.8 144.3 141.4 553.7 478.0 1. This amount includes a realized loss (or an increase in the capitalized expenditures) of $0.1 million, gain of $0.1 million and gain of $0.3 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, gain of $1.3 million and gain of $0.3 million for the years ended December 31, 2024 and December 31, 2023, respectively, in relation to the settlement of foreign exchange zero cost collars that were entered into to manage the capital expenditure risk related to a further strengthening of the Mexican peso.2. The amount of cash expended on additions to property, plant and equipment in the period as reported in the Condensed Consolidated Interim Statements of Cash Flows. Table 4: Reconciliation of Average Realized Gold Price and Total Cash Costs Margin to Revenue Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, In millions of U.S. dollars, unless otherwise noted 2024 2024 2023 2024 2023 Gold sold oz 108,647 122,130 138,794 455,932 444,750 Revenue $ 295.0 313.7 282.4 1,115.5 882.6 Less: Silver sales$ (1.8 ) (2.2 ) (0.9 ) (7.1 ) (4.7) Less: Copper sales$ (3.1 ) (6.2 ) (1.2 ) (16.8 ) (8.0) Less: Realized loss on gold contracts$ (19.9 ) (22.8 ) (3.4 ) (64.1 ) (1.9) Total proceeds$ 270.2 282.5 276.9 1,027.5 868 Total average realized gold price$/oz 2,487 2,313 1,995 2,254 1,952 Less: Total cash costs$/oz 902 926 885 940 866 Total cash costs margin$/oz 1,585 1,387 1,110 1,314 1,086 Total cash costs margin % 64 60 56 58 56 Table 5: Reconciliation of All-in Sustaining Costs Margin to Revenue Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, In millions of U.S. dollars, unless otherwise noted 2024 2024 2023 2024 2023 Gold sold oz 108,647 122,130 138,794 455,932 444,750 Revenue $ 295.0 313.7 282.4 1,115.5 882.6 Less: Silver sales$ (1.8 ) (2.2 ) (0.9 ) (7.1 ) (4.7) Less: Copper sales$ (3.1 ) (6.2 ) (1.2 ) (16.8 ) (8.0) Less: Realized loss on gold contracts$ (19.9 ) (22.8 ) (3.4 ) (64.1 ) (1.9) Less: All-in sustaining costs$ (117.9 ) (134.5 ) (148.9 ) (527.2 ) (533.5) All-in sustaining costs margin$ 152.3 148.0 128.0 500.3 334.5 Total average realized gold price$/oz 2,487 2,313 1,995 2,254 1,952 Total all-in sustaining costs margin$/oz 1,402 1,212 922 1,098 752 Total all-in sustaining costs margin % 56 52 46 49 39 Table 6: Reconciliation of Adjusted Net Earnings to Net Income Three Months Ended Year Ended In millions of U.S. dollars, unless otherwise noted Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, 2024 2024 2023 2024 2023 Basic weighted average shares outstanding shares 85,988,115 85,986,516 85,885,453 85,977,291 85,881,325 Diluted weighted average shares outstanding shares 87,414,063 87,071,146 86,410,111 87,008,937 86,397,399 Net income $ 60.4 29.2 50.4 134.6 204.4 Adjustments: Temporary suspension costs $ 3.1 – – 3.1 – Unrealized foreign exchange gain $ (2.0 ) (0.3 ) (0.7)(0.4)(2.3) Unrealized (gain) loss on derivative contracts $ (16.4 ) (6.5 ) 28.4 (16.7)23.7 Loss (gain) on remeasurement of share-based payments $ 6.8 3.9 (0.5)15.7 (1.8) Derecognition of provisions foruncertain tax positions $ – – – (12.1)(15.2) Tax effect of above adjustments $ 4.6 2.1 (8.3)4.2 (6.2) Tax effect of currency translation on tax base $ 14.1 37.1 (20.2)96.0 (54.2) Adjusted net earnings $ 70.6 65.5 49.1 224.4 148.4 Per share - Basic $/share 0.82 0.76 0.57 2.61 1.73 Per share - Diluted $/share 0.81 0.75 0.57 2.58 1.72 Table 7: Reconciliation of EBITDA and Adjusted EBITDA to Net Income Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, In millions of U.S. dollars 2024 2024 2023 2024 2023 Net income $ 60.4 29.2 50.4 134.6 204.4 Finance income, net $ (0.3) (0.3) (2.0) (3.3) (10.2) Depreciation and amortization1 $ 47.7 48.6 66.8 192.0 202.4 Current income tax expense $ 42.9 55.4 50.5 149.6 98.0 Deferred income tax expense (recovery) $ 12.1 22.4 (50.3 ) 66.5 (72.0) EBITDA $ 162.8 155.3 115.4 539.4 422.6 Adjustments: Temporary suspension costs $ 3.1 – – 3.1 – Unrealized (gain) loss on derivative contracts $ (16.4)(6.5)28.4 (16.7)23.7 Unrealized foreign exchange gain $ (2.0 ) (0.3 ) (0.7 ) (0.4 ) (2.3) Loss (gain) on remeasurement of share-based payments $ 6.8 3.9 (0.5)15.7 (1.8) Adjusted EBITDA $ 154.3 152.4 142.6 541.1 442.2 1. Includes depreciation and amortization included in cost of sales, general and administrative expenses and exploration and evaluation expenses. Table 8: Reconciliation of Free Cash Flow to Net Cash Generated from Operating Activities Three Months Ended Year Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, In millions of U.S. dollars 2024 2024 2023 2024 2023 Net cash generated from operating activities $ 122.8 149.5 120.0 449.5 300.8 Less: Additions to property, plant and equipment1 $ (127.8 ) (144.3 ) (141.4 ) (553.7 ) (478.0) Lease payments $ (2.9 ) (2.5 ) (1.6 ) (8.6 ) (4.8) Interest and other borrowing costs paid2 $ (2.9 ) (3.4 ) (1.3 ) (10.1 ) (3.4) Free cash flow $ (10.8 ) (0.7 ) (24.3 ) (122.9 ) (185.4) 1. The amount of cash expended on additions to property, plant and equipment in the period as reported on the Condensed Consolidated Interim Statements of Cash Flows.2. Including borrowing costs capitalized to property, plant and equipment. Table 9: Reconciliation of Net (Debt) Cash to Cash and Cash Equivalents Dec 31, Sep 30, Dec 31, In millions of U.S. dollars 2024 2024 2023 Cash and cash equivalents $ 110.2 114.5 172.8 Less: Debt $ (62.9 ) (57.7 ) – Lease-related obligations $ (78.3 ) (69.4 ) (32.0) Deferred finance charges $ (2.1 ) (2.3 ) – Net (debt) cash $ (33.1 ) (14.9 ) 140.8 Table 10: Reconciliation of Available Liquidity to Cash and Cash Equivalents Dec 31, Sep 30, Dec 31, In millions of U.S. dollars 2024 2024 2023 Cash and cash equivalents $ 110.2 114.5 172.8 Add: Available credit of the Debt Facility $ 221.3 232.1 292.1 Available liquidity $ 331.5 346.6 464.9 Table 11: Reconciliation of Unit Cost Measures to Production Costs Three Months Ended Year Ended In millions of U.S. dollars, unless otherwise noted Dec 31, 2024 Sep 30, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 Gold sold (oz) 108,647 122,130 138,794 455,932 444,750 Tonnes mined - open pit (kt) 2,400 5,838 9,626 25,888 41,904 Tonnes mined - underground (kt) 207 196 212 765 756 Tonnes processed (kt) 1,094 1,186 1,218 4,676 4,810 Total cash costs: Total cash costs ($) 98.0 113.1 122.8 428.7 385.3 Total cash costs per oz sold ($) 902 926 885 940 866 Breakdown of production costs$$/t$$/t$$/t$$/t$ $/t Mining - open pit 14.1 5.85 25.2 4.32 33.8 3.51 102.8 3.97 127.7 3.05 Mining - underground 12.4 60.07 18.3 93.21 16.3 77.02 61.3 80.08 60.2 79.67 Processing 42.9 39.21 48.7 41.13 45.5 37.36 180.1 38.52 168.0 34.93 Site support 16.0 14.60 14.3 12.06 14.1 11.58 59.0 12.61 54.4 11.30 Mexican profit sharing (PTU) 4.7 4.30 5.0 4.22 6.4 5.26 19.2 4.11 18.0 3.74 Capitalized stripping – – – (1.4 ) (49.0) Inventory movement 6.6 0.6 – 0.4 (9.5) Other 1.1 0.8 0.4 3.1 1.7 Production costs 97.8 112.9 116.5 424.5 371.5 ABOUT TOREX GOLD RESOURCES INC. Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company's principal asset is the Morelos Complex, which includes the El Limón Guajes ("ELG") Mine Complex, the Media Luna Project, the EPO Project, a processing plant, and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex's key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. FOR FURTHER INFORMATION, PLEASE CONTACT: TOREX GOLD RESOURCES INC. Jody KuzenkoPresident and CEODirect: (647) RollinsSenior Vice President, Corporate Development & Investor RelationsDirect: (647) CAUTIONARY NOTES ON FORWARD-LOOKING INFORMATION This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information also includes, but is not limited to, statements that: first copper concentrate production tracking to plan for the end of March and commercial production expected to be declared shortly thereafter; the Company is well-positioned to exit the build with only a modest level of net debt, which will be repaid quickly when the Company pivots to positive free cash flow generation mid-year; development activities at EPO on track to commence in the third quarter; an inaugural return of capital program to be formalized mid-year; 2025 is expected to be yet another exciting and prosperous year for Torex; the results to date of the 2024 drilling program at EPO support the Company's goal of expanding resources to the north of the deposit and upgrading Inferred Resources to Indicated Resources; the results to date from the Company's 2024 drilling program at ELG Underground support the Company's target of extending the mine life of ELG Underground by identifying new zones of higher-grade mineralization, expanding resources, and replacing and growing reserves; and key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. Generally, forward-looking information and statements can be identified by the use of forward-looking terminology such as "forecast," "plans," "expects," or "does not expect," "is expected," "strategic," "to be" or variations of such words and phrases or statements that certain actions, events or results "will", "may," "could," "would," "might," "on track,", or "well positioned to" occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks and uncertainties identified in the technical report (the "Technical Report") released on March 31, 2022, entitled "NI 43-101 Technical Report ELG Mine Complex Life Of Mine Plan and Media Luna Feasibility Study", which has an effective date of March 16, 2022, and the Company's annual information form ("AIF") and management's discussion and analysis ("MD&A") or other unknown but potentially significant impacts. Forward-looking information and statements are based on the assumptions discussed in the Technical Report, AIF and MD&A and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws. The Technical Report, MD&A and AIF are filed on SEDAR+ at and available on the Company's website at To view the source version of this press release, please visit
Yahoo
04-02-2025
- Business
- Yahoo
Torex Gold Provides Q4 2024 Update on Media Luna Project
Construction substantially complete and first copper concentrate on track for March (All amounts expressed in U.S. dollars unless otherwise stated) Toronto, Ontario--(Newsfile Corp. - February 4, 2025) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) provides a Q4 2024 update on the development of its Media Luna Project ("Media Luna"). Unless otherwise stated, progress and milestones referenced in this press release are as of December 31, 2024. Jody Kuzenko, President & CEO of Torex, stated: "The Media Luna Project is now in its final months, sitting at 94% complete as of the end of 2024. We are well on track to complete the project and produce first copper concentrate by the end of Q1 2025, with engineering concluded, procurement substantially complete, underground development tracking well ahead of schedule, and surface construction advancing per plan. "The tie-ins at the processing plant are on track to commence towards the end of February, with all major deliveries required to support the tie-in period now on site. In Q4, teams were able to take advantage of a planned maintenance period at the process plant and conducted initial synchronization and testing of the variable frequency drives for the ball mill, which we expect will streamline and de-risk the installation process and support efficient commissioning in March. "Average monthly underground lateral development rates remained ahead of budget at 1,300 meters per month. Definition drilling is also well ahead of plan, with drilling for 2024 stopes completed ahead of schedule, most of the stopes planned to be mined in 2025 drilled off, and drilling for 2026 underway. Our target is to have a minimum of one year of stope inventory on hand going forward. With an excellent head start on both definition drilling and underground development, which will further accelerate in 2025, we now expect to achieve the designed mining rate of 7,500 tonnes per day by mid-2026, six months ahead of the schedule set out in the Technical Report. "In terms of project capital, Q1 2025 is expected to be the last quarter of material investment in Media Luna and, with commercial production expected in early Q2 2025, we are well-positioned to pivot back to positive free cash flow generation by mid-year. The robust free cash flow anticipated from Morelos places Torex in a solid position to quickly repay the modest level of debt taken on to fund Media Luna, begin returning capital to shareholders, and support increased investment in our plans for continued growth at Morelos and beyond." CAPITAL EXPENDITURES During Q4 2024, approximately $100 million was spent on Media Luna, bringing the total annual spend to $449 million, within the updated guidance range of $430 to $450 million. Expenditures in Q1 2025 are expected to be lower than the quarterly spend in 2024 as the project winds down, first copper concentrate production begins, and commercial production is declared shortly thereafter. As a result of the previously announced rescheduling of the processing plant tie-ins to February (originally November 2024), the pre-commercial period has been extended by approximately three months. As per full-year guidance, the Company is expected to invest approximately $60 million of non-sustaining capital expenditures in 2025 at Media Luna primarily during the pre-commercial period. Of this amount, approximately half is related to underground development, which would have otherwise been categorized as sustaining in nature under the original November 2024 tie-in schedule. This expenditure includes accelerated underground development with a view to achieving steady-state mining rates six months ahead of the schedule set out in the Technical Report. The remainder of the forecast non-sustaining expenditures at Media Luna in 2025 primarily relate to finalization of surface construction activities, including the plant tie-in and paste plant construction. PROJECT COMPLETION As at year end, overall development of Media Luna was 94% complete, up from 87% at the start of the quarter. Engineering was concluded in Q3 2024, with teams continuing to support in the field as necessary to address any installation issues. Procurement is substantially complete at 99% and underground and surface development/construction are advancing, with completion levels at 90% and 85%, respectively. The largest outstanding item in the category of surface construction is the paste plant, which is on schedule for construction completion and commissioning in early Q2. Progress on the project was halted by the eight-day temporary suspension of activities at Morelos in early December; as a result, the start of the four-week tie-in of the copper ("Cu") and iron sulphide ("FeS") flotation circuits as well as the modifications to the processing plant has shifted from early to late February. First concentrate production is expected at the end of Q1, and the declaration of commercial production shortly thereafter. Table 1: Media Luna Project - Project Completion (April 1, 2022 through December 31, 2024)Project To DateQ4 2024 Procurement 99% Engineering 100% Underground development/construction 90% Surface construction (including paste plant) 85% Total Project 94% Notes to Table 1) Physical progress measured starting as of April 1, 2022; excludes progress made prior to Board approval on March 31, 2022. 2) Project period is defined as April 1, 2022 through declaration of commercial production. 3) Total Project is weighted average based on activity levels. Procurement With procurement for the project 99% complete as of the end of Q4 2024, only minor deliveries remain outstanding, including automated valves, instrumentation, and some underground pipe for the paste plant distribution system. All major deliveries to support the start-up of Media Luna operations are now on site. Notable orders completed during Q4 included the remaining electrical houses ("e-houses") for the processing plant, the backup generator for the 230 kV switchyard, slurry pumps, and carbon steel pipe. Underground Development and Construction Steady progress continued underground at Media Luna, with 90% of project construction and development achieved as at year end. Definition drilling for the stopes planned to be taken in the 2024 mine plan were completed well ahead of schedule, most of the drilling in the 2025 mine plan is now complete, and definition drilling for the 2026 mine plan has commenced. The Company is targeting to have one year of stope inventory on hand going forward. Underground development rates continue to track ahead of plan, with monthly lateral development rates averaging 1,300 metres since July relative to the original budget of 1,200 metres, excluding the impact of the temporary suspension of activities at Morelos in December. With the significant progress made to date on both definition drilling and underground development, the Company now expects mining rates at Media Luna to achieve the designed rate of 7,500 tonnes per day by mid-2026, six months ahead of the schedule set out in the Technical Report. Construction and commissioning of rock breaker #1 is now complete (Figure 1). Installation of the fire suppression system for the Guajes conveyor commenced, as did installation of the 15 kV electrical cables along the length of the tunnel. Teams also completed the installation of the first vertical pipe for the tailings line and have commenced work on the backup second line, all with a view to derisking paste plant commissioning. Figure 1: Rock breaker #1 and the grizzly chute have been installed and commissioned. To view an enhanced version of this graphic, please visit: Surface Construction Surface construction is now 85% complete, up from 70% at the start of the quarter. On the north side of the Balsas River, the switchgear and transformers for all three e-houses required for the flotation circuit were energized during the quarter. Importantly, initial synchronization and testing of the variable frequency drives for the ball mill were completed during December, with a view to derisking commissioning in February (Figure 2). At the flotation circuit, flotation cell gear reducers were installed, agitator shafts were aligned, and compressors for dart valves are now in operation to allow for water testing of the primary flotation cells. Concrete has been poured on the truck scale at the Cu loadout area and construction of the Cu storage facility is progressing well with the roof system, tripper, and transfer conveyors in place. Vertical grinding mills have been constructed and are ready for final vendor inspection. Installation of power infrastructure is now substantially complete, with the low voltage 115 kV system fully energized and operational, and the transmission line between the 230 kV switchyard and substation completed in the quarter (Figure 3). At the switchyard, crews continued to pull cable in the duct banks and trenches and installed battery banks. Additionally, the transformer for the underground control room has now been energized. On the south side of the Balsas River, construction of the paste plant is advancing well. The elevated floor slab at the filter level has been poured allowing for preparation for the assembly of the main filter presses, and assembly and welding continues on the exterior tanks. Electrical panels are being mounted in the e-house. Steel erection sits at 66% complete, with 1,336 tonnes out of 2,020 tonnes installed (Figure 4). Figure 2: Pre-commissioning of the ball mill's variable frequency drives took place in December in order to mitigate potential risks during the tie-in period in February. To view an enhanced version of this graphic, please visit: Figure 3: Transmission lines between the 230 kV switchyard (pictured below) and substation were connected in the quarter. To view an enhanced version of this graphic, please visit: Figure 4: Work progressed on the paste plant during the quarter, including continued erection of the binder silo, thickener, and building steel. To view an enhanced version of this graphic, please visit: Operational Readiness In parallel with development and construction activities, the surface and underground operational readiness plan continues to progress. The operational readiness team continues to develop and advance Standard Operating and Maintenance procedures for the new assets and is tracking to plan at over 77% complete. Central to the operational readiness plan is the workforce transition, with a view to ensuring the labour and staff personnel required to operate Media Luna and the modified process plant are in place and trained as appropriate. At the end of 2024, 83% of the total planned workforce at Media Luna was in place, which involved the recruitment of 136 people and transfer of 197 employees over the course of the year. The work ahead is to finalize the workforce transition through local, regional, and national recruitment and continued transfer of employees from the open pit operations to the Media Luna underground mine. Negotiations with the various haulage companies for Cu concentrate transport to port distribution facilities are complete and contracts executed. The Company is also in the final stages of executing contracts for the sale of Cu concentrate to a mix of traders and smelters. Metal payables are in line with that which was incorporated into the most recent Technical Report dated effective March 16, 2022 and filed on March 31, 2022 ("Technical Report"). PROJECT EXECUTION PLAN Based on progress made to date and a detailed review of both the surface and underground schedules completed late in the quarter, modest updates have been made to the overall project schedule after incorporating the impact of the temporary suspension of activities at Morelos in early December (Figure 5). More detail on the Media Luna Project, including the Feasibility Study results, can be found in the Technical Report. Figure 5: Project execution plan for the Media Luna Project. To view an enhanced version of this graphic, please visit: ABOUT TOREX GOLD RESOURCES INC. Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company's principal asset is the Morelos Complex, which includes the El Limón Guajes ("ELG") Mine Complex, the Media Luna Project, the EPO Project, a processing plant, and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex's key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. FOR FURTHER INFORMATION, PLEASE CONTACT: TOREX GOLD RESOURCES KuzenkoPresident and CEODirect: (647) RollinsSenior Vice President, Corporate Development & Investor RelationsDirect: (647) 260-1503 QUALIFIED PERSON The technical and scientific information in this press release has been reviewed and approved by Dave Stefanuto, P. Eng, Executive Vice President, Technical Services and Capital Projects of the Company, and a qualified person under National Instrument 43-101. CAUTIONARY NOTES ON FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements that: the Company is well on track to complete the project and produce first copper concentrate by the end of Q1 2025; the tie-ins at the processing plant are on track to commence at the end of February; in Q4, teams were able to take advantage of a planned maintenance period at the process plant and conducted initial synchronization and testing of the variable frequency drives for the ball mill, which we expect will streamline and de-risk the installation process and support efficient commissioning in March; the Company's target is to have a minimum of one year of stope inventory on hand going forward; the Company now expects to achieve the designed mining rate of 7,500 tonnes per day by mid-2026; Q1 2025 is expected to be the last quarter of material investment in Media Luna, with commercial production expected in early Q2 2025; the Company is well-positioned to pivot back to positive free cash flow generation by mid-year; the robust free cash flow anticipated from Morelos places Torex in a solid position to quickly repay the modest level of debt taken on to fund Media Luna, begin returning capital to shareholders, and support increased investment in the Company's plans for continued growth at Morelos and beyond; expenditures in Q1 2025 are expected to be lower than the quarterly spend in 2024 as the project winds down, first copper concentrate production begins, and commercial production is declared shortly thereafter; the Company is expected to invest approximately $60 million of non-sustaining capital expenditures in 2025 at Media Luna primarily during the pre-commercial period; the paste plant is on schedule for construction completion and commissioning in early Q2; first concentrate production is expected at the end of Q1, and the declaration of commercial production shortly thereafter; the Company is targeting to have one year of stope inventory on hand going forward; metal payables are in line with that which was incorporated into the most recent Technical Report; and the Project execution plan for the Media Luna Project; and key strategic objectives are: deliver Media Luna to full production and build EPO; optimize Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and industry leader in responsible mining. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expect", "plan", "strategy", "schedule", "guide", "continue", "future" or variations of such words and phrases or statements that certain actions, events or results "will" occur or are "on track" to occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks and uncertainties identified in the technical report ("Technical Report") titled ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study, with an effective date of March 16, 2022, and a filing date of March 31, 2022 and in the Company's annual information form ("AIF") and management's discussion and analysis ("MD&A") or other unknown but potentially significant impacts. Forward-looking information is based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and perception of trends, current conditions and expected developments as set out in the Technical Report, AIF and MD&A, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws. The Technical Report, AIF and MD&A are filed on SEDAR+ at and available on the Company's website at To view the source version of this press release, please visit Sign in to access your portfolio
