2020: A Record-Breaking Year for Torex GoldBy Paloma Duran | Tue, 03/30/2021 - 18:06
Despite the challenges related to the COVID-19 pandemic, Torex Gold Resources Inc. posted record financial results in 2020, delivering a strong operational and financial performance. The company said the strong operational and financial performance was the result of the great effort made by employees and contractors, as well as its strong relationships with the communities in which it works.
The Company produced 430,484 ounces in 2020, surpassing the high end of revised guidance (390,000 to 420,000 ounces) issued following the COVID-19 shutdown and the low end of original guidance (420,000 to 480,000 ounces).
In 4Q20, Torex reported total gold production of 130,649 ounces, its third-highest quarter on record. Additionally, in 4Q2020 Torex posted a record 133,063 ounces of gold sold, at an average price of US$1,847/ounce, and a record net income of US$91.9 million.
Jody Kuzenko, President and CEO of Torex, said in a press release that 2020 was a record year in many aspects. Its 437,310 ounces in gold sales at US$1,771/ounce resulted in total revenue of US$789 million, the highest in the company’s history and a 23 percent increase compared to 2019 figures. “Our strong operational performance, in combination with a resurgent gold price, underpinned our strongest annual financial performance ever, with record net income of US$109 million, record adjusted EBITDA of US$431 million and record operating cash flow of US$342 million,” said Kuzenko.
The company’s balance sheet is at its strongest. Kuzenko said the company exited 2020 with US$162 million net cash, which is a US$183 million increase in net cash per year. Torex’s debt at the end of 2020 stood at US$40 million compared to US$180 million in 2019, and the company expects to be debt free by 1Q21. Its strong cash flow from ELG will be used to finance Media Luna, expected to start production in 2024.
In 2020, the company broke another record in safety performance, with 10 million hours worked without a lost time injury. At the end of the year, the total recordable injury frequency stood at 2.52 per million hours worked at year-end versus 4.05 at the end of 2019.
In another press release, Kuzenko said the company expects strong cash flow in 2021, which will allow Torex to pay its project debt, continue to strengthen its balance sheet, advance its Media Luna project and invest in other excellent opportunities. “2021 is all about setting the foundation for our future and exploration will be a key focus this year. With momentum on production, robust cash flow and an excellent plan for value creation in front of us, 2021 promises to be another exceptional year for Torex,” said Kuzenko.