Torex Gold Aims to Produce Over 400,000oz of AuEq in 2028

Canada-based gold mining company Torex Gold released its operational guidance for 2024, outlining key developments at the Morelos Complex, encompassing the El Limon Guajes (ELG) complex and the Media Luna Project (ML). Jody Kuzenko, President and CEO, Torex Gold, outlined the company's strategic vision for the year, emphasizing key operational milestones and financial considerations.

In 2024, Torex aims to achieve a gold equivalent production ranging from 410,000oz to 460,000oz, a moderate improvement over the previous five-year forecast. Enhanced production is attributed to increased contributions from ELG’s underground, which has surpassed the targeted mining rate ahead of schedule.

The operational focus for 2024 includes the conclusion of open-pit operations at ELG, sustained production from ELG underground, initiation of stope mining at ML, and an internal economic study on the development of the EPO deposit. Torex anticipates a pivotal year with significant investments in the Media Luna Project, positioning the company to return to positive free cash flow in 2025.

Financially, Torex projects all-in-sustaining costs in the range of US$1,130 to US$1,190/oz of AuEq sold for the full year, signaling the potential for robust margins and cash flow generation, especially considering current gold price levels. The company reported over US$500 million in available liquidity as of September, positioning it well to internally fund ML, invest in drilling, and maintain a substantial cash balance.

The five-year production outlook was extended to 2028, with a forecast of AuEq production between 350,000oz and 400,000oz in 2028. This improvement is attributed to reserve additions over the past two years, pushing the processing of lower-grade stockpiles to mid-2030.

In terms of risk mitigation, Torex has implemented measures to address price risk during the Media Luna Project build-out. The company secured additional gold price protection for 2024, increasing the hedged volume from 27,000oz to 44,000oz. “This brings the total volume of gold hedged to 158,000oz for the year at an average price of US$1,972/oz,” reads the report.