Torex Gold Announces Ambitious Investment for 2023
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Torex Gold Announces Ambitious Investment for 2023

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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Wed, 02/15/2023 - 13:27

Torex Gold has announced that it plans to invest between US$390 million and US$440 million in its flagship Media Luna project in Guerrero in 2023. The project, part of the company's Morelos Complex, will experience its highest level of spending to accelerate development. Torex estimates a production between 440,000 and 470,000 oz of gold in 2023, higher than the 420,000 to 460,000 ounces forecasted in March 2022.


The company stressed that initial expenditures remain at US$874.5 million. Jody Kuzenko, CEO of Torex Gold, stated that the project was 15% complete in 2022 and is expected to ramp up significantly in the coming months.


“We expect 2023 to be pivotal in the evolution of Torex Gold as we continue to execute on several key strategic initiatives, including advancing and de-risking Media Luna, optimizing and extending El Limón Guajes (ELG) as well as growing reserves and resources. With more than US$590 million of available liquidity at the end of the third quarter, and robust forecast cash flow from ELG, we are well positioned to fund these value-enhancing initiatives as we continue to maximize the potential of our Morelos Property,” said Kuzenko.


In addition, the company stated that it will spend about US$39 million on drilling and exploration in 2023. The new investment aims to expand the resource base and reserves of the Morelos property, as well as fill the mill after 2027.


At Mexico Mining Forum 2023, Faysal Rodríguez, Senior Vice President Mexico, Torex Gold, stressed that despite the strong inflationary pressure of 2022 in addition to a slew of challenges for Mexico’s mining companies, Torex closed an outstanding year as it surpassed production expectations owing to its operational discipline. "2022 was an extraordinary year for Torex Gold and our Mexican subsidiary Media Luna," said Rodríguez. The company not only met the market expectations of producing between 430,000 and 470,000oz of gold in 2022 but exceeded it by producing 474,000oz of gold, breaking a record for the fourth consecutive year, he added.


Torex is the second-largest gold producer in the country and owns 29,000ha at the Morelos Gold Property in the Guerrero Gold Belt. Its assets include ELG, which began commercial production in 2016, and the Media Luna deposit, currently in an advanced stage of development. The company has significant opportunities in Mexico, having only explored 25 percent of its highly prospective Morelos property.

Photo by:   Torex Gold

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