Torex Gold Announces Strong Start in 1Q23

The Canada-based Torex Gold announced a strong start in 2023 with a production of 122,918oz of gold in 1Q23. The company believes the output was driven by the efficiency of processing plants and the company’s flagship project in Mexico, the Media Luna project. 

According to Torex, the strategy based on continuous maintenance for the processing plant was key to improving productivity since the mill is now processing over 13,073t/d during 1Q23, 10t higher than the 13,063t/d registered in 2Q17. “We had an excellent start to 2023, with 1Q23 production of 122,918oz driven by record throughput in the processing plant and another quarterly record established on mining rates at the El Limon Guajes (“ELG”) Underground,” said Jody Kuzenko, President and CEO, Torex Gold.

According to Torex Gold, its 1Q23 production results are a testament to the company's ongoing commitment to efficiency and continuous improvement. It also mentioned that the record throughput achieved in the processing plant, coupled with the excellent performance at the ELG underground, has set the company on a strong trajectory for growth in the coming years. With a solid plan in place to increase mining rates at the ELG to 1,800t/d by the end of this year and even higher through 2024, Torex Gold said it is poised to continue its strong performance in the gold mining industry.

Kuzenko also noted that the Media Luna project, one of the largest foreign direct investments made in Mexico’s mining industry, is on schedule and budget. She noted that the company will provide a stand-alone Media Luna project update ahead of Torex Gold’s quarterly financial results, which are set to be delivered on May 10, 2023. 

According to Kuzenko, the company could maintain liquidity of at least US$100 million. At the same time, Torex Gold could continue funding the development of the Media Luna project owing to different factors like the strong start of 2023, coupled with the higher gold price and robust cash flow from ELG. 

Regarding taxes, Torex Gold said that, as in previous years, cash flow from operations is expected to be lower in 1H23 owing to the timing of annual tax, royalty, and mandated profit-sharing payments.