Torex Gold to Invest US$440 Million in Media Luna

Torex Gold Resources presented a second quarterly update on the development of its Media Luna project in Guerrero. The company reported that it expects a peak investment year in 2023. Moreover, it anticipates capital expenditures of US$390 to US$440 million of which US$66.4 million were accrued during 1Q23.

At the beginning of the year, Judy Kuzenko, President and CEO, Torex Gold Resources, said that the company expected 2023 to be pivotal in the evolution of Torex Gold as it continues to execute 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 3Q22 and a robust cash flow forecast from ELG, we are well positioned to fund these value-enhancing initiatives as we continue to maximize the potential of our Morelos property,” she added.

In that sense, quarterly expenditures are expected to increase in the second half of 2023 and remain relatively constant until the first half of 2024, before declining as development activities wind down ahead of commercial production, which is anticipated to begin in early 2025.

“With a full year of execution now behind us and 21 months remaining, the Media Luna Project continues to track the overall schedule and budget,” said Kuzenko. 

Detailed engineering and procurement activities experienced significant growth in 1Q23 and several key purchase orders were awarded. Notable among these was the purchase of the primary mine production fleet, consisting of 35 machines, including 15 battery-electric and 20 diesel-powered units.  

Furthermore, surface and underground developments are advancing as planned. The Guajes Tunnel, which is critical to the schedule, has exceeded the 4km  mark, with 18 active headings opened up within the deposit. 

“With no major changes to the project execution plan, first concentrate production remains on track for late 2024, with commercial production still anticipated in early 2025.,” said Kuzenko. Furthermore, detailed engineering is nearly 50% complete, while procurement is close to 40%, with most of the crucial purchase orders either already or soon to be awarded.