Torex Gold Meets 2024 Guidance, Media Luna Nears Completion

Torex Gold met its production guidance in 2024 and reported that its Media Luna Project reached 94% completion as of Dec. 31, 2024. In its final performance report for the year, the company said it remains on schedule to produce its first copper concentrate by the end of 1Q25.

Torex met its gold production guidance for the sixth consecutive year, producing 452,523oz, exceeding the initial 400,000oz-450,000-oz range and aligning with the revised 450,000oz–470,000oz guidance. Gold equivalent production reached 461,420oz AuEq, with a 90.6% gold recovery rate and a mining rate of 2,092tpd  from ELG Underground.

Torex generated a record US$1.1 billion in revenue from 455,932oz of gold sales at an average price of US$2,254/oz. EBITDA totaled US$539.4 million, with adjusted EBITDA of US$541.1 million. The total cash cost was US$940/oz, slightly above the guided range of US$860/oz and US$910/oz. Net cash from operations was US$449.5 million, while free cash flow was negative US$122.9 million due to US$449 million in investments in the Media Luna Project.

The company extended its US$300 million revolving credit facility, closing the year with US$331.5 million in liquidity, including US$110.2 million in cash and US$221.3 million in credit availability.

Torex also reported two fatal incidents in 2024. On Dec. 5, carbon monoxide exposure at ELG Underground led to three fatalities. In August, a contractor fatality occurred at the Guajes Tunnel. Despite these incidents, Torex received CAMIMEX’s “Silver Hard Hat Award” for ELG’s 2023 safety performance in its open pit mines. In total, the Morelos Complex recorded a lost-time injury frequency (LTIF) of 0.61 per million hours worked in 2024.

“Against the backdrop of this exceptional performance, we will never forget the profound tragedy and loss we experienced in December with the loss of three of our colleagues. As we continue to look toward the future, we are more resolved than ever to reset the bar on safety leadership and set the highest standards of safety performance in the mining industry, just as our shareholders have come to expect,” said Jody Kuzenko, CEO, Torex Gold.

Media Luna Project Update

The Media Luna Project remains on schedule, with engineering completed and procurement nearly finished, leaving only minor equipment deliveries outstanding. Underground development is progressing ahead of schedule, with lateral development advancing at a rate of 1,300m per month. Definition drilling is also exceeding expectations — drilling for 2024 stopes is already complete, most of the stopes planned for 2025 have been drilled, and work on 2026 stopes is underway.

During 4Q24, Torex invested US$100 million in the project, bringing total annual spending to US$449 million, aligning with revised guidance. Investment is expected to decline in 2025 as construction concludes and production ramps up. The company has allocated an additional US$60 million in non-sustaining capital expenditures for 2025, primarily for underground development and the completion of surface infrastructure.

Contracts for copper concentrate transportation and sales are nearly finalized. Commercial production is set to begin in early 2Q25, with the company targeting a full mining rate of 7,500 tpd by mid-2026, six months ahead of schedule.

"In terms of project capital, Q1 2025 is expected to be the last quarter of material investment in Media Luna and, with commercial production expected in early Q2 2025, we are well-positioned to pivot back to positive free cash flow generation by mid-year. The robust free cash flow anticipated from Morelos places Torex in a solid position to quickly repay the modest level of debt taken on to fund Media Luna, begin returning capital to shareholders, and support increased investment in our plans for continued growth at Morelos and beyond," Kuzenko said.

According to the company, as at year end, overall development of Media Luna was 94% complete, up from 87% at the start of the quarter. Engineering was concluded in Q3 2024, with teams continuing to support in the field as necessary to address any installation issues. Procurement is substantially complete at 99%. Underground and surface development/construction are advancing, with completion levels at 90% and 85%, respectively.