Torex Gold Projects Strong 2026; Expands Five-Year Outlook

Torex Gold Resources has released its operational guidance for 2026 and an updated five-year production outlook for the Morelos Complex. The company, which mines ore from its ELG and Media Luna underground operations, expects an increase in output compared with 2025, driven by a full year of operations and the ramp-up of Media Luna.

Jody Kuzenko, President and CEO, Torex Gold, highlighted the strong momentum carried into 2026. “We expect annual production to pick up significantly in 2026 with 420,000-470,000oz AuEq guided for the year. After payable deductions, sales are guided at 410,000-460,000oz AuEq, a marked step-up over payable production of the 376,586oz AuEq delivered in 2025” she said in a press release.

Torex projects 2026 production of 320,000-365,000oz of gold, 2.2-2.5Moz of silver, and 60 to 65 million lb of copper. The increase reflects Media Luna reaching steady-state production of 7,500t/d by mid-year and a full operational cycle at the processing plant. Approximately 70% of output will be in concentrate, with the remainder in doré and other products.

All-in sustaining costs are expected to range from US$1,750/oz to US$1,850/oz AuEq, slightly higher than the US$1,732/oz recorded in the first nine months of 2025. Kuzenko noted the increase is mainly due to higher metal prices affecting royalties, profit-sharing, and land access payments, partially offset by higher sales volumes and efficiencies at Media Luna. “Stronger metal prices are also forecast to lead to significant margin expansion, which in turn is expected to lead to significant free cash flow generation in 2026 and beyond,” she added.

The company plans a record US$77 million for exploration and drilling in 2026, its largest annual investment. The Morelos Property will receive US$43 million, focused on ELG Underground and the Media Luna cluster, including regional drilling at Atzcala and El Naranjo. At Los Reyes, US$18 million will support a 20,000m drill program and preliminary economic studies.

Early-stage exploration will continue in Nevada and Chihuahua, with US$12 million dedicated to Gryphon and Medicine Springs in the United States and US$4 million to Batopilas and Guigui in Mexico. Overall, Torex plans 148,500m of drilling across its portfolio, aimed at resource expansion and long-term production growth.

Total capital expenditures are forecast at US$285 million to US$305 million, up slightly from 2025. Sustaining capital will range from US$120 million to US$130 million, covering lease and drilling costs. Non-sustaining expenditures of US$165 million to US$175 million will support the ramp-up of Media Luna North and other optimization projects, including a new overland conveyor at Media Luna expected to cut rehandling costs by over US$1/t with a three-year payback.

Looking forward, Torex expects stable production and sales through at least 2030. The five-year outlook anticipates consistent output from ELG and Media Luna, with increased silver and copper production following Media Luna North’s start-up. Drilling programs will continue to enhance and extend the Morelos Complex’s production profile.

“With the Morelos Complex firing on all cylinders and a robust metal price environment for Au, Ag, and Cu, Torex is well-positioned to deliver significant cash flow to deploy towards exploration and drilling, advancing organic growth opportunities at Los Reyes and Morelos, and returning capital to shareholders through a combination of dividends and buybacks, all while maintaining a very robust balance sheet. The clarity of our strategy coupled with our demonstrated execution capability will continue to maximize shareholder value in 2026 and for many more years to come,” Kuzenko concluded.