Torex Gold: Record-Breaking Year Amid a Challenging Environment

Despite the strong inflationary pressure of 2022 in addition to a slew of challenges for Mexico’s mining companies, leading Mexican gold producer Torex Gold closed an outstanding year as it surpassed production expectations owing to its operational discipline.

According to Faysal Rodríguez, Senior Vice President Mexico, Torex Gold, "2022 was an extraordinary year for Torex Gold and our Mexican subsidiary Media Luna." 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 Gold is a prominent gold producer in Mexico, its primary assets comprising the El Limón Guajes (ELG) Mine Complex, comprised of the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes Underground Mine and a processing plant. In addition to ELG, Torex has grown its mining operations in Mexico through its Media Luna Project, an advanced-stage development project located 7km from ELG.

The Canadian company’s successful year was distinguished by world-class security levels, says Rodríguez, who highlighted an incident rate of 0.28. "We have a moral commitment to take care of ourselves, to be generous with security. Beyond the top-notch metric, we exhibit the safety culture that we built."

While the underground mine had a record 1,600t/d production, the plant also had outstanding results, breaking grinding records. Rodríguez added that the company is focused to continue the good work in 2023.

Despite the inflation that raised the costs of key inputs, Torex Gold’s results were possible because of the company’s strong workforce, its financial management and discipline, contract renegotiations, the creation of alliances and operational discipline, says Rodríguez.

Torex Gold operates the Morelos district in the northern part of Guerrero. Media Luna is an underground deposit that primarily contains gold, copper and silver mineralization, located on the south side of the Balsas River. The deposit, hosted in a magnetic anomaly, was discovered in March 2012. The company’s board of directors approved the Media Luna Project in March 2022 and construction is underway, with anticipated commercial production in 1Q25. The life of mine may be extended through at least 2033 with a firm foundation in the local community and strong relationship with local, state and federal governments, Rodríguez explained.

Torex is committed to the community nearby, including the fully-Mexican local team, and the people of Guerrero, where 70% of the labor force is from. "We feel a double commitment in terms of the environmental legacy that we can leave and on which we will continue working. We will be here until 2033, so we are dedicated to the community, including the new generations of miners in the Morelos district," Rodríguez said.

Thanks to its operation, Torex can invest in the community and other priorities such as the environment and sustainability efforts, says Rodríguez. In 2022, Torex invested US$5 million in the construction of a solar plant, which will generate around 8.5NW of energy and contribute to reducing the company's carbon footprint.

Torex Gold’s future in Mexico includes the development of the Media Luna project and continuing to foster the relationship with authorities. "We will continue to manage institutional relations with local and federal governments as well as individuals. Torex Gold contributes to the development of the country and the northern region of Guerrero. We will continue adding value with our responsible mining to maintain our accomplishments," Rodríguez said.

With continued investments in the decarbonization of operations, strong ties with the local community and over 10 years of production coming in addition to Torex Gold’s strong commitment to values and a dedicated workforce, the company “is poised for a sustained success story in the future,” Rodríguez concluded.