Torex Gold Reported Significant Gold Production

Torex Gold announced that it produced 122,208oz of gold from its El Limon-Guajes mining complex, the company’s main asset in Guerrero, Mexico, in 3Q22. The company also reported important improvements in permitting, which will allow its Media Luna project to begin production.

The company said that the 122,208oz of gold produced in 3Q22 surpasses the 111,229oz produced in 3Q21 by 10 percent. Production resulted in healthy margins in this period, which were reflected in an adjusted EBITDA of US$107.8 million, a free cash flow of US$33.5 million and a CAPEX of US$68.6 million. 

Torex Gold also reported significant progress regarding permitting. The company obtained an Environmental Impact Assessment (MIA) Integral for its Media Luna Project, which will allow it to commence operations. Similarly, the company obtained approval from the federal utility authority to increase its power draw to 45MW. With the added power, Torex can now accommodate activities in both the north and south sites of the Balsas river.

Jody Kuzenko, President and CEO, Torex Gold, reported that because of lower procurement spending, the project will report an underrun in capital expenditures for 2022. However, despite the deceleration in investment, Kuzenko said that the company will accelerate its investment rate in the coming quarters. She added that construction and engineering reported great progress. “At the end of October, the Guajes tunnel had advanced approximately 2,835m and South Portal Lower had advanced approximately 1,175m, meaning that the projected breakthrough continues to track well for 1Q24.”

During 3Q22, the company sold 119,834oz of gold at an average realized gold price of US$1,715/oz. The company also reported a total cost of US$760/oz and an all-in sustained cost of US$1,059/oz. Owing to the overall result, the company expects to finish the year with a total cash cost of US$735/oz and for all-in sustaining costs, it anticipates finishing between US$980 and US$1,030/oz.

Torex Gold furthermore reported an important achievement regarding workers' safety conditions, as the company registered only one lost time injury in the quarter when a contractor sustained a finger pinch. Owing to this incident, the company finished the period with a lost time injury frequency rate of 0.10 per million hours worked on a 12-month basis. 

Torex Gold is an intermediate gold producer focused on the exploration, development and operation of its key assets located in Morelos and Guerrero, the Limon-Guajes Complex and the Media Luna project, respectively.