Torex Gold Reports a Solid PerformanceBy Paloma Duran | Mon, 05/17/2021 - 14:53
Torex Gold announced its financial and operating results for 1Q21, reporting a solid quarter with a sustained margin of 52 percent. In addition, the company shared the new environmental commitments it has made and explained how it has strengthened its relationships with surrounding communities during the COVID-19 pandemic.
Torex’s 1Q21 highlights included no lost time injuries, the production of 129,509oz of gold, the sale of 129,029oz of gold at US$1,778/oz, net profits of US$55 million on a basic basis, adjusted net earnings totaling US$527 million on a basic basis, the payment of US$40 million that remained on the 2019 debt facility, which allowed it exited the quarter debt free, US$9.3 million in free cash flow, and its 2020 mineral reserve and resource estimate that added 93,000oz of gold reserves. Torex reported that an updated resource estimate for Media Luna will be released in 2Q21, which will include the results of its 2020 drilling program.
Jody Kuzenko, President & CEO of Torex, said that 2021 started with a very strong gold production totaling 29,509oz, which is the highest first quarter of production for El Limón Guajes (ELG). Kuzenko reported that the company continues to develop its Media Luna project by starting early works, drilling and obtaining its MIA permit modification.
In an interview with MBN, Faysal Rodríguez, Vice President Mexico of Torex Gold, explained that the MIA modification included the development of the ELG tunnel that will go under the Balsas River. Rodríguez explained that the company is now seeking to obtain a construction permit from CONAGUA to continue working on the tunnel. “Certainly, by obtaining this MIA Modification permit from SEMARNAT, we have taken a very important step in moving forward with this new investment in Guerrero.”
Regarding the company’s ESG practices, Kuzenko highlighted that the company has ratified Collective Bargaining Agreement, signed the International Cyanide Management Code, published its 2020 Responsible Gold Mining Report and announced its new plans to develop a solar plant for its operations.
In April, Torex Gold entered a commercial lease agreement with Scatec, to build a new 8.5 MW solar plant at its Morelos property, which includes the ELG mine and the Media Luna project. The new plant is expected to reduce Scope 2 greenhouse gas emissions by up to 8.6 percent using 2019 as the baseline year. The new facility seeks to complement the existing power supply with a renewable energy source to reduce its carbon footprint, with a view toward carbon neutrality over time. Kuzenko highlighted that Torex is committed to combat climate change and reduce the environmental footprint of its operations, reported MBN.
In the press release, Kuzenko said “there is no doubt that our team has built up significant momentum over the past three quarters, and we are well positioned to achieve 2021 guidance as we continue to deliver on our commitments reliably and safely.”