Torex Gold's Media Luna Project Nears Completion at 70%

Canada-based gold miner Torex Gold reported its financial and operational results for 1Q24, highlighting a strong start to the year. The company is on track to meet its full-year production and cost guidance, with the Media Luna project reporting over 70% completion by the end of the quarter. 

Torex delivered gold production of 115,494oz at all-in-sustaining costs of US$1,202/oz. The company achieved a record quarterly average realized gold price of US$2,023/oz, resulting in an all-in-sustaining cost margin of 39%. “With decreasing costs expected through 2024 as open pit stripping winds down, we are well-positioned to deliver even stronger margins should the gold price remain at current levels,” said Jody Kuzenko, President and CEO, Torex Gold. 

Financially, Torex generated a free cash flow of US$77 million prior to expenditures on the Media Luna Project. The company exited the quarter with US$405 million in available liquidity, including US$113 million in cash, which more than covers the remaining US$257 million of upfront expenditures required for Media Luna. The company highlighted it aims to maintain at least US$100 million of liquidity in its balance sheet. 

Construction progress at the Media Luna project is advancing as planned, with the project close to 70% completion at quarter end. Development and construction activities are on track, with first concentrate production anticipated before the end of 2024 and commercial production expected in early 2025.

According to Kuzeko, safety performance remained strong, with one lost-time ankle injury at the Media Luna project and 14 million hours without injury-related downtime at the El Limón Guajes (ELG) mine complex. The lost-time injury frequency for the Morelos Complex was 0.15 per million hours worked for both employees and contractors on a rolling 12-month basis.

Looking ahead, Torex expects to return to positive free cash flow in mid-2025 as capital expenditures on the Media Luna project decrease. With consistently solid operational results from ELG and Media Luna construction progressing as planned, Torex is optimistic about the remainder of 2024. "With consistently solid operational results from ELG, Media Luna construction advancing as planned, and a funding surplus in hand to complete Media Luna on time and budget, our first quarter results have laid the foundation for what we expect will be a transformational year for the company and our shareholders,” Kuzenko concluded.