Torex Gold Resources (TXG) Investor Day 2024 summary

Strategic updates and future plans

• Integration of EPO into the mine plan extends production profile, supporting mill capacity through early 2035, with annual gold equivalent production forecasted at 422,000 ounces through 2035, up from 375,000 through 2033 in the previous technical report.

• Media Luna project remains on budget and on schedule for first concentrate production by year-end 2024, with ramp-up to full production through 2025 and 2026.

• Exploration strategy has shifted to a multi-year, systematic approach, aiming to maintain at least 450,000 ounces of annual gold equivalent production, extend mine life beyond 2035, and achieve a Tier Two discovery.

• Capital allocation will pivot to increased exploration budgets in 2025 and 2026 as free cash flow returns, with a focus on both organic and inorganic growth, including potential M&A in the North-South corridor.

• Plans to return capital to shareholders via a sustainable dividend and potential share buyback are targeted for mid-next year as positive free cash flow resumes.

Financial guidance and cost structure

• All-in sustaining costs are expected to be below $1,200/oz over the life of mine, but 2025 costs are forecasted higher at $1,300–$1,350/oz due to the Media Luna ramp-up, with AISC expected to improve as economies of scale are realized.

• Media Luna Project final capital budget set at $950M, up from $874.5M, mainly due to Mexican peso strength and additional scope.

• $346M in liquidity as of Q2 2024, exceeding remaining Media Luna capex; funding surplus of $21M after strategic liquidity buffer.

• Copper concentrate will become the primary revenue source post-Media Luna, making up 70–75% of revenue, with doré declining to 25–30%.

• No new equity, streaming, or royalty financing was used for Media Luna; development is funded through internal cash flow, maintaining a strong balance sheet.

Project development and exploration

• EPO development leverages existing Media Luna infrastructure, with $81.5 million in upfront capital and minimal permitting hurdles due to its location within the current footprint.

• Internal feasibility study for EPO is underway, targeting completion by mid-2025, with first production expected in late 2026.

• EPO’s initial reserve: 781 koz AuEq, with 47% gold, 45% copper, and 8% silver, and higher copper weighting than other deposits.

• Drilling at ELG Underground and EPO continues to expand and upgrade resources, with a focus on converting inferred resources and extending mine life; initial Todos Santos drilling in Q4 2024.

• Aggressive exploration is ongoing at Media Luna West, Todos Santos, and regional targets like El Naranjo and Atzcala, with initial drill programs commencing in 2024 and 2025.