Torex Gold Resources (TXG) Q1 2025 earnings summary

Executive summary

• Achieved commercial production at Media Luna on schedule, marking a pivotal transition to a gold and copper producer; construction and workforce transition are substantially complete.

• Processing plant tie-ins and commissioning of flotation circuits completed, with first concentrate produced in March and shipments beginning in April.

• Year-end mineral reserve and resource update delivered a 7% increase in gold equivalent reserves, with inaugural reserves declared at EPO and a 3% increase in M&I resources.

• Exploration at Media Luna West and East returned multiple high-grade intercepts, supporting resource expansion.

• Safety remains a focus following a fatal incident in December; comprehensive safety initiatives underway.

Financial highlights

• Q1 revenue was $170M, with adjusted EBITDA of $91.8M and a 54% margin, reflecting a four-week plant tie-in and ramp-up at Media Luna.

• Payable production was 59,630 oz AuEq, with all-in sustaining costs (AISC) of $1,405/oz AuEq sold and a 50% AISC margin.

• Ended Q1 with $107M in cash and $198M in available liquidity; net debt at quarter-end was $175M.

• Drew $130M on the debt facility in Q1 to cover high tax, royalty payments, and capital expenditures.

• Negative free cash flow in Q1 due to high capex and tax/royalty payments; positive FCF expected mid-2025.

Outlook and guidance

• Annual production guidance of 400,000–450,000 oz AuEq reaffirmed, with production expected to increase as Media Luna ramps up.

• AISC guidance for 2025 remains $1,400–$1,600/oz AuEq sold; AISC expected to peak in Q2 before declining in H2.

• Capital expenditures to materially decline after Q1 as Media Luna construction winds down.

• Free cash flow expected to turn positive by mid-2025, enabling debt repayment and return of capital to shareholders.

• Inaugural return of capital policy, including dividends and share buybacks, anticipated later in 2025.