Torex Gold Resources (TXG) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $539.3 million and adjusted EBITDA of $359 million in Q1 2026, driven by strong gold, silver, and copper prices and robust operational performance.

• Produced 101 koz AuEq, including 74 koz gold, 543 koz silver, and 15 mlb copper, with all-in sustaining costs (AISC) of $1,917/oz AuEq and a record AISC margin of 60%.

• Generated $157.3 million in free cash flow after $165 million in tax and royalty payments, enabling full debt repayment and $121.2 million in shareholder returns.

• Media Luna North ramp-up completed ahead of schedule, achieving design mining rates of 7,500 tpd nine months early; development and exploration projects in Mexico and Nevada progressing as planned.

• Safety performance remained exemplary with zero lost-time injuries for both employees and contractors.

Financial highlights

• Net income for Q1 2026 was $207.5 million ($2.18 per basic share), with adjusted net earnings of $199.7 million ($2.10 per basic share).

• Record quarterly revenue of $539.3 million and adjusted EBITDA of $359 million.

• Free cash flow of $157.3 million, despite significant tax and royalty outflows.

• All-in sustaining costs were $1,917/oz AuEq, above guidance due to higher metal prices, stronger Mexican peso, and lower production.

• Cash balance increased to $130 million, with available liquidity of $467 million and no debt at quarter-end.

Outlook and guidance

• Annual gold equivalent production guidance of 420,000–470,000 oz AuEq reaffirmed; Q2 production expected to be similar to Q1, with increases anticipated in H2 2026.

• All-in sustaining costs expected to improve as production increases, though higher metal prices and a strong Mexican peso may impact royalties and profit-sharing.

• Forecasting approximately $650 million in free cash flow for 2026 at current metal prices.

• Targeting a minimum cash balance of $200 million for operational flexibility.

• Media Luna North on track for first ore by year-end; Los Reyes preliminary economic assessment expected mid-year.