Torex Gold Resources (TXG) Q2 2025 earnings summary

Executive summary

• Declared commercial production at Media Luna on May 1, 2025, marking a major milestone and setting up for a robust second half of 2025.

• Achieved strong safety performance with no lost time injuries and progress on safety programs.

• Announced acquisitions of Reyna Silver and Prime Mining, expanding the asset base and exploration pipeline in Mexico and Nevada.

• Q2 production was impacted by a 10-day process plant outage due to a capacitor failure, but operational momentum improved in June and July.

• EPO project advanced with first development blast in May and initial production targeted for late 2026.

Financial highlights

• Q2 gold equivalent production was 83,000 ounces, with 142,000 ounces year-to-date.

• Q2 revenue was $254M, adjusted EBITDA $118M, and net cash from operations $68M.

• All-in sustaining costs (AISC) were $2,103/oz AuEq sold, with a 36% AISC margin in Q2 and 42% year-to-date.

• Q2 saw negative free cash flow, but June marked a return to positive free cash flow ($44M), with Q3 expected to be positive.

• Ended Q2 with $209M in available liquidity, including $103M in cash.

Outlook and guidance

• On track to achieve the lower end of annual production guidance of 400,000–450,000 oz AuEq and the upper end of AISC guidance of $1,400–$1,600/oz AuEq.

• Non-sustaining CapEx guidance increased to $160–$170 million for 2025 due to project delays and expanded scope.

• Sustaining CapEx guidance remains unchanged.

• Exploration and drilling budget increased by 50% year-over-year to $45M.

• Expecting normalized quarterly results and improved margins in the second half of the year.