Torex Gold Resources (TXG) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record revenue of $314 million and strong operational results, with gold production of 119,412 ounces and year-to-date output of 348,728 ounces, positioning the company to meet revised guidance for the sixth consecutive year.

• Media Luna Project is 87% complete, with tie-in rescheduled to February 2025, $111 million in expenditures remaining, and capex expected to decrease in Q4.

• EPO pre-feasibility study supports maintaining annual gold equivalent production of at least 450,000 ounces through 2030, with potential to extend to 2033 by upgrading Inferred Resources.

• Liquidity remained stable, with strong cash flow from ELG funding Media Luna capital spend and $115 million in cash at quarter-end.

• Torex Gold reported unaudited results for the three and nine months ended September 30, 2024, with continued operations at the Morelos Complex in Mexico.

Financial highlights

• Q3 2024 revenue reached $314 million, with adjusted EBITDA of $152 million and net cash from operating activities of $150 million.

• Q3 gold production was 119,412 ounces, with cash costs of $926/oz and all-in sustaining costs (AISC) of $1,101/oz, both down ~$100/oz from the prior quarter.

• Average realized gold price in Q3 was $2,313/oz, with an AISC margin of 52%.

• Cash balance at quarter-end was $115 million, with $347 million in available liquidity and $232 million undrawn on the revolving credit facility.

• Net income for Q3 2024 was $29.2 million, with earnings per share of $0.34.

Outlook and guidance

• 2024 gold production guidance increased to 450,000–470,000 ounces, with AISC expected at the upper end of $1,100–$1,160/oz.

• Media Luna capex expected to decrease in Q4; positive free cash flow anticipated by mid-2025.

• Minimum annual production of 450,000 AuEq ounces expected through at least 2030, with potential to maintain 450,000–500,000 AuEq ounces through 2033.

• No gold hedges planned for 2025; FX collars in place to mitigate MXN/USD volatility.

• Entered a five-year power purchase agreement for 236,520 MWh/year, with delivery expected by year-end 2024.