Torex Gold Resources (TXG) Q3 2025 earnings summary

Executive summary

• Achieved a pivotal Q3 2025 with strong free cash flow generation of $113M, driven by steady-state production at Morelos and ramp-up of Media Luna, marking an inflection point for the business.

• Gold equivalent production reached 119,034 ounces, with operational outperformance at Media Luna and ELG Underground exceeding expectations.

• Processing plant throughput and recoveries surpassed design levels, with gold and copper recoveries at 94% and 95% in September.

• Initiated inaugural return of capital policy with a quarterly dividend of C$0.15/share and share buybacks totaling $7M (C$10M).

• Closed acquisitions of Reyna Silver and Prime Mining, adding exploration and development assets in Mexico and the US.

Financial highlights

• Q3 2025 gold equivalent production was 119,034 ounces, with all-in sustaining costs (AISC) at $1,658/oz and a 53% margin.

• Revenue for Q3 was $416.4M, adjusted EBITDA was $239M, and net income was $114.4M.

• Free cash flow reached $113M, enabling $75M debt repayment and $7M share buyback.

• Year-to-date production at 262,000 ounces; AISC at $1,732/oz at market prices.

• Liquidity at quarter-end was $289M, with $107M in cash and net debt of $48M.

Outlook and guidance

• Targeting the low end of annual production guidance (400,000–450,000 oz AuEq) and upper end of AISC guidance ($1,400–$1,600/oz AuEq) for 2025.

• Expecting to exit 2025 at 6,500 tpd at Media Luna; ELG Underground to maintain 2,800 tpd until EPO comes online.

• EPO project on track for first ore production by end of 2026, with feasibility study completion expected by year-end.

• Anticipate repaying all remaining debt by end of Q1 2026 while increasing cash position.

• Return of capital program expected to evolve, with future guidance on percentage of free cash flow allocated.