Torex Gold Resources (TXG) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $1,116M and adjusted EBITDA of $541M in 2024, meeting production guidance for the sixth consecutive year with gold output of 452,523 oz and record recoveries of 90.6%.

• Media Luna construction was 94% complete at year-end, with the process plant tie-in underway and first copper concentrate production expected by end of March 2025.

• Strong liquidity at year-end with $110M in cash and $332M available liquidity; net debt position of $33M.

• Safety incidents in 2024, including three fatalities, led to operational suspensions and renewed focus on safety leadership and culture.

Financial highlights

• Free cash flow was negative $123M for 2024 due to $449M invested in Media Luna, but ELG operations generated $326M in free cash flow excluding this investment.

• All-in sustaining costs (AISC) for 2024 were $1,156/oz, at the upper end of guidance, with a 49% margin.

• Q4 2024 revenue was $295M, with adjusted EBITDA of $154M and net income of $60M.

• Liquidity at year-end was $332M, including $110M in cash and $221M available on the credit facility.

• Net debt at year-end was $33M, with $65M drawn on the credit facility.

Outlook and guidance

• 2025 production will be lower due to a four-week plant shutdown for Media Luna tie-in, with Q1 being the weakest quarter; production expected to normalize from Q2 onward.

• 2025 AISC guidance increased to $1,400–$1,600/oz due to transition and ramp-up costs, with Q1 at the upper end and Q4 at the lower end.

• Media Luna spending expected to decline materially in 2025; positive free cash flow anticipated by mid-2025.

• Return of capital program, including a potential sustainable dividend and share buyback, planned for mid-2025.

• Exploration budget increased to $45M for 2025, focusing on reserve/resource replacement and new targets.