Business
Torex Gold Announces Q1 2020 Financial and Operating Results
TORONTO, May 06, 2020 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) reports the Company’s financial and operating results
About this update from Torex Gold Resources Inc.
[{"type":"text","content":" TORONTO, May 06, 2020 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) reports the Company’s financial and operating results for the three months ended March 31, 2020. Fred Stanford, President & CEO of Torex, stated: “Operationally this was a solid quarter, with 108,537 gold ounces produced. The production performance was complemented by the continued outstanding safety performance. As of the end of March, the team had worked over 5.5 million hours without a lost time injury. Since then, the lost time injury free record has been extended to over 6 million hours and more than one year worked. This commitment to safe work practices has been expanded to healthy work practices as well. To date, we have had no known or suspected cases of COVID-19 at our operation. “Cost control was successful, with oxygen addition to the leach circuit resulting in a 25% reduction in cyanide consumption since the start of the program. Accounting changes in the treatment of stockpiled ore, and a wild swing in the value of the Mexican peso, created more challenges. For the quarter the accounting changes to stockpiled ore resulted in an increase of approximately $100 per ounce to TCC and AISC. This impact will decline over the coming quarters and is expected to average out at the impact expected in the original annual guidance numbers. The US monetary stimulus in reaction to COVID-19 resulted in the depreciation in many emerging market currencies, including Mexico’s. This has us offside with our currency hedges and when ‘marked to market’, the significant lost opportunity to benefit from the depreciated peso, affected earnings. There were also benefits realized due to the rapid deterioration in the value of the peso. All said and done, the business was solid for the quarter, the financials are a bit messy. “At the end of the quarter we started a significant planned maintenance shutdown. The decree to suspend non-essential businesses in Mexico was enacted during this shutdown, and we did not restart when the maintenance was completed. Extensive infection control has been effective, and the care and maintenance team has remained free from COVID-19 infection. It is too early to be certain, but we anticipate a lifting of the suspension decree in our area by May 18th. In preparation for that event, we are warming ...