Business
Torex Gold Announces Strong Q2 2020 Financial Results and Updated Guidance
TORONTO, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Today, Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) released the Company’s financial results for t
About this update from Torex Gold Resources Inc.
[{"type":"text","content":" TORONTO, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Today, Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) released the Company’s financial results for the three and six months ended June 30, 2020 as well as its updated operational outlook for 2020. Due to the COVID-19 decree issued by the Government of Mexico, production at El Limón Guajes (ELG) was temporarily suspended for the month of April and partially resumed in May with the processing of lower grade stockpiled material. Following the designation of mining as an essential activity in Mexico, full production resumed at the beginning of June. Jody Kuzenko, President & CEO of Torex, stated: “While this quarter was far from business as usual, we delivered solid operational performance and demonstrated the financial strength of our business even in these most challenging times. Despite the mandated suspension of our operations due to COVID-19, we produced 59,500 ounces of gold, delivered $49.3 million in adjusted EBITDA and $28.1 million in operating cash flow (prior to non-cash working capital). With operations back on track, $176.9 million in the bank and a robust gold price at hand, we plan to direct our cash flow to further reducing debt during the second half of 2020. “With the steady state production run rate reestablished in June, we are well positioned to deliver a solid second half of the year, and are off to a strong start with 42,630 ounces of gold produced in July, following 38,890 ounces produced in June. Our expectations are reflected in the revised production guidance of between 390,000 and 420,000 ounces of gold in 2020. “During the quarter, we also kept pace on planned investment associated with our future. The modest increase in our capital expenditure forecast for the remainder of 2020 relative to original guidance reflects our decision to advance projects which we believe will add incremental value for shareholders. We are increasing exploration investment in ELG underground and building a third portal to access our underground deposits there, which we expect will cut the current haulage distance in half thereby reducing operating costs. Additionally, we have added a south portal to the Media Luna design in order to mitigate any schedule risk associated with the 7 km long access tunnel. “I’m particularly proud that we continued to de...