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Torex Gold Provides Q4 2023 Update on Media Luna Project
Available funding now exceeds remaining capex, with 84% of upfront expenditures committed (All a...
About this update from Torex Gold Resources Inc.
[{"type":"text","content":"Torex Gold Provides Q4 2023 Update on Media Luna ProjectAvailable funding now exceeds remaining capex, with 84% of upfront expenditures committed(All amounts expressed in U.S. dollars unless otherwise stated)Toronto, Ontario--(Newsfile Corp. - February 7, 2024) - Torex Gold Resources Inc. (the \"Company\" or \"Torex\") (TSX: TXG) provides Q4 2023 update on the development of its Media Luna Project (\"Media Luna\"). Unless otherwise stated, progress and milestones referenced in this press release are as of December 31, 2023.Jody Kuzenko, President & CEO of Torex, stated:\"Development of Media Luna remains on track for first production in Q4 2024 followed by commercial production in early 2025. The successful completion of Media Luna is expected to result in a return to positive free cash flow in mid-2025 as production ramps up and capital expenditures normalize.\"We achieved several key de-risking milestones during Q4 2023. Importantly, we broke through in the schedule critical Guajes Tunnel in late December, three months ahead of plan, which has resulted in opportunities for efficiency gains in underground development. We also received the amended permit for in-pit tailings deposition in November, which means the project is now fully permitted for both the development and operational phases. With 84% of upfront expenditures committed (including 56% incurred), expenditures to date have tracked reasonably well to the initial budget of $874.5 million, noting the stronger Mexican peso remains a headwind to contend with. Quarterly expenditures are expected to remain consistent through Q3 2024 before declining in Q4 2024 as the project nears completion.\"With more than $450 million in available liquidity at year end, our liquidity position has surpassed the remaining estimated project spend of $383.5 million. This favourable funding position, in addition to expected strong and consistent cash flow from ELG, will provide substantial capital buffer in the final year of project construction and ramp-up to commercial production in early 2025.\"With significant progress behind us and strong momentum going into 2024, we are confident in our ability to bring Media Luna into production by year end. The anticipated completion of the project, in addition to ongoing exploration success at Morelos, our track record of consistent and reli...