Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (August 2020)
34 slides from Torex Gold Resources's investor presentation, August 2020
Slide 1: Corporate Presentation
Corporate Presentation Corporate Presentation August 2020 July 2020 Asset Asset || Team Team || Game Game Changing Changing Technology Technology
Slide 2: Safe Harbour Statement
Safe Harbour Statement THE PRELIMINARY ECONOMIC ASSESSMENT (THE ‘MEDIA LUNA PEA” OR “PEA”) IS BASED ON THE TECHNICAL REPORT (DEFINED BELOW). THE PEA IS A CONCEPTUAL STUDY OF THE POTENTIAL VIABILITY OF MINERAL RESOURCES OF THE MEDIA LUNA PROJECT. THE PEA IS NOT A PREFEASIBILITY STUDY OR FEASIBILITY S
Slide 3: About Torex Gold
About Torex Gold • Torex is an intermediate gold producer mining, developing and exploring our 29,000-hectare Morelos Gold Property in the Guerrero Gold Belt • Corporate Office located in Toronto • Currently the second-largest gold producer in Mexico • Principal assets include El Limón Guajes (ELG)
Slide 4: Our Goal: Build a Multi-Asset Mining Business that Delivers Significant Value for Shareholders
Our Goal: Build a Multi-Asset Mining Business that Delivers Significant Value for Shareholders We are advancing value-creating opportunities for shareholders by leveraging the strong free cash flow generated from ELG. Strategic Imperatives: 1. Continue to deliver consistent production and strong cas
Slide 5: COVID-19 Update
COVID-19 Update COVID risks being actively managed. Strong start post government mandated suspension. Guidance reissued. • Developed and implemented a “layers of protection” approach for the ongoing health of our workforce; shored up supply chain early on to mitigate risk • Production was suspended
Slide 6: ELG Performance: Well-Positioned for a Solid H2
1. ELG Performance: Well-Positioned for a Solid H2 Q2 Operational & Financial Highlights Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 FY 2019 FY 2018 1 Operational Performance Tonnes processed (kt) 688 1,134 1,116 1,139 1,062 4,393 4,152 Tonnes processed (tpd) 7,560 12,464 12,130 12,380 11,670 12,036 11,
Slide 7: ELG Performance: Significant Cash Flow Anticipated to Pay Down Debt and Fund Media Luna
ELG Performance: Significant Cash Flow Anticipated to Pay Down Debt and Fund Media Luna The chart sets out the anticipated year end cash position1,2,3 Muckahi provides options to invest the cash to generate higher returns. 1) Financial estimates as per September 4, 2018 Technical Report; does not in
Slide 8: Underground Exploration A Key Priority In 2020
2. Underground Exploration A Key Priority In 2020: Targeting Extensions of Known Mineralization and Targeting New Zones Underground drill program in 2020 has been expanded as we look to increase resources within both Sub-Sill and ELD, and test additional underground targets. At Sub-Sill, 2019 drilli
Slide 9: Increasing Reserves/Resources
Increasing Reserves/Resources: Potential To Generate Significant Free Cash Flow at Morelos Property for Years to Come Media Luna is expected to replace ELG open pit production. Sub-Sill and ELD continue down dip beyond current reserves. Lots of unexplored land on the claims. ‘Purple’ has been a good
Slide 10: Enhancing ESG Disclosure
3. Enhancing ESG Disclosure: Translating Actions Associated with our ‘Values’ into real ‘Value’ Environmental • Filtered tailings (dry stacked), best practice for tailings management • ELG is effectively a ‘zero discharge’ site • RopeCon improves safety, reduces fossil fuel consumption, and produces
Slide 11: De-risking & Advancing Media Luna
4. De-risking & Advancing Media Luna Development of Media Luna deposit is expected to extend life of operation beyond ELG open pits. • Targeting initial production from Media Luna in early 2024 • Feasibility study expected to be delivered in mid-2021 following completion of an infill drill program •
Slide 12: De-risking & Advancing Media Luna
De-risking & Advancing Media Luna Tunneling under the Balsas River minimizes the social, environmental, and permitting complexity when compared to a RopeCon over the river. Media Luna Mineralization Asset | Team | Game Changing Technology 12
Slide 13: De-risking & Advancing Media Luna
De-risking & Advancing Media Luna Sizeable resource already delineated with high potential for significant growth. • First infill drill program was successful in upgrading 25% of the resource to the Indicated category • Indicated resource of 2.24 Moz gold equivalent (12.6 Mt at 5.55 g/t)3 • Inferred
Slide 14: Proving the Potential of Muckahi
5. Proving the Potential of Muckahi The Elevator Ride Explanation “Why would anyone want to run a logistics business on single lane roads?” Muckahi is expected to achieve the following: • Continuous material handling of ore from the stope to the shaft or surface (conveyors instead of LHD’s and truck
Slide 15: Proving the Potential of Muckahi
Proving the Potential of Muckahi Expected to Improve Economics and Reduce Environmental Footprint Muckahi, our proprietary technology, is being piloted underground at ELD, and is expected to give us a material advantage when competing for assets. Up to 30% Up to 30% Up to 80% Up to 95% reduction in
Slide 16: Proving the Potential of Muckahi
Proving the Potential of Muckahi: A Willingness To Tackle Risk for Substantial Reward A low-tech improvement to the way we break and move rock that results in a 19% improvement in the after-tax IRR of the Media Luna project. Media Luna Designed with Rubber Tired Equipment Looking East Media Luna Des
Slide 17: Proving the Potential of Muckahi
Proving the Potential of Muckahi: Individual Elements Proved Out In 2019 With successful testing of individual elements of Muckahi in 2019, our focus in 2020 is to test the components as an integrated system. Test Objectives in 2019 • Monorail based development on the level ✓ • o Monorail based deve
Slide 18: Appendix
Appendix Asset | Team | Game Changing Technology
Slide 19: Broadly Owned By Skilled Institutional Investors
Broadly Owned By Skilled Institutional Investors Institutional investors with deep understanding of the industry, that believe in the Asset, Management Team and Board of Directors. Institution1 Shares Shares Corporate Data2 (millions) (%) Blackrock 11.1 13.0% Cash & Cash Equivalents (Jun-30-2020) $1
Slide 20: Quarterly Operational Performance
Quarterly Operational Peformance1,2 140 14 Plant Throughput (ktpd) 120 12 Gold Produced (koz) 100 10 80 8 60 6 40 4 20 2 0 0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 4.5 100% Gold Grade Processed (gpt) 4.0 Gold Re
Slide 21: Quarterly Financial Performance
Quarterly Financial Peformance1,2 $1,800 $200 Realized Gold Price ($/oz) $1,600 $175 $1,400 $150 Revenue (M$) $1,200 $125 $1,000 $100 $800 $75 $600 $400 $50 $200 $25 $0 $0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Slide 22: Quarterly Financial Performance
Quarterly Financial Peformance1,2 $125 $125 Operating Cash Flow After Adjusted EBITDA (M$) $100 $100 Changes in WC (M$) $75 $75 $50 $50 $25 $25 $0 $0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 $120 $100 non-sustaini
Slide 23: Quarterly Financial Performance
Quarterly Financial Peformance1,2 $200 $400 Cash & Equivalents (M$) $175 $350 Debt Principal (M$) $150 $300 $125 $250 $100 $200 $75 $150 $50 $100 $25 $50 $0 $0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 $250 2.5x Ne
Slide 24: Tailings Management – Utilizing Filtered Tailings, Industry Best Practice
Tailings Management – Utilizing Filtered Tailings, Industry Best Practice • Structurally stable impoundment • Tailings filtered to lower water content, stacked to utilize less land, and mechanically compacted • Conventional tailings dam not required • Lowers overall water consumption • Tailings filt
Slide 25: A Board With Strong Strategic And Governance Experience
A Board With Strong Strategic And Governance Experience Deep experience gained as industry professionals, complemented by extensive Board level experience. FRED STANFORD, PEng, ICD.D Executive Chair 35+ years of operational and corporate experience. Retired from Vale as President of its Ontario Oper
Slide 26: A Beautiful Asset And A Tested Management Team
A Beautiful Asset And A Tested Management Team Proven ability to navigate the technical, commercial, and social complexities of challenging mining operations. JODY KUZENKO, LLB President & Chief Executive Officer Joined Torex in 2018 as COO; assumed CEO position in June 2020. 20+ years of legal, ope
Slide 27: Muckahi – Turning Intention Into Reality
Muckahi – Turning Intention Into Reality Two-way traffic via dual monorails Mucking out a stope with a slusher Jumbo drill hung from monorail 30o down ramp Asset | Team | Game Changing Technology 27
Slide 28: El Limón Guajes Complex Reserve Statement
El Limón Guajes Complex Reserve Statement - Effective As Of December 31, 20191 As of December 31, 2019 Tonnes Au Ag Au Ag (Mt) (g/t) (g/t) (koz) (koz) Open Pit - El Limón (including El Limón Sur) Proven 3.13 3.53 3.9 356 397 Probable 8.18 3.08 4.0 811 1,039 Proven & Probable 11.31 3.21 4.0 1,167 1,4
Slide 29: El Limón Guajes Complex Resource Statement
El Limón Guajes Complex Resource Statement - Effective As Of December 31, 20191 As of December 31, 2019 Tonnes Au Ag Au Ag (Mt) (g/t) (g/t) (koz) (koz) Open Pit - El Limón (including El Limón Sur) Measured 3.68 3.60 4.6 430 550 Indicated 13.11 2.80 5.0 1,180 2,120 Measured & Indicated 16.79 2.97 4.9
Slide 30: Notes Accompanying Reserve & Resource Statements
El Limón Guajes Complex Notes Accompanying Reserve & Resource Statements Notes Accompany El Limón Guajes Complex Reserve Statement 1) Mineral reserves are founded on Guajes, El Limón and El Limón Sur measured and indicated mineral resources with an effective date of December 31, 2019. 2) Mineral res
Slide 31: Media Luna Resource Statement
Media Luna Resource Statement – Effective As Of December 31, 2019 As of December 31, 2019 Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (Mt) (g/t) (g/t) (%) (Moz) (Moz) (Mlb) (g/t) (Moz) Media Luna Indicated 12.6 3.27 37.7 1.16 1.32 15.3 322 5.55 2.24 Inferred 33.5 2.49 23.6 0.93 2.68 25.5 686 4.23 4.56 Notes
Slide 32: ELG Complex Life Of Mine Plan
ELG Complex Life Of Mine Plan September 2018 Technical Report1,2,3 1) Cash Flow in 2018 includes Financing proceeds of $48m. Revenue adjusted to actual price for H1 2) Metal Prices used $1,200/oz Au, $17.00/oz Ag, $3.00/lb Cu, USD:MXN 1:18, Reserves as of March 31, 2018 3) Lowest quartile producer p
Slide 33: Media Luna Conventional PEA
Media Luna Conventional PEA September 2018 Technical Report1,2 1) Metal Prices used $1,200/oz Au, $17.00/oz Ag, $3.00/lb Cu, USD:MXN 1:18 2) A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the Media L
Slide 34: Asset | Team | Game Changing Technology
Dan Rollins, CFA Vice President, Corporate Development & Investor Relations Email: dan.rollins@torexgold.com Direct: 1-647-260-1503 www.torexgold.com Asset | Team | Game Asset | Team Changing | Game Changing Technology Technology 34
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