Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (January 2021)
32 slides from Torex Gold Resources's investor presentation, Jan 19, 2021
Slide 1: Corporate Presentation
TSX | TXG CORPORATE PRESENTATION JANUARY 19, 2021
Slide 2: Safe Harbor Statement
SAFE HARBOR 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 ST
Slide 3: Well-Positioned to Deliver Increasing Value
WELL-POSITIONED TO DELIVER INCREASING VALUE Future underpinned by solid fundamentals Attractively Consistent operator valued relative to with industry-leading intermediate peers safety track record Financially strong gold Long-life potential producer with robust via Media Luna margins and a healthy
Slide 4: Addressing the Valuation Disconnect
ADDRESSING THE VALUATION DISCONNECT Discount to peers expected to narrow as we execute on our strategic plan Single Asset and Perceived Reserve Life & Media Luna Perceived Development Risks Jurisdictional Risk Transition Around Media Luna Pay down debt Increase underground reserve life Complete feas
Slide 5: Well-Positioned to Deliver Strong Cash Flow in 2021
WELL-POSITIONED TO DELIVER STRONG CASH FLOW IN 20211 Operational guidance points to higher output year-over-year with costs in line Strong momentum on production with 2020 actuals exceeding high end of revised guidance and lower end of original guidance Total Cash Costs and All-in Sustaining Costs e
Slide 6: El Limón Guajes (ELG) – A Foundational Asset
EL LIMÓN GUAJES (ELG) – A FOUNDATIONAL ASSET Past, present and future supported by robust cash flow from ELG3 Financially robust open pit and underground Relatively consistent production expected from operation ELG through 2023 $378M of Adjusted EBITDA1 and $169M of Free Current production rate supp
Slide 7: Safety and Operational Excellence Intertwined
SAFETY AND OPERATIONAL EXCELLENCE INTERTWINED Culture focused on safety evident by LTI performance LEADERSHIP: Getting the right people in the right roles at the right levels to drive business excellence SYSTEMS OF WORK: SYSTEMS OF WORK: Incident reporting & Business Process investigations Framework
Slide 8: ESG Excellence as a Foundation
ESG EXCELLENCE AS A FOUNDATION Delivering value to shareholders while making a positive difference in society Productive relationships with Strong governance & diversity focus employees Women make up 40% of Executive Team 99% workforce from Mexico; 70% from and 30% of Board of Directors Guerrero Sta
Slide 9: Maximizing Free Cash Flow from ELG a Key Focus
MAXIMIZING FREE CASH FLOW FROM ELG A KEY FOCUS Evaluating opportunities to optimize mine plan and extend reserve life1,2 Accelerating near-term underground exploration given ongoing success at Sub-Sill and ELD; positive drill results from 2020 program recently released3 Drill testing additional high
Slide 10: Robust Cash Flow Funds Sustained Operations
ROBUST CASH FLOW FUNDS SUSTAINED OPERATIONS Development of Media Luna expected to be fully funded at $1,400/oz gold Projected cash flow from ELG expected to be more than sufficient to fund development of Media Luna without requiring external sources of financing3 Exited Q3 2020 in a net cash positio
Slide 11: Media Luna Expected to Extend Cash Flow Beyond ELG
MEDIA LUNA EXPECTED TO EXTEND CASH FLOW BEYOND ELG Significant resource base with only 1/3rd of the magnetic anomaly drilled 12 Extending mine life of ELG a key focus Accelerated underground drill program and studying 10 potential to expand El Limón pit Media Luna would extend cashflow beyond life o
Slide 12: Media Luna on Track for First Production in Q1/24
MEDIA LUNA ON TRACK FOR FIRST PRODUCTION IN Q1/24 Expected to deliver strong cash flow well beyond the life of ELG1 Media Luna has the potential to be Media Luna to leverage existing a multi-decade underground mine infrastructure at ELG 2018 PEA outlined average annual First blast on main Guajes tun
Slide 13: Early Stage Earthworks at Media Luna Underway
EARLY STAGE EARTHWORKS AT MEDIA LUNA UNDERWAY Two access portals mitigate risk and provide operational flexibility ~7 km access tunnel expected to get Addition of the South Portal provides a number of benefits: to bottom of Media Luna deposit by • Allows access for employees on south side of river a
Slide 14: Innovation: A Key Part of the Torex DNA
INNOVATION: A KEY PART OF THE TOREX DNA Leveraging innovation to drive value and mitigate risk ROPECON FILTERED TAILINGS SART PLANT Innovative 1.3 km automated conveyor “Dry-stack” filtered tailings facility Reduces consumption of our two most system which transports ore to our best-in-class in the
Slide 15: Muckahi Mining System – A Torex Innovation
MUCKAHI MINING SYSTEM – A TOREX INNOVATION1 A complete rethink of underground mining Two-way traffic via dual monorails Steep ramps (30 degrees) Jumbo drill hung from monorail Efficient and rapid excavation Bulk material transport by conveyors Monorail-based transport Muck box “trains” on the level
Slide 16: Muckahi Mining System
MUCKAHI MINING SYSTEM Potential to be a game changer for underground mining1 Test Objectives in 2019 Successfully demonstrated the ability for monorail- based equipment to break and muck rock Test Objectives in 2020 Successfully demonstrated the individual components could move rock Designed, fabric
Slide 17: Looking to the Future
LOOKING TO THE FUTURE Focused on fundamentals and allocating capital to deliver maximum value1 MIND THE BUSINESS Safety Production Costs Responsible Mining CAPITAL ALLOCATION WELL POSITIONED OPPORTUNITIES TO MANAGING TO BE PATIENT ENHANCE RETURN CAPITAL AROUND M&A TO SHAREHOLDERS Maximize free cash
Slide 18: Appendix
Torex Gold RESOURCES INC. APPENDIX 18
Slide 19: Key Operational Metrics – El Limón Guajes (ELG)
KEY OPERATIONAL METRICS – El LIMÓN GUAJES (ELG)1 1) For more information on operational and financial results, please refer to Torex Gold’s latest MD&A filed on SEDAR (www.sedar.com) or on the Company’s website (www.torexgold.com) 19
Slide 20: Key Financial Metrics – Consolidated
KEY FINANCIAL METRICS – CONSOLIDATED1 1) For more information on operational and financial results, including information on non-IFSR measures (such as realized gold price, total cash cost, all-in sustaining cost, EBITDA, adjusted EBITDA, adjusted net earnings, free cash flow, and net (cash) debt, p
Slide 21: ELG Unit Operating Costs
ELG UNIT OPERATING COSTS1 Unit costs through the first nine months of 2020 tracking in line with 2019 1) Unit costs include direct costs and PTU (Profit sharing based on 10% of taxable income) allocated by cost center 21
Slide 22: Only a Portion of Land Package Has Been Drill Tested
ONLY A PORTION OF LAND PACKAGE HAS BEEN DRILL TESTED 75% of the broader Morelos property remains largely unexplored1 Committed to investing $2.5M on regional exploration in 2021 Significant exploration potential remains across the broader Morelos property Multiple targets have been identified To dat
Slide 23: We Are Focused on Enhancing Our ESG Disclosure
WE ARE FOCUSED ON ENHANCING OUR ESG DISCLOSURE Translating our actions associated with our values into real value1 ENVIRONMENT SOCIAL GOVERNANCE Zero Discharge Site (no discharge Exited 2020 with a LTIF of 0.15 per Seasoned Executive Team with into local watersheds) million hours worked 40% female r
Slide 24: Corporate Information and Top Shareholders
CORPORATE INFORMATION AND TOP SHAREHOLDERS Broadly owned by skilled institutional investors 24
Slide 25: Board of Directors
BOARD OF DIRECTORS Strong strategic and governance experience FRED STANFORD PEng ICD.D Executive Chair DAVID FENNELL LLB 35+ years of operational and corporate experience. Retired from Vale as 35+ years experience as a director and senior executive with TSX and President of its Ontario Operations. S
Slide 26: Management Team
MANAGEMENT TEAM Proven experience navigating technical, commercial and social complexity JODY KUZENKO LLB President and Chief Executive Officer BARRY MURPHY Pr Eng V.P. Engineering Joined Torex in 2018 as COO; assumed CEO position in June 2020. 25 years of international operating and project develop
Slide 27: Mineral Reserves – El Limón Guajes (ELG)
MINERAL RESERVES1 – EL LIMÓN GUAJES (ELG) 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 1,436 Open Pit - Guajes Proven 2.41 3.44
Slide 28: Mineral Resources – El Limón Guajes (ELG)
MINERAL RESOURCES1 – El LIMÓN GUAJES (ELG) 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 1,610 2,670 Inferred 1.96 1.87 5.4 1
Slide 29: Notes to Mineral Reserves & Resources (ELG)
NOTES TO MINERAL RESERVES & RESOURCES (ELG) Notes - El Limón Guajes Complex Reserve Statement Notes - El Limón Guajes Resource Statement 1) Mineral reserves are founded on Guajes, El Limón, El Limón Sur, Sub-Sill and El 1) The effective date of the estimate is December 31, 2019. Limón Deep measured
Slide 30: Mineral Resources – Media Luna
MINERAL RESOURCES – MEDIA LUNA 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 - Media Luna Resource Statement 1)
Slide 31: Media Luna – 2018 Preliminary Economic Assessment
MEDIA LUNA – 2018 PRELIMINARY ECONOMIC ASSESSMENT1,2 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 Luna Projec
Slide 32: www.torexgold.com
TSX | TXG www.torexgold.com Dan Rollins, CFA Vice President, Corporate Development and Investor Relations Email: dan.rollins@torexgold.com | Direct: 1-647-260-1503
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