Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Q4 2024 Earnings Presentation
27 slides from Torex Gold Resources's earnings presentation, Feb 20, 2025
Slide 1: Q4 2024 Results Conference Call
TSX | TXG Q4 2024 RESULTS CONFERENCE CALL February 20, 2025 All amounts expressed in U.S. dollars unless otherwise stated
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT NON-GAAP FINANCIAL MEASURES ARE FINANCIAL MEASURES WITH NO STANDARD MEANING UNDER IFRS ACCOUNTING STANDARDS (“IFRS”) AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD AND MIGHT NOT BE COMPARABLE TO SIMILAR FINANCIAL MEASURES DISCLOSED BY OTHER COMPANIES. THIS PRESENTATI
Slide 3: Key Highlights & Operational Performance
KEY HIGHLIGHTS & OPERATIONAL PERFORMANCE JODY KUZENKO PRESIDENT & CEO
Slide 4: Strategic Pillars
STRATEGIC PILLARS Strategy continues to evolve as significant milestones are achieved DELIVER MEDIA LUNA TO OPTIMIZE MORELOS GROW RESERVES & FULL PRODUCTION & PRODUCTION & COSTS RESOURCES BUILD EPO DISCIPLINED GROWTH & RETAIN & ATTRACT BEST INDUSTRY LEADER IN CAPITAL ALLOCATION INDUSTRY TALENT RESPO
Slide 5: Key Highlights
KEY HIGHLIGHTS Original production guidance achieved for sixth consecutive year Full-year gold production of 452,523 oz was in line with upwardly revised guidance of 450,000 to 470,000 oz All-in sustaining costs1 of $1,156 per oz gold sold were towards upper end of guided range ($1,110 to $1,160 per
Slide 6: Operational Performance
OPERATIONAL PERFORMANCE Another year of solid operational results from ELG Complex in 2024 Q4 output reflects lower plant throughput in December Q4 throughput reflects temporary suspension Quarterly grades processed stable throughout 2024 ELG Underground operating well above 2,000 tpd 6
Slide 7: Consistent and Reliable Producer
CONSISTENT AND RELIABLE PRODUCER 2025 guidance reflects four-week tie-in period and subsequent ramp-up of Media Luna In millions of U.S. dollars, unless otherwise noted 2024 2024 2025 Guidance3,4 Peformance Guidance5 Production Gold oz 450,000 to 470,000 452,523 Not Provided Gold Equivalent1 oz AuEq
Slide 8: Media Luna Project Update
MEDIA LUNA PROJECT UPDATE JODY KUZENKO PRESIDENT & CEO
Slide 9: Media Luna Progress Update
MEDIA LUNA PROGRESS UPDATE Entering the home stretch with tie-in period on track for February Engineering complete; procurement essentially Project Progress complete Completion Project To Date All major deliveries to support the start-up of Q4 2024 Procurement 99% Media Luna operations are now on si
Slide 10: Media Luna Progress Update
MEDIA LUNA PROGRESS UPDATE First concentrate on track by end of March; commercial production shortly thereafter Flotation plant nearing completion Cu concentrate storage on plan 230 kV switchyard nearing completion Paste plant construction on plan 10
Slide 11: Financial Performance
FINANCIAL PERFORMANCE ANDREW SNOWDEN CFO
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Robust margins drove strong cash flow; record gold price bodes well going forward AISC margin1 of 49% for the year Record adjusted EBITDA1 of $541M in 2024 Media Luna spending to decline materially in 2025 On track to pivot back to positive FCF1 mid-2025 1) For more information
Slide 13: Unit Cost Performance
UNIT COST PERFORMANCE1 Several one-off drivers impacted full-year unit costs Open pit mining unit costs reflect higher maintenance costs to maintain fleet through end of 2024 as well as contractor costs as open pit workforce is transitioned underground ELG Underground mining costs consistent with pr
Slide 14: Cash Flow Generation
CASH FLOW GENERATION Strong cash flow generation from ELG Complex continues to support Media Luna build Year-end cash balance reflects last full year of heavy investment at Media Luna ($60M planned in 2025) Cash generation driven by record gold prices minimized amount drawn on credit facility during
Slide 15: Operating Cash Flow Seasonality
OPERATING CASH FLOW SEASONALITY Cash flow seasonality likely to be more pronounced in 2025 Final payments related to royalties, profit sharing, and taxes are subject to movements in the Mexican peso relative to the U.S. dollar Cash flow from operations prior to changes in non-cash working capital im
Slide 16: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY Expecting to exit Media Luna build with modest net debt1 Net debt2 of $33M as at December 31st Available liquidity2 of over $330M as at year-end $65M drawn on credit facility during the year $221M available on $300M revolving credit facility $221M available on facility $150
Slide 17: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION FX collars provide protection against swings in MXN on opex in 2025 All amounts in U.S. dollars 2025 Q1 Q2 Q3 Q4 FY MXN/USD Forwards Amount (USD) M$ $11.0 $11.0 $11.0 $11.0 $44.0 Average Floor (MXN) MXN/USD 21.01 21.01 21.01 21.01 21.01 MXN/USD Collars Amount (USD) M$ $25.
Slide 18: Copper Concentrate
COPPER CONCENTRATE Sales and logistics process for copper concentrate Material Flow Production Trucking Warehouse Loading Departure Port Shipping Destination Port Smelter (Manzanillo) (Manzanillo) (varies) 2-day transit 1-2 month transit Accumulate 5-10 kt parcel at to destination port warehouse bef
Slide 19: 2025 Exploration & Drilling Plans
2025 EXPLORATION & DRILLING PLANS DAN ROLLINS SENIOR VICE PRESIDENT, CORPORATE DEVELOPMENT & INVESTOR RELATIONS
Slide 20: 2025 Exploration & Drilling
2025 EXPLORATION & DRILLING Budget of $45M reflects a 50% increase over 2024 budget $26M at Media Luna Cluster (66,500 m) Infill and expansionary drilling at EPO Advanced exploration at Media Luna West Inaugural drill programs at Todos Santos and Media Luna East $12M at ELG Underground (48,000 m) Fo
Slide 21: 2025 Exploration & Drilling
2025 EXPLORATION & DRILLING Program to expand to new targets in Media Luna Cluster; test regional targets Near-term focus Expanding and upgrading reserves and resources at Media Luna, ELG Underground, and EPO Drill testing targets within Media Luna Cluster Medium-term focus Identifying, defining, an
Slide 22: Questions?
eo; Torex Gold RESOURCES INC. QUESTIONS?
Slide 23: Key Operational Metrics
KEY OPERATIONAL METRICS1 Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY 2023 2023 2023 2023 2024 2024 2024 2024 2023 2024 Mining - ELG Open Pit Ore mined (kt) 916 644 1,026 1,785 969 1,622 1,539 852 4,371 4,982 Ore mined (tpd) 10,182 7,074 11,153 19,404 10,651 17,822 16,731 9,256 11,976 13,611 Waste min
Slide 24: Key Financial Metrics
KEY FINANCIAL METRICS1 Consolidated All amounts in U.S. dollars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY 2023 2023 2023 2023 2024 2024 2024 2024 2023 2024 Key Metrics Gold sold (koz) 118.5 105.7 81.8 138.8 111.6 113.5 122.1 108.6 444.8 455.9 Gold equivalent sold (koz AuEq) 120.7 107.4 83.3 139.8 114.1 115.9 12
Slide 25: Cash Flow Seasonality
CASH FLOW SEASONALITY Timing Differences – Royalties & Profit Sharing Royalty – Mexican Geological Survey Profit Sharing – Employees 2.5% of gross revenue Mandated by Government of Mexico Accrued quarterly and paid the following quarter Accrued quarterly and paid annually in Q2 of the Recognized in
Slide 26: Cash Flow Seasonality
CASH FLOW SEASONALITY Timing Differences – Mining Royalty & Corporate Income Tax Mining Royalty – Government of Mexico Corporate Income Tax – Government of Mexico 7.5% of mine level EBITDA plus allowable 30% of taxable income in Mexico deductions (8.5% as of 2025) Accrued quarterly and paid monthly
Slide 27: Contact
TSX | TXG www.torexgold.com Dan Rollins, CFA Senior Vice President, Corporate Development and Investor Relations Email: dan.rollins@torexgold.com | Direct: 1-647-260-1503