Slide 1: Morelos Complex Site Visit
TSX | TXG MORELOS COMPLEX SITE VISIT May 16-17, 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Total cash costs per ounce of gold sold (“TCC”), all-in sustaining costs (“AISC”), sustaining and non-sustaining costs, average realized price, total cash cost margin, AISC margin, AISC margin per ounce of gold sold, adjusted net earnings, adjusted net earnings per share, earni
Slide 3: Agenda – Morelos Complex Site Visit
AGENDA – MORELOS COMPLEX SITE VISIT PRE-TOUR UPDATE Tour – North Side of Balsas River Company Overview ELG Open Pits Financial Overview Process Plant & Surface Facilities Balance Sheet and Liquidity ELG Underground Operational Overview Guajes Tunnel El Limón Guajes Complex Exploration Update Media L
Slide 4: Company Overview
COMPANY OVERVIEW JODY KUZENKO PRESIDENT & CEO All values US dollars unless otherwise stated
Slide 5: Corporate Strategy
CORPORATE STRATEGY Executing on Strategic Pillars expected to generate long-term value1 OPTIMIZE & ADVANCE & GROW RESERVES & EXTEND ELG DE-RISK MEDIA LUNA RESOURCES Build on culture as key strategic Bring Media Luna into production Robust multi-year drill program at differentiator on time and on bud
Slide 6: Consistent and Reliable Producer
CONSISTENT AND RELIABLE PRODUCER Well positioned to deliver on full year guidance following strong start to 20231 In millions of U.S. dollars, unless otherwise noted FY 2023 Q1 2023 FY 2022 Guidance Performance Performance Gold Production oz 440,000 to 470,000 122,918 474,035 Total Cash Costs2 $/oz
Slide 7: Five-Year Production Outlook
FIVE-YEAR PRODUCTION OUTLOOK1,3 Optimization of ELG open pits and underground drive improved near-term outlook Production Outlook Outlook Outlook 2022 Technical Actual (koz) 2 2021 2022 2023 Report 2021 (Au) 468.2 430 to 470 2022 (Au) 474.0 430 to 470 430 to 470 2023 (Au) 400 to 450 420 to 460 440 t
Slide 8: Optimize & Extend ELG
OPTIMIZE & EXTEND ELG Maximizing potential of ELG Open Pits and ELG Underground1 Feed Source2 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 ELG Open Pits ELG Underground Media Luna Underground Stockpiles Open pit mine life pushed out to mid-2025 following reserve additions in El Limón and E
Slide 9: Media Luna Progress Update
MEDIA LUNA PROGRESS UPDATE Development activities continuing to ramp-up towards peak rates in 20231 Key Highlights – Q1 2023 Completion Project To Date Q1 2023 Project tracking to schedule and budget Procurement 36% Engineering 47% Procurement of schedule critical items on track Underground developm
Slide 10: Grow Reserves & Resources
GROW RESERVES & RESOURCES Exploration and drilling focused on improving on Feasibility Study mine plan1 (A) Increased production outlook from ELG through 2027 to create overlap with Media Luna ramp-up5 (B) Focus on ELG Underground and EPO deposit as potential feed sources to fill the mill beyond 202
Slide 11: Grow Reserves & Resources
GROW RESERVES & RESOURCES Majority of mineral reserve depletion replaced in 20221 Replaced 68% of gold equivalent (“AuEq”) reserves processed in 2022 Replaced mine depletion in ELG Underground Majority of reserves replaced in pits 190 koz added at El Limón 50 koz added at El Limón Sur Media Luna res
Slide 12: Grow Reserves & Resources
GROW RESERVES & RESOURCES Significant mineral resource growth delivered in 20221 Gold equivalent (“AuEq”) M&I resources up 567 koz (+8%) Increase of 1,078 koz (+16%) prior to mine depletion M&I resource growth driven by: 275 koz of resources added at Media Luna 192 koz prior to depletion added at EL
Slide 13: 2023 Drill Program
2023 DRILL PROGRAM Looking to build upon success of 2022 program both north and south of Balsas River1 Drilling/exploration budget of $39M in 2023 Tecate $20M at Media Luna Cluster (~55,000 m) Esperanza Querenque Infill and expansionary drilling at EPO Inaugural drill program at ML West $6M at ELG U
Slide 14: Build on ESG Excellence
BUILD ON ESG EXCELLENCE Delivering value to shareholders while making a positive difference in society Solid environmental performance Strong governance & diversity focus Limited air emissions and water discharge operation Women make up 43% of Executive Team and 44% Filtered tailings facility materi
Slide 15: Build on ESG Excellence
BUILD ON ESG EXCELLENCE Sustained performance & ongoing improvement on ESG disclosure a key focus ESG performance now tied to cost of capital Clear and credible GHG emissions targets set One of the first mid-tier gold producers to enter into Scope 1 and 2 greenhouse gas emission targets 1 a Sustaina
Slide 16: Financial & Capital Allocation
TSX | TXG FINANCIAL & CAPITAL ALLOCATION ANDREW SNOWDEN CFO
Slide 17: Gold Production Guidance
GOLD PRODUCTION GUIDANCE1,2 Consistent track record of delivering on full year production guidance 1) Please refer to Safe Harbor Statement on slide 2. 2) Guidance Notes: * Production guidance in 2018 provided with Q1 financial results in May 2018 with restart of operations following five-month bloc
Slide 18: Total Cash Costs Guidance
TOTAL CASH COSTS GUIDANCE1,2,3 Even with COVID government shut down, only narrowly missed original cost guidance 1) Please refer to Safe Harbor Statement on slide 2. 2) For more information on operational and financial results, including information on non-GAAP measures (such as TCC), please refer t
Slide 19: All-In Sustaining Costs Guidance
ALL-IN SUSTAINING COSTS GUIDANCE1,2,3 Achieved full year all-in sustaining cost guidance the past several years 1) Please refer to Safe Harbor Statement on slide 2 2) For more information on operational and financial results, including information on non-GAAP measures (such as AISC), please refer to
Slide 20: Well Positioned on the Industry Cost Curve
WELL POSITIONED ON THE INDUSTRY COST CURVE1,2 Guided company level AISC in 2023 towards bottom end of the industry cost curve 2023 guidance based on 56 producers3 Approximately 41.8 Moz of production Industry curve based on mid-point of AISC and production guidance for fiscal 20234 Average guided AI
Slide 21: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION Well positioned to fund strategic priorities with $564M of available liquidity1 Net cash2 of $318M at quarter-end Available liquidity of $564M as of March 31, 2023 Exited Q1 2023 with $322M of cash $100M available on term loan facility (undrawn) Debt free and less than $4M
Slide 22: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION Well positioned to fund remainder of Media Luna Project1 Estimated internal funding requirement of $219M as of Q1 2023 Free cash flow prior to spending on Media Luna Project was $283M over last 12 months2,3 Includes $38M spent on drilling and exploration 1) Please refer to
Slide 23: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION Managing gold price risk during build-out of Media Luna1 All amounts in U.S. dollars 2023 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Forward Contracts Gold Volumes koz 27.0 43.5 43.5 43.5 43.5 27.0 27.0 Gold Price $/oz $1,924 $1,957 $1,957 $1,966 $1,966 $1,939 $1,939 $0.5M realized gain on
Slide 24: ELG Mine Complex – Overview
ELG MINE COMPLEX – OVERVIEW FAYSAL RODRIGUEZ SENIOR VICE PRESIDENT, MEXICO
Slide 25: Quarterly Gold Production
QUARTERLY GOLD PRODUCTION1 Stability driven by stockpiling/blending strategy as well as consistent throughput Stockpiling and blending strategy focused on minimizing chemistry variation and grade to the mill “Sweet spot” of production between 110 koz to 120 koz gold per quarter Average quarterly pro
Slide 26: ELG Open Pit Operations
ELG OPEN PIT OPERATIONS1,2 Strip ratio to be elevated in Q2 and Q3 given increased waste stripping in El Limón pit Strip ratio to be elevated in Q2 and Q3 2023 given greater amount of waste and lower amount of ore mined1 Depletion of reserves within Guajes pit during Q2 Heavy period of waste strippi
Slide 27: ELG Open Pit Operations
ELG OPEN PIT OPERATIONS1,2 Grades have modestly trended higher as mining moves deeper into open pits Spike in mined grades during Q1 2023 reflects impact of mining a higher-grade pocket at bottom of final Guajes pit Now mining lower grade remnants of the Guajes open pit as mining activities wind dow
Slide 28: ELG Underground Operations
ELG UNDERGROUND OPERATIONS1,2 On track to achieve a mining rate of 2,000 tpd by the end of 2024 Record mining rate of 1,738 tpd achieved in Q1 2023 Well on track to exit 2023 at a run rate of 1,800 tpd and exit 2024 at a run rate of 2,000 tpd Lower mined gold grade in Q1 2023 reflects mine sequencin
Slide 29: Process Plant
PROCESS PLANT1,2 Throughput rates have been relatively stable over the past 3 years Record processing rate of 13,073 tpd achieved in Q1 2023 Processed grades in Q2 and Q3 2023 expected to be lower than prior quarters given a greater reliance on stockpiled material due to near-term mining sequencing
Slide 30: Process Plant – Utilization and Throughput Rates
PROCESS PLANT – UTILIZATION AND THROUGHPUT RATES1,2,3 Process improvements and better maintenance have lifted uptime rates and utilization Improvements in the plant driven by: Maintenance strategy Right people in the right roles Process enhancements Implementation of the Business Process Framework 1
Slide 31: Our Business Process Framework (BPF)
OUR “BUSINESS PROCESS FRAMEWORK” (BPF) Enhance Clarity, Reduce Variation, Stable then Capable Provides a common language and approach to work across our operations Future process performance will be delivered if the Right Work is completed at the Right Time and in the Right Way Achieved more consist
Slide 32: Process Plant – Recoveries
PROCESS PLANT – RECOVERIES1 Gold recoveries have consistently exceeded design levels Recoveries impacted by level and type of sulfide mineralization Blending strategy along with pre-oxidation are used to mitigate cyanide consumption and its impact on recoveries Testing MACH reactors with goal of int
Slide 33: Total Cash Costs & All-In Sustaining Costs
TOTAL CASH COSTS & ALL-IN SUSTAINING COSTS1,2 Commitment to controlling costs has maintained robust margins Average total cash costs margin2 of 60% and all-in sustaining costs margin2 of 45% over past 24 months Productivity improvements and focus on consumption levels have provided some relief from
Slide 34: Unit Costs
UNIT COSTS1,2 Cost containment initiatives underway across the whole business 1) For more information on operational and financial results, including information on non-GAAP measures (such unit costs), please refer to Torex Gold’s latest MD&A filed on SEDAR (www.sedar.com) or on the Company’s websit
Slide 35: Cyanide Consumption – One Example of Cost Containment
CYANIDE CONSUMPTION ONE EXAMPLE OF COST CONTAINMENT1 Blending and process improvements have led to lower consumption levels 1) Please refer to Safe Harbor Statement on slide 2. 35
Slide 36: Media Luna Project – Overview
MEDIA LUNA PROJECT – OVERVIEW DAVE STEFANUTO EVP, TECHNICAL SERVICES & CAPITAL PROJECTS
Slide 37: Site Layout – Morelos Complex
SITE LAYOUT – MORELOS COMPLEX 37
Slide 38: Site Layout – North Side of Balsas River
SITE LAYOUT – NORTH SIDE OF BALSAS RIVER 38
Slide 39: Site Layout – South Side of Balsas River
SITE LAYOUT – SOUTH SIDE OF BALSAS RIVER 39
Slide 40: Media Luna Mine Design
MEDIA LUNA MINE DESIGN Mineral Reserve1 of 23 Mt to be mined from 6 discrete mining blocks2 Media Luna designed for longhole open stope mining Looking Southeast Separate mining blocks enable production capacity MLU 1 Dedicated infrastructure for each block MLU 2 South Portals MLL 3 MLL 1 MLL 2 Guaje
Slide 41: Media Luna Mine Design
MEDIA LUNA MINE DESIGN1 Production profile by mine zone 1) Please refer to Safe Harbor Statement on slide 2. 41
Slide 42: Credible Ramp-Up Period Assumed for Media Luna
CREDIBLE RAMP-UP PERIOD ASSUMED FOR MEDIA LUNA1 Media Luna expected to take 3 years to reach design rate of 7,500 tpd Assuming a 3-year ramp-up from initial production ore (3.5 years from first development ore) Industry ramp-up periods tend to be underestimated, which can have negative implications
Slide 43: Mine Methodology
MINE METHODOLOGY Longhole Open Stoping (LHOS) represents majority of ore production Drill, blast and muck stopes (330 to 550 tpd) Drilling Access Longitudinal retreat stope size – 6kt to 15kt Transverse stope size – 28kt to 57kt Paste Backfill enables high extraction rate Tailings mixed with cement
Slide 44: Materials Handling System
MATERIALS HANDLING SYSTEM Separate ore passes and one waste pass feed the Guajes Tunnel conveyor Dedicated ore/waste passes Gravity fed grizzlies with rock-breakers Dedicated bins above Guajes Tunnel conveyor 44
Slide 45: Mine Services & Logistics
MINE SERVICES & LOGISTICS Building a clean, energy efficient mine with the future in mind Mobile Equipment Fleet BEV Units Hybrid Fleet - Diesel and BEV mobile equipment 18-tonne Production LHD 11 Less ventilation required, reduced vent infrastructure costs Development Jumbo 4 Stope Explosive Loader
Slide 46: Life of Mine Recoveries and Payable Factors
LIFE OF MINE RECOVERIES AND PAYABLE FACTORS1,2 Ore from Media Luna will result in significantly higher copper and silver production Morelos Complex Concentrate Doré/Other Total Au Ag Cu Au Ag Cu Au Ag Cu (koz) (koz) (Mlb) (koz) (koz) (Mlb) (koz) (koz) (Mlb) Existing Processing Plant (Q2 2022 to Q3 2
Slide 47: Upgraded Process Flow Sheet for Media Luna
UPGRADED PROCESS FLOW SHEET FOR MEDIA LUNA1 Commissioning of upgraded circuit expected in Q4 2024 1) Please refer to Safe Harbor Statement on slide 2. 47
Slide 48: Tailings Storage Facilities
TAILINGS STORAGE FACILITIES1 Seeking permit to deposit future tailings in depleted Guajes pit Filtered Tailings Storage Facility (FTSF) Current tailings system Filtered tails conveyed to the FTSF Expected to operate through Q3 2024 (with capacity through 2026) FTSF Guajes Tailings Storage Facility (
Slide 49: GTSF Design
GTSF DESIGN1 Tailings designed refined through final engineering, modestly increasing capacity Current design is less expensive up front than the FS design Significantly less waste rock volume needed, increasing the overall pit volume for tailings deposition 1) Please refer to Safe Harbor Statement
Slide 50: Project Organization Well Established
PROJECT ORGANIZATION WELL ESTABLISHED1 Key roles and interfaces Execution Method Key Management Team Integrated EPCM, led by Torex Project Director (TXG) Project Execution Plan (PEP) developed at FS, Deputy Project Director (M3) implemented and ready for Project Approval Health and Safety Manager (T
Slide 51: Project Organization
CORPORATE SUPPORT PROJECT ORGANIZATION - Contracting templates - - - Financial Modelling Marketing Analysis Long Term Prices - - Recruitment Labour costs An integrated team - Legal review & - Employment strategy - Project accounting - Remuneration governance - Financial audits Framework - Legal risk
Slide 52: Media Luna Project – Status Update
MEDIA LUNA PROJECT – STATUS UPDATE DAVE STEFANUTO EVP, TECHNICAL SERVICES & CAPITAL PROJECTS
Slide 53: Engineering & Procurement
ENGINEERING & PROCUREMENT Approaching the halfway mark; several key milestones reached in Q1 2023 Engineering Procurement 47% complete 36% complete Continues to track well against procurement Primary production fleet order awarded to Sandvik; activities first deliveries expected Q3 2023 Key engineer
Slide 54: Procurement
PROCUREMENT Schedule critical purchase order and contracts awarded Purchase Orders Contracts Regrind mills and flotation cells UG development Thickeners UG raisebore Hydrocyclones Mazapa bypass and bridge development Reverse osmosis unit Flotation and water treatment plant civil works Power transfor
Slide 55: Procurement
PROCUREMENT Schedule critical purchase order and contracts in process Purchase Orders Contracts UG vibratory feeders UG construction and Alimak raising UG auxiliary vent fans Concrete for water treatment plant area Ball mill VFD’s and motors Guajes thickener concrete Flocculant system Generator farm
Slide 56: Underground and Surface Construction
UNDERGROUND AND SURFACE CONSTRUCTION Development continuing on pace Underground Development & Construction Surface Construction 23% complete 15% complete Guajes Tunnel breakthrough anticipated early Q1 Key focus areas on north side of Balsas River: 2024, if not earlier Civil development for water tr
Slide 57: Guajes Tunnel Progress Update
GUAJES TUNNEL PROGRESS UPDATE Breakthrough of tunnel on south side of Balsas River anticipated by early Q1 20241,2 Guajes Tunnel advanced ~4,080 m as at the end of April Advance rate of 7.0 m/d over the past 3 months versus 6.5 m/d the last 12 months Successfully crossed under the Balsas River South
Slide 58: Media Luna Project Schedule
MEDIA LUNA PROJECT SCHEDULE1 1) Please refer to Safe Harbor Statement on slide 2. 58
Slide 59: Media Luna Project – Operational Readiness
MEDIA LUNA PROJECT – OPERATIONAL READINESS DAVE STEFANUTO EVP, TECHNICAL SERVICES & CAPITAL PROJECTS
Slide 60: Operation Readiness Plan (ORP)
OPERATION READINESS PLAN (ORP) A critical tool in ensuring a safe and smooth transition from project team to operations Background The ORP developed for the Media Luna Project outlines when and how operational readiness functions will be executed during detail engineering, construction, and commissi
Slide 61: Operation Readiness Minimum Requirements – Surface
OPERATION READINESS MINIMUM REQUIREMENTS Surface Operations 61
Slide 62: Operation Readiness Minimum Requirements – Underground
OPERATION READINESS MINIMUM REQUIREMENTS Underground Operations 62
Slide 63: Operation Readiness Minimum Requirements – Support Functions
OPERATION READINESS MINIMUM REQUIREMENTS Support Functions 63
Slide 64: Overview of Workforce Transition Program
OVERVIEW OF WORKFORCE TRANSITION PROGRAM Purpose: to deliver the right people into the right roles, with the right skills at the right time such that we can safely deliver on our production commitments through the transition from ELG to Media Luna Governance ‘Supply’ Analysis Implement Program Advis
Slide 65: Workforce Transition Program
WORKFORCE TRANSITION PROGRAM Current activities supporting the Program Local labour committees around ELG notified of pending temporary job opportunities during the transition at the processing plant Monthly change communication cascade to Team Leaders and employees in our current operations establi
Slide 66: Environment, Social, and Governance
ENVIRONMENT, SOCIAL, AND GOVERNANCE JODY KUZENKO PRESIDENT & CEO
Slide 67: Building on ESG Excellence
BUILDING ON ESG EXCELLENCE Our organizational purpose beyond profit ‘To transform finite mineral resources into lasting prosperity by positively impacting all the lives we touch.’ 67
Slide 68: Responsible Gold Mining
RESPONSIBLE GOLD MINING Key Highlights from 2022 99% operations employees from Mexico; $69M paid in salaries/benefits Industry-leading safety performance 0.28 LTIF – 13x lower than Mexican average1 92% procurement spend in Mexico; $107M paid to companies in Guerrero State 11 unique Community Develop
Slide 69: Resettlement of San Miguel
RESETTLEMENT OF SAN MIGUEL Follows successful resettlement of two other communities during build of ELG San Miguel located in close proximity to Media Luna Project In June 2022, community unanimously approved voluntary resettlement to a nearby location; involves ~50 homes at a total cost of ~$6M Lan
Slide 70: Solar Plant Project Update
SOLAR PLANT PROJECT UPDATE 8.7 MW plant construction expected to be complete Q4 2023 N Four polygons have been cleared in preparation for solar panel placement Civil & electrical engineering approved for construction review Perimeter firewall construction underway 70
Slide 71: Safety at Morelos
SAFETY AT MORELOS No lives lost, no lives changed by an occupational illness or injury Leadership Systems Culture Clear accountabilities & authorities Simple to use systems that put people Planned campaigns connecting Behavior on left side of Values over process, integrated with other heads to heart
Slide 72: Exploration
EXPLORATION RAUL GUERRA VICE PRESIDENT, EXPLORATION
Slide 73: 2022 Minex and Exploration Success
2022 MINEX AND EXPLORATION SUCCESS1 Mine Exploration ("Minex") – Total of 55,900 m drilled in 305 holes Drilling was successful in replacing 68% of AuEq reserves1 Replaced +100% of AuEq mined from the ELG Underground In the ELG Open Pit, additional laybacks in El Limón and El Limón Sur added 240 koz
Slide 74: Exploration and Drilling Strategy
EXPLORATION AND DRILLING STRATEGY Mine exploration (“Minex”) is key to mid-term planning Accelerate the categorization of the best ounces to optimize mine plans Add new high grade ounces to sustain production from ELG Underground Demonstrate scale of Media Luna Cluster Consolidate EPO and Media Luna
Slide 75: 2023 Budget - Minex & Exploration Portfolio
2023 BUDGET - MINEX & EXPLORATION PORTFOLIO Exploration budget of $39M in 2023 $20M at Media Luna Cluster (~55,000 m) $6M at ELG Underground (~30,000 m) $8M on near-mine and regional exploration and drilling (~27,000 m) $5M on ore control and definition drilling 75
Slide 76: Filling the Mill Beyond 2027
FILLING THE MILL BEYOND 2027 Unleashing the full potential of Media Luna Cluster EPO results confirm satellite orebody EPO north step-out holes extend the mineralization Historic holes suggest EPO and Media Luna West as a single deposit Geologic criteria validation open the opportunity for high grad
Slide 77: Strengthen and Make Discoveries at Morelos
STRENGTHEN AND MAKE DISCOVERIES AT MORELOS Focus on best opportunities for adding ounces in the next five years Next Steps Identify and act on next generation of discoveries through focusing on best ranked targets Revisit the targeting for different deposit types Redefine the portfolio and ranking G
Slide 78: ELG Mining Complex – 2023 Mine Exploration
ELG MINING COMPLEX – 2023 MINE EXPLORATION CARLO NASI GEOLOGY MANAGER
Slide 79: Regional Geological Setting
REGIONAL GEOLOGICAL SETTING To date, all of the major gold occurrences are at or adjacent to the margins of the larger Paleocene felsic intrusions Located in the central part of the Guerrero Gold Belt 29,000 ha land package Approximately 75% of property unexplored 15 exploration targets identified t
Slide 80: El Limón Guajes Geologic Setting
EL LIMÓN GUAJES GEOLOGIC SETTING Long life and complexity of the hydrothermal-intrusive and structural history made Morelos a world class unique Au-Ag-Cu deposit Stratigraphy and Intrusive History Large hydrothermal system active for ~3 million years An active intrusive complex pre-syn and post skar
Slide 81: ELG Mining Complex
ELG MINING COMPLEX Programs focused on extending the underground operation beyond 2027 and potential open pit expansion 2023 Drilling Program 2022 & 2023 focused mainly on El Limón trend New underground resources in deep and lateral extension of ELD, Sub-Sill and El Limón Sur Develop other drill tes
Slide 82: Q1 Results – Minex Drilling Program
Q1 RESULTS – MINEX DRILLING PROGRAM Expansion of underground resources and additional open pit potential 20,833 m drilled in 106 holes (35% of total planned program): UG Infill: 5,620 m (35 holes) UG Step-out: 6,838 m (33 holes) OP Infill: 1,585 m (17 holes) Near mine: 6,790 m (21 holes) Results are
Slide 83: Q1 Results – Minex Drilling Program
Q1 RESULTS – MINEX DRILLING PROGRAM El Limón Trend underground and open pit mineral potential Skarn system open at depth along ~2 km El Limón trend At Sub-Sill South, skarn has been intercepted 200 m above and below the Guajes Tunnel Extension of the skarn and breccias underneath El Limón Sur open p
Slide 84: El Limón Trend Mineral Potential
EL LIMÓN TREND MINERAL POTENTIAL The ELD and Sub-Sill Extension section WSW ENE 900 masl Marbles Portal 3 Ramp Guajes Tunnel 600 masl Granodiorite Sub-Sill Ext Mineralization open at depth and ELD West ELD south Granodiorite Drilling in progress to confirm skarn continuity 300 masl Marbles Accessibl
Slide 85: El Limón Trend Mineral Potential
EL LIMÓN TREND MINERAL POTENTIAL The Sub-Sill South section WSW ENE ELD ELD Sub-Sill West Ext Sub-Sill Sub-Sill Sub-Sill South 900 masl LSD LSS Sub-Sill South Granodiorite 600 masl Positive results from one hole drilled from Guajes Tunnel Marbles surface and two holes drilled from the Guajes Tunnel
Slide 86: El Limón Trend Mineral Potential
EL LIMÓN TREND MINERAL POTENTIAL The El Limón Sur section WSW W ENE ELD ELD Sub-Sill West Ext Limon Sur Upper Pit Sub-Sill 900 m Sub-Sill Limon Sur South Lower Pit LSD LSD Granodiorite Granodiorite LSS LSS 600 m 300 m Underground high grade mineralization Marbles identified at El Limón Sur underneat
Slide 87: El Limón Trend Model – Mineral Potential
EL LIMÓN TREND MODEL – MINERAL POTENTIAL 2 km long and 1 km high mineralized skarn system N El Limon S Extension at depth of high push back 1,200 masl grade Au (Ag-Cu) Hornfels mineralization (ELD, Sub-Sill El Limon pit Limon Sur pit Ext, Sub-Sill South and LSD) Ropecon Sub-Sill South Balsas River 9
Slide 88: Morelos District Exploration
MORELOS DISTRICT EXPLORATION NICOLAS LANDON CHIEF EXPLORATION GEOLOGIST, MEDIA LUNA PROJECT
Slide 89: ELG-Media Luna Skarn Deposit Comparison
ELG-MEDIA LUNA SKARN DEPOSIT COMPARISON The most common process to form skarn is El Limón –Guajes when a pluton or stock intrudes carbonate complex rocks then releases magmatic fluids. Calcium Balsas River silicate skarn minerals comprise early high- temperature prograde skarn and later lower- FBHQ
Slide 90: 2022 Categorizing and Increasing Resource Inventory
2022 CATEGORIZING AND INCREASING RESOURCE INVENTORY Outstanding drilling results at Media Luna1,2 At Media Luna: 29,000 m drilled in 117 holes Inaugural Measured Resource of 473 koz AuEq at 8.06 gpt Resources were categorized and increased: 4,669 koz AuEq (M&I) 27.4 Mt at 5.38 gpt AuEq 1,006 koz AuE
Slide 91: 2022 Categorizing and Increasing Resource Inventory
2022 CATEGORIZING AND INCREASING RESOURCE INVENTORY Outstanding drilling results at EPO1,2 At EPO: 30,000 m drilled in 71 holes Resources categorized as Indicated and new Inferred resources added: 671 koz AuEq (Indicated) 4.1 Mt at 5.16 gpt AuEq 732 koz AuEq (Inferred) 5.6 Mt at 4.04 gpt AuEq Six mi
Slide 92: Close the Production Gap of the Life of Mine
CLOSE THE PRODUCTION GAP OF THE LIFE OF MINE Media Luna Cluster consolidation Objective Add new high grade ounces at Media Luna Cluster to improve and close the gap of the life of mine Road Map Categorize resources and fully define the EPO continuity and extension Confirm continuity between EPO and
Slide 93: Defining the Upside of Media Luna
DEFINING THE UPSIDE OF MEDIA LUNA Media Luna Deep A´ A ML Resources (M+I+Inf) WZML-52 WZML-51A 93
Slide 94: Consolidate EPO & Media Luna West as a Single Deposit
CONSOLIDATE EPO & MEDIA LUNA WEST AS A SINGLE DEPOSIT Testing skarn continuity A´ A 94
Slide 95: Schematic and Conceptual Model
SCHEMATIC AND CONCEPTUAL MODEL Compression Uplift Media Luna Extension Phreatomagmatic Activity The new geology of the mine and projects Limón - Guajes confirm two critical geological factors to reset the exploration concepts for Morelos district: Compression Phreatomagmatic activity Uplift Structur
Slide 96: Target Model Types – Endowment & Breccia Related
TARGET MODEL TYPES – ENDOWMENT & BRECCIA RELATED (commonly telescoped phreatomagmatic breccias) Road Mountain, Cerro Negro & Fruta del Norte Yanacocha, Lagunas Norte, Pierina, Veladero & Pueblo Viejo (commonly telescoped phreatomagmatic breccias) Morelos 96
Slide 97: Exploration Potential of Morelos District
EXPLORATION POTENTIAL OF MORELOS DISTRICT Make stand-alone discoveries at the Morelos Property Objective Identify and act on next generation of discoveries through focusing on best-ranked targets Road Map Revisit targeting for different deposit types Redefine portfolio and ranking Design a five-year
Slide 98: Appendix
APPENDIX All amounts expressed in U.S. dollars unless otherwise stated
Slide 99: Robust Cash Flow Generation from ELG
ROBUST CASH FLOW GENERATION FROM ELG Funding position on solid footing given available liquidity and ongoing cash flow LTM Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2023 Net cash generated from operating activities ($M) $126.9 $102.4 $132.1 $47.0 $408.4 Free cash flow ($M)1 $73.1 $32.0 $40.5 ($54.0) $91.6
Slide 100: Key Operational Metrics
KEY OPERATIONAL METRICS1 Consolidated Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2022 2022 2022 2022 2023 Mining - ELG Open Pit Ore mined (kt) 1,131 1,406 864 1,061 987 883 959 916 Ore mined (tpd) 12,429 15,283 9,392 11,789 10,846 9,598 10,420 10,182 Waste mined (kt) 8,593 7,476 8,972 8,958 7,960 9,097
Slide 101: Key Financial Metrics
KEY FINANCIAL METRICS1 Consolidated All amounts in U.S. dollars Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2022 2022 2022 2022 2023 Key Metrics Gold sold (oz) 111,424 118,989 109,391 108,012 123,363 119,834 121,913 118,455 Realized gold price ($/oz) $1,816 $1,786 $1,798 $1,876 $1,865 $1,715 $1,784 $1,89
Slide 102: Non-Sustaining Capital Expenditures
NON-SUSTAINING CAPITAL EXPENDITURES1 Upfront cost to develop Media Luna Project estimated at $848M Metrics as of April 1, 2022 Total ($M) Excludes $124M of project costs incurred prior to April 1, Non-Sustaining2,3 - Media Luna Project 2022 Directs Guajes Portal & Tunnel $75.8 Sunk costs include $37
Slide 103: Sustaining Capital Expenditures
SUSTAINING CAPITAL EXPENDITURES1 Reflects costs of running and sustaining a large-scale underground operation Metrics as of April 1, 2022 Total Total Total ($M) ($/t ore) ($/oz AuEq) Total ore processed (kt) 39,778 Total payable gold equivalent sold (koz AuEq) 4,392 2,3 Sustaining ELG Open Pit - Cap
Slide 104: Life of Mine Unit Costs
LIFE OF MINE UNIT COSTS1,2,3,4 Opportunities to improve overall cost structure being investigated Metrics as of April 1, 2022 Q2/22 to Q4/24 2025+ Life of Mine Potential to reduce ELG UG mining (Total) (Total) (Total) Operating Unit Costs (with PTU)4 costs: ELG Open Pit $/t mined $2.81 $0.00 $2.81 E
Slide 105: Operating Cash Flow Seasonality
OPERATING CASH FLOW SEASONALITY Operating cash flow tends to be weakest in H1 given timing of tax, royalty and PTU payments Final payments related to royalties, profit sharing, and taxes are subject to movements in the Mexican peso relative to the US dollar Cash flow from operations prior to changes
Slide 106: 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 107: 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 Accrued quarterly and paid monthly via Accrued quarte
Slide 108: Morelos Mining Concessions
MORELOS MINING CONCESSIONS Majority of 29,000 ha land package under 50-year mining concession MML holds seven mineral concessions, covering a total area of approximately 29,000 ha, with the El Limón and Guajes deposits contained in the Reducción Morelos Norte concession All concessions were granted
Slide 109: Mineral Reserves
MINERAL RESERVES1 Morelos Complex Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (gpt) (gpt) (%) (koz) (koz) (Mlb) (gpt) (koz) Media Luna Underground Proven - - - - - - - - - Probable 23,017 2.81 25.6 0.88 2,077 18,944 444 4.54 3,360 Proven & Probable 23,017 2.81 25.6 0.88 2,077 18,944 444 4.54 3,360 ELG O
Slide 110: Notes to Mineral Reserves
NOTES TO MINERAL RESERVES Morelos Complex Notes to accompany Mineral Reserve Table 13. ELG Low Grade Mineral Reserves are reported above an in-situ cut-off grade of 0.88 g/t Au. 1. Mineral Reserves were developed in accordance with CIM (2014) guidelines. 14. It is planned that ELG Low Grade Mineral
Slide 111: Mineral Resources
MINERAL RESOURCES1 Morelos Complex Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (gpt) (gpt) (%) (koz) (koz) (Mlb) (gpt) (koz) Media Luna Underground Measured 1,823 5.29 42.0 1.38 310 2,460 55 8.06 473 Indicated 25,567 3.02 30.1 1.05 2,486 24,708 589 5.11 4,196 Measured & Indicated 27,390 3.17 30.9 1.07 2
Slide 112: Notes to Mineral Resources
NOTES TO MINERAL RESOURCES Morelos Complex Notes to accompany the Summary Mineral Resource Table Notes to accompany the ELG Open Pit Mineral Resources 1. CIM (2014) definitions were followed for Mineral Resources. 14. The effective date of the estimate is December 31, 2022. 2. Mineral Resources are
Slide 113: TSX | TXG www.torexgold.com
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
Slide 114: Notes
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