Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (May 2025)
48 slides from Torex Gold Resources's investor presentation, May 8, 2025
Slide 1: Corporate Presentation May 2025
TSX | TXG CORPORATE PRESENTATION May 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 International Financial Reporting Standards (“IFRS”) as issued by the international accounting standards board and might not be comparable to similar financial measures disclosed by other companie
Slide 3: Torex Overview
TOREX OVERVIEW Intermediate Gold & Copper Producer C$4.0B 0.91x 20% market value1 P/NAV1 ROCE LTM1 Significant Size & Scale #1 453 koz gold producer in Mexico in 2024 gold produced in 2024 Large & Growing Resource Base ~5.1 Moz ~7.4 Moz ~2.2 Moz AuEq P&P at 3.92 gpt2 AuEq M&I at 5.06 gpt2 AuEq Inf.
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Future underpinned by solid long-term fundamentals Consistent track record of delivering on Competitive cost profile providing strong production guidance margins and cash flow generation Strong balance sheet and robust cash flow supports ramp-up of Media Luna which in High-qual
Slide 5: 2025 Guidance
2025 GUIDANCE Six consecutive years of achieving operational guidance In millions of U.S. dollars, unless otherwise noted Q1 2025 Performance at 2025 Guidance Metal Q1 2025 Guidance1,2 Prices3 Performance Gold Equivalent2 Payable Production oz AuEq 400,000 to 450,000 59,771 59,630 AISC4 $/oz AuEq so
Slide 6: Five-Year Production Outlook
FIVE-YEAR PRODUCTION OUTLOOK1 Reflects robust production year-over-year due to ongoing drilling success Outlook Outlook Outlook Outlook 2022 Technical Production (koz)2 Actual 2022 2023 2024 2025 Report 2022 (Au) 474 430 to 470 2023 (Au) 454 420 to 460 440 to 470 436 2024 (AuEq) 461 385 to 425 400 t
Slide 7: 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 8: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Commercial production now achieved Processing plant tie-ins completed safely and on Project Progress schedule; 83 tie-ins and 136 systems commissioned Completion Project To Date Focus now on ramping up mine to 7,500 tpd by mid- Q1 2025 Procurement 10
Slide 9: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO On track to achieve designed mining rate of 7,500 tpd by mid-2026 Concentrate shipments began early April Ore on Guajes conveyor Cu and FeS flotation circuit Paste plant nearing completion 9
Slide 10: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS Reserve Case – EPO supports annual AuEq of at least 450 koz through 2030 Since the Technical Report released in 2022, the production profile at Morelos has materially improved by: Bringing EPO into the mine plan by late 2026 Extending mine life and increasing thro
Slide 11: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS Addition of EPO expected to keep mill full through early 2035 Available Feed Sources1 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ELG Open Pit ELG Underground Media Luna Underground EPO Underground Surface Stockpiles Successful drilling continues to add
Slide 12: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS EPO is a low-risk, brownfield addition that will leverage Media Luna infrastructure Utilizing existing infrastructure results in a lean capital estimate of $81.5M as only modest development (~2,200 m) is required to access and connect to Media Luna ore handling sy
Slide 13: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS Resource Scenario - Focus now on bolstering reserve scenario profile through drilling Potential to maintain annual production of 450 to 500 koz AuEq through at least 2033 by bringing Inferred Resources into the mine plan Building on the track record of resource gr
Slide 14: Grow Reserves & Resources
GROW RESERVES & RESOURCES Increased 2025 exploration and drilling budget by 50% year-over-year Drilling/exploration budget of $45M in 2025 $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 an
Slide 15: Grow Reserves & Resources
GROW RESERVES & RESOURCES Significant resource upside given the majority of Morelos remains unexplored 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, and d
Slide 16: Grow Reserves & Resources
GROW RESERVES & RESOURCES Structural corridor is key to unlocking the exploration potential of Morelos The north-south structural corridor is considered the main ore control of mineralization The main ore bodies and mineralization clusters of Media Luna and ELG occur at the intersection of the main
Slide 17: Disciplined Growth & Capital Allocation
DISCIPLINED GROWTH & CAPITAL ALLOCATION Expect to begin generating free cash flow mid-year, quickly repay modest net debt1 Net debt2 of $175M as at March 31, 2025 Available liquidity2 of $198M at the end of Q1 2025 Excluding leases, net debt is $89M Balance sheet and liquidity expected to begin $91M
Slide 18: Retain & Attract Best Industry Talent
RETAIN & ATTRACT BEST INDUSTRY TALENT People as a strategic differentiator Invest in the growth and development of our Total Employment people Maintain Torex culture as growth occurs Systems Leadership as the foundation to create a workplace where people willingly give their best Continue to work wi
Slide 19: Industry Leader in Responsible Mining
INDUSTRY LEADER IN RESPONSIBLE MINING Delivering value to shareholders while making a positive difference in society Excellent environmental performance Strong governance & diversity focus Limited air emissions and water discharge operation Women make up 43% of the Executive Team and Filtered tailin
Slide 20: Industry Leader in Responsible Mining
INDUSTRY LEADER IN RESPONSIBLE MINING Sustained performance & ongoing improvement on ESG disclosure a key focus ESG performance tied to cost of capital Clear and credible GHG emissions targets set One of the first mid-tier gold producers to enter into Reduction measures planned, approved, and funded
Slide 21: Relative Valuation
RELATIVE VALUATION1,2 TXG shares are attractively valued compared to peers on near-term consensus metrics 1) Peer average multiples based on consensus estimates for Alamos Gold, Allied Gold, Aris Mining, Artemis Gold, Aura Minerals, B2Gold, Calibre, Centerra Gold, Coeur Mining, Dundee Precious Metal
Slide 22: Robust Plan to Increase Shareholder Value
ROBUST PLAN TO INCREASE SHAREHOLDER VALUE Re-rating expected with ramp-up of Media Luna and return to positive free cash flow Near-term Value Creation Long-term Value Creation Bring Media Luna into production in early 2025; Maintain annual production of successfully ramp up through 2027 450 to 500 k
Slide 23: Appendix – Supplemental Information on Strategic Pillars
APPENDIX – SUPPLEMENTAL INFORMATION ON STRATEGIC PILLARS
Slide 24: Corporate Strategy
CORPORATE STRATEGY Executing on Strategic Pillars expected to generate long-term value DELIVER MEDIA LUNA TO FULL OPTIMIZE MORELOS GROW RESERVES & PRODUCTION & BUILD EPO PRODUCTION & COSTS RESOURCES Bring Media Luna into production on schedule Sustain annual production of >450 koz AuEq Target Morelo
Slide 25: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO 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 5-10kt parcel at to
Slide 26: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS Key focus is on increasing mine life and boosting output from ELG Underground ELG Underground has been a key source of Mining rates have consistently increased over past reserve growth since 2019 few years and are now above 2,000 tpd 1) Please refer to slide 44 fo
Slide 27: Grow Reserves & Resources
GROW RESERVES & RESOURCES ELG Underground – Building on a proven track record of mine life extensions 2024 drilling results supported target of continued resource growth and replacement of reserves mined Drilling along El Limón Sur Trend highlights potential to: Upgrade Inferred Resources to Indicat
Slide 28: Grow Reserves & Resources
GROW RESERVES & RESOURCES EPO – Focus remains on upgrading and expanding mineral resources Drilling to the south and the northeast within the defined resource indicates potential to upgrade Inferred Resources to Indicated Resources Encountered high-grade mineralization with notable intercepts in dri
Slide 29: Grow Reserves & Resources
GROW RESERVES & RESOURCES Media Luna Cluster – Outstanding resource potential on south side of Morelos Property Multiple high-grade intercepts returned from 2024 drilling program at Media Luna West, most notably 13.40 gpt AuEq over 28.4 m, including 22.73 gpt AuEq over 13.1 m Targeting declaration o
Slide 30: Disciplined Growth & Capital Allocation
DISCIPLINED GROWTH & CAPITAL ALLOCATION FX collars provide protection against swings in MXN on opex in 2025 All amounts in U.S. dollars 2025 Q2 Q3 Q4 FY MXN/USD Forwards Amount (USD) M$ $11.0 $11.0 $11.0 $33.0 Average Floor (MXN) MXN/USD 21.01 21.01 21.01 21.01 MXN/USD Collars Amount (USD) M$ $25.0
Slide 31: 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 U.S. dollar Cash flow from operations prior to chang
Slide 32: 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 33: Cash Flow Seasonality
CASH FLOW SEASONALITY Timing Differences – Mining Royalty & Corporate Income Tax Mining Royalty – Government of Mexico Corporate Income Tax – Government of Mexico 8.5% of mine level EBITDA1 plus allowable 30% of taxable income in Mexico deductions Accrued quarterly and paid monthly via Accrued quart
Slide 34: Responsible Gold Mining
RESPONSIBLE GOLD MINING Key highlights from 2023 Industry-leading safety performance – ended 2023 with a lost-time injury (“LTI”) frequency of 0.31 per million hours worked for employees and contractors; 10 million hours worked without a LTI at ELG for third time since 2020; Zero reportable environm
Slide 35: Appendix – Corporate Information
APPENDIX – CORPORATE INFORMATION
Slide 36: Corporate Summary
CORPORATE SUMMARY Share Price Performance1 Shareholder Data2 4.00 Other (Active) 3.50 Resource 11% (Indexed to January 1, 2022) (Active) Resource Price Performance - USD 3.00 (Passive) 29% 2.50 10% Other 2.00 (Passive) 1.50 Undisclosed/ 11% Retail 1.00 39% 0.50 TXG GDXJ Index Top 10 Shareholders2 0.
Slide 37: Production Guidance
PRODUCTION GUIDANCE1 Consistent track record of delivering on full year production guidance 1) Guidance Notes: (i) Production guidance in 2018 provided with Q1 financial results in May 2018 with restart of operations following five-month blockade which started in November 2017; (ii) Production guida
Slide 38: All-in Sustaining Costs Guidance
ALL-IN SUSTAINING COSTS GUIDANCE1,2 Achieved original AISC guidance in six of past seven years 1) For more information on operational and financial results, including information on non-GAAP measures (such as AISC), please refer to relevant section of the latest MD&A described in more detail on slid
Slide 39: Key Operational Metrics
KEY OPERATIONAL METRICS1 Consolidated Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2024 2024 2024 2024 2025 Mining - ELG Open Pit Ore mined (tpd) 7,074 11,153 19,404 10,651 17,822 16,731 9,256 1,850 Ore mined (kt) 644 1,026 1,785 969 1,622 1,539 852 166 Waste mined (kt) 11,124 10,131 7,841 8,012 7,047 4,2
Slide 40: Key Financial Metrics
KEY FINANCIAL METRICS1 Consolidated All amounts in U.S. dollars Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2024 2024 2024 2024 2025 Key Metrics Average realized gold price ($/oz) $1,960 $1,944 $1,995 $2,023 $2,193 $2,313 $2,487 $2,793 Gold equivalent sold (koz AuEq) 107.4 83.3 139.8 114.1 115.9 125.4 11
Slide 41: Management Team
MANAGEMENT TEAM Years of Name Experience Experience Joined Torex in 2018 as COO JODY KUZENKO LLB, ICD.D 25+ Appointed CEO in 2020 President and Chief Executive Officer Previously served as Director of Business Strategy at Vale ANDREW SNOWDEN CPA, CA Joined Torex in 2021 20+ Chief Financial Officer P
Slide 42: Board of Directors
BOARD OF DIRECTORS Years of Name Experience Experience RICK HOWES P.Eng. Board member since 2020 40+ Chair of the Board Seasoned senior mining executive with over 40 years of experience in the mining industry Director and CEO since 2020 JODY KUZENKO LLB, ICD.D 25+ Joined Torex in 2018 as COO Preside
Slide 43: Appendix – Mineral Reserves & Resources
APPENDIX – MINERAL RESERVES & RESOURCES
Slide 44: Mineral Reserves
MINERAL RESERVES1 Morelos Complex - Year-end 2024 Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (gpt) (gpt) (%) (koz) (koz) (Mlb) (gpt) (koz) Media Luna Underground Proven 2,834 3.14 31.0 1.01 286 2,826 63 5.18 471 Probable 21,347 2.42 24.7 0.86 1,661 16,962 404 4.14 2,840 Proven & Probable 24,180 2.50 25
Slide 45: Notes to Mineral Reserves
NOTES TO MINERAL RESERVES Morelos Complex - Year-end 2024 Notes to accompany the mineral reserve table Notes to accompany the EPO Underground mineral reserves 1. Mineral reserves were developed in accordance with CIM (2014) guidelines. 1. Mineral reserves for EPO Underground have an effective date o
Slide 46: Mineral Resources
MINERAL RESOURCES1 Morelos Complex - Year-end 2024 Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (gpt) (gpt) (%) (koz) (koz) (Mlb) (gpt) (koz) Media Luna Underground Measured 2,994 3.95 40.0 1.30 380 3,855 86 6.55 630 Indicated 26,120 2.83 30.2 1.05 2,374 25,385 603 4.90 4,114 Measured & Indicated 29,114
Slide 47: Notes to Mineral Resources
NOTES TO MINERAL RESOURCES Morelos Complex - Year-end 2024 Notes to accompany the mineral resource table Notes to accompany ELG Underground mineral resources 1. Mineral resources were prepared in accordance with the CIM Definition Standards (May 2014). 1. Mineral resources for ELG Underground are re
Slide 48: 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
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