Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Q1 2025 Earnings Presentation
29 slides from Torex Gold Resources's earnings presentation, May 8, 2025
Slide 1: Q1 2025 Results Conference Call
TSX | TXG Q1 2025 RESULTS CONFERENCE CALL May 8, 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: A Quarter of Major Milestones
A QUARTER OF MAJOR MILESTONES Significant accomplishments to start off the year Substantial completion of Media Luna construction Completion and commissioning of paste plant on track for Q2 Tie-in to 230 kV transmission line anticipated in coming weeks Successful execution of 4-week tie-in period la
Slide 5: 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 6: Key Highlights
KEY HIGHLIGHTS As guided, Q1 production reflects 4-week tie-in period as part of Media Luna Project Lost-time injury frequency of 0.59 per million hours worked for both employees and contractors Payable production of 59,630 oz AuEq1 reflecting 4-week period to complete tie-ins/upgrades to processing
Slide 7: Operational Performance
OPERATIONAL PERFORMANCE First concentrate produced on March 24th following restart of upgraded processing plant Production reflects 4-week tie-in period Mill ramping up to new design rate of 10,600 tpd Grades reflect the wind-down of open pits ELG Underground targeting 2,800 tpd in Q2 7
Slide 8: Consistent and Reliable Producer
CONSISTENT AND RELIABLE PRODUCER On track to deliver on full-year production guidance for seventh consecutive year 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 400,00
Slide 9: Financial Performance
FINANCIAL PERFORMANCE ANDREW SNOWDEN CFO
Slide 10: Financial Performance
FINANCIAL PERFORMANCE Sustained record gold prices support strong margins through lower production quarter AISC margin1 of 50% for the quarter Adjusted EBITDA1 of $92M reflects tie-in period Media Luna Project spend in line with guidance On track to pivot back to positive FCF1 mid-2025 1) For more i
Slide 11: Unit Cost Performance
UNIT COST PERFORMANCE1,2 Wind-down of open pit and processing plant tie-ins key drivers of unit costs in Q1 Open pit mining unit costs reflect higher-cost contract mining and low production as operations in open pit wind down ELG Underground mining costs consistent with 2024 Processing costs reflect
Slide 12: Cash Flow Generation
CASH FLOW GENERATION Cash balance supported by strong gold prices and peak draw on debt facility Net draw of $130M on debt facility during the quarter to support annual tax and royalty payments and Media Luna project expenditures Balance sheet and liquidity position expected to improve moving forwar
Slide 13: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY Expect to begin generating free cash flow mid-year, quickly repaying modest net debt1 Net debt2 of $175M as at March 31st Available liquidity2 of $198M at the end of Q1 Excluding leases, net debt is $89M Balance sheet and liquidity expected to begin $91M available on $300M
Slide 14: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION Protection in place against FX volatility on opex; gold puts provide full upside exposure All amounts in U.S. dollars 2025 Q2 Q3 Q4 FY MXN/USD Forwards Amount (USD) M$ $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)
Slide 15: Media Luna Project Update
MEDIA LUNA PROJECT UPDATE DAVE STEFANUTO EVP, TECHNICAL SERVICES & CAPITAL PROJECTS
Slide 16: Media Luna Progress Update
MEDIA LUNA PROGRESS UPDATE 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 on ramping up mine to 7,500 tpd by mid-2026 Q1 2025 Procurement 100% Mining rates expecte
Slide 17: Media Luna Progress Update
MEDIA LUNA PROGRESS UPDATE 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 17
Slide 18: Reserves, Resources & Exploration Update
RESERVES, RESOURCES & EXPLORATION UPDATE JODY KUZENKO PRESIDENT & CEO
Slide 19: 2024 Mineral Reserve Drivers
2024 MINERAL RESERVE DRIVERS Base case production profile above 450,000 koz AuEq solidified through 2030 Reserves increased by 7% year-over- year, primarily reflecting: Inaugural reserves of 781 koz AuEq declared at EPO 1% reserve growth to 662 koz AuEq at ELG Underground, more than replacing deplet
Slide 20: 2024 Mineral Resource Drivers
2024 MINERAL RESOURCE DRIVERS Year-end Measured & Indicated Resource reflects addition of 388 koz AuEq Substituting drilling contractors resulted in prioritization of infill drilling, limiting resource growth in 2024 Prior to ore mined, M&I Resources increased 3% Primary resource growth from Media L
Slide 21: Media Luna Cluster Drilling Results
MEDIA LUNA CLUSTER DRILLING RESULTS 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 of initial I
Slide 22: Questions?
eo; Torex Gold RESOURCES INC. QUESTIONS?
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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