Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Q1 2021 Earnings Presentation
24 slides from Torex Gold Resources's earnings presentation, May 13, 2021
Slide 1: First Quarter 2021 Results Conference Call
TSX | TXG FIRST QUARTER 2021 RESULTS CONFERENCE CALL MAY 13, 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 ENTITLED “MORELOS PROPERTY, NI 43-101 TECHNICAL REPORT, ELG MINE COMPLEX LIFE OF MINE PLAN AND MEDIA LUNA PRELIMINARY ECONOMIC ASSESSMENT, GUERRERO STATE, MEXICO” DATED EFFECTIV
Slide 3: Overview & Key Highlights
OVERVIEW & KEY HIGHLIGHTS JODY KUZENKO PRESIDENT & CEO All values US dollars unless otherwise stated
Slide 4: Strategic Pillars
STRATEGIC PILLARS Executing on plan expected to enhance shareholder returns OPTIMIZE AND ADVANCE AND MUCKAHI TESTING & EXTEND ELG DE-RISK MEDIA LUNA COMMERCIALIZATION Build on culture as key strategic Continuation of the conventional Complete system and rate testing differentiator feasibility study
Slide 5: Key Operational & Financial Highlights
KEY OPERATIONAL & FINANCIAL HIGHLIGHTS1 Solid start to 2021 with strongest first quarter of production on record at ELG 140 On track to deliver on full year production and cost 131.8 130.6 129.5 guidance 120 Produced 129,509 ounces of gold in Q1 (full year 108.5 guidance of 430,000 to 470,000 ounces
Slide 6: ESG Excellence as a Foundation
ESG EXCELLENCE AS A FOUNDATION Sustained performance and ongoing improvement in ESG disclosure a key focus Staying COVID-19 Resistant ESG Ratings Strict protocols/screening remain in place; Year-to- MSCI: ‘A’ rating from ‘BBB’ date, COVID screen rate is ~4% of workforce Refinitiv: ‘B-’ rating from ‘
Slide 7: 2020 Responsible Gold Mining Report
2020 RESPONSIBLE GOLD MINING REPORT Key Highlights 99% operations employees from Mexico; $64.3 million paid in salaries and benefits at site Industry leading safety performance Ratified two-year labour agreement with unionized employees (where annual agreements are the norm) 89% procurement spend in
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE JODY KUZENKO PRESIDENT & CEO
Slide 9: 2021 Off to a Solid Operational Start
2021 OFF TO A SOLID OPERATIONAL START1,2 Delivering consistent results quarter-over-quarter at ELG Produced 129,509 ounces to start off 2021 Average plant throughput of 12,344 tpd in Q1 2021 160 14 Ore Processed (ktpd) Gold Produced (koz) 140 12 120 COVID 10 100 Interruption COVID 8 80 Interruption
Slide 10: Cost Performance
COST PERFORMANCE1,2 Cost discipline key to maintaining margins and offsetting inflationary pressures Mining - Open Pit ($/t ore + waste mined3) Open pit and underground mining unit costs up slightly Q1 2021 $2.33 relative to full year 2020 given maintenance costs and FY 2020 $2.17 rehandling Mining
Slide 11: Financial Performance
FINANCIAL PERFORMANCE ANDREW SNOWDEN CFO
Slide 12: Solid Financial Performance Delivered in Q1 2021
SOLID FINANCAL PERFORMANCE DELIVERED IN Q1 20211 Cash flow generation impacted by seasonality of tax and royalty payments $231M of revenue generated during Q1 2021 Delivered EBITDA2 of $153M during the quarter $300 $200 $250 EBITDA (M$) Revenue (M$) $150 $200 COVID $150 Interruption $100 COVID $100
Slide 13: Robust Cash Flow Generation
ROBUST CASH FLOW GENERATION1 Decline in cash position a result of cash flow seasonality and debt repayment $450 $400 $153 ($66) $350 ($14) ($1) ($26) $300 Cash (M$)2 ($29) $250 $206 ($1) ($40) $200 ($10) $172 $150 $100 $50 $0 Taxes Paid Sustaining Investments Non-Sustaining (Q1/21) Principal Working
Slide 14: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY1 Financial health of business continues to strengthen with strong margins Debt free following $40M repayment in March2 Available liquidity of over $320M as of March 31st $300 $200 $100 Balance (M$) $0 $150M ($100) ($200) $172M ($300) ($400) ($500) FY/17 FY/18 FY/19 FY/20 Q1
Slide 15: Cash Flow Seasonality
CASH FLOW SEASONALITY Cash flow tends to be weakest in H1 given timing of payments Final payments related to royalties, profit sharing, and taxes are subject to movements in the Mexican peso relative to the US dollar Quarterly Payments Impacting Cash Flow From Operations1 Cash flow from operations p
Slide 16: Project & Exploration Update
PROJECT & EXPLORATION UPDATE JODY KUZENKO PRESIDENT & CEO
Slide 17: Advancing Key Value Accretive Projects
ADVANCING KEY VALUE ACCRETIVE PROJECTS Targeting to release an updated property-wide Technical Report in Q1 2022 Optimizing & Extending Production at ELG Media Luna advancing on number of fronts El Limón open pit expansion coalescing around a Installation of portal canopy around Guajes tunnel smalle
Slide 18: Guajes Tunnel
GUAJES TUNNEL Gearing up to transition to monorail-based haulage mid-year Overhead shot of Guajes Portal Guajes tunnel advanced ~300 metres Steel infrastructure for monorail load-out Installation of bridge conveyor 18
Slide 19: Questions?
QUESTIONS ?
Slide 20: Key Operational Metrics – El Limón Guajes (ELG)
KEY OPERATIONAL METRICS – EL LIMÓN GUAJES (ELG)1,2 1) Q2 2020 results were impacted by a mandated suspension of operations by the Government of Mexico to mitigate the spread of COVID-19 in the country 2) For more information on operational and financial results, please refer to Torex Gold’s latest M
Slide 21: Key Financial Metrics – Consolidated
KEY FINANCIAL METRICS – CONSOLIDATED1,2,3 1) Q2 2020 results were impacted by a mandated suspension of operations by the Government of Mexico to mitigate the spread of COVID-19 in the country 2) All amounts in US dollars unless otherwise stated 3) For more information on operational and financial re
Slide 22: Cash Flow Seasonality: Royalties & Profit Sharing
CASH FLOW SEASONALITY Timing Differences – Royalties & Profit Sharing Royalty – Mexican Geological Survey Profit Sharing – Employees 2.5% of gross revenue 10% of taxable income in Mexico Accrued quarterly and paid the following quarter Mandated by Government of Mexico • Recognized in “Royalties” und
Slide 23: Cash Flow Seasonality: Mining Royalty & Corporate Income Tax
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 deductions 30% of taxable income in Mexico Accrued quarterly and paid annually in Q1 of the Accr
Slide 24: 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