Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Q4 2020 Earnings Presentation
22 slides from Torex Gold Resources's earnings presentation, Feb 24, 2021
Slide 1: Fourth Quarter and Year-End 2020 Conference Call
TSX | TXG FOURTH QUARTER AND YEAR-END 2020 CONFERENCE CALL FEBRUARY 24, 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 fourth quarter helped drive record financial performance in 2020 Net cash2 increased $183 million in 2020 building on a $198 million improvement in 2019. Exited the year with net cash of $162 million Exited the year with $206 million in cash and short-te
Slide 6: ESG Excellence as a Foundation
ESG EXCELLENCE AS A FOUNDATION Sustained performance and ongoing improvement in ESG disclosure a key focus Staying COVID-19 Resistant ESG Rating Improvements from 2019 Strict protocols and multi-phase screening MSCI: ‘A’ rating from ‘BBB’ continue to minimize COVID impact on site Refinitiv: ‘B-’ rat
Slide 7: Operational Performance
OPERATIONAL PERFORMANCE JODY KUZENKO PRESIDENT & CEO
Slide 8: Q4 Caps Off a Solid Year Operationally
Q4 CAPS OFF A SOLID YEAR OPERATIONALLY1 Delivering consistent results quarter-over-quarter at ELG Total production of 430 koz in 2020; Strong H2 result Targeting plant throughput of 13,000 tpd 160 14 Ore Processed (ktpd) Gold Produced (koz) 140 12 120 10 100 8 80 6 60 40 4 20 2 0 0 Q1/19 Q2/19 Q3/19
Slide 9: Cost Performance
COST PERFORMANCE1,2 Cost discipline key to maintaining margins Mining - Open Pit ($/t ore + waste mined) Mining unit costs remained flat YOY, staving off FY 2020 $2.17 inflationary and COVID cost pressures FY 2019 $2.20 Mining - Underground ($/t ore mined) Oxidation and ore blending have helped mini
Slide 10: Financial Performance
FINANCIAL PERFORMANCE ANDREW SNOWDEN CFO
Slide 11: Record Financial Performance Delivered in 2020
RECORD FINANCAL PERFORMANCE DELIVERED IN 20201 Financial performance driven by strong gold price and operational execution Record $789M of revenue generated during 2020 Record $413M of EBITDA2 in 2020 $300 $200 $250 EBITDA (M$) Revenue (M$) $150 $200 $150 $100 $100 $50 $50 $0 $0 Q1/19 Q2/19 Q3/19 Q4
Slide 12: Robust Cash Flow Generation
ROBUST CASH FLOW GENERATION1 Cash flow from ELG was used to advance projects and reduce debt in 2020 $700 $413 ($103) $600 $13 ($8) ($81) $500 Cash (M$) ($85) $400 $24 ($142) $300 $14 $206 $200 $162 $100 $0 Working Capital Working Capital Investments Taxes Paid Sustaining Non-Sustaining Cash (2019)
Slide 13: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY1 Financial health of business continues to strengthen with strong margins Balance sheet strength continues to improve Available liquidity of over $315 million at year-end $300 $200 $100 $110M Balance (M$) $0 ($100) ($200) ($300) $206M ($400) ($500) 2016 2017 2018 2019 2020
Slide 14: Cash Flow Seasonality
CASH FLOW SEASONALITY Cash flow tends to be weakest in H1 given timing of payments Final payments related to royalties, profit sharing, and taxes are subject to movements in the Mexican peso relative to the US dollar Quarterly Payments Impacting Cash Flow From Operations1 Cash flow from operations p
Slide 15: Project & Exploration Update
PROJECT & EXPLORATION UPDATE JODY KUZENKO PRESIDENT & CEO
Slide 16: Advancing Key Value Accretive Projects
ADVANCING KEY VALUE ACCRETIVE PROJECTS Targeting to release an updated property-wide Technical Report in Q1 2022 Optimizing & Extending Production at ELG Media Luna advancing on number of fronts Studying potential for an additional layback in El Excavation of 7-km long Guajes tunnel has Limón open p
Slide 17: Questions?
QUESTIONS ?
Slide 18: Key Operational Metrics – El Limón Guajes (ELG)
KEY OPERATIONAL METRICS – EL LIMÓN GUAJES (ELG)1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY 2019 2019 2019 2019 2020 2020 2020 2020 2019 2020 Mining - Open Pit Ore mined (kt) 1,070 1,693 1,314 1,475 1,736 666 1,407 1,689 5,552 5,498 Waste mined (kt) 12,281 11,450 11,923 10,795 11,726 4,435 10,097 10,399 46,449 3
Slide 19: Key Financial Metrics – Consolidated
KEY FINANCIAL METRICS – CONSOLIDATED1,2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY 2019 2019 2019 2019 2020 2020 2020 2020 2019 2020 Key Metrics Gold sold (oz) 76,473 113,419 132,535 126,910 108,064 63,147 133,036 133,063 449,337 437,310 Realized gold price ($/oz) $1,302 $1,314 $1,478 $1,481 $1,571 $1,712 $1,884
Slide 20: 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 21: 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 22: 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