Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (January 2025)
63 slides from Torex Gold Resources's investor presentation, Jan 27, 2025
Slide 1: Corporate Presentation
TSX | TXG CORPORATE PRESENTATION January 2025 All amounts expressed in U.S. dollars unless otherwise stated
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 capital expenditures, average realized gold price, total cash cost margin, AISC margin, AISC margin per ounce of gold sold, adjusted net earnings, adjusted net earni
Slide 3: Torex Overview
TOREX OVERVIEW Intermediate Gold & Copper Producer C$2.5B 0.65x market value1 P/NAV1 Significant Size & Scale #1 453 koz gold producer in Mexico in 2023 gold produced in 2024 Large & Growing Resource Base ~5.6 Moz ~7.8 Moz ~2.2 Moz AuEq P&P at 4.05 gpt2 AuEq M&I at 5.00 gpt2 AuEq Inf. at 4.45 gpt2 H
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 development of Media Luna which High-qua
Slide 5: 2025 Guidance
2025 GUIDANCE Six consecutive years of achieving operational guidance In millions of U.S. dollars, unless otherwise noted 2025 2024 Guidance Guidance Gold Equivalent1 Payable production AuEq koz 400 to 450 460 to 480 AISC2 $/oz AuEq sold $1,400 to $1,600 $1,130 to $1,190 Capital Expenditures2 Sustai
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 Plant tie-ins in February will de-risk planned downtime Plant tie-ins and upgrades now scheduled in Completion Project To Date February versus mid-November Q3 2024 Procurement 97% Modestly longer delivery window for critical Engineering 100% electric
Slide 9: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Rescheduled tie-in will support de-risking plant commissioning; underground unaffected Deliverable 2025 2026 2027 Q1 Q2 Q3 Q4 H1 H2 H1 H2 Media Luna Underground (Mining Rate) Guajes Tunnel Conveyor 5,000 tpd 6,000 tpd 6,500 tpd 7,500 tpd Process/Flot
Slide 10: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Project nearing completion; 87% complete as at end of Q3 Flotation circuits nearing mechanical completion Rock breaker and grizzly chute installed Copper concentrate storage building Paste plant filter floor steel installation 10
Slide 11: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS 2022 Technical Report set the foundation for Morelos Since the Technical Report released in 2022, we have been successful in filling the mill beyond 2027 Our goal has been to maintain annual production of at least 450 koz AuEq through the transition from the open
Slide 12: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS Keeping the mill full through multiple sources of ore through at least 2030 Available Feed Sources1 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ELG Open Pit ELG Underground Media Luna Underground EPO Underground Surface Stockpiles Open pit mine lif
Slide 13: 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 14: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS Reserve Scenario - The inclusion of EPO is the set up for the long term Bringing EPO into the mine plan is expected to result in minimum annual production of 450 koz AuEq through at least 2030 (annual average output of 473 koz AuEq between 2024 and 2030) Annualize
Slide 15: Optimize Morelos Production & Costs
OPTIMIZE MORELOS PRODUCTION & COSTS Resource Scenario - Focus now on bolstering reserve scenario through drilling strategy 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 g
Slide 16: 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 including Media Luna West, Media Luna East, an
Slide 17: 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 18: Grow Reserves & Resources
GROW RESERVES & RESOURCES Structural corridor unlocks exploration potential of ELG and Media Luna clusters 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 m
Slide 19: Disciplined Growth & Capital Allocation
DISCIPLINED GROWTH & CAPITAL ALLOCATION Funding buffer improved $115M in Q3 over Q2 2024 given robust cash generation Available liquidity1 results in a funding surplus of $136M while maintaining strategic objective of preserving $100M of liquidity after accounting for $111M of expenditures remaining
Slide 20: Retain & Attract Best Industry Talent
RETAIN & ATTRACT BEST INDUSTRY TALENT People as a strategic differentiator Invest in the growth and development of our Total Employment1 Media Luna Employment2 people Maintain Torex culture as growth occurs Systems Leadership as the foundation to create a workplace where people willingly give their
Slide 21: 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 22: 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 23: 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 24: 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 Maintain annual production of 2025; successfully ramp up through 2027 450 to 500 k
Slide 25: Appendix – Supplemental Information on Strategic Pillars
APPENDIX – SUPPLEMENTAL INFORMATION ON STRATEGIC PILLARS
Slide 26: 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 27: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Media Luna solidifies the Morelos Property as our foundational asset First concentrate production in Q1 2025; Project 87% complete and fully committed targeting to achieve designed mining rate on spend at the end of Q3 2024 of 7,500 tpd by mid-2026 E
Slide 28: Project expenditures finalized at $950 million
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Project expenditures finalized at $950 million primarily due to strength of MXN Final budget calculated as engineering and procurement activities near completion; strength of Mexican peso (MXN) relative to U.S. dollar through build period incorporate
Slide 29: Guajes Tunnel breakthrough
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Breakthrough of tunnel on south side of Balsas River achieved ahead of schedule 7 km-long tunnel connects north and south sides of Morelos Complex (6.5 m high x 6.0 m wide) Ore from Media Luna to be transported to processing plant on north side by ov
Slide 30: Media Luna Project Schedule
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Media Luna project schedule1 1) Updated based on progress and revised schedule as of September 30, 2024 (refer to press release dated October 30, 2024 titled: Torex Gold Provides Q3 2024 Update on Media Luna Project and Increases 2024 Production Guid
Slide 31: 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 59 fo
Slide 32: ELG Underground – Proven Track Record of Mine Life Extensions
GROW RESERVES & RESOURCES ELG Underground – Building on a proven track record of mine life extensions 2024 drilling results support target of continued resource growth and replacement of reserves mined Drilling along El Limón Sur Trend highlights potential to: Upgrade Inferred Resources to Indicated
Slide 33: EPO – Upgrading and Expanding Mineral 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 34: Well-positioned to Fund Strategic Priorities
DISCIPLINED GROWTH & CAPITAL ALLOCATION Well-positioned to fund strategic priorities1 Net debt2 of $15M at the end of Q3 2024 Available liquidity2 of $347M as of September 30th Additional net $5M drawn on revolving credit $232M available on $300M revolving credit facility facility in Q3 to support f
Slide 35: Additional FX Collars for 2025
DISCIPLINED GROWTH & CAPITAL ALLOCATION Additional FX collars put in place to protect against swings in MXN on opex in 2025 All amounts in U.S. dollars 2025 Q1 Q2 Q3 Q4 FY Gold Puts Purchased Volume oz 26,750 42,750 42,750 42,750 155,000 Gold Price $/oz $2,500 $2,500 $2,500 $2,500 $2,500 MXN/USD For
Slide 36: Robust Cash Flow Generation from ELG
ROBUST CASH FLOW GENERATION FROM ELG Funding position on solid footing given available liquidity and ongoing cash flow LTM Q4 2023 Q1 2024 Q2 2024 Q3 2024 (Q3 2024) Net cash generated from operating activities (M$) $120.0 $79.8 $97.4 $149.5 $446.7 1 Free cash flow (M$) ($24.3) ($49.1) ($62.3) ($0.7)
Slide 37: 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 38: 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 Mandated by Government of Mexico Accrued quarterly and paid the following quarter Accrued quarterly and paid annually in Q2 of the Recognized in
Slide 39: Cash Flow Seasonality – Mining Royalty & Income Tax
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 40: 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 41: Appendix – Corporate Information
APPENDIX – CORPORATE INFORMATION
Slide 42: Corporate Summary
CORPORATE SUMMARY Share Price Performance1 Shareholder Data2 1.75 Other (Active) 1.50 Resource 11% (Indexed to January 1, 2021) (Active) Price Performance - USD Resource 1.25 29% (Passive) 13% 1.00 Other 0.75 Undisclosed/ (Passive) Retail 11% 0.50 36% 0.25 TXG GDXJ Index Top 10 Shareholders2 0.00 In
Slide 43: 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 44: All-In Sustaining Costs Guidance
ALL-IN SUSTAINING COSTS GUIDANCE1,2 Targeting to achieve AISC guidance in 2024 following first miss since 2018 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 mor
Slide 45: Key Operational Metrics
KEY OPERATIONAL METRICS1 Consolidated Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2023 2023 2023 2024 2024 2024 Mining - ELG Open Pit Ore mined (kt) 959 916 644 1,026 1,785 969 1,622 1,539 Ore mined (tpd) 10,420 10,182 7,074 11,153 19,404 10,651 17,822 16,731 Waste mined (kt) 8,546 8,437 11,124 10,131 7,841 8
Slide 46: Key Financial Metrics
KEY FINANCIAL METRICS1 Consolidated All amounts in U.S. dollars Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2023 2023 2023 2024 2024 2024 Key Metrics Gold sold (oz) 121,913 118,455 105,749 81,752 138,794 111,642 113,513 122,130 Gold equivalent sold (oz AuEq) -- -- -- -- -- 114,106 115,890 125,414 Average real
Slide 47: 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 48: 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 49: Appendix: EPO Pre-Feasibility Study Results
APPENDIX: EPO PRE-FEASIBILITY STUDY RESULTS
Slide 50: Summary of Pre-Feasibility Study
SUMMARY OF PRE-FEASIBILITY STUDY Robust long-term production profile with a low risk, capital efficient development plan Production profile improved to at least 450 koz AuEq through 2030 on a reserve case alone Could be maintained through 2033 should Inferred Resources from ELG Underground and EPO b
Slide 51: Inaugural Mineral Reserves
INAUGURAL MINERAL RESERVES Initial reserve a solid base to grow from given sizeable resource base Mineralization at EPO amenable to being processed through same flow sheet as ore from Media Luna Reserves at EPO have a higher level of copper than Media Luna and ELG Underground AuEq reserves at EPO mo
Slide 52: A Capital Efficient Development
A CAPITAL EFFICIENT DEVELOPMENT Upfront budget of $81.5M reflects ability to leverage investment made at Media Luna Capital Expenditures Capital efficiency a direct result of ability to millions of U.S. dollars 2025 2026 Total leverage investment at Media Luna Direct costs $10.7 $41.3 $52.0 Indirect
Slide 53: Development Expected to Commence in Mid-2025
DEVELOPMENT EXPECTED TO COMMENCE IN MID-2025 Large portion of upfront budget related to development to access deposit Modest level of upfront development required Long-hole open stoping with battery electric Access ramp off the Guajes Tunnel (~650 m) equipment Haulage ramp (~1,000 m) – ore to be tru
Slide 54: EPO Will Leverage Same Flow Sheet as Media Luna
EPO WILL LEVERAGE SAME FLOW SHEET AS MEDIA LUNA Metal will be primarily recovered to Cu concentrate and doré EPO Standalone Concentrate Doré/Other Total Au Ag Cu Au Ag Cu Au Ag Cu (koz) (koz) (Mlb) (koz) (koz) (Mlb) (koz) (koz) (Mlb) Life of Mine Processed - - - - - - 367 4,820 143 Recovered to 43.0
Slide 55: Operating Costs and Sustaining Capital Expenditures
OPERATING COSTS AND SUSTAINING CAPITAL EXPENDITURES1,2 EPO mining costs reflect in-mine haulage and anticipated mining rates Mining Costs Processing & Site Based G&A Costs EPO mining costs forecast to average ~$51/t over Processing costs for the Morelos Complex are the life of mine forecast to avera
Slide 56: Upgrading Resources to Reserves to Be a Key Focus
UPGRADING RESOURCES TO RESERVES TO BE A KEY FOCUS Sizeable portion of Inferred Resources proximal to planned development Significant portion of the Inferred Resources at EPO located in close proximity to planned underground development and infrastructure If upgraded to reserves, some of this materia
Slide 57: Next Steps for EPO
NEXT STEPS FOR EPO Completion of an internal feasibility study prior to the start of development Internal feasibility study expected to be completed by mid-2025 Year-end 2024 mineral resources to be basis of feasibility study mine plan Amendments to environmental approvals are expected to occur over
Slide 58: Appendix – Mineral Reserves & Resources
APPENDIX – MINERAL RESERVES & RESOURCES
Slide 59: Mineral Reserves
MINERAL RESERVES1 Morelos Complex 1) For notes accompanying mineral reserves for Morelos Complex please refer to slide 60. 59
Slide 60: Notes to Mineral Reserves
NOTES TO MINERAL RESERVES Morelos Complex 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 of June 30, 2024.
Slide 61: Mineral Resources
MINERAL RESOURCES1 Morelos Complex 1) For notes accompanying mineral resources for Morelos Complex please refer to slide 62. 61
Slide 62: Notes to Mineral Resources
NOTES TO MINERAL RESOURCES Morelos Complex Notes to accompany the mineral resource table Notes to accompany EPO Underground mineral resources 1. Mineral Resources were prepared in accordance with the CIM Definition Standards (May 2014) and the 1. The effective date of the estimate is December 31, 20
Slide 63: TSX | TXG
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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