Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (March 2025)
51 slides from Torex Gold Resources's investor presentation, Mar 18, 2025
Slide 1: Corporate Presentation
TSX | TXG CORPORATE PRESENTATION February 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$3.0B 0.79x 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 2024 2024 2025 Guidance3,4 Peformance Guidance5 Production Gold oz 450,000 to 470,000 452,523 Not Provided Gold Equivalent1 oz AuEq 460,000 to 480,000 461,420 400,000 to 450,000
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 Engineering complete; procurement essentially Project Progress complete Completion Project To Date Q4 2024 All major deliveries to support the start-up of Procurement 99% Media Luna operations a
Slide 9: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO First concentrate on track by end of March; commercial production shortly thereafter Guajes Conveyor installed Cu cleaner cells Cu concentrate truck loadout FeS thickener 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 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 life extends into
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 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 17: Disciplined Growth & Capital Allocation
DISCIPLINED GROWTH & CAPITAL ALLOCATION Expected to exit Media Luna build with modest net debt1 Net debt2 of $33M as at December 31st Available liquidity2 of over $330M as at year-end $65M drawn on credit facility during the year $221M available on $300M revolving credit facility $221M available on
Slide 18: Retain & Attract Best Industry Talent
RETAIN & ATTRACT BEST INDUSTRY TALENT People as a strategic differentiator Total Employment Media Luna Employment Invest in the growth and development of our people Maintain Torex culture as growth occurs Systems Leadership as the foundation to create a workplace where people willingly give their be
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 Maintain annual production of 2025; 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 Media Luna solidifies the Morelos Property as our foundational asset First concentrate production in Q1 2025; Project 94% complete and fully committed targeting to achieve designed mining rate on spend at the end of 2024 of 7,500 tpd by mid-2026 Exte
Slide 26: Deliver Media Luna to Full Production & Build EPO
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 27: 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 28: Deliver Media Luna to Full Production & Build EPO
DELIVER MEDIA LUNA TO FULL PRODUCTION & BUILD EPO Media Luna project schedule1 1) Updated based on progress and revised schedule as of December 31, 2024 (refer to press release dated February 4, 2025 titled: Torex Gold Provides Q4 2024 Update on Media Luna Project). 28
Slide 29: 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 47 fo
Slide 30: Grow Reserves & Resources
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 31: 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 32: 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 33: 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 Q1 Q2 Q3 Q4 FY MXN/USD Forwards Amount (USD) M$ $11.0 $11.0 $11.0 $11.0 $44.0 Average Floor (MXN) MXN/USD 21.01 21.01 21.01 21.01 21.01 MXN/USD Collars Amount
Slide 34: 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 35: 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 36: 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 37: 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 38: Appendix – Corporate Information
APPENDIX – CORPORATE INFORMATION
Slide 39: Corporate Summary
CORPORATE SUMMARY Share Price Performance1 Shareholder Data2 2.50 Other 2.25 (Active) Resource 11% (Indexed to January 1, 2022) 2.00 (Active) Resource Price Performance - USD 1.75 29% (Passive) 1.50 11% 1.25 Other (Passive) 1.00 Undisclosed/ 11% 0.75 Retail 0.50 38% 0.25 TXG GDXJ Index 2 Top 10 Shar
Slide 40: 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 41: 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 42: Key Operational Metrics
KEY OPERATIONAL METRICS1 Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY 2023 2023 2023 2023 2024 2024 2024 2024 2023 2024 Mining - ELG Open Pit Ore mined (kt) 916 644 1,026 1,785 969 1,622 1,539 852 4,371 4,982 Ore mined (tpd) 10,182 7,074 11,153 19,404 10,651 17,822 16,731 9,256 11,976 13,611 Waste min
Slide 43: Key Financial Metrics
KEY FINANCIAL METRICS1 Consolidated All amounts in U.S. dollars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY 2023 2023 2023 2023 2024 2024 2024 2024 2023 2024 Key Metrics Gold sold (koz) 118.5 105.7 81.8 138.8 111.6 113.5 122.1 108.6 444.8 455.9 Gold equivalent sold (koz AuEq) 120.7 107.4 83.3 139.8 114.1 115.9 12
Slide 44: 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 45: 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 46: Appendix – Mineral Reserves & Resources
APPENDIX – MINERAL RESERVES & RESOURCES
Slide 47: Mineral Reserves
MINERAL RESERVES1 Morelos Complex 1) For notes accompanying mineral reserves for Morelos Complex please refer to slide 48. 47
Slide 48: 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 49: Mineral Resources
MINERAL RESOURCES1 Morelos Complex 1) For notes accompanying mineral resources for Morelos Complex please refer to slide 50. 49
Slide 50: 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 51: 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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