Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (February 2020)
37 slides from Torex Gold Resources's investor presentation, February 2020
Slide 1: Corporate Presentation
Corporate Presentation February 2020 Asset | Team | Game Changing Technology
Slide 2: Safe Harbour Statement
Safe Harbour Statement THE PRELIMINARY ECONOMIC ASSESSMENT (THE ‘MEDIA LUNA PEA” OR “PEA”) IS BASED ON THE TECHNICAL REPORT (DEFINED BELOW). THE PEA IS A CONCEPTUAL STUDY OF THE POTENTIAL VIABILITY OF MINERAL RESOURCES OF THE MEDIA LUNA PROJECT. THE PEA IS NOT A PREFEASIBILITY STUDY OR FEASIBILITY S
Slide 3: Safe Harbour Statement (Continued)
Safe Harbour Statement (Continued) This presentation contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the future explorati
Slide 4: Our Goal Is To Build A Financially Successful, Multi-Asset Mining Business
Our Goal Is To Build A Financially Successful, Multi-Asset Mining Business We are advancing value creating opportunities for shareholders by leveraging the strong free cash flow potential of our El Limón Guajes mine. ➢ Deliver on full year production and cost guidance at El Limón Guajes ➢ De-risking
Slide 5: We Respect The Environment And People, And We Build Productive Relationships With All Our Stakeholders
We Respect The Environment And People, And We Build Productive Relationships With All Our Stakeholders Environmental ➢ Filtered tailings (dry stacked), best practice for tailings management ➢ El Limón Guajes is effectively a ‘zero discharge’ site ➢ RopeCon improves safety, reduces fossil fuel consum
Slide 6: Several Key Achievements Delivered In 2019
Several Key Achievements Delivered In 2019 Record annual gold production was matched by an equally impressive safety performance and cash flow generation. ➢ Record annual gold production of 454,811 ounces ➢ Adjusted EBITDA1 of $332.9 million delivered in 2019 ➢ Generated free cash flow1 of $181.2 mi
Slide 7: Robust Free Cash Flow Generated In 2019
Robust Free Cash Flow Generated In 2019 Record operational performance was matched by a strong financial performance, with record EBITDA and free cash flow delivered in 2019. Note: EBITDA, Sustaining Capital Expenditures (Sustaining Capex) and Non-Sustaining Capital Expenditures (Non-sustaining Cape
Slide 8: Record Financial Performance Delivered In 2019
Record Financial Performance Delivered In 20191,2 1) See Q4 2019 Financial Statements as well as Q4 2019 Management Discussion & Analysis (www.torexgold.com 2) See also information on non-IFRS performance measures on slide 2 Asset | Team | Game Changing Technology 8
Slide 9: Financial Strength Has Significantly Improved
Financial Strength Has Significantly Improved1,2 1) See Q4 2019 Financial Statements as well as Q4 2019 Management Discussion & Analysis (www.torexgold.com) 2) See also information on non-IFRS performance measures on slide 2 Asset | Team | Game Changing Technology 9
Slide 10: Key Focus In 2020 Will Be On Value Enhancing Projects
Key Focus In 2020 Will Be On Value Enhancing Projects Increased capital investment in 2020 relates to de-risking and commencing infrastructure development at Media Luna and developing ELD. ➢ Gold production guidance of 420,000 to 480,000 ounces ➢ Total cash cost1 guidance of $640 to $670 per ounce g
Slide 11: El Limón Guajes Is Expected To Provide Significant Cash Flow To Advance Growth Opportunities
El Limón Guajes Is Expected To Provide Significant Cash Flow To Advance Growth Opportunities The chart sets out the anticipated year end cash position1,2,3 – Muckahi provides options to invest the cash to generate higher returns. 1) Financial estimates as per September 4, 2018 Technical Report; does
Slide 12: Year End Cash Position During Build-Out Of Media Luna
Year End Cash Position During Build-Out Of Media Luna1,2,3 Two potential mining scenarios for Media Luna – Conventional mining delivers an after-tax IRR of 27% and Muckahi generates an IRR of 46%. 1) Financial estimates as per September 4, 2018 Technical Report; does not include actual results since
Slide 13: The Morelos Property Has The Potential To Offer A Great Deal More Beyond El Limón Guajes And Media Luna
The Morelos Property Has The Potential To Offer A Great Deal More Beyond El Limón Guajes And Media Luna ‘Purple’ has been a good place to look for gold and copper; most of the ‘purple’ targets have yet to be drilled. 75% of the Property is unexplored. Asset | Team | Game Changing Technology 13
Slide 14: Exploration Continues To Highlight Underground Upside
Exploration Continues To Highlight Underground Upside Drill results show the potential for Sub-Sill to continue to be a sweetener to the open pits, and ELD to be a future sweetener. At Sub-Sill, drilling intersected mineralization 2019 drilling at ELD extended mineralization 150 300 metres below res
Slide 15: Media Luna To Leverage Existing Infrastructure And Extend Cash Flow Profile Beyond El Limón Guajes
Media Luna To Leverage Existing Infrastructure And Extend Cash Flow Profile Beyond El Limón Guajes The feasibility study is expected to kick-off early this year and will incorporate multiple trade-off studies, including the use of Muckahi. ➢ Infill drill program was successful in upgrading 25% of th
Slide 16: Focus In 2020 Will Be De-risking And Advancing Media Luna Toward Development
Focus In 2020 Will Be De-risking And Advancing Media Luna Toward Development Several key trade-off studies are in progress ahead of commencing a feasibility study shortly. ➢ Targeting initial production in early 2024 ➢ Excavating of access tunnel under the Balsas River anticipated to commence in H2
Slide 17: Excavation Of An Access Tunnel Under The River Is Expected To Commence Later This Year
Excavation Of An Access Tunnel Under The River Is Expected To Commence Later This Year Going under the Balsas River minimizes the social, environmental, and permitting complexity when compared to a RopeCon over the river. Asset | Team | Game Changing Technology 17
Slide 18: Muckahi – Expected To Play A Role In Multi-Asset Diversification
Muckahi – Expected To Play A Role In Multi-Asset Diversification Muckahi, which is being piloted at our ELD underground deposit, is expected to give us a material advantage when competing for assets. Up to 30% Up to 30% Up to 80% Up to 95% reduction in reduction in reduction in reduction in undergro
Slide 19: Muckahi – The Elevator Ride Explanation
Muckahi – The Elevator Ride Explanation “Why would anyone want to run a logistics business on single lane roads?” Muckahi is expected to achieve the following: ➢ Continuous material handling of ore from the stope to the shaft or surface (conveyors instead of LHD’s and trucks) ➢ Batch transport of pe
Slide 20: Muckahi – Getting Out Of The Box To Create Value
Muckahi – Getting Out Of The Box To Create Value We are developing what could be an industry changing technology, which is expected to significantly improve the economics of Media Luna. Media Luna Designed with Rubber Tired Equipment Impact of Muckahi Mining System on Media Looking East Luna PEA Aft
Slide 21: Muckahi – Individual Elements Proved Out In 2019
Muckahi – Individual Elements Proved Out In 2019 With successful testing of the individual elements of Muckahi in 2019, our focus in 2020 is to test the components as an integrated system in ELD. Test Objectives in 2019 ➢ Monorail based development on the level ✓ ➢ Monorail based development on a 30
Slide 22: Muckahi – Turning Intention Into Reality
Muckahi – Turning Intention Into Reality Two-way traffic via dual monorails Mucking out a stope with a slusher Jumbo drill hung from monorail 30o down ramp Asset | Team | Game Changing Technology 22
Slide 23: Appendix
Appendix Asset | Team | Game Changing Technology
Slide 24: Tailings Management – Utilizing Filtered Tailings, Industry Best Practice
Tailings Management – Utilizing Filtered Tailings, Industry Best Practice ➢ Structurally stable impoundment ➢ Tailings filtered to lower water content, stacked to utilize less land, and mechanically compacted ➢ Conventional tailings dam not required ➢ Lowers overall water consumption ➢ Tailings filt
Slide 25: Health & Safety – Equipment, Training, Start Of Shift Safety Reviews, Security
Health & Safety – Equipment, Training, Start Of Shift Safety Reviews, Security Asset | Team | Game Changing Technology 25
Slide 26: Community Outreach Programs
Community Outreach Programs Asset | Team | Game Changing Technology 26
Slide 27: Broadly Owned By Skilled Institutional Investors
Broadly Owned By Skilled Institutional Investors Institutional investors with deep understanding of the industry, that believe in the asset, Management Team and Board of Directors. Institution1 Shares Shares Corporate Data2 (millions) (%) Van Eck ETFs 8.9 10.4% Cash - Including restricted cash $161.
Slide 28: A Board With Strong Strategic And Governance Experience
A Board With Strong Strategic And Governance Experience Deep experience gained as industry professionals, complemented by extensive Board level experience. TERRY MACGIBBON, PGeo, ICD.D Board Chair 45+ years of mining industry experience. Founder, Chairman and Chief Executive of several TSX and TSXV
Slide 29: A Beautiful Asset And A Tested Management Team
A Beautiful Asset And A Tested Management Team Proven ability to navigate the technical, commercial, and social complexities of challenging mining operations. FRED STANFORD, PEng, ICD.D President & Chief Executive Officer CEO of Torex since the Company was formed in 2009. Prior 28 year operating car
Slide 30: El Limón Guajes Open Pit Mineral Resource Statement Effective As Of December 31, 2018
El Limón Guajes Open Pit Mineral Resource Statement Effective As Of December 31, 2018 Tonnes Au Grade Ag Grade Contained Au Contained Ag Resource Class (Mt) (g/t) (g/t) (Moz) (Moz) El Limón (including El Limón Sur) Measured 4.80 3.29 4.68 0.51 0.72 Indicated 20.20 2.67 4.29 1.73 2.79 Measured & Indi
Slide 31: El Limón Guajes Open Pit Mineral Reserve Statement Effective As Of December 31, 2018
El Limón Guajes Open Pit Mineral Reserve Statement Effective As Of December 31, 2018 Tonnes Au Grade Ag Grade Contained Au Contained Ag Reserve Category (Mt) (g/t) (g/t) (Moz) (Moz) El Limón (including El Limón Sur) - Note 3 Proven 3.80 3.48 4.20 0.43 0.51 Probable 11.24 3.05 3.69 1.10 1.33 Sub-tota
Slide 32: Sub-Sill Mineral Resource and Reserve Statements Effective As Of December 31, 2018
Sub-Sill Mineral Resource and Reserve Statements Effective As Of December 31, 2018 Tonnes Au Grade Ag Grade Contained Au Contained Ag Resource Class (Mt) (g/t) (g/t) (Moz) (Moz) Sub-Sill Measured 0.06 10.14 10.35 0.02 0.02 Indicated 1.11 6.87 11.74 0.24 0.42 Measured & Indicated 1.17 7.04 11.67 0.26
Slide 33: El Limón Deep Mineral Resource and Reserve Statements Effective As Of April 15, 2019
El Limón Deep Mineral Resource and Reserve Statements Effective As Of April 15, 2019 Tonnes Au Grade Ag Grade Contained Au Contained Ag Resource Class (kt) (g/t) (g/t) (koz) (koz) El Limon Deep (ELD) Measured - - - - - Indicated 797 5.52 6.62 141 170 Measured & Indicated 797 5.52 6.62 141 170 Inferr
Slide 34: Media Luna Resource Statement Effective December 31, 2019
Media Luna Resource Statement Effective December 31, 2019 Media Luna Tonnes AuEq AuEq Au Au Ag Ag Cu Cu Resource Statement (Mt) (g/t) (Moz) (g/t) (Moz) (g/t) (Moz) (%) (Mlb) Indicated 12.6 5.55 2.24 3.27 1.32 37.7 15.3 1.16 322 Inferred 33.5 4.23 4.56 2.49 2.68 23.6 25.5 0.93 686 Notes to accompany
Slide 35: ELG Complex Life Of Mine Plan September 2018 Technical Report
ELG Complex Life Of Mine Plan September 2018 Technical Report 1) Cash Flow in 2018 includes Financing proceeds of $48m. Revenue adjusted to actual price for H1 2) Metal Prices used $1,200/oz Au, $17.00/oz Ag, $3.00/lb Cu, USD:MXN 1:18, Reserves as of March 31, 2018 3) Lowest quartile producer per EL
Slide 36: Media Luna Conventional PEA September 2018 Technical Report
Media Luna Conventional PEA September 2018 Technical Report 1) Metal Prices used $1,200/oz Au, $17.00/oz Ag, $3.00/lb Cu, USD:MXN 1:18 2) A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the Media Luna
Slide 37: Asset | Team | Game Changing Technology
Dan Rollins, CFA Vice President, Corporate Development & Investor Relations Email: dan.rollins@torexgold.com Direct: 1-647-260-1503 www.torexgold.com Asset | Team | Game Asset | Team Changing | Game Changing Technology Technology 37
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