Torex Gold Resources Inc. (TSX: TXG) reports financial and operational results for the three months and year ended December 31, 2020.
Jody Kuzenko, President & CEO of Torex, stated:
“2020 was a record-breaking year for many aspects of our business despite the challenges associated with COVID-19. Gold sales of 437,310 ounces at a realized gold price of $1,771/oz resulted in revenue of $789 million, a 23% increase from last year and the highest in our history. Our strong operational performance, in combination with a resurgent gold price, underpinned our strongest annual financial performance ever, with record net income of $109 million, record adjusted EBITDA of $431 million and record operating cash flow of $342 million. Our ongoing focus on cost containment also paid off, with full year TCC1 and AISC1 coming in below the bottom end of revised guidance.
“Our balance sheet has never been stronger. We exited 2020 with net cash of $162 million, a $183 million increase in net cash year-over-year. As of year-end, total debt outstanding excluding finance leases stood at $40 million compared to $180 million at the end of 2019.
“With the Company forecast to be debt free in Q1 2021 and strong ongoing cash flow expected from ELG, Torex is well positioned to fully fund and bring Media Luna into production in early 2024. In doing so, we will deliver a smooth transition between the ramp down of the ELG open pits and Media Luna coming online, prove out the potential of Muckahi, and invest in exploration to further develop the ELG underground and find our next mine within the broader Morelos land package.
“As I reflect upon our 2020 results, I am most proud of our record-breaking safety performance, achieving 10 million hours worked without a lost-time injury from April 2019 to December 2020 and exiting the year with a lost-time injury frequency of 0.15 per million hours worked.
“Against the backdrop of COVID-19 and all the complexities that presented, our strong operational and financial performance is a direct result of the hard work and dedication of Torex’s employees and contractors as well as the strong relationships we have built with our host communities. We have created significant momentum in our ability as a team to deliver exceptional operational and financial results, and we are well-positioned to keep it up in 2021.”
FULL YEAR 2020 HIGHLIGHTS
FOURTH QUARTER 2020 HIGHLIGHTS
1Refer to “Non-IFRS Financial Performance Measures” in the Company’s December 31, 2020 MD&A for further information and a detailed reconciliation.
TABLE 1: OPERATING & FINANCIAL RESULTS SUMMARY
|Three Months Ended||Year Ended|
|Dec 31,||Sep 30,||Jun 30,||Mar 31,||Dec 31,||Dec 31,||Dec 31,|
|In millions of U.S. dollars, unless otherwise noted||2020||2020||2020||2020||2019||2020||2019|
|Ore tonnes mined||kt||1,809||1,521||697||1,837||1,573||5,864||5,952|
|Waste tonnes mined||kt||10,399||10,097||4,435||11,726||10,795||36,657||46,449|
|Total tonnes mined||kt||12,208||11,618||5,132||13,563||12,368||42,521||52,401|
|Strip ratio 1||waste:ore||6.2||7.2||6.7||6.8||7.3||6.7||8.4|
|Average gold grade of ore mined 2||gpt||3.14||3.15||3.07||2.52||3.06||2.94||2.92|
|Ore in stockpile 3||mt||4.1||3.4||3.1||3.1||2.4||4.1||2.4|
|Total tonnes processed||kt||1,156||1,184||688||1,134||1,116||4,162||4,393|
|Average plant throughput 4||tpd||12,565||12,870||7,560||12,464||12,130||11,372||12,036|
|Average gold recovery||%||89||89||89||89||89||89||88|
|Average gold grade of ore processed||gpt||4.01||3.83||3.18||3.35||3.87||3.64||3.64|
|Production and sales|
|Cost of sales||$||143.0||153.5||91.4||144.1||149.0||532.0||479.9|
|Earnings from mine operations||$||108.6||103.0||17.7||27.9||41.0||257.2||160.9|
|Net income (loss)||$||91.9||60.3||3.8||(47.0||)||35.1||109.0||71.2|
|Per share – Basic||$/share||1.07||0.71||0.04||(0.55||)||0.41||1.27||0.84|
|Per share – Diluted||$/share||1.05||0.69||0.04||(0.57||)||0.41||1.25||0.83|
|Adjusted net earnings 5||$||60.9||51.3||3.6||19.9||34.0||135.7||67.8|
|Per share – Basic 5||$/share||0.71||0.60||0.04||0.23||0.40||1.59||0.80|
|Per share – Diluted 5||$/share||0.71||0.59||0.04||0.23||0.40||1.58||0.79|
|Adjusted EBITDA 5||$||158.5||156.2||49.3||67.4||105.1||431.4||332.9|
|Cost of sales 6||$/oz||1,075||1,154||1,447||1,333||1,174||1,217||1,068|
|Total cash costs 5||$/oz||579||633||740||794||617||672||619|
|All-in sustaining costs 5||$/oz||886||877||1,015||975||767||924||805|
|Average realized gold price 5||$/oz||1,847||1,884||1,712||1,571||1,481||1,771||1,408|
|Cash from operating activities||$||137.1||173.3||2.2||29.5||97.9||342.1||301.3|
|Cash from operating activities before changes in non-cash working capital||$||140.8||138.1||28.1||21.8||101.4||328.8||327.3|
|Free cash flow (deficiency) 5||$||70.3||124.2||(28.5||)||2.1||71.6||168.1||181.2|
|Net (cash) debt 5||$||(161.6||)||(77.1||)||53.5||26.3||21.7||(161.6||)||21.7|
|Cash and cash equivalents and short-term investments||$||206.2||236.0||176.9||135.7||161.8||206.2||161.8|
|Working capital (deficiency)||$||166.7||186.7||191.9||105.1||96.5||166.7||96.5|
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