Torex Gold Resources Inc. (TSX: TXG) reports first quarter financial and operational results for the three months ended March 31, 2021.
Jody Kuzenko, President & CEO of Torex, stated:
“2021 is off to a very solid start with gold production of 129,509 ounces – the highest first quarter of production on record at El Limón Guajes (“ELG”). All-in sustaining costs of $854 per ounce during the quarter resulted in an all-in sustaining margin of $924 per ounce – a 52% margin relative to the realized gold price.
“Our strong operational results underpinned the solid quarterly earnings, with adjusted EBITDA of $144.9 million and adjusted net earnings of $57.2 million. Our balance sheet has never been stronger, having exited the quarter in a net cash position of $167.3 million with no remaining debt. As guided at the start of the year, operating cash flow is expected to be weighted towards the second half of the year given the seasonality of income tax, royalty, and profit-sharing payments; as expected, cash flow from operations of $65.2 million was impacted by $40.8 million of income tax payments and $4.0 million of royalty payments related to fiscal 2020.
“We continue to progress on the plan to de-risk and advance Media Luna – making the necessary progress on the early works program, infill drilling, and successfully obtaining the MIA permit modification required to start south of the river infrastructure. We also continue to demonstrate that we are a company that generates value safely and responsibly. On the ESG front, post quarter end, we announced plans to develop an 8.5-megawatt solar plant at our operations, ratified an industry leading 2-year Collective Bargaining Agreement, became a signatory to the International Cyanide Management Code and released our 2020 Responsible Gold Mining Report, aligned with best industry practice on disclosure, which can be found on our newly launched website at www.torexgold.com.
“There is no doubt that our team has built up significant momentum over the past three quarters, and we are well positioned to achieve 2021 guidance as we continue to deliver on our commitments reliably and safely.”
FIRST QUARTER 2021 HIGHLIGHTS
ABOUT TOREX GOLD RESOURCES INC.
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. The Company’s principal assets are the El Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”) comprising the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep (“ELD”), and the processing plant and related infrastructure, which commenced commercial production as of April 1, 2016, and the Media Luna deposit, which is an advanced stage development project, and for which the Company issued an updated preliminary economic assessment in September 2018. The property remains 75% unexplored.
TABLE 1: OPERATING & FINANCIAL RESULTS SUMMARY
|Three Months Ended|
|Mar 31,||Dec 31,||Mar 31,|
|In millions of U.S. dollars, unless otherwise noted||2021||2020||2020|
|Lost time injury frequency||/million hours worked||0.15||0.15||0.31|
|Total recordable injury frequency||/million hours worked||2.96||2.52||3.45|
|Total cash costs 1||$/oz||580||579||794|
|All-in sustaining costs 1||$/oz||854||886||975|
|All-in sustaining costs margin 1||$/oz||924||961||596|
|Average realized gold price 1||$/oz||1,778||1,847||1,571|
|Cost of sales||$||131.9||143.0||144.1|
|Earnings from mine operations||$||99.3||108.6||27.9|
|Net income (loss)||$||55.0||91.9||(47.0||)|
|Per share – Basic||$/share||0.64||1.07||(0.55||)|
|Per share – Diluted||$/share||0.62||1.05||(0.57||)|
|Adjusted net earnings 1||$||57.2||60.9||19.9|
|Per share – Basic 1||$/share||0.67||0.71||0.23|
|Per share – Diluted 1||$/share||0.66||0.71||0.23|
|Adjusted EBITDA 1||$||144.9||158.5||67.4|
|Cost of sales||$/oz||1,022||1,075||1,333|
|Cash from operating activities||$||65.2||137.1||29.5|
|Cash from operating activities before changes in non-cash working capital||$||79.2||140.8||21.8|
|Free cash flow 1 2||$||9.3||86.9||3.3|
|Net cash (debt) 1||$||167.3||161.6||(26.3||)|
|1. Adjusted net earnings, total cash costs, all-in sustaining costs, all-in sustaining costs margin, average realized gold price, EBITDA, adjusted EBIDTA, free cash flow and net cash (debt) are financial performance measures with no standard meaning under International Financial Reporting Standards (“IFRS”). Refer to “Non-IFRS Financial Performance Measures” in the MD&A for further information and a detailed reconciliation.
2. Comparative free cash flow amounts have been recast to align with current period presentation. Refer to “Non-IFRS Financial Performance Measures” in the MD&A for further information and a detailed reconciliation.
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We acknowledge the [financial] support of the Government of Canada.