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Torex Gold Reports Solid First Quarter Results

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Torex Gold Reports Solid First Quarter Results






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


“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.”



  • Safety excellence continues: No lost time injuries recorded during the quarter; exited the quarter with a LTIF of 0.15 per 1 million hours worked and a TRIF of 2.96 per 1 million hours worked, both on a rolling 12-month basis.
  • Gold production: Produced 129,509 ounces of gold, the strongest first quarter on record at ELG.
  • Gold sold: Sold 129,019 ounces of gold at an average realized price of $1,778 per ounce.
  • Total cash costs1 and All-in sustaining costs1: Total cash cost of $580 per ounce sold and all-in sustaining cost of $854 per ounce. Resultant all-in sustaining margin1 of $924 per ounce, implying a margin of 52% relative to the realized gold price.
  • Net earnings and adjusted net earnings1: Reported net earnings of $55.0 million or $0.64 per share on a basic basis and $0.62 per share on a diluted basis. Adjusted net earnings of $57.2 million, or $0.67 per share on a basic basis and $0.66 per share on a diluted basis.
  • EBITDA1 and adjusted EBITDA1: Generated EBITDA of $152.7 million and adjusted EBITDA of $144.9 million.
  • Cash flow from operations: Cash flow from operations totalled $65.2 million ($79.2 million prior to changes in non-cash working capital). Cash flow from operations included $40.8 million of income taxes and $4.0 million of royalties accrued but not paid out in 2020. As previously guided, cash flow from operations is expected to be weighted to the second half of the year given the seasonality of annual cash payments. Cash flow from operations during Q2 is expected to be impacted by $30.0 million of payments related to the mandated employee profit sharing in Mexico for 2020.
  • Free cash flow1: Generated $9.3 million in free cash flow.
  • Debt free: Exited the quarter debt free after repaying $40.0 million remaining on the 2019 debt facility. Debt facility amended providing $150.0 million of available credit, greater financial flexibility, and lower borrowing costs over the 2-year term of the agreement.
  • Net Cash1: Net cash of $167.3 million including $172.0 million in cash and $4.7 million of lease obligations.
  • Updated mineral reserve/resource2: Released year-end 2020 mineral reserve and resource estimate for ELG with step-out and infill drilling within the ELG Underground deposits adding 93,000 ounces of gold reserves partially offsetting a combined 487,000 ounces of open pit and underground gold reserves processed during the year. An updated resource estimate for Media Luna incorporating the results of the 2020 infill drilling program is expected to be released in Q2 2021.
  1. Refer to “Non-IFRS Financial Performance Measures” in the Company’s March 31, 2021, management’s discussion and analysis (“MD&A”), dated May 12, 2021, for further information and a detailed reconciliation. The MD&A is available on Torex Gold’s website ( and filed on the Company’s SEDAR profile (
  2. Refer to press release dated March 30, 2021 for further details. Updated mineral reserve and resource estimates can also be found on Torex Gold’s website ( and within the Company’s 2020 Annual Information Form (AIF) filed on the Company’s SEDAR profile ( The qualified person for the mineral reserve estimate is Clifford Lafleur P.Eng, the Director of Mineral Resources and Mine Engineering for the Company. Mr. Lafleur reviewed and approved the disclosure on the ELG mineral reserves and resources.



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.





    Three Months Ended  
    Mar 31, Dec 31, Mar 31,  
In millions of U.S. dollars, unless otherwise noted 2021 2020 2020    
Operating Results          
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    
Gold produced oz 129,509 130,649 108,537    
Gold sold oz 129,019 133,063 108,064    
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    
Financial Results          
Revenue $ 231.2 251.6 172.0    
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    
EBITDA 1 $ 152.7 165.9 39.4    
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.



Posted May 13, 2021

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