August 03, 2022 18:00 ET | Source: Torex Gold Resources Inc. Torex Gold Resources Inc.

On Track to Achieve Full Year Production and Cost Guidance (All amounts expressed in U.S. Dollars unless otherwise stated)

TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) --  Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) reports the Company’s financial and operational results for the three and six months ended June 30, 2022. The Company will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the quarterly results.

Torex is also pleased to announce the appointment of Mr. Rodrigo Sandoval to its Board of Directors.

Jody Kuzenko, President & CEO of Torex, stated:

“Torex delivered solid results across multiple fronts in Q2. Our strong production, combined with ongoing discipline in cost containment, resulted in robust revenue, operating cash flow, and free cash flow generation this quarter. With more than $310 million in cash on hand, strong forecasted cash flow from ELG, and advanced stage plans to increase our available credit facility to $250 million, Torex is in a very favourable position to fund the development of Media Luna while continuing to invest in value-generating exploration.

“Our excellent operational performance this quarter was primarily driven by higher grades from the ELG open pits as well as record mining rates in the ELG Underground. Underground mining rates averaged 1,582 tonnes per day in Q2, well surpassing the prior record of 1,429 tonnes per day achieved in the same quarter last year. With completion of Portal #3 expected later this year and potential to leverage long hole open stoping in portions of the mine, we are steadily making gains toward achieving our long-term target of 2,000 tonnes per day in the ELG Underground.

“At Media Luna, project activity continues to ramp up following Board approval on March 31st. Earthworks have progressed as planned during the quarter, and advance rates continued to improve in both the Guajes Tunnel and South Portal Lower. Procurement activities are well underway, with the key focus on long lead items including flotation cells, regrind mills, the Guajes Tunnel conveyor, and the battery electric fleet. As of June 30th, physical progress on the Media Luna Project was approximately 5%, exactly in line with our plan.

“Based on a detailed review of scheduled cost flows for Media Luna, the Company has redistributed the timing of indirect costs associated with freight, import taxes, and contingency. As a result, non-sustaining capital expenditure guidance for Media Luna in 2022 has been lowered to $170 to $210 million from $220 million to $270 million. While the timing of these expenditures has been shifted to 2023 and 2024, the overall cost to develop Media Luna remains unchanged.

“Despite challenging headwinds with the current inflationary environment and the persistence of COVID-19, we delivered a very solid first half of 2022, and we are well on track to deliver on production and cost guidance for the fourth year in a row."

Richard Howes, Chair of the Board, stated:

“We are very pleased to welcome Rodrigo Sandoval to the Torex Board of Directors. Rodrigo brings significant social, commercial and political knowledge and experience from within Mexico’s mining industry, which will serve to enhance the overall governance of the Company. With Rodrigo’s appointment, we have now completed the process started two years ago to refresh, strengthen and diversify the competencies and skills of our Board.”

Table 1: Operating & Financial Highlights

CONFERENCE CALL AND WEBCAST DETAILS

The Company will host a conference call tomorrow at 9:00 AM (ET) where senior management will discuss the second quarter operating and financial results. Please dial in or access the webcast approximately ten minutes prior to the start of the call:

A live webcast of the conference call will be available on the Company’s website at https://torexgold.com/investors/upcoming-events/. The webcast will be archived on the Company’s website.

Table 2: Reconciliation of Total Cash Costs and All-in Sustaining Costs to Cost of Sales

Table 3: Reconciliation of Sustaining and non-sustaining costs to Capital Expenditures

Table 4: Reconciliation of Average Realized Price and Total Cash Costs Margin to Revenue

Table 5: Reconciliation of All-in Sustaining Costs Margin to Revenue

Table 6: Reconciliation of Adjusted Net Earnings to Net Income

Table 7: Reconciliation of EBITDA and Adjusted EBITDA to Net Income

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 Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company’s principal asset is the Morelos Complex, which includes the El Limón Guajes (“ELG”) Mining Complex, the Media Luna Project, the processing plant and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex’s key strategic objectives are to extend and optimize production from the ELG Mining Complex, de-risk and advance Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire Morelos Property.

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This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information also includes, but is not limited to, statements that: With more than $310 million in cash on hand, robust forecasted cash flow from ELG, and advanced stage plans to increase the Company’s available credit facility to $250 million, Torex is in a very favourable position to fund the development of Media Luna while continuing to invest in value-generating exploration; with completion of Portal #3 expected later this year and potential to leverage long hole open stoping in portions of the mine, the Company is steadily making gains toward achieving its long-term target of 2,000 tonnes per day in the ELG Underground; the lowered guidance of non-sustaining capital expenditure guidance for Media Luna in 2022 to $170 to $210 million from $220 million to $270 million; while the timing of these non-sustaining capital expenditures has been shifted to 2023 and 2024, the overall cost to develop Media Luna remains unchanged; the Company is well on track to deliver on production and cost guidance for the fourth year in a row; gold production is on track to meet full year production guidance of 430,000 to 470,000 ounces; the Company is on track to deliver on full year total cash costs guidance of $695 to $735 per ounce as well as all-in sustaining costs guidance of $980 to $1,030 per ounce; the gold price contracts were entered into during Q1 2022 to reduce downside price risk during the construction of the Media Luna Project; the expectation of extending and increasing the available credit facilities with a syndicate of international banks; the expectation that these credit facilities will be executed in Q3 2022 and provide the Company with a total of $250 million in available credit with a maturity date in 2025; the Media Luna long-lead procurement and earthworks are on schedule; and Torex’s key strategic objectives are to extend and optimize production from the ELG Mining Complex, de-risk and advance Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire Morelos Property.. Generally, forward-looking information and statements can be identified by the use of forward-looking terminology such as “forecast,” “plans,” “expects,” or “does not expect,” “is expected,” “strategic” or variations of such words and phrases or statements that certain actions, events or results “will”, “may,” “could,” “would,” “might,” or “on track,”, “well positioned to” or “in a favourable position to” occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks and uncertainties identified in the technical report (the “Technical Report”) released on March 31, 2022, entitled “NI 43-101 Technical Report ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study”, which has an effective date of March 16, 2022, and the Company’s annual information form and management’s discussion and analysis or other unknown but potentially significant impacts. Forward-looking information and statements are based on the assumptions discussed in the Technical Report and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.