Torex Gold up 10% on ‘extraordinary’ Q3 results
Torex Gold Resources Inc. [TXG-TSX; TORXF-OTC] on Tuesday November 3 reported a record net profit of US$60.3 million or $0.71 per share in Q3 ended September 30, 2020.
“Q3 was simply extraordinary – a record breaking quarter across many facets of the business,” said Torex President and CEO Jody Kuzenko. “Gold sales of 133,036 ounces were the highest in our history, as was the realized gold price of US$1,884 an ounce,” Kuzenko said.
Torex Gold shares advanced on the news, rising 10.15% or $1.91 to $20.72. The shares are currently trading in a 52-week range of $25.52 and $8.79.
Torex is an intermediate gold producer, developing and exploring its 100%-owned Morelos gold property in the Guerrero Gold Belt, about 180 km southwest of Mexico City.
Within the Morelos gold property, the principal assets are the El Limon Guajes (ELG) Mining Complex, comprising the El Limon, Guajes and El Limon Sur open pits (the ELG Open Pits), the El Limon Guajes underground mine, including zones referred to a Sub-Sill and El Limon Deep (ELD) and the processing plant and related infrastructure.
These operations reached commercial production in April 2016. At full production, the mine ranks amongst the largest and lowest cost gold operations in the world.
In addition, the Media Luna deposit is an early stage development project on the same concession as The Guajes, El Limon and Sub-Sill deposits. Media Luna contains an inferred resource of 7.4 million gold equivalent ounces grading 4.48 g/t.
The company issued a PEA for Media Luna in September, 2018 that envisioned an underground operation with expected production of 3.9 million ounces of gold equivalent over the life of mine at an average all-in-sustaining cost of US$619/oz gold equivalent and an initial CAPEX of US$496 million.
“For the first time since commercial production, we achieved a net cash position at quarter end, hitting US$77 million,” Kuzenko said. “This represents a US$130 million improvement from last quarter and an impressive $US174 million improvement year-over-year.”
Kuzenko added that as the company heads towards the final stretch of 2020, it is poised to deliver on full year guidance. Torex recently revised its production forecasts for the year, saying it expects to produce 390,000 to 420,000 ounces of gold at an all-in-sustaining cost of between US$965 and US$1,025/oz.