Torex Announces 2016 Year End Financial and Operational Results
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
TOREX ANNOUNCES 2016 YEAR END FINANCIAL AND OPERATIONAL RESULTS
(All amounts expressed in U.S. Dollars unless otherwise stated)
TORONTO, Ontario, February 23, 2017 - Torex Gold Re sources Inc. (the "Company" or "Torex") (TSX:TXG)
announced today its financial and operational results for the year ended December 31, 2016. This release should be
read in conjunction with the Company's 2016 Financial Statements and MD&A on the Company's website or on
SEDAR.
Fred Stanford, President & CEO of Torex stated: “280,000 ounces of gold in the first year of the ramp up, speaks to
the quality of the deposit, the constructed asset, and the ski ll of the team in navigating through the technical and
social start-up challenges. The ramp-up is expected to be completed during 2017, as solutions are in hand for the
two remaining material technical issues. Construction is underway on the SART plant to manage the soluble copper
and a decision has been made to increase tailings filtration ca pacity.” He added, “2017 will also be an exciting year
from a development perspective as step-out drilling on the Sub-Sill discovery is planned and delivered, a resource
estimate is prepared, and access is completed to allow material from this zone to be processed before year
end. Media Luna is also poised to take a major step forward in 2017 with permits expected for an access ramp that
we intend to start developing before year end. It promises to be an interesting year as we complete the ramp up of
ELG and prepare the Company for the next stage of growth.”
The ELG Mine achieved commercial production in late March 2016, ahead of schedule and under budget. For
accounting purposes, commercial production commenced April 1, 2016. As this is the Company’s first year in the
production stage, comparative figures for certain measures or data are not available or are not meaningful.
HIGHLIGHTS
Commercial production announced on March 30, 2016 ahead of schedule and under budget, reaching an
average of more than 60% of plant design throughput of 14,000 tpd for 30 days. For accounting purposes, the
transition to production was reflected commencing April 1, 2016.
Net income of $41.0 million since the commencement of commercial production, and $3.2 million for the year.
Net income for the fourth quarter of 2016 totalled $10.7 million.
Adjusted net earnings 1, which excludes, amongst other items, unrealized derivative and foreign exchange
losses, totalled $51.1 million, or $0.65 per share on a basic and $0.64 per share on a diluted basis since the
commencement of commercial production, and $4.3 million for the fourth quarter of 2016.
Earnings from mine operations of $119.9 million since the commencement of commercial production and
$33.8 million for the fourth quarter of 2016.
Cash flow from operations totalled $167.4 million and $51.7 million for the year and the quarter, respectively.
Revenue of $312.5 million and cost of sales of $192.6 million, or $789 per ounce of gold sold, since the
commencement of commercial production. For the fourth quarter of 2016, revenues were $102.3 million and cost
of sales were $68.6 million, or $823 per ounce of gold sold.
Gold sold totalled 275,613 ounces in 2016 for total proceeds of $347.2 million. The average realized gold price 1
was $1,263 per ounce since the commencement of commercia l production. Gold sold in the fourth quarter of
2016 totalled 83,259 ounces for total proceeds of $102.6 million. The average realized gold price in the fourth
quarter of 2016 was $1,232 per ounce.
Torex Gold Resources Inc. Page 2
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
Cash balances as at December 31, 2016 totalled $127.4 million (including restricted cash of $23.4 million).
Gold production totalled 279,937 ounces in 2016, and 80,955 in the fourth quarter of 2016.
Total cash costs1 of $543 per ounce of gold sold since the commencement of commercial production, and $539
per ounce of gold sold in the fourth quarter of 2016.
All-in sustaining costs 1 of $733 per ounce of gold sold since the commencement of commercial production,
and $746 per ounce of gold sold in the fourth quarter of 2016.
Plant throughput averaged 9,877 tpd since the commencement of commercial production or 71% of design
capacity of 14,000 tpd, and 9,233 tpd in the fourth quarter of 2016 or 66% of design capacity of 14,000 tpd.
Average gold grade processed was 3.25 gpt since the commencement of commercial production, and 3.49 gpt
in the fourth quarter of 2016.
Average gold recovery rate was 86% since the commencement of commercial production, and 89% in the
fourth quarter of 2016.
Grade reconciliation , from start of mining at the Guajes Pit, shows 4% less ounces produced than was
predicted by the reserve model (2% more tonnes and 6% less grade).
Ore in stockpile as at December 31, 2016 was 0.8 million tonnes at an average estimated grade of 2.05 gpt.
1 Total cash costs, all-in sustaining costs, average realized gold price and adjusted net earnings are financial performance measures with no
standard meaning under International Financial Reporting Standards (“IFRS”). Refer to “Non-IFRS Financial Performance Measures” in
the Company’s 2016 Management’s Discussion and Analysis for further information and a detailed reconciliation. As the transition to the
production phase commenced April 1, 2016, year-to-date amounts for these measures only include data starting April 1, 2016.
Torex Gold Resources Inc. Page 3
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
The following table summarizes key operating and financial highlights on a quarterly basis for 2016:
Three months ended Year ended
December 31, September 30, June 30, March 30, December 31,
In thousands of U.S. dollars, unless otherwise noted 2016 2016 2016 2016 2016
Operating Data 1
Mining
Ore tonnes mined kt 853 869 684 516 2,922
Waste tonnes mined kt 5,982 5,648 3,933 3,418 18,981
Total tonnes mined kt 6,835 6,517 4,617 3,934 21,903
Strip ratio waste:ore 7.0 6.5 5.8 6.6 6.5
Average gold grade of ore mined gpt 3.03 3.08 3.18 2.60 3.01
Ore in stockpile mt 0.8 0.8 0.8 1.1 0.8
Processing
Average plant throughput tpd 9,233 10,134 10,168 7,361 9,226
Average gold recovery % 89 89 82 76 85
Average gold grade of ore processed gpt 3.49 3.13 3.15 2.73 3.15
Production and sales
Gold produced oz 80,955 77,915 83,256 37,811 279,937
Gold sold oz 83,259 80,064 80,772 31,518 275,613
Financial Data 1
Revenue 2 $ 102,312 108,061 102,132 ‐ 312,505
Cost of sales $ 68,557 63,657 60,396 ‐ 192,610
Earnings from mining operations $ 33,755 44,404 41,736 ‐ 119,895
Net income (loss) $ 10,708 23,615 6,666 (37,831 ) 3,158
Per share ‐ Basic 3 $/share 0.13 0.30 0.08 (0.48 ) 0.04
Per share ‐ Diluted 3 $/share 0.13 0.30 0.08 (0.48 ) 0.04
Adjusted net earnings 4 $ 4,266 24,763 22,115 ‐ 51,144
Per share ‐ Basic 3, 4 $/share 0.05 0.31 0.28 ‐ 0.65
Per share ‐ Diluted 3, 4 $/share 0.05 0.31 0.28 ‐ 0.64
Cost of sales $/oz 823 795 748 ‐ 789
Total cash costs 4 $/oz 539 517 571 ‐ 543
All‐in sustaining costs 4 $/oz 746 699 754 ‐ 733
Average realized gold price 2, 4, 5 $/oz 1,232 1,308 1,252 ‐ 1,263
Cash and cash equivalents $ 104,019 93,658 74,079 30,481 104,019
Restricted cash $ 23,428 18,250 27,896 34,619 23,428
Working capital $ 124,523 120,245 82,442 3,715 124,523
Total debt $ 406,700 405,900 401,887 376,690 406,700
Total assets $ 1,206,389 1,167,132 1,154,256 1,106,246 1,206,389
Total liabilities $ 522,493 495,394 511,473 473,359 522,493
1. For accounting purposes, the transition to the production phase commenced on April 1, 2016. As such, comparative figures for certain
measures or data are not available or are not meaningful and data related to the pre‐production period may not be representative.
Further, sum of the quarter results may not add up to the annual due to rounding.
2. Proceeds from sales of gold and silver prior to achieving commercial production of $38.9 million were offset against the construction costs for
the ELG Mine (as defined herein).
3. Effective June 30, 2016, the Company implemented a consolidation of its outstanding common shares on the basis of one post‐
consolidation share for every ten pre‐consolidation shares (the “Consolidation”). Per share data reflects the Consolidation. Comparatives
were restated.
4. Adjusted net earnings, total cash costs, all‐in sustaining costs, and average realized gold price are financial performance measures with no
standard meaning under International Financial Reporting Standards (“IFRS”). Refer to “Non‐IFRS Financial Performance Measures” for further
information and a detailed reconciliation. As transition to the production phase commenced April 1, 2016, year‐to‐date amounts for these
measures only include data starting April 1, 2016.
5. Average realized gold price includes realized gains from gold derivative contracts of $12.1 per ounce for the three months ended
December 31, 2016 and realized losses from gold derivative contracts of $9.3 per ounce for the period from April 1, 2016 to December 31,
2016. Refer to “Non‐IFRS Financial Performance Measures” for further information and a detailed reconciliation. As transition to the
production phase commenced April 1, 2016, these measures are not available or meaningful for periods prior to this date. Year‐to‐date
amounts for these measures only include data starting April 1, 2016.
Torex Gold Resources Inc. Page 4
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
Qualified Persons
Scientific and technical information contained in this news release has been reviewed and approved by Dawson
Proudfoot, P.Eng., Vice President, Engineering of Torex Gold Resources Inc. and a Qualified Person under NI 43-
101 – Standards of Disclosure for Mineral Projects.
Conference Call
The Company will host a conference call today at 9:00 am (EST) where senior management will discuss the 2016
operational and financial results.
Access the conference call as follows:
Webcast access: A live audio webcast of the conference call will be available on the Company’s website at
www.torexgold.com.
Telephone access: Please call the numbers below approximately ten minutes prior to the scheduled start of the call.
Toronto local or international 1 (416) 915-3239
Toll-Free (North America) 1 800-319-4610
Toll-Free (France) 0 800-900-351
Toll-Free (Switzerland) 0-800-802-457
Toll-Free (United Kingdom) 0 808-101-2791
The webcast will be archived on the Company’s website.
About Torex
Torex is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and
operation of its 100% owned Morelos Gold Property, an ar ea of 29,000 hectares in the highly prospective Guerrero
Gold Belt located 180 kilometers southwest of Mexico City. Within this property, Torex has the El Limón Guajes Mine,
which announced commercial production in March of 20 16 and the Media Luna Project, which is an early stage
development project, and for which the Company issued a preliminary economic assessment (PEA) in 2015. The
property remains 75% unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
Fred Stanford
President and CEO
Tel.: (647) 260-1502
Email: [email protected]
Gabriela Sanchez
Vice President Investor Relations
Tel.: (647) 260-1503
Email: [email protected]
Torex Gold Resources Inc. Page 5
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of
applicable Canadian securities legislation. Notwithstanding the Company's efforts, there can be no guarantee that the
Company will not face unforeseen delays or disruptions. Forward-looking information also includes, but is not limited
to, completing the remaining construction and commissioning of the mine and processing facilities of the ELG Mine,
including the SART plant and addition to the tailings filtration plant (“TFP”), achieving full production, plans to
complete a mineral resource estimate on the Sub-sill area, plans to complete the access ramps to El Limon Deep
and Sub-sill targets and the exploration tunnel for Media Luna, plans to mine and process the material from the Sub-
sill area, future exploration and development, safety and security, and access to the ELG Mine. Generally, forward-
looking information can be identified by the use of forward-looking terminology such as "plans", "expects",
"estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might", or "w ill be taken", "occur", or "be achieved". Forward-looking
information is subject to known and unkn own risks, uncertainties and other factors that ma y 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 those risk factors identified in the Company's annual
information form (“AIF”) and management's discussion and analysis (“MD&A”). Forward-looking information is based
on the reasonable assumptions, estimates, analysis and opin ions of management, which may be identified in the AIF
or MD&A, made in light of its experience and its percepti on of trends, current conditions and expected developments,
as well as other factors that management believes to be relevant and reasonable in the circumstances at the date
that such statements are made, but which may prove to be incorrect. Such assumptions, estimates, analysis and
opinions include, without limitation, the timely completion of development and construction of the ELG Mine, including
the SART plant and TFP, to bring it into full production, the timing and receipt of any required approvals and permits,
the ability of the Company to obtain qualified personnel, equipment and services in a timely and cost-efficient
manner, the ability of the Company to obta in financing on acceptable terms, the ability of the Company to access the
Morelos Gold Property and the ability to conclude the land access ag reements for Media Luna. Although the
Company believes that the assumptions and expectations reflected in such forward-looking information are
reasonable, undue reliance should not be placed on forward-looking information because the Company can give no
assurance that such expectations will prove to be correct. 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.
The Company does not undertake to update any forward-looking information, except in accordance with applicable
securities laws.