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Torex Gold Reports Q1 2025 Results Results in line with expectations and tracking well to full-year guidance

Financials

Torex Gold Reports Q1 2025 Results

Results in line with expectations and tracking well to full-year

guidance

(All amounts expressed in U.S. dollars unless otherwise stated)

Toronto, Ontario--(Newsfile Corp. - May 7, 2025) - Torex Gold Resources Inc. (the "Company" or

"Torex") (TSX: TXG) reports the Company's financial and operational results for the three months ended

March 31, 2025. Torex will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the

results.

Jody Kuzenko, President & CEO of Torex, stated:

"The first quarter was marked with significant milestones for Torex. We completed the tie-ins at the

processing plant not only on time but, more importantly, safely. We also delivered first concentrate

production, with regular shipments commencing in April. Earlier this week, we proudly declared

commercial production at Media Luna, marking the conclusion of the project phase and the beginning of

our transition back to positive free cash flow

1

generation.

"Production levels for the quarter were in line with our expectations given the four-week shutdown at the

processing plant. Production is expected to pick up during the second quarter through the early stages of

ramp up and increase further through the back half of the year, with annual guidance being maintained.

All-in sustaining costs

1

for Q1 were much better than originally anticipated as initial sales from Media

Luna did not commence until early April. As a result, the higher cost ore associated with the

commissioning phase of the Media Luna mine will now be recognized in Q2, aligning with initial sales

from Media Luna.

"As is typical of our cash flow seasonality, the first quarter was the highest for tax and royalty payments

for the year.

These payments, coupled with the final capital spend on Media Luna and limited production,

necessitated the net $130 million draw on our credit facility per our plan. As we hit our projected free

cash flow inflection point mid-year with completion of Media Luna Project spending, we expect to repay

the modest amount of debt drawn quickly, particularly as production ramps up under a backdrop of

record gold prices.

"With our highest cash outflow and lowest production quarter of the year now behind us, our focus is set

on further unlocking value for our shareholders through returning to positive free cash flow, executing our

exploration program across the entire Morelos Property, implementing a formal return of capital policy,

delivering on full-year guidance for the seventh consecutive year, and ramping up Media Luna to the

designed mining rate by mid-2026."

FIRST QUARTER 2025 HIGHLIGHTS

Safety performance:

The Company recorded one lost-time injury during the quarter when a

contractor suffered an ankle fracture. As at March 31, 2025, the lost-time injury frequency ("LTIF")

for the Morelos Complex was 0.59 per million hours worked for both employees and contractors on

a rolling 12-month basis. During the quarter, the internal investigation into the fatal carbon

monoxide exposure that occurred in December 2024 was concluded and follow up action items

are being tracked to completion. In addition, the Company has embarked on a comprehensive

'Next Level Safety' program with a view to ensuring that the operations resumes and maintains its

prior fatality free status.

Gold payable production:

On a gold equivalent ounce ("oz AuEq") basis, payable production for

the quarter was 59,630 oz AuEq

2

, including 58,330 oz Au. Production in the quarter was as

expected and driven by the planned four-week tie-in period at the processing plant in connection

with the Media Luna Project. The Company is on track to achieve annual payable production

guidance of 400,000 to 450,000 oz AuEq

2

.

Gold sold:

The Company sold 60,568 oz AuEq

2

at a record quarterly average realized gold

price

1

of $2,793 per oz, contributing to revenue of $170.0 million, which was lower than the

quarterly average as sales of metal produced from the new circuits as part of the Media Luna

Project commenced in April.

All-in sustaining costs

1

:

All-in sustaining costs of $1,405 per oz AuEq sold

2

relative to guidance

of $1,400 to $1,600 per oz AuEq sold

2

. All-in sustaining costs margin

1

of $1,388 per oz AuEq

sold, implying an all-in sustaining costs margin

1

of 50%. Cost of sales was $94.1 million or $1,554

per oz AuEq sold in the quarter.

Net income and adjusted net earnings

1

:

Reported net income of $39.0 million or earnings of

$0.45 per share on both a basic and dilutive basis. Adjusted net earnings of $35.9 million or $0.42

per share on a basic basis and $0.41 per share on a diluted basis.

EBITDA

1

and adjusted EBITDA

1

:

Generated EBITDA of $88.1 million and adjusted EBITDA of

$91.8 million.

Cash flow generation:

Net cash used in operating activities totalled $9.9 million and $17.7

million before changes in non-cash operating working capital. Net cash used in operating activities

(including changes in non-cash operating working capital) of $9.9 million including income taxes

paid of $101.6 million, reflecting the annual payment of mining taxes and annual true-up of

corporate income taxes, and payment of the 0.5% royalty in respect of 2024 of $4.7 million.

Negative free cash flow

1

of $133.3 million is net of cash outlays for capital expenditures, lease

payments, and interest, including borrowing costs capitalized. Negative free cash flow was a result

of the lower sales volumes due to the four-week tie-in period at the processing plant and capital

expenditures of $123.5 million in the first quarter of 2025.

Financial liquidity:

The quarter closed with $197.6 million in available liquidity

1

, including $106.5

million in cash and $91.1 million available on the $300.0 million credit facilities, net of borrowings

of $195.0 million and letters of credit outstanding of $13.9 million.

Media Luna Project:

In late March, the tie-in period was completed at the processing plant and

the Company achieved first production of copper concentrate, marking the substantial completion

of the Media Luna Project. Effective April 26, 2025, Media Luna reached the production stage, and

commercial production was declared. During the quarter, $55.5 million was invested in the project

and as of March 31, 2025, physical progress on the Project was approximately 98%.

Exploration and Drilling Activities:

In February, the Company announced results from the

ongoing drilling program at Media Luna West and results from initial drill testing at Media Luna

East

3

. The advanced exploration drilling program at Media Luna West has defined a mineralized

footprint of 600 metres ("m") by 400 m with multiple high-grade intercepts. The intercepts indicate

the exploration upside to the west of the defined resource boundaries of Media Luna and EPO.

Initial drill testing at Media Luna East returned strong results, with multiple high-grade intercepts,

many with copper ("Cu") grades in excess of 2%. Drilling at both targets is part of the Company's

exploration strategy, which is focused, in part, on unlocking the resource potential of the Morelos

Complex in order to enhance and extend the production profile.

Year-end Mineral Reserves & Resources

4

:

At EPO, an inaugural Probable Reserve of 781 koz

AuEq was declared in September 2024 and an updated reserve estimate for EPO is currently

being undertaken as part of the internal feasibility study. Due to drilling undertaken in 2024 north of

the EPO deposit, Inferred Resources at EPO increased 32% to 954 koz AuEq from 721 koz

AuEq. At ELG Underground, drilling was successful at replacing depletion with Proven and

Probable Reserves increasing 1% to 662 koz AuEq during the year, supporting a reserve life

through early 2029, which assumes an average mining rate of 2,800 tpd through 2026 and

approximately 2,000 tpd thereafter. At Media Luna, updated mineral reserves and mineral

resources primarily reflect results of definition drilling as well as modest refinements to some stope

shapes. With the completion of the Media Luna Project, step-out and infill drilling at Media Luna is

set to resume in 2025, with the goal of expanding and upgrading mineral resources as well as

replacing mineral reserves. The positive results from the 2024 drilling program solidifies annual

payable production of at least 450,000 koz AuEq through 2030 and a reserve life out to at least

2035. With approximately 125,000 m of drilling planned in 2025, almost double the metres drilled

in 2024, the Company is focused on enhancing the base case production profile beyond 2030,

extending the reserve life of the underground deposits, and further showcasing the underlying

potential of the broader Morelos Property by testing several regional targets.

1. These measures are non-GAAP financial measures ("Non-GAAP Measures") which are not standardized financial measures under IFRS,

the framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures used by

other companies. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the

IFRS, see Tables 2 to 11 of this press release. For additional information on these Non-GAAP Measures, please refer to the Company's

MD&A for the three months ended March 31, 2025, dated May 7, 2025, which is incorporated by reference into this news release. The

MD&A and the Company's unaudited condensed consolidated interim financial statements and related notes for the three months ended

March 31, 2025, are available on Torex's website (

www.torexgold.com

) and under the Company's SEDAR+ profile (

www.sedarplus.ca

).

2.

Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the

average market prices for each commodity sold in the period. For the three months ended March 31, 2025, market prices averaged

$2,860/oz gold, $31.88/oz silver, and $4.24/lb copper. Guidance for 2025 assumed metal prices of $2,500/oz gold, $28/oz silver, and

$4.30/lb copper.

3.

For more information on Media Luna drilling results, see the Company's news release titled "Torex Gold Reports Excellent Drill Results from

Media Luna West and Initial Results from Media Luna East" issued on February 24, 2025, and filed on SEDAR+ at

www.sedarplus.ca

and on

the Company's website at

www.torexgold.com

.

4.

Mineral reserve and mineral resource estimates for the Morelos Complex can be found in tables 12 and 13, respectively, of this press

release. AuEq values account for underlying metal prices and metallurgical recoveries used in reserve and resource estimates. For

additional information on the mineral reserve and mineral resource estimates for the Morelos Complex, please see the Company's annual

information form for the year ended December 31, 2024, or the Company's news release titled "Torex Gold Reports Year-end 2024

Reserves & Resources" issued on March 19, 2025, and filed on SEDAR+ at

www.sedarplus.ca

and on the Company's website at

www.torexgold.com

.

CONFERENCE CALL AND WEBCAST DETAILS

The Company will host a conference call tomorrow at 9:00 AM (ET) where senior management will

discuss the first quarter operating and financial results. For expedited access to the conference call,

registration

is open to obtain an access code in advance, which will allow participants to join the call

directly at the scheduled time. Alternatively, dial-in details are as follows:

Toronto local or International: 1-647-846-8914

Toll-Free (North America): 1-833-752-3842

A live webcast and replay 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 1: Operating and Financial Highlights

Three Months Ended

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars, unless otherwise noted

2025

2024

2024

Safety

Lost-time injury frequency

1

/million hours

0.59

0.61

0.15

Total recordable injury frequency

1

/million hours

1.52

1.48

0.97

Operating Results - Gold Equivalent basis

Gold equivalent payable produced

2

oz AuEq

59,630

105,132

117,054

Gold equivalent sold

2

oz AuEq

60,568

110,419

114,106

Total cash costs

2,3

$/oz AuEq

1,020

932

944

Total cash costs margin

2,3

$/oz AuEq

1,773

1,555

1,079

All-in sustaining costs

2,3

$/oz AuEq

1,405

1,112

1,222

All-in sustaining costs margin

2,3

$/oz AuEq

1,388

1,375

801

Average realized gold price

2,3

$/oz

2,793

2,487

2,023

Financial Results

Revenue

$

170.0

295.0

236.5

Cost of sales

$

94.1

153.5

157.4

Earnings from mine operations

$

75.9

141.5

79.1

Net income

$

39.0

60.4

43.1

Per share - Basic

$/share

0.45

0.70

0.50

Per share - Diluted

$/share

0.45

0.69

0.50

Adjusted net earnings

3

$

35.9

70.6

35.9

Per share - Basic

3

$/share

0.42

0.82

0.42

Per share - Diluted

3

$/share

0.41

0.81

0.42

EBITDA

3

$

88.1

162.8

98.0

Adjusted EBITDA

3

$

91.8

154.3

113.2

Cost of sales - gold equivalent basis

$/oz AuEq

1,554

1,390

1,378

Net cash (used in) generated from operating activities

$

(9.9

)

122.8

79.8

Net cash (used in) generated from operating activities before

changes in non-cash operating working capital

$

(17.7

)

136.3

72.5

Free cash flow

3

$

(133.3

)

(7.7

)

(59.4

)

Cash and cash equivalents

$

106.5

110.2

113.2

Debt, net of deferred finance charges

$

193.1

62.9

-

Lease-related obligations

$

86.5

78.3

44.0

Net (debt) cash

3

$

(175.0

)

(33.1

)

69.2

Available liquidity

3

$

197.6

331.5

405.3

1. On a 12-month rolling basis, per million hours worked.

2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the

average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the

three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website

(

www.torexgold.com

) and under the Company's SEDAR+ profile (

www.sedarplus.ca

).

3. Total cash costs, total cash costs margin, all-in sustaining costs, all-in sustaining costs margin, average realized gold price, adjusted net

earnings, adjusted net earnings per share, EBITDA, adjusted EBITDA, free cash flow, net (debt) cash and available liquidity are non-GAAP

financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other

issuers. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the IFRS as issued

by the International Accounting Standards Board see Tables 2 to 11 of this press release. For additional information on these Non-GAAP

Measures, please refer to the Company's MD&A for the three months ended March 31, 2025, dated May 7, 2025. The MD&A and the Company's

the Company's unaudited condensed consolidated interim financial statements and related notes for the three months ended March 31, 2025, are

available on Torex's website (

www.torexgold.com

) and under the Company's SEDAR+ profile (

www.sedarplus.ca

)

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

and Royalties

Three Months Ended

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars, unless otherwise noted

2025

2024

2024

Gold sold

oz

59,756

108,647

111,642

Total cash costs per oz sold

Production costs

1

$

56.2

94.7

100.8

Royalties

$

6.0

8.2

6.9

Less: Silver sales

$

(1.1

)

(1.8

)

(1.5

)

Less: Copper sales

$

(1.2

)

(3.1

)

(3.7

)

Less: Realized gain on foreign currency contracts

$

(0.4

)

-

-

Total cash costs

$

59.5

98.0

102.5

Total cash costs per oz sold

$/oz

996

902

918

All-in sustaining costs per oz sold

Total cash costs

$

59.5

98.0

102.5

General and administrative costs

2

$

8.7

7.3

8.0

Reclamation and remediation costs

$

1.0

1.0

1.3

Sustaining capital expenditure

$

13.6

11.6

22.4

Total all-in sustaining costs

$

82.8

117.9

134.2

Total all-in sustaining costs per oz sold

$/oz

1,386

1,085

1,202

Gold equivalent sold

3

oz AuEq

60,568

110,419

114,106

Total cash costs per oz AuEq sold

Production costs

1

$

56.2

94.7

100.8

Royalties

$

6.0

8.2

6.9

Less: Realized gain on foreign currency contracts

$

(0.4

)

-

-

Total cash costs

$

61.8

102.9

107.7

Total cash costs per oz AuEq sold

3

$/oz AuEq

1,020

932

944

All-in sustaining costs per oz AuEq sold

Total cash costs

$

61.8

102.9

107.7

General and administrative costs

2

$

8.7

7.3

8.0

Reclamation and remediation costs

$

1.0

1.0

1.3

Sustaining capital expenditure

$

13.6

11.6

22.4

Total all-in sustaining costs

$

85.1

122.8

139.4

Total all-in sustaining costs per oz AuEq sold

3

$/oz AuEq

1,405

1,112

1,222

1. This amount excludes temporary suspension costs of $nil, $3.1 million and $nil for the three months ended March 31, 2025, December 31,

2024, and March 31, 2024, respectively.

2. This amount excludes a loss of $7.6 million, loss of $6.8 million and loss of $4.2 million for the three months ended March 31, 2025, December

31, 2024, and March 31, 2024, respectively, in relation to the remeasurement of share-based payments. This amount also excludes corporate

depreciation and amortization expenses totalling $0.1 million, $0.2 million and $0.1 million for the three months ended March 31, 2025, December

31, 2024, and March 31, 2024, respectively, within general and administrative costs. Included in general and administrative costs is share-based

compensation expense in the amount of $2.3 million or $38/oz ($38/oz AuEq) for the three months ended March 31, 2025, $1.6 million or $15/oz

($14/oz AuEq) for the three months ended December 31, 2024, $2.3 million or $21/oz ($20/oz AuEq) for the three months ended March 31, 2024.

This amount excludes other expenses totalling $nil, $1.4 million and $1.2 million for the three months ended March 31, 2025, December 31, 2024,

and March 31, 2024, respectively.

3. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the

average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the

three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website

(

www.torexgold.com

) and under the Company's SEDAR+ profile (

www.sedarplus.ca

).

Table 3: Reconciliation of Sustaining and Non-Sustaining Capital Expenditures to Additions to

Property, Plant and Equipment

Three Months Ended

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars

2025

2024

2024

Sustaining

$

13.6

11.6

21.6

Capitalized Stripping (Sustaining)

$

-

-

0.8

Total Sustaining

$

13.6

11.6

22.4

Non-sustaining

Media Luna Project

1

$

55.5

100.5

126.4

EPO Project

$

4.0

0.6

-

Media Luna Cluster Drilling and Other

$

0.2

2.4

1.3

Working Capital Changes and Other

$

50.2

12.7

(24.0

)

Capital expenditures

2

$

123.5

127.8

126.1

1. This amount includes a realized gain (or an increase in the capitalized expenditures) of $nil, loss of $0.1 million and gain of $0.8 million for the

three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively, in relation to the settlement of foreign exchange

zero cost collars that were entered into to manage the capital expenditure risk related to a further strengthening of the Mexican peso.

2. The amount of cash expended on additions to property, plant and equipment in the period as reported in the Condensed Consolidated Interim

Statements of Cash Flows.

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

Revenue

Three Months Ended

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars, unless otherwise noted

2025

2024

2024

Gold sold

oz

59,756

108,647

111,642

Revenue

$

170.0

295.0

236.5

Less: Silver sales

$

(1.1

)

(1.8

)

(1.5

)

Less: Copper sales

$

(1.2

)

(3.1

)

(3.7

)

Less: Realized loss on gold contracts

$

(0.8

)

(19.9

)

(5.4

)

Total proceeds

$

166.9

270.2

225.9

Average realized gold price

$/oz

2,793

2,487

2,023

Less: Total cash costs

$/oz

996

902

918

Total cash costs margin

$/oz

1,797

1,585

1,105

Total cash costs margin

%

64

64

55

Gold equivalent sold

1

oz AuEq

60,568

110,419

114,106

Revenue

$

170.0

295.0

236.5

Less: Realized loss on gold contracts

$

(0.8

)

(19.9

)

(5.4

)

Total proceeds

$

169.2

275.1

231.1

Average realized gold price

$/oz

2,793

2,487

2,023

Less: Total cash costs

1

$/oz AuEq

1,020

932

944

Total cash costs margin

1

$/oz AuEq

1,773

1,555

1,079

Total cash costs margin

%

63

63

53

1. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the

average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the

three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website

(

www.torexgold.com

) and under the Company's SEDAR+ profile (

www.sedarplus.ca

).

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

Three Months Ended

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars, unless otherwise noted

2025

2024

2024

Gold sold

oz

59,756

108,647

111,642

Revenue

$

170.0

295.0

236.5

Less: Silver sales

$

(1.1

)

(1.8

)

(1.5

)

Less: Copper sales

$

(1.2

)

(3.1

)

(3.7

)

Less: Realized loss on gold contracts

$

(0.8

)

(19.9

)

(5.4

)

Less: All-in sustaining costs

$

(82.8

)

(117.9

)

(134.2

)

All-in sustaining costs margin

$

84.1

152.3

91.7

Average realized gold price

$/oz

2,793

2,487

2,023

Total all-in sustaining costs margin

$/oz

1,407

1,402

821

Total all-in sustaining costs margin

%

50

56

41

Gold equivalent sold

1

oz AuEq

60,568

110,419

114,106

Revenue

$

170.0

295.0

236.5

Less: Realized loss on gold contracts

$

(0.8

)

(19.9

)

(5.4

)

Less: All-in sustaining costs

$

(85.1

)

(122.8

)

(139.4

)

All-in sustaining costs margin

$

84.1

152.3

91.7

Average realized gold price

$/oz

2,793

2,487

2,023

Total all-in sustaining costs margin

1

$/oz AuEq

1,388

1,375

801

Total all-in sustaining costs margin

%

50

55

40

1. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the

average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the

three months ended March 31, 2025, dated May 7, 2025 for the relevant average market prices by commodity, available on Torex's website

(

www.torexgold.com

) and under the Company's SEDAR+ profile (

www.sedarplus.ca

).

Table 6: Reconciliation of Adjusted Net Earnings to Net Income

Three Months Ended

In millions of U.S. dollars, unless otherwise noted

Mar 31,

Dec 31,

Mar 31,

2025

2024

2024

Basic weighted average shares outstanding

shares

86,125,855

85,988,115

85,949,559

Diluted weighted average shares outstanding

shares

87,326,899

87,414,063

86,499,360

Net income

$

39.0

60.4

43.1

Adjustments:

Temporary suspension costs

$

-

3.1

-

Unrealized foreign exchange gain

$

(0.7

)

(2.0

)

(0.6

)

Unrealized (gain) loss on derivative contracts

$

(3.2

)

(16.4

)

11.6

Loss on remeasurement of share-based payments

$

7.6

6.8

4.2

Derecognition of provisions for uncertain tax positions

$

(9.2

)

-

(12.1

)

Tax effect of above adjustments

$

1.2

4.6

(3.3

)

Tax effect of currency translation on tax base

$

1.2

14.1

(7.0

)

Adjusted net earnings

$

35.9

70.6

35.9

Per share - Basic

$/share

0.42

0.82

0.42

Per share - Diluted

$/share

0.41

0.81

0.42

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

Three Months Ended

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars

2025

2024

2024

Net income

$

39.0

60.4

43.1

Finance costs (income), net

$

2.6

(0.3)

(1.7)

Depreciation and amortization

1

$

32.0

47.7

49.8

Current income tax expense

$

6.0

42.9

26.2

Deferred income tax expense (recovery)

$

8.5

12.1

(19.4)

EBITDA

$

88.1

162.8

98.0

Adjustments:

Temporary suspension costs

$

-

3.1

-

Unrealized (gain) loss on derivative contracts

$

(3.2)

(16.4)

11.6

Unrealized foreign exchange gain

$

(0.7)

(2.0)

(0.6)

Loss on remeasurement of share-based payments

$

7.6

6.8

4.2

Adjusted EBITDA

$

91.8

154.3

113.2

1. Includes depreciation and amortization included in cost of sales, general and administrative expenses and exploration and evaluation

expenses.

Table 8: Reconciliation of Free Cash Flow to Net Cash Generated from Operating Activities

Three Months Ended

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars

2025

2024

2024

Net cash (used in) generated from operating activities

$

(9.9

)

122.8

79.8

Less:

Additions to property, plant and equipment

1

$

(123.5

)

(127.8

)

(126.1

)

Value-added tax receivables, net

$

7.6

3.1

(10.3

)

Lease payments

$

(3.4

)

(2.9

)

(1.4

)

Interest and other borrowing costs paid

2

$

(4.1

)

(2.9

)

(1.4

)

Free cash flow

$

(133.3

)

(7.7

)

(59.4

)

1. The amount of cash expended on additions to property, plant and equipment in the period as reported on the Condensed Consolidated Interim

Statements of Cash Flows.

2. Including borrowing costs capitalized to property, plant and equipment.

Table 9: Reconciliation of Net (Debt) Cash to Cash and Cash Equivalents

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars

2025

2024

2024

Cash and cash equivalents

$

106.5

110.2

113.2

Less:

Debt

$

(193.1)

(62.9

)

-

Lease-related obligations

$

(86.5

)

(78.3

)

(44.0

)

Deferred finance charges

$

(1.9

)

(2.1

)

-

Net (debt) cash

$

(175.0

)

(33.1

)

69.2

Table 10: Reconciliation of Available Liquidity to Cash and Cash Equivalents

Mar 31,

Dec 31,

Mar 31,

In millions of U.S. dollars

2025

2024

2024

Cash and cash equivalents

$

106.5

110.2

113.2

Add: Available credit of the Debt Facility

$

91.1

221.3

292.1

Available liquidity

$

197.6

331.5

405.3

Table 11: Reconciliation of Unit Cost Measures to Production Costs

Three Months Ended

In millions of U.S. dollars, unless otherwise noted

Mar 31,

2025

Dec 31,

2024

Mar 31,

2024

Gold sold (oz AuEq)

60,568

110,419

114,106

Gold sold (oz)

59,756

108,647

111,642

Tonnes mined - ELG open pit (kt)

672

2,400

8,981

Tonnes mined - ELG underground (kt)

187

207

168

Tonnes processed (kt)

705

1,094

1,194

Total cash costs:

Total cash costs ($) - gold equivalent basis

61.8

102.9

107.7

Total cash costs per oz AuEq sold ($)

1,020

932

944

Total cash costs ($) - gold only basis

59.5

98.0

102.5

Total cash costs per oz sold ($)

996

902

918

Breakdown of production costs

$

$/t

$

$/t

$

$/t

Mining - open pit

6.0

8.87

14.1

5.85

31.6

3.52

Mining - underground

15.0

80.45

12.4

60.07

13.8

82.34

Processing

25.2

35.72

42.9

39.21

42.5

35.64

Site support

8.1

11.53

16.0

14.60

14.3

12.00

Mexican profit sharing (PTU)

2.1

2.98

4.7

4.30

3.0

2.50

Capitalized stripping

-

-

(0.8

)

Inventory movement

(1.5

)

6.6

(4.3

)

Other

1.3

1.1

0.7

Production costs

56.2

97.8

100.8

Table 12: Mineral Reserve Estimate - Morelos Complex (December 31, 2024)(2*)

Tonnes

Au

Ag

Cu

Au

Ag

Cu

AuEq

AuEq

(kt)

(gpt)

(gpt)

(%)

(koz)

(koz)

(Mlb)

(gpt)

(koz)

Media Luna Underground

Proven

2,834

3.14

31.0

1.01

286

2,826

63

5.18

471

Probable

21,347

2.42

24.7

0.86

1,661

16,962

404

4.14

2,840

Proven & Probable

24,180

2.50

25.5

0.88

1,946

19,788

467

4.26

3,311

ELG Underground

Proven

1,441

4.89

8.0

0.26

226

372

8

5.41

251