Torex Gold Reports Q2 2024 Results Another consistent quarter of safe and reliable production; on track to deliver on full-year operational guidance
Torex Gold Reports Q2 2024 Results
Another consistent quarter of safe and reliable production; on
track to deliver on full-year operational guidance
(All amounts expressed in U.S. dollars unless otherwise stated)
Toronto, Ontario--(Newsfile Corp. - August 7, 2024) - 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, 2024. Torex will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the
results.
Jody Kuzenko, President & CEO of Torex, stated:
"With another strong quarter behind us, we are on track to deliver on our commitments from ELG while
concurrently concluding the Media Luna Project. First half gold production of 229,316 ounces ("oz")
places us firmly on pace to deliver on production guidance for the sixth year in a row. Our cost discipline,
coupled with a record realized gold price
1
of $2,193 per oz, resulted in a robust all-in sustaining costs
margin
1
of 44% during the quarter. While costs have trended above guidance through the first half of the
year, we expect them to improve in the second half as the strip ratio in the open pit declines. Given
higher royalties and Mexican profit sharing due to the stronger gold price, we expect full-year costs to be
at the upper end of the guided ranges.
"As outlined in our recent quarterly update, the Media Luna Project remains on track to deliver first
copper concentrate production by year-end and to achieve commercial production in Q1 2025. Project
capital expenditures have been adjusted for the impact of the stronger Mexican peso and we have more
than sufficient liquidity to fully fund the remaining project period expenditures. As at quarter end, we had
total available liquidity
1
of $346 million (including $109 million in cash), which is more than sufficient to
cover the $224 million remaining on the project, maintain our strategic objective of $100 million of cash
on the balance sheet, and continue to advance our strategic priorities. We expect the funding position to
strengthen even further over the rest of the year, driven by the robust free cash flow
1
generated from ELG
which, prior to spending on Media Luna, was $252 million over the last 12 months.
"During the quarter, we also outlined our five-year strategic exploration plan for the Morelos Complex,
which we expect will be a key driver of value creation for the Company over the coming years. Initial
results from the 2024 drilling program continue to demonstrate the potential to extend and enhance the
long-term production profile of Morelos, which will be further demonstrated when we release the results
of an internal economic study on the EPO deposit in September.
"With another strong quarter from ELG, Media Luna progressing on schedule, and more than sufficient
funding in hand to complete the build, Torex is well-positioned to once again deliver on our proven
operational track record, generating healthy margins and strong returns for our shareholders."
1
.
These measures are non-GAAP financial measures. Refer to "Non-GAAP Financial Performance Measures" for further information and a
detailed reconciliation to the comparable measures in accordance with IFRS Accounting Standards ("IFRS") as issued by the International
Accounting Standards Board.
SECOND QUARTER 2024 HIGHLIGHTS
Strong safety performance continues:
As at June 30, 2024, the lost-time injury frequency
("LTIF") for the Morelos Complex was 0.22 per million hours worked for both employees and
contractors on a rolling 12-month basis. The Company recorded two lost-time injuries at the Media
Luna Project during the quarter with an employee suffering a hand injury and a contractor suffering
an eye injury.
Gold production:
Delivered gold production of 113,822 oz for the quarter (YTD - 229,316 oz) with
an average gold recovery of 90.5% (YTD - 90.6%), the second consecutive quarter with recoveries
above 90%. Throughput rates remained above 13,000 tonnes per day ("tpd") for the sixth
consecutive quarter, averaging 13,214 tpd (YTD - 13,166 tpd). With the strong production through
the first half of the year, the Company is on track to achieve annual production guidance of 400,000
to 450,000 oz, which assumes a planned one-month shutdown of the processing plant in the fourth
quarter as part of the Media Luna Project. On a gold equivalent ounce basis ("oz AuEq"), the
Company produced 116,350 oz AuEq
1
for the quarter (YTD - 233,591 oz AuEq
1
) and is on track to
achieve guidance of 410,000 to 460,000 oz AuEq
1
.
Gold sold:
Sold 113,513 oz of gold (YTD - 225,155 oz) at an average realized gold price
2
of
$2,193 per oz (YTD - $2,109 per oz), contributing to revenue of $270.3 million (YTD - $506.8
million). On a gold equivalent ounce basis, the Company sold 115,890 oz AuEq
1
for the quarter
(YTD - 229,996 oz AuEq
1
). The average realized gold price in the second quarter of 2024 includes
a realized loss of $16.0 million or $141 per oz (YTD - $21.4 million or $95 per oz) on gold forward
contracts.
Total cash costs
2
and all-in sustaining costs
2
:
Total cash costs were $1,014 per oz sold (YTD
- $966 per oz sold) and all-in sustaining costs were $1,239 per oz sold (YTD - $1,220 per oz sold).
All-in sustaining costs margin
2
were $954 per oz sold (YTD - $889 per oz sold), implying an all-in
sustaining costs margin
2
of 44% (YTD - 42%). Cost of sales was $166.3 million (YTD - $323.7
million) or $1,465 per oz sold in the quarter (YTD - $1,438 per oz sold). Higher costs quarter-over-
quarter reflect higher royalties and Mexican profit sharing given the $268 per oz increase in
average spot gold price. Costs are expected to decrease through the second half of 2024 as
stripping requirements continue to decline with the wind down of the open pits. The Company
expects to be at the upper end of full year total cash costs guidance of $860 to $910 per oz sold
and all-in sustaining costs guidance of $1,100 to $1,160 per oz sold primarily due to higher gold
prices (guidance assumed a gold price of $1,900 per oz) resulting in increased Mexican profit
sharing and royalties, as well as the strength of the average value of the Mexican peso through the
first half of the year. On a gold equivalent ounce basis, total cash costs were $1,040 per oz AuEq
sold
1
(YTD - $992 per oz AuEq sold
1
) and all-in sustaining costs were $1,260 per oz AuEq sold
1
(YTD - $1,241 per oz AuEq sold
1
) relative to guidance of $900 to $950 per oz AuEq sold
1
and
$1,130 to $1,190 per oz AuEq sold
1
, respectively.
Net income and adjusted net earnings
2
:
Reported net income of $1.9 million or earnings of
$0.02 per share on a basic and diluted basis (YTD - $45.0 million, or $0.52 per share on a basic
and diluted basis), significantly impacted by deferred income tax expense of $51.4 million, largely
due to the 10% depreciation of the Mexican peso, which closed the quarter at 18.4:1 against the
U.S. dollar versus the quarterly average of 17.2:1. Adjusted net earnings of $52.4 million or $0.61
per share on a basic basis and $0.60 per share on a diluted basis (YTD - $88.3 million, or $1.03
per share on a basic basis and $1.02 per share on a diluted basis). Net income includes a net
derivative loss of $10.1 million (YTD - $26.3 million loss) related to gold forward contracts and
foreign exchange collars entered into to mitigate downside price risk during the construction of the
Media Luna Project. In the second quarter of 2024, the Company entered into an additional series
of zero-cost collars to hedge against changes in foreign exchange rates of the Mexican peso
between July 2024 and December 2024 for a total notional value of $23.7 million. Subsequent to
June 30, 2024, the Company entered into an additional series of zero-cost collars to hedge
against the impact of changes in foreign exchange rates of the Mexican peso on production costs
between January 2025 and December 2025 for a total notional value of $48.0 million.
EBITDA
2
and adjusted EBITDA
2
:
Generated EBITDA of $123.3 million (YTD - $221.3 million)
and adjusted EBITDA of $121.2 million (YTD - $234.4 million).
Cash flow generation:
Net cash generated from operating activities totalled $97.4 million (YTD -
$177.2 million) and $112.5 million (YTD - $185.0 million) before changes in non-cash operating
working capital, including income taxes paid of $10.2 million (YTD - $54.1 million) and $23.9
million paid in the second quarter of 2024 in relation to the site-based employee profit sharing
program for 2023 in Mexico. Negative free cash flow
2
of $62.3 million (YTD - $111.4 million) is net
of cash outlays for capital expenditures, lease payments and interest, including borrowing costs
capitalized. Negative free cash flow was a direct result of $108.2 million (YTD - $234.6 million)
invested in the Media Luna Project.
Strong financial liquidity:
The quarter closed with $345.8 million in available liquidity
2
, including
$108.7 million in cash and $237.1 million available on the credit facilities of $300.0 million, net of
borrowings of $55.0 million and letters of credit outstanding of $7.9 million. In July, the Company
amended the credit facilities with a syndicate of international banks, replacing the Term Loan
Facility (previously $100.0 million available through to the end of 2024), with an increase in the
Revolving Credit Facility to $300.0 million (an increase from $200.0 million), with a maturity date in
December 2027 (extended from the 2026 maturity) and a $150.0 million accordion feature which
is available at the discretion of the lenders. The amended credit facility continues to include
sustainability-linked KPIs, which have now been established for 2025 and 2026.
Media Luna Project:
As of June 30, 2024, physical progress on the Project was approximately
78%, with detailed engineering, procurement activities, underground development, and surface
construction advancing. Based on the current schedule, the tie-in of upgrades to the processing
plant are still on track to occur over a four-week period during the fourth quarter of 2024, which will
allow for commissioning and first concentrate production in late 2024 and commercial production
expected in the first quarter of 2025. As a result of near completion of engineering and
procurement activities, and incorporating the strength of the Mexican peso, budgeted project
capital expenditures have been updated to $950.0 million. This represents a $75.5 million
increase (+8.6%) over the original budget of $874.5 million. The key driver is the stronger Mexican
peso which represents $48.0 million (+5.5%) of the increase, with the remaining $27.5 million
(+3.1%) related to out of scope items and additional carryover costs as commercial production is
now expected to be declared towards the middle of the first quarter of 2025. For the full year,
Media Luna Project spend is now expected to be between $430.0 and $450.0 million versus
original guidance of $350.0 to $400.0 million. During the quarter, Media Luna Project expenditures
totalled $108.2 million (YTD - $234.6 million), with a remaining project spend of $224.4 million.
Release of the 2023 Responsible Gold Mining Report:
In May, the Company released its
2023 Responsible Gold Mining Report (RGMR), the Company's ninth annual disclosure of its ESG
performance. The Report can be found on the Company's website at
www.torexgold.com
.
Exploration Strategy:
In June, the Company outlined the Morelos Property's multi-year
exploration strategy
3
which is expected to enable the Company to deliver on its objective of
maintaining more than 450,000 oz AuEq of production annually beyond 2027 and to make at least
one new discovery at the Morelos Property in the coming years. The exploration and drilling
strategy will focus on three distinct areas: extending the mine life of ELG Underground and Media
Luna through infill and near-mine step-out drilling; expanding resources within the Media Luna
Cluster, including at Media Luna, EPO, Media Luna West, Media Luna East, and Todos Santos;
and advancing targets through the growth pipeline by delivering new discoveries, including at El
Naranjo, Atzcala, Esperanza, Querenque, Tecate, El Olvido, and Victoria.
Exploration and Drilling Activities:
In June, the Company announced initial assay results from
the 2024 drilling program at ELG Underground
4
. Newly reported drill holes confirm mineralization
beyond the boundary of known resources - to the south and at depth at the El Limón Sur Trend, to
the west along the El Limón Deep Trend, and to the north along the Sub-Sill Trend. Overall, initial
results from the 2024 drilling program at ELG Underground continued to build off the success of
the programs from prior years, demonstrating the potential to grow mineral resources, extend high-
grade mineralization, and support extending the reserve life of ELG Underground beyond 2028.
1
.
Gold equivalent ounces produced and sold includes 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 "Gold Equivalent Reporting" on page 7 of the Company' s
management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2024, dated August 6, 2024, for the relevant
average market prices by commodity and "Guidance" on page 8 of the Company's MD&A for 2024 guidance assumptions.
2
.
These measures are Non-GAAP Measures. 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 and six months ended June 30, 2024, dated August 6, 2024. The MD&A and the
Company's unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2024, are available
on Torex's website (
www.torexgold.com
) and under the Company's SEDAR+ profile (
www.sedarplus.ca
).
3
.
For more information on the multi-year exploration strategy, see the Company's news release titled "Torex Gold Outlines Multi-Year
Exploration Strategy" issued on June 10, 2024, and filed on SEDAR+ at
www.sedarplus.ca
and on the Company's website at
www.torexgold.com
.
4
.
For more information on ELG Underground drilling results, see the Company's news release titled "Torex Gold Reports Positive Results from
the 2024 ELG Underground Drilling Program" issued on June 27, 2024, and filed on SEDAR+ at
www.sedarplus.ca
and on the Company's
website at
www.torexgold.com
Table 1: Operating and Financial Highlights
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Jun 30
Jun 30,
Jun 30,
In millions of U.S. dollars, unless otherwise noted
2024
2024
2023
2024
2023
Safety
Lost-time injury frequency
1
/million
hours
0.22
0.15
0.58
0.22
0.58
Total recordable injury frequency
1
/million
hours
1.44
0.97
1.66
1.44
1.66
Operating Results - Gold only basis
Gold produced
oz
113,822
115,494
107,507
229,316
230,425
Gold sold
oz
113,513
111,642
105,749
225,155
224,204
Total cash costs
2
$/oz
1,014
918
848
966
775
All-in sustaining costs
2
$/oz
1,239
1,202
1,308
1,220
1,187
Average realized gold price
2
$/oz
2,193
2,023
1,960
2,109
1,928
Operating Results - Gold Equivalent basis
Gold equivalent produced
3
oz
AuEq
116,350
117,240
108,878
233,591
233,669
Gold equivalent sold
3
oz
AuEq
115,890
114,106
107,446
229,996
228,096
Total cash costs
2,3
$/oz
AuEq
1,040
944
866
992
796
All-in sustaining costs
2,3
$/oz
AuEq
1,260
1,222
1,319
1,241
1,201
Financial Results
Revenue
$
270.3
236.5
211.3
506.8
440.1
Cost of sales
$
166.3
157.4
138.1
323.7
275.5
Earnings from mine operations
$
104.0
79.1
73.2
183.1
164.6
Net income
$
1.9
43.1
75.3
45.0
143.5
Per share - Basic
$/share
0.02
0.50
0.88
0.52
1.67
Per share - Diluted
$/share
0.02
0.50
0.85
0.52
1.66
Adjusted net earnings
2
$
52.4
35.9
37.9
88.3
88.2
Per share - Basic
2
$/share
0.61
0.42
0.44
1.03
1.03
Per share - Diluted
2
$/share
0.60
0.42
0.44
1.02
1.02
EBITDA
2
$
123.3
98.0
125.3
221.3
227.8
Adjusted EBITDA
2
$
121.2
113.2
105.7
234.4
238.4
Cost of sales - gold only basis
$/oz
1,465
1,410
1,306
1,438
1,229
Net cash generated from operating activities
$
97.4
79.8
89.6
177.2
136.6
Net cash generated from operating activities before
changes in non-cash operating working capital
$
112.5
72.5
92.8
185.0
154.7
Free cash flow
2
$
(62.3
)
(49.1
)
(37.4
)
(111.4
)
(91.4
)
Cash and cash equivalents
$
108.7
113.2
285.3
108.7
285.3
Debt, net of deferred finance charges
$
53.9
-
-
53.9
-
Lease-related obligations
$
59.0
44.0
11.5
59.0
11.5
Net (debt) cash
2
$
(5.3
)
69.2
273.8
(5.3
)
273.8
Available liquidity
2
$
345.8
405.3
527.4
345.8
527.4
1
.
On a 12-month rolling basis, per million hours worked.
2
.
These measures are Non-GAAP Measures. 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 and six months ended June 30,
2024, dated August 6, 2024. The MD&A and the Company's unaudited condensed consolidated interim financial statements for the three and
six months ended June 30, 2024, are available on Torex's website (
www.torexgold.com
) and under the Company's SEDAR+ profile
(
www.sedarplus.ca
).
3
.
Gold equivalent ounces produced and sold includes 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 "Gold Equivalent Reporting" on page 7 of the Company's MD&A for the
relevant average market prices by commodity.
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. 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: 1-647-484-8814
Toll-Free (North America): 1-844-763-8274
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 Production Costs
and Royalties
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
In millions of U.S. dollars, unless otherwise noted
2024
2024
2023
2024
2023
Gold sold
oz
113,513
111,642
105,749
225,155
224,204
Total cash costs per oz sold
Production costs
$
113.0
100.8
86.7
213.8
168.2
Royalties
$
7.5
6.9
6.4
14.4
13.3
Less: Silver sales
$
(1.6
)
(1.5
)
(1.3
)
(3.1
)
(2.8
)
Less: Copper sales
$
(3.8
)
(3.7
)
(2.1
)
(7.5
)
(5.0
)
Total cash costs
$
115.1
102.5
89.7
217.6
173.7
Total cash costs per oz sold
$/oz
1,014
918
848
966
775
All-in sustaining costs per oz sold
Total cash costs
$
115.1
102.5
89.7
217.6
173.7
General and administrative costs
1
$
7.3
8.0
5.9
15.3
12.5
Reclamation and remediation costs
$
1.2
1.3
1.3
2.5
2.7
Sustaining capital expenditure
$
17.0
22.4
41.4
39.4
77.2
Total all-in sustaining costs
$
140.6
134.2
138.3
274.8
266.1
Total all-in sustaining costs per oz sold
$/oz
1,239
1,202
1,308
1,220
1,187
Gold equivalent sold
2
oz AuEq
115,890
114,106
107,446
229,996
228,096
Total cash costs per oz AuEq sold
Production costs
$
113.0
100.8
86.7
213.8
168.2
Royalties
$
7.5
6.9
6.4
14.4
13.3
Total cash costs
$
120.5
107.7
93.1
228.2
181.5
Total cash costs per oz AuEq sold
2
$/oz AuEq
1,040
944
866
992
796
All-in sustaining costs per oz
AuEq sold
Total cash costs
$
120.5
107.7
93.1
228.2
181.5
General and administrative costs
1
$
7.3
8.0
5.9
15.3
12.5
Reclamation and remediation costs
$
1.2
1.3
1.3
2.5
2.7
Sustaining capital expenditure
$
17.0
22.4
41.4
39.4
77.2
Total all-in sustaining costs
$
146.0
139.4
141.7
285.4
273.9
Total all-in sustaining costs per oz
AuEq sold
2
$/oz AuEq
1,260
1,222
1,319
1,241
1,201
1
.
This amount excludes a loss of $0.8 million, loss of $4.2 million and gain of $1.8 million for the three months ended June 30, 2024, March 31,
2024, and June 30, 2023, respectively, and a loss of $5.0 million and loss of $1.8 million for the six months ended June 30, 2024 and June
30, 2023, respectively, in relation to the remeasurement of share-based payments. This amount also excludes corporate depreciation and
amortization expenses totalling $nil, $0.1 million and $nil for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023,
respectively, $0.1 million and $0.1 million for the six months ended June 30, 2024 and June 30, 2023, respectively, within general and
administrative costs. Included in general and administrative costs is share-based compensation expense in the amount of $1.6 million or
$14/oz ($14/oz AuEq) for the three months ended June 30, 2024, $2.3 million or $21/oz ($20/oz AuEq) for the three months ended March 31,
2024, $1.2 million or $11/oz ($11/oz AuEq) for the three months ended June 30, 2023, $3.9 million or $17/oz ($17/oz AuEq) for the six
months ended June 30, 2024 and $3.1 million or $14/oz ($14/oz AuEq) for the six months ended June 30, 2023. This amount excludes other
expenses totalling $2.1 million, $1.2 million and $1.6 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023,
respectively, and $3.3 million and $2.2 million for the six months ended June 30, 2024 and June 30, 2023, respectively.
2
.
Gold equivalent ounces produced and sold includes 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 "Gold Equivalent Reporting" on page 7 of the Company's MD&A for the
relevant average market prices by commodity.
Table 3: Reconciliation of Sustaining and Non-Sustaining Costs to Capital Expenditures
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
In millions of U.S. dollars
2024
2024
2023
2024
2023
Sustaining
$
16.4
21.6
19.5
38.0
34.1
Capitalized Stripping (Sustaining)
$
0.6
0.8
21.9
1.4
43.1
Non-sustaining
$
-
-
0.4
-
1.1
Total ELG
$
17.0
22.4
41.8
39.4
78.3
Media Luna Project
1
$
108.2
126.4
77.2
234.6
143.6
Media Luna Cluster Drilling/Other
$
1.9
1.3
4.9
3.2
8.0
Working Capital Changes & Other
$
28.4
(24.0
)
0.6
4.4
(5.7
)
Capital expenditures
2
$
155.5
126.1
124.5
281.6
224.2
1
.
This amount includes a realized gain (or a reduction in the capitalized expenditures) of $0.5 million, $0.8 million and $nil for the three months
ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively, $1.3 million and $nil for the six months ended June 30, 2024 and
June 30, 2023, 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
Six Months Ended
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
In millions of U.S. dollars, unless otherwise noted
2024
2024
2023
2024
2023
Gold sold
oz
113,513
111,642
105,749
225,155
224,204
Revenue
$
270.3
236.5
211.3
506.8
440.1
Less: Silver sales
$
(1.6
)
(1.5
)
(1.3
)
(3.1
)
(2.8
)
Less: Copper sales
$
(3.8
)
(3.7
)
(2.1
)
(7.5
)
(5.0
)
Less: Realized loss on gold contracts
$
(16.0
)
(5.4
)
(0.6
)
(21.4
)
(0.1
)
Total proceeds
$
248.9
225.9
207.3
474.8
432.2
Total average realized gold price
$/oz
2,193
2,023
1,960
2,109
1,928
Less: Total cash costs
$/oz
1,014
918
848
966
775
Total cash costs margin
$/oz
1,179
1,105
1,112
1,143
1,153
Total cash costs margin
%
54
55
57
54
60
Gold equivalent sold
1
oz AuEq
115,890
114,106
107,446
229,996
228,096
Revenue
$
270.3
236.5
211.3
506.8
440.1
Less: Realized loss on gold contracts
$
(16.0
)
(5.4
)
(0.6
)
(21.4
)
(0.1
)
Total proceeds
$
254.3
231.1
210.7
485.4
440.0
Total average realized gold price
/oz AuEq
2,193
2,023
1,960
2,109
1,928
Less: Total cash costs
1
$/oz AuEq
1,040
944
866
992
796
Total cash costs margin
1
$/oz AuEq
1,153
1,079
1,094
1,117
1,132
Total cash costs margin
%
53
53
56
53
59
1
.
Gold equivalent ounces produced and sold includes 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 "Gold Equivalent Reporting" on page 7 of the Company's MD&A for the
relevant average market prices by commodity.
Table 5: Reconciliation of All-in Sustaining Costs Margin to Revenue
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
In millions of U.S. dollars, unless otherwise noted
2024
2024
2023
2024
2023
Gold sold
oz
113,513
111,642
105,749
225,155
224,204
Revenue
$
270.3
236.5
211.3
506.8
440.1
Less: Silver sales
$
(1.6
)
(1.5
)
(1.3
)
(3.1
)
(2.8
)
Less: Copper sales
$
(3.8
)
(3.7
)
(2.1
)
(7.5
)
(5.0
)
Less: Realized loss on gold contracts
$
(16.0
)
(5.4
)
(0.6
)
(21.4
)
(0.1
)
Less: All-in sustaining costs
$
(140.6
)
(134.2
)
(138.3
)
(274.8
)
(266.1
)
All-in sustaining costs margin
$
108.3
91.7
69.0
200.0
166.1
Total average realized gold price
$/oz
2,193
2,023
1,960
2,109
1,928
Total all-in sustaining costs margin
$/oz
954
821
652
889
741
Total all-in sustaining costs margin
%
44
41
33
42
38
Gold equivalent sold
1
oz AuEq
115,890
114,106
107,446
229,996
228,096
Revenue
$
270.3
236.5
211.3
506.8
440.1
Less: Realized loss on gold contracts
$
(16.0
)
(5.4
)
(0.6
)
(21.4
)
(0.1
)
Less: All-in sustaining costs
$
(146.0
)
(139.4
)
(141.7
)
(285.4
)
(273.9
)
All-in sustaining costs margin
$
108.3
91.7
69.0
200.0
166.1
Total average realized gold price
$/oz AuEq
2,193
2,023
1,960
2,109
1,928
Total all-in sustaining costs margin
1
$/oz AuEq
933
801
641
868
727
Total all-in sustaining costs margin
%
43
40
33
41
38
1
.
Gold equivalent ounces produced and sold includes 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 "Gold Equivalent Reporting" on page 7 of the Company's MD&A for the
relevant average market prices by commodity.
Table 6: Reconciliation of Adjusted Net Earnings to Net Income
Three Months Ended
Six Months Ended
In millions of U.S. dollars, unless
otherwise noted
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
2024
2024
2023
2024
2023
Basic weighted average shares outstanding
shares
85,984,756
85,949,559
85,884,895
85,967,157
85,877,128
Diluted weighted average shares outstanding
shares
86,888,359
86,499,360
86,565,950
86,664,299
86,464,387
Net income
$
1.9
43.1
75.3
45.0
143.5
Adjustments:
Unrealized foreign exchange loss (gain)
$
2.5
(0.6
)
(2.5
)
1.9
(3.0
)
Unrealized (gain) loss on derivative contracts
$
(5.4
)
11.6
(15.3
)
6.2
11.8
Remeasurement of share-based payments
$
0.8
4.2
(1.8
)
5.0
1.8
Derecognition of provisions for uncertain tax
positions
$
-
(12.1
)
-
(12.1
)
(15.2
)
Tax effect of above adjustments
$
0.8
(3.3
)
5.9
(2.5
)
(3.1
)
Tax effect of currency translation on tax base
$
51.8
(7.0
)
(23.7
)
44.8
(47.6
)
Adjusted net earnings
$
52.4
35.9
37.9
88.3
88.2
Per share - Basic
$/share
0.61
0.42
0.44
1.03
1.03
Per share - Diluted
$/share
0.60
0.42
0.44
1.02
1.02
Table 7: Reconciliation of EBITDA and Adjusted EBITDA to Net Income
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
In millions of U.S. dollars
2024
2024
2023
2024
2023
Net income
$
1.9
43.1
75.3
45.0
143.5
Finance income, net
$
(1.0
)
(1.7
)
(3.2
)
(2.7
)
(6.2
)
Depreciation and amortization
1
$
45.9
49.8
45.0
95.7
94.1
Current income tax expense
$
25.1
26.2
18.6
51.3
35.4
Deferred income tax expense (recovery)
$
51.4
(19.4
)
(10.4
)
32.0
(39.0
)
EBITDA
$
123.3
98.0
125.3
221.3
227.8
Adjustments:
Unrealized (gain) loss on derivative contracts
$
(5.4
)
11.6
(15.3
)
6.2
11.8
Unrealized foreign exchange loss (gain)
$
2.5
(0.6
)
(2.5
)
1.9
(3.0
)
Remeasurement of share-based payments
$
0.8
4.2
(1.8
)
5.0
1.8
Adjusted EBITDA
$
121.2
113.2
105.7
234.4
238.4
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
Six Months Ended
Jun 30,
Mar 31,
Jun 30,
Jun 30,
Jun 30,
In millions of U.S. dollars
2024
2024
2023
2024
2023
Net cash generated from operating activities
$
97.4
79.8
89.6
177.2
136.6
Less:
Additions to property, plant and equipment
1
$
(155.5
)
(126.1
)
(124.5
)
(281.6
)
(224.2
)
Lease payments
$
(1.8
)
(1.4
)
(1.4
)
(3.2
)
(2.2
)
Interest and other borrowing costs paid
2
$
(2.4
)
(1.4
)
(1.1
)
(3.8
)
(1.6
)
Free cash flow
$
(62.3
)
(49.1
)
(37.4
)
(111.4
)
(91.4
)
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
Jun 30,
Mar 31,
Dec 31,
Jun 30,
In millions of U.S. dollars
2024
2024
2023
2023
Cash and cash equivalents
$
108.7
113.2
172.8
285.3
Less:
Debt
$
(53.9
)
-
-
-
Lease-related obligations
$
(59.0
)
(44.0
)
(32.0
)
(11.5
)
Deferred finance charges
$
(1.1
)
-
-
-
Net (debt) cash
$
(5.3
)
69.2
140.8
273.8
Table 10: Reconciliation of Available Liquidity to Cash and Cash Equivalents
Jun 30,
Mar 31,
Dec 31,
Jun 30,
In millions of U.S. dollars
2024
2024
2023
2023
Cash and cash equivalents
$
108.7
113.2
172.8
285.3
Add: Available credit of the Debt Facility
$
237.1
292.1
292.1
242.1
Available liquidity
$
345.8
405.3
464.9
527.4
Table 11: Reconciliation of Unit Cost Measures to Production Costs
Three Months Ended
Six Months Ended
In millions of U.S. dollars, unless
otherwise noted
Jun 30,
2024
Mar 31,
2024
Jun 30,
2023
Jun 30,
2024
Jun 30,
2023
Gold sold (oz)
113,513
111,642
105,749
225,155
224,204
Tonnes mined - open pit (kt)
8,669
8,981
11,768
17,650
21,121
Tonnes mined - underground (kt)
195
168
174
363
330
Tonnes processed (kt)
1,202
1,194
1,210
2,396
2,386