TOREX GOLD REPORTS Q3 2021 FINANCIAL RESULTS On Track to Achieve Full Year Guidance; Cash Balance Increased to More Than $220 Million
For Immediate Release
TOREX GOLD REPORTS Q3 2021 FINANCIAL RESULTS
On Track to Achieve Full Year Guidance; Cash Balance Increased to More Than $220 Million
(All amounts expressed in U.S. Dollars unless otherwise stated)
TORONTO, Ontario, November 3, 2021 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
reports the Company’s financial and operational results for the three and nine months ended September 30,
2021.
Jody Kuzenko, President & CEO of Torex, stated:
“Our solid operational perf ormance in Q3 resulted in a strong financial result , with adjusted EBITDA of
$119.3 million and free cash flow of $29.4 million. The Company’s quarter-end cash balance increased from
$196.0 million at the end of June to $221.6 million at the end of September. The focus on delivering consistent
production in a safe manner continued with no lost time injuries during the quarter , and our employee and
contractor workforce now sits at 3.75 million hours lost time injury free.
“As a result of the reliable performance achieved so far this year, we are tracking very well against our 2021
operational guidance. With a similar level of production to Q3 anticipated in Q4 , we expect full year gold
production to come in at the upper end of the guidance range of 430,000 to 470,000 ounces . Total cash costs
for the full year are expected to be toward the mid-point of the guided range of $680 to $720 per ounce . All-in
sustaining costs are expected to increase in Q4 as a greater amount of waste is capitalized as part of the El
Limón pushback; however, with lower than anticipated waste mined in Q3, all-in sustaining costs for the full year
are expected to be toward the mid-point of the guided range of $920 to $970 per ounce sold.
“Overall, we are executing on the plan we outlined more than a year ago – a plan focused on extending and
optimizing production and cash flow from ELG, advancing and de-risking Media Luna toward first production in
early 2024, as well as strengthening the balance sheet. With more than $220 million in cash on hand and solid
cash generation from ELG forecast through at least mid -2024, we are in a strong financial position to advance
Media Luna and continue to invest in near-mine and regional exploration.”
THIRD QUARTER 2021 HIGHLIGHTS
• Safety performance: No lost time injuries during the quarter; exited the quarter with a LTIF of 0.26 per
1 million hours worked and a TRIF of 2.44 per 1 million hours worked, both on a rolling 12-month basis.
• COVID-19 update: To promote vaccination within the workforce, the Company has partnered with local
health agencies ; by quarter -end 70% of the workforce was partially vaccinated, and 30% fully
vaccinated.
• Gold production: Produced 111,229 ounces of gold (YTD - 358,792 ounces).
• Gold sold: Sold 118,989 ounces of gold (YTD – 359,432 ounces) at an average realized price of $1,786
per ounce (YTD - $1,792 per ounce).
• Total cash costs1 and all-in sustaining costs1: Total cash cost of $727 per ounce sold (YTD - $646
per ounce) and all-in sustaining cost of $900 per ounce (YTD - $883 per ounce). All-in sustaining
margin1 of $886 per ounce (YTD - $909 per ounce), implying a margin of 49% relative to the realized
gold price (YTD – 50%).
• Net earnings and adjusted net earnings1: Reported net earnings of $ 36.5 million (YTD - $152.2
million) or $0.43 per share (YTD - $1.78 per share) on a basic basis and $0.41 per share (YTD - $1.72
per share) on a diluted basis. Adjusted net earnings of $42.9 million (YTD - $147.6 million), or $ 0.50
per share on both a basic and diluted basis (YTD - $1.72 per share on both a basic and diluted basis).
• EBITDA1 and adjusted EBITDA 1: Generated EBITDA of $ 119.7 million (YTD - $399.3 million) and
adjusted EBITDA of $119.3 million (YTD - $386.3 million).
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Torex Gold Resources Inc.
• Cash flow from operations: Cash flow from operations for the quarter totalled $8 7.8 million (YTD -
$235.4 million) and $100.2 million prior to changes in non-cash working capital (YTD - $277.8 million),
including income taxes paid of $19.7 million (YTD - $110.2 million).
• Free cash flow 1: Generated $29.4 million (YTD - $60.6 million) in free cash flow which includes an
outflow of $12.4 million related to changes in non-cash working capital (YTD – outflow of $42.4 million).
• Net cash1: Net cash of $ 217.8 million including $ 221.6 million in cash and $ 3.8 million of lease
obligations.
• Capitalized waste guidance revised downwards: Given the lower amount of waste mined during Q3
due to a rock fall incident at the El Limón pit and shutdown of the rope conveyor to carry out necessary
maintenance, capitalized waste guidance has been lowered from $55 to $60 million to $45 to $50 million
(original guidance of $40 to $45 million). All other elements of the Company’s 2021 operational guidance
remain unchanged.
• Technical Report remains on track: The Company’s Technical Report remains on track for release
in the first quarter of 2022. The Technical Report will include updated mine plans for the ELG open pits
and underground as well as the Media Luna Feasibility Study.
• Timing of 2022 operational guidance: Torex plans to release 2022 operational g uidance for ELG
early next year. ELG guidance will include gold production, total cash costs, all-in sustaining costs, as
well as non -sustaining and sustaining capital expenditures . Non -sustaining capital expenditure
guidance specific to Media Luna will be provided when the Company releases an updated Technical
Report later in Q1 2022.
• Completion of World Gold Council Year 1 Responsible Gold Mining Principle s (RGMP)
Requirements: On October 29, the Company released its Year 1 RGMP Implementation Progress
Report, with accompanying limited assurance from KPMG LLP, fulfilling the Year 1 requirements as set
out by the World Gold Council.
CONFERENCE CALL AND WEBCAST DETAILS
The Company will host a conference call today at 9:00 AM (ET) where senior management will discuss the third
quarter 2021 operating and financial results. Please dial in or access the webcast approximately ten minutes
prior to the start of the call:
• Toronto local or International: 1-416-915-3239
• Toll-Free (North America): 1-800-319-4610
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.
1. Refer to “Non-IFRS Financial Performance Measures” in the Company’s September 30, 2021, management’s discussion and analysis (“MD&A”), dated November
2, 2021, for further information and a detailed reconciliation. The MD&A is available on Torex Gold’s website ( www.torexgold.com) and filed on the Company’s
SEDAR profile (www.sedar.com).
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 Gold Property, an area of 29,000 hectares in the highly prospective
Guerrero Gold Belt located 180 kilometers southwest of Mexico City. The Company’s principal assets are the
El Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”) comprising the El Limón, Guajes and El
Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub -Sill and El
Limón Deep (“ELD”), and the processing plant and related infrastructure, which commenced commercial
production as of April 1, 2016, and the Media Luna deposit, which is an advanced stage development project,
and for which the Company issued an updated preliminary economic assessment in September 2018. The
property remains 75% unexplored.
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Torex Gold Resources Inc.
FOR FURTHER INFORMATION, PLEASE CONTACT:
TOREX GOLD RESOURCES INC.
Jody Kuzenko Dan Rollins
President and CEO Vice President, Corporate Development & Investor Relations
Direct: (647) 725-9982 Direct: (647) 260-1503
[email protected] [email protected]
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
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: we are tracking very well against our 2021 operational guidance; with a similar
level of production to Q3 anticipated in Q4, we expect full year gold production to come in at the upper end of the guidance range of 430,000 to 470,000 ounces;
total cash costs for the full year are expected to be toward the mid-point of the guided range of $680 to $720 per ounce; all-in sustaining costs are expected to
increase in Q4 as a greater amount of waste is capitalized as part of the El Limón pushback; however, with lower than anticipated waste mined in Q3, all -in
sustaining costs for the full year are expected to be toward the mid -point of the guided range of $920 to $970 per ounce sold; the Company’s plan focused on
extending and optimizing p roduction and cash flow from ELG, advancing and de -risking Media Luna toward first production in early 2024, as well as
strengthening the balance sheet; we are in a strong financial position to advance Media Luna and continue to invest in near -mine and reg ional exploration;
capitalized waste guidance has been lowered from $55 to $60 million to $45 to $50 million (original guidance of $40 to $45 mi llion); and the Company’s
Technical Report remains on track for release in the first quarter of 2022. Generally, forward-looking information and statements can be identified by the use
of forward-looking terminology such as “plans,” “expects,” or “does not expect,” “is expected,” “estimates,” “guided”, “tracking” or var iations of such words and
phrases or statements that certain actions, events or results “may,” “could,” “would,” “might,” or “will be taken,” or “well positioned to” occur. Forward-looking
information is subject to known and unknown risks, uncertainties and other factors that may cause the actual resu lts, 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 associated with: the risks associated with cost estimation; mineral reserve and mineral resource estimation; uncertainty involving skarn
deposits; the ability of the Company to obtain permits for the Media Luna Project; the ability of the Company to conclude a f easibility study of the Media Lu na
Project that demonstrates within a reasonable confidence that the Media Luna Project can be successfully constructed and oper ated in an economically viable
manner; government or regulatory actions or inactions; and those risk factors identified in the t echnical report (the “2018 Technical Report”) released on
September 4, 2018, entitled “NI 43-101 Technical Report ELG Mine Complex Life of Mine Plan and Media Luna Preliminary Economic Assessment”, which has
an effective date of March 31, 2018, and the Company’s annual information form and management’s discussion and analysis or other unknown but potentially
significant impacts. Notwithstanding the Company's efforts, there can be no guarantee that the Company’s measures to protect employees and surrounding
communities from COVID-19 during this period will be effective. Forward -looking information and statements are based on the assumptions discussed in the
2018 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 n ot 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.
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Torex Gold Resources Inc.
TABLE 1: OPERATING & FINANCIAL HIGHLIGHTS
1. Adjusted net earnings, total cash costs, all-in sustaining costs, all-in sustaining costs margin, average realized gold price, EBITDA, adjusted EBITDA, free cash flow and
net cash (debt) are financial performance measures with no standard meaning under International Financial Reporting Standards (“IFRS”). Refer to “Non-IFRS Financial
Performance Measures” in the MD&A for further information and a detailed reconciliation.
Three Months Ended Nine Months Ended
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
In millions of U.S. dollars, unless otherwise noted 2021 2021 2020 2021 2020
Operating Results
Lost time injury frequency /million hours worked 0.26 0.26 0.00 0.26 0.00
Total recordable injury frequency /million hours worked 2.44 2.83 2.67 2.44 2.67
Gold produced oz 111,229 118,054 131,790 358,792 299,835
Gold sold oz 118,989 111,424 133,036 359,432 304,247
Total cash costs 1 $/oz 727 637 633 646 712
All-in sustaining costs 1 $/oz 900 897 877 883 941
All-in sustaining costs margin 1 $/oz 886 919 1,007 909 796
Average realized gold price 1 $/oz 1,786 1,816 1,884 1,792 1,737
Financial Results
Revenue $ 216.7 205.9 256.5 653.8 537.6
Cost of sales $ 142.6 119.7 153.5 394.2 389.0
Earnings from mine operations $ 74.1 86.2 103.0 259.6 148.6
Net income $ 36.5 60.7 60.3 152.2 17.1
Per share - Basic $/share 0.43 0.71 0.71 1.78 0.20
Per share - Diluted $/share 0.41 0.69 0.69 1.72 0.18
Adjusted net earnings 1 $ 42.9 47.4 51.3 147.6 74.8
Per share - Basic 1 $/share 0.50 0.55 0.60 1.72 0.88
Per share - Diluted 1 $/share 0.50 0.55 0.59 1.72 0.87
EBITDA 1 $ 119.7 126.9 162.9 399.3 247.1
Adjusted EBITDA 1 $ 119.3 122.1 156.2 386.3 272.9
Cost of sales $/oz 1,198 1,074 1,154 1,097 1,279
Cash from operating activities $ 87.8 82.4 173.3 235.4 205.0
Cash from operating activities before
changes in non-cash working capital $ 100.2 98.4 138.1 277.8 188.0
Free cash flow1 $ 29.4 21.9 130.4 60.6 105.1
Net cash 1 $ 217.8 191.5 77.1 217.8 77.1