TXG.TO · 2024-11-06 12:00:00

Torex Gold Reports Q3 2024 Results Solid financial performance and robust cash generation driven by an all-in sustaining costs margin of 52%

Financials

Torex Gold Reports Q3 2024 Results

Solid financial performance and robust cash generation

driven by an all-in sustaining costs margin of 52%

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

Toronto, Ontario--(Newsfile Corp. - November 6, 2024) - 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, 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:

"Torex delivered a strong financial result during Q3 2024 with an all-in sustaining costs margin

of 52%,

driven by a record quarterly average realized gold price

of $2,313 per ounce and all-in sustaining

costs

of $1,101 per ounce of gold sold. The robust margins combined with the strong operational

performance resulted in $113 million of cash generation prior to spending $114 million on the Media

Luna Project. As a result, we exited the quarter with available liquidity

of $347 million (including $115

million cash), consistent with the previous quarter, which positions us comfortably to cover the $111

million remaining to be spent on the Project.

"The Media Luna Project is nearing completion, with tie-ins and upgrades to the processing plant now

scheduled for February 2025. The new schedule will allow us to deliver increased production in 2024,

potentially reduce the planned tie-in period to less than four weeks and support de-risking of the plant

commissioning and ramp-up. With underground development ahead of plan and commissioning of the

Guajes conveyor imminent, the Company will continue with an aggressive underground development

program in 2025, with the intent of de-risking and accelerating the ramp-up of underground mining.

"Overall, we are well on track to pivot back to positive free cash flow in mid-2025. The strong financial

footing will allow Torex to invest more in exploration and drilling in 2025, commence development of

EPO, repay the modest level of debt taken on to fund Media Luna, consider avenues to return capital to

shareholders, and pursue our disciplined growth strategy."

These measures are non-GAAP financial measures. Refer to footnote 2 under the section "Third Quarter 2024 Highlights" and Tables 2 to 11

of this press release 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.

THIRD QUARTER 2024 HIGHLIGHTS

Safety performance:

In August, a fatal injury occurred involving a contractor worker within the

Guajes Tunnel while conducting work on the overhead conveyor associated with the Media Luna

Project. The Company completed an investigation and is taking actions to prevent a similar

incident from ever occurring in the future. There were no other lost-time injuries in the quarter and

as at September 30, 2024, the lost-time injury frequency ("LTIF") for the Morelos Complex was

0.28 per million hours worked for both employees and contractors on a rolling 12-month basis.

Gold production:

Delivered gold production of 119,412 ounces ("oz") for the quarter (YTD -

348,728 oz), benefiting from the impact of higher average gold grade of ore processed of 3.47

grams per tonne ("gpt") (YTD - 3.32 gpt), with an average gold recovery of 90.7% (YTD - 90.6%),

and throughput averaging 12,889 tpd (YTD - 13,073 tpd). On a gold equivalent ounce basis ("oz

AuEq"), the Company produced 122,525 oz AuEq

for the quarter (YTD - 356,115 oz AuEq

). With

the plant tie-in as part of the Media Luna Project rescheduled from the fourth quarter of 2024 to the

first quarter of 2025, 2024 production guidance has been updated to 450,000 to 470,000 oz

(460,000 to 480,000 oz AuEq), from 400,000 to 450,000 oz (410,000 to 460,000 oz AuEq)

previously.

Gold sold:

Sold 122,130 oz of gold (YTD - 347,285 oz) at a record quarterly average realized

gold price

of $2,313 per oz (YTD - $2,181 per oz), contributing to record quarterly revenue of

$313.7 million (YTD - $820.5 million). On a gold equivalent ounce basis, the Company sold

125,414 oz AuEq

for the quarter (YTD - 355,410 oz AuEq

). The average realized gold price in

the third quarter of 2024 includes a realized loss of $22.8 million or $187 per oz (YTD - $44.2

million or $127 per oz) on gold forward contracts.

Total cash costs

and all-in sustaining costs

Total cash costs were $926 per oz sold (YTD -

$952 per oz sold) and all-in sustaining costs were $1,101 per oz sold (YTD - $1,179 per oz sold).

All-in sustaining costs margin

were $1,212 per oz sold (YTD - $1,002 per oz sold), implying an all-

in sustaining costs margin

of 52% (YTD - 46%). Cost of sales was $170.1 million (YTD - $493.8

million) or $1,393 per oz sold in the quarter (YTD - $1,422 per oz sold). The Company expects to

be near 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

given the $281 per oz increase in average realized gold price relative to guidance (assumed a

gold price of $1,900 per oz) resulting in increased Mexican profit sharing (year-to-date 2024

impact of $28 per oz) and royalties (year-to-date 2024 impact of $12 per oz), as well as higher

consumption of cyanide within the process plant. On a gold equivalent ounce basis, total cash

costs were $969 per oz AuEq sold

(YTD - $984 per oz AuEq sold

) and all-in sustaining costs

were $1,139 per oz AuEq sold

(YTD - $1,205 per oz AuEq sold

) relative to guidance of $900 to

$950 per oz AuEq sold

and $1,130 to $1,190 per oz AuEq sold

, respectively.

Net income and adjusted net earnings

Reported net income of $29.2 million or earnings of

$0.34 per share on both a basic and diluted basis (YTD - $74.2 million, or $0.86 per share on both

a basic and diluted basis). Adjusted net earnings of $65.5 million or $0.76 per share on a basic

basis and $0.75 per share on a diluted basis (YTD - $153.8 million, or $1.79 per share on a basic

basis and $1.77 per share on a diluted basis). Net income includes a net derivative loss of $16.2

million (YTD - $42.5 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 third 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 January 2025 and

December 2025 for a total notional value of $72.0 million. Subsequent to September 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 $12.0 million.

EBITDA

and adjusted EBITDA

Generated EBITDA of $155.3 million (YTD - $376.6 million)

and adjusted EBITDA of $152.4 million (YTD - $386.8 million).

Cash flow generation:

Net cash generated from operating activities totalled $149.5 million (YTD

- $326.7 million) and $137.6 million (YTD - $322.6 million) before changes in non-cash operating

working capital, including income taxes paid of $17.6 million (YTD - $71.7 million). Negative free

cash flow

of $0.7 million (YTD - $112.1 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 $113.9 million (YTD - $348.5 million) invested in the Media Luna Project.

Strong financial liquidity:

As previously announced, 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 added a $150.0 million accordion feature which is

available at the discretion of the lenders. The quarter closed with $346.6 million in available

liquidity

, including $114.5 million in cash and $232.1 million available on the credit facilities of

$300.0 million, net of borrowings of $60.0 million and letters of credit outstanding of $7.9 million.

Media Luna Project:

As of September 30, 2024, physical progress on the Project was

approximately 87%, with engineering now concluded, procurement down to final deliveries,

underground development ahead of schedule, and underground and surface construction

advancing. Installation of the Guajes conveyor is almost complete, with commissioning expected

imminently. Based on the current schedule related to critical electrical equipment delivery, the tie-in

period for the processing plant has been rescheduled to commence in February 2025, with first

copper concentrate production in the first quarter of 2025. The updated schedule enables the

project team to undertake advance testing on key processing systems outside of the plant tie-in,

with a view to potentially reducing the downtime period to less than four weeks. During the quarter,

Media Luna Project expenditures totalled $113.9 million (YTD - $348.5 million), with remaining

project spend of $110.5 million. For the full year, Media Luna Project spend is expected to be

within the guidance range of $430.0 and $450.0 million.

EPO Underground Mineral Reserves

3,4

In September, the Company reported an updated life-

of-mine plan for the Morelos Complex, which incorporates the EPO underground deposit following

completion of an internal pre-feasibility study. The EPO deposit hosts a probable reserve of 5,029

thousand tonnes ("kt") at an average AuEq grade of 4.83 grams per tonne ("gpt") for a total of 781

koz AuEq

. Mineral reserves include 367 koz Au (2.27 gpt), 4,820 koz Ag (29.8 gpt), and 143 Mlb

Cu (1.29%). Mineral reserves for EPO are based on year-end 2023 indicated resources of 1,153

koz AuEq

(6,979 kt at 5.14 gpt AuEq).

Appointment of New Director:

The Company announced the appointment of Caroline Donally

CA(SA) to the Board of Directors effective October 1, 2024. Ms. Donally is an experienced

executive and director with a proven track record of value creation in the mining sector. She brings

highly specialized commercial and financial skills to the Board, having gained more than 25 years

of experience in commerce and finance including areas of private equity, financing, accounting,

M&A, tax, and treasury.

ESG Performance, Disclosure and Reporting Standards:

The Company received full

certification from the International Cyanide Management Institute (ICMI) in October following the

completion of an audit for the International Cyanide Management Code (ICMC) during the second

quarter of 2024 confirming full compliance. The Company also published its Year 3 Conformance

Report outlining compliance with the World Gold Council Responsible Gold Mining Principles

(RGMPs).

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 "Gold Equivalent Reporting" on page 6 of the Company' s management's

discussion and analysis ("MD&A") for the three and nine months ended September 30, 2024, dated November 5, 2024, for the relevant average

market prices by commodity and "Guidance" on page 7 of the Company's MD&A for 2024 guidance assumptions.

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

and nine months ended September 30, 2024, dated November 5, 2024. The MD&A and the Company's unaudited condensed consolidated interim

financial statements for the three and nine months ended September 30, 2024, are available on Torex's website (

www.torexgold.com

) and

under the Company's SEDAR+ profile (

www.sedarplus.ca

For more information on EPO Underground mineral reserves, see the Company's news release titled "Torex Gold Integrates EPO Deposit Into

Morelos Mine Plan" issued on September 4, 2024, and filed on SEDAR+ at

www.sedarplus.ca

and on the Company's website at

www.torexgold.com

Mineral reserve and mineral resource estimates for the Morelos Complex can be found in tables 12 and 13, respectively, of this news 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 news release titled "Torex Gold

Integrates EPO Deposit Into Morelos Mine Plan" issued on September 4, 2024, and filed on SEDAR+ at

www.sedarplus.ca

and on the Company's

website at

www.torexgold.com

The gold equivalent grade calculation used is as follows: AuEq (gpt) = Au (gpt) + Ag (gpt) * (0.0124) + Cu (%) * (1.6920) and uses the metal

prices ($1,500/ oz gold ("Au"), $19/oz silver ("Ag") and $3.50/lb copper ("Cu")) and the metallurgical recoveries (87% Au, 85% Ag, and 92% Cu)

as reported for EPO Underground mineral reserves effective June 30, 2024.

The gold equivalent grade calculation used is as follows: AuEq (gpt) = Au (gpt) + (Ag (gpt) * 0.0130) + (Cu (%) * 1.6480) and uses the same

metal prices ($1,650/oz gold ("Au"), $22/oz silver ("Ag") and $3.75/lb copper ("Cu")) and the metallurgical recoveries (87% Au, 85% Ag, and

92% Cu) as reported for EPO Underground mineral resources effective December 31, 2023.

CONFERENCE CALL AND WEBCAST DETAILS

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

discuss the third 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 1: Operating and Financial Highlights

Three Months Ended

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

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

2024

2023

2024

2023

Safety

Lost-time injury frequency

/million

hours

0.28

0.22

0.47

0.28

0.47

Total recordable injury frequency

/million

hours

1.46

1.44

1.24

1.46

1.24

Operating Results - Gold only basis

Gold produced

119,412

113,822

85,360

348,728

315,785

Gold sold

122,130

113,513

81,752

347,285

305,956

Total cash costs

$/oz

926

1,014

1,086

952

858

All-in sustaining costs

$/oz

1,101

1,239

1,450

1,179

1,257

Average realized gold price

$/oz

2,313

2,193

1,944

2,181

1,932

Operating Results - Gold Equivalent basis

Gold equivalent produced

AuEq

122,525

116,350

86,318

356,115

319,987

Gold equivalent sold

AuEq

125,414

115,890

83,297

355,410

311,393

Total cash costs

2,3

$/oz

AuEq

969

1,040

1,100

984

877

All-in sustaining costs

2,3

$/oz

AuEq

1,139

1,260

1,456

1,205

1,269

Financial Results

Revenue

313.7

270.3

160.1

820.5

600.2

Cost of sales

170.1

166.3

133.0

493.8

408.5

Earnings from mine operations

143.6

104.0

27.1

326.7

191.7

Net income

29.2

1.9

10.5

74.2

154.0

Per share - Basic

$/share

0.34

0.02

0.12

0.86

1.79

Per share - Diluted

$/share

0.34

0.02

0.09

0.86

1.77

Adjusted net earnings

65.5

52.4

11.1

153.8

99.3

Per share - Basic

$/share

0.76

0.61

0.13

1.79

1.16

Per share - Diluted

$/share

0.75

0.60

0.13

1.77

1.15

EBITDA

155.3

123.3

79.4

376.6

307.2

Adjusted EBITDA

152.4

121.2

61.2

386.8

299.6

Cost of sales - gold only basis

$/oz

1,393

1,465

1,627

1,422

1,335

Net cash generated from operating activities

149.5

97.4

44.2

326.7

180.8

Net cash generated from operating activities

before changes in non-cash operating working

capital

137.6

112.5

52.6

322.6

207.3

Free cash flow

(0.7

)

(62.3

)

(69.7

)

(112.1

)

(161.1

)

Cash and cash equivalents

114.5

108.7

209.4

114.5

209.4

Debt, net of deferred finance charges

57.7

53.9

57.7

Lease-related obligations

69.4

59.0

21.1

69.4

21.1

Net (debt) cash

(14.9

)

(5.3

)

188.3

(14.9

)

188.3

Available liquidity

346.6

345.8

501.5

346.6

501.5

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

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 nine months ended September 30, 2024,

dated November 5, 2024. The MD&A and the Company's unaudited condensed consolidated interim financial statements for the three and nine

months ended September 30, 2024, are available on Torex's website (

www.torexgold.com

) and under the Company's SEDAR+ profile

(

www.sedarplus.ca

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 "Gold Equivalent Reporting" on page 6 of the Company's MD&A for the

relevant average market prices by commodity.

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

and Royalties

Three Months Ended

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

In millions of U.S. dollars, unless otherwise

noted

2024

2023

2024

2023

Gold sold

122,130

113,513

81,752

347,285

305,956

Total cash costs per oz sold

Production costs

112.9

113.0

86.8

326.7

255.0

Royalties

8.6

7.5

4.8

23.0

18.1

Less: Silver sales

(2.2

)

(1.6

)

(1.0

)

(5.3

)

(3.8

)

Less: Copper sales

(6.2

)

(3.8

)

(1.8

)

(13.7

)

(6.8

)

Total cash costs

113.1

115.1

88.8

330.7

262.5

Total cash costs per oz sold

$/oz

926

1,014

1,086

952

858

All-in sustaining costs per oz sold

Total cash costs

113.1

115.1

88.8

330.7

262.5

General and administrative costs

8.8

7.3

6.2

24.1

18.7

Reclamation and remediation costs

1.0

1.2

1.1

3.5

3.8

Sustaining capital expenditure

11.6

17.0

22.4

51.0

99.6

Total all-in sustaining costs

134.5

140.6

118.5

409.3

384.6

Total all-in sustaining costs per oz

sold

$/oz

1,101

1,239

1,450

1,179

1,257

Gold equivalent sold

oz AuEq

125,414

115,890

83,297

355,410

311,393

Total cash costs per oz AuEq sold

Production costs

112.9

113.0

86.8

326.7

255.0

Royalties

8.6

7.5

4.8

23.0

18.1

Total cash costs

121.5

120.5

91.6

349.7

273.1

Total cash costs per oz AuEq sold

$/oz

AuEq

969

1,040

1,100

984

877

All-in sustaining costs per oz

AuEq sold

Total cash costs

121.5

120.5

91.6

349.7

273.1

General and administrative costs

8.8

7.3

6.2

24.1

18.7

Reclamation and remediation costs

1.0

1.2

1.1

3.5

3.8

Sustaining capital expenditure

11.6

17.0

22.4

51.0

99.6

Total all-in sustaining costs

142.9

146.0

121.3

428.3

395.2

Total all-in sustaining costs per oz

AuEq sold

$/oz

AuEq

1,139

1,260

1,456

1,205

1,269

This amount excludes a loss of $3.9 million, loss of $0.8 million and gain of $3.1 million for the three months ended September 30, 2024, June

30, 2024, and September 30, 2023, respectively, and a loss of $8.9 million and gain of $1.3 million for the nine months ended September 30, 2024

and September 30, 2023, respectively, in relation to the remeasurement of share-based payments. This amount also excludes corporate

depreciation and amortization expenses totalling $nil, $nil and $0.1 million for the three months ended September 30, 2024, June 30, 2024, and

September 30, 2023, respectively, $0.1 million and $0.2 million for the nine months ended September 30, 2024 and September 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 $13/oz ($13/oz AuEq) for the three months ended September 30, 2024, $1.6 million or $14/oz ($14/oz AuEq) for the

three months ended June 30, 2024, $1.2 million or $15/oz ($14/oz AuEq) for the three months ended September 30, 2023, $5.5 million or $16/oz

($15/ oz AuEq) for the nine months ended September 30, 2024 and $4.3 million or $14/oz ($14/oz AuEq) for the nine months ended September

30, 2023. This amount excludes other expenses totalling $2.4 million, $2.1 million and $2.4 million for the three months ended September 30, 2024,

June 30, 2024, and September 30, 2023, respectively, and $5.7 million and $4.6 million for the nine months ended September 30, 2024 and

September 30, 2023, respectively.

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 "Gold Equivalent Reporting" on page 6 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

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

In millions of U.S. dollars

2024

2023

2024

2023

Sustaining

11.6

16.4

16.5

49.6

50.6

Capitalized Stripping (Sustaining)

0.6

5.9

1.4

49.0

Non-sustaining

0.8

1.9

Total ELG

11.6

17.0

23.2

51.0

101.5

Media Luna Project

113.9

108.2

98.7

348.5

242.3

Media Luna Cluster Drilling

4.4

1.9

4.2

7.6

12.2

Working Capital Changes & Other

14.4

28.4

(13.7

)

18.8

(19.4

)

Capital expenditures

144.3

155.5

112.4

425.9

336.6

This amount includes a realized gain (or a reduction in the capitalized expenditures) of $0.1 million, $0.5 million and $nil for the three months

ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively, $1.4 million and $nil for the nine months ended September 30,

2024 and September 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.

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

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

In millions of U.S. dollars, unless otherwise

noted

2024

2023

2024

2023

Gold sold

122,130

113,513

81,752

347,285

305,956

Revenue

313.7

270.3

160.1

820.5

600.2

Less: Silver sales

(2.2

)

(1.6

)

(1.0

)

(5.3

)

(3.8

)

Less: Copper sales

(6.2

)

(3.8

)

(1.8

)

(13.7

)

(6.8

)

Less: Realized (loss) gain on gold contracts

(22.8

)

(16.0

)

1.6

(44.2

)

1.5

Total proceeds

282.5

248.9

158.9

757.3

591.1

Total average realized gold price

$/oz

2,313

2,193

1,944

2,181

1,932

Less: Total cash costs

$/oz

926

1,014

1,086

952

858

Total cash costs margin

$/oz

1,387

1,179

858

1,229

1,074

Total cash costs margin

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

Three Months Ended

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

In millions of U.S. dollars, unless otherwise

noted

2024

2023

2024

2023

Gold sold

122,130

113,513

81,752

347,285

305,956

Revenue

313.7

270.3

160.1

820.5

600.2

Less: Silver sales

(2.2

)

(1.6

)

(1.0

)

(5.3

)

(3.8

)

Less: Copper sales

(6.2

)

(3.8

)

(1.8

)

(13.7

)

(6.8

)

Less: Realized (loss) gain on gold contracts

(22.8

)

(16.0

)

1.6

(44.2

)

1.5

Less: All-in sustaining costs

(134.5

)

(140.6

)

(118.5

)

(409.3

)

(384.6

)

All-in sustaining costs margin

148.0

108.3

40.4

348.0

206.5

Total average realized gold price

$/oz

2,313

2,193

1,944

2,181

1,932

Total all-in sustaining costs margin

$/oz

1,212

954

494

1,002

675

Total all-in sustaining costs margin

Table 6: Reconciliation of Adjusted Net Earnings to Net Income

Three Months Ended

Nine Months Ended

In millions of U.S. dollars, unless otherwise

noted

Sep 30,

Jun 30,

Sep 30,

2024

2023

2024

2023

Basic weighted average shares outstanding

85,986,516

85,984,756

85,885,453

85,973,657

85,879,934

Diluted weighted average shares outstanding

87,071,146

86,888,359

86,401,220

86,725,279

86,409,988

Net income

29.2

1.9

10.5

74.2

154.0

Adjustments:

Unrealized foreign exchange (gain) loss

(0.3

)

2.5

1.4

1.6

(1.6

)

Unrealized gain on derivative contracts

(6.5

)

(5.4

)

(16.5

)

(0.3

)

(4.7

)

Loss (gain) on remeasurement of share-based

payments

3.9

0.8

(3.1

)

8.9

(1.3

)

Derecognition of provisions for uncertain tax

positions

(12.1

)

(15.2

)

Tax effect of above adjustments

2.1

0.8

5.2

(0.4

)

2.1

Tax effect of currency translation on tax base

37.1

51.8

13.6

81.9

(34.0

)

Adjusted net earnings

65.5

52.4

11.1

153.8

99.3

Per share - Basic

$/share

0.76

0.61

0.13

1.79

1.16

Per share - Diluted

$/share

0.75

0.60

0.13

1.77

1.15

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

Three Months Ended

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

In millions of U.S. dollars

2024

2023

2024

2023

Net income

29.2

1.9

10.5

74.2

154.0

Finance income, net

(0.3

)

(1.0

)

(2.0

)

(3.0

)

(8.2

)

Depreciation and amortization

48.6

45.9

41.5

144.3

135.6

Current income tax expense

55.4

25.1

12.1

106.7

47.5

Deferred income tax expense (recovery)

22.4

51.4

17.3

54.4

(21.7

)

EBITDA

155.3

123.3

79.4

376.6

307.2

Adjustments:

Unrealized gain on derivative contracts

(6.5

)

(5.4

)

(16.5

)

(0.3

)

(4.7

)

Unrealized foreign exchange (gain) loss

(0.3

)

2.5

1.4

1.6

(1.6

)

Loss (gain) on remeasurement of share-based

payments

3.9

0.8

(3.1

)

8.9

(1.3

)

Adjusted EBITDA

152.4

121.2

61.2

386.8

299.6

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

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

In millions of U.S. dollars

2024

2023

2024

2023

Net cash generated from operating activities

149.5

97.4

44.2

326.7

180.8

Less:

Additions to property, plant and equipment

(144.3)

(155.5

)

(112.4

)

(425.9

)

(336.6

)

Lease payments

(2.5)

(1.8

)

(1.0

)

(5.7

)

(3.2

)

Interest and other borrowing costs paid

(3.4)

(2.4

)

(0.5

)

(7.2

)

(2.1

)

Free cash flow

(0.7)

(62.3

)

(69.7

)

(112.1

)

(161.1

)

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.

Including borrowing costs capitalized to property, plant and equipment.

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

Sep 30,

Jun 30,

Dec 31,

Sep 30,

In millions of U.S. dollars

2024

2023

Cash and cash equivalents

114.5

108.7

172.8

209.4

Less:

Debt

(57.7

)

(53.9

)

Lease-related obligations

(69.4

)

(59.0

)

(32.0

)

(21.1

)

Deferred finance charges

(2.3

)

(1.1

)

Net (debt) cash

(14.9

)

(5.3

)

140.8

188.3

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

Sep 30,

Jun 30,

Dec 31,

Sep 30,

In millions of U.S. dollars

2024

2023

Cash and cash equivalents

114.5

108.7

172.8

209.4

Add: Available credit of the Debt Facility

232.1

237.1

292.1

Available liquidity

346.6

345.8

464.9

501.5

Table 11: Reconciliation of Unit Cost Measures to Production Costs

Three Months Ended

Nine Months Ended

In millions of U.S. dollars,

unless

otherwise noted

Sep 30,

2024

Jun 30,

2024

Sep 30,

2023

Sep 30,

2024

Sep 30,

2023

Gold sold (oz)

122,130

113,513

81,752

347,285

305,956

Tonnes mined - open pit (kt)

5,838

8,669

11,157

23,488

32,279

Tonnes mined - underground

(kt)

196

195

214

559

544

Tonnes processed (kt)

1,186

1,202

1,206

3,582

3,592

Total cash costs:

Total cash costs ($)

113.1

115.1

88.8

330.7

262.5

Total cash costs per oz sold

($)

926

1,014

1,086

952

858

Breakdown of production

costs

$/t

Mining - open pit

25.2

4.32

31.9

3.69

33.4

2.99

88.7

3.78

93.9

2.91

Mining - underground

18.3

93.21

16.8

86.18

17.0

79.61

48.9

87.49

43.9

80.70

Processing

48.7

41.13

46.0

38.19

39.8

32.96

137.2

38.31

122.5

34.10

Site support

14.3

12.06

14.4

11.98

13.9

11.51

43.0

12.00

40.3

11.21

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