TXG.TO · 2025-02-19 12:00:00

Torex Gold Reports Q4 and Full Year 2024 Results 2024 marks another solid year of operational and financial results; on track to return to positive free cash flow generation by mid-2025

Financials

Torex Gold Reports Q4 and Full Year 2024

Results

2024 marks another solid year of operational and financial

results; on track to return to positive free cash flow generation

by mid-2025

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

Toronto, Ontario--(Newsfile Corp. - February 19, 2025) - Torex Gold Resources Inc. (the "Company" or

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

year ended December 31, 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:

"2024 marked another year of consistently strong operational results from Morelos. With gold production

of more than 452,000 ounces, we met our annual guidance for the sixth year in a row. The team

continued to deliver new operational firsts, achieving a new annual average gold recovery record of

90.6% at the processing plant and a record annual mining rate from ELG Underground of close to 2,100

tonnes per day. In addition, significant progress was made on the Media Luna Project, with first copper

concentrate production tracking to plan for the end of March and commercial production expected to be

declared shortly thereafter.

"We also set new financial records in 2024. After generating record annual revenue of more than $1.1

billion, our balance sheet remains in excellent condition, with more than $330 million of available

liquidity

including $110 million of cash as of year end. The performance of our operations, supported by

a record realized gold price, resulted in a record annual adjusted EBITDA

of more than $540 million

and a robust all-in sustaining costs margin

of 49%. With only a few months left to go on the Media Luna

Project, we are well-positioned to exit the build with only a modest level of net debt, which will be repaid

quickly when we pivot to positive free cash flow generation mid-year. With an expanded exploration and

drilling program, development activities at EPO on track to commence in the third quarter and an

inaugural return of capital program to be formalized mid-year, 2025 is expected to be yet another

exciting and prosperous year for Torex as we enter the next chapter at Morelos.

"Against the backdrop of this exceptional performance, we will never forget the profound tragedy and

loss we experienced in December with the loss of three of our colleagues. As we continue to look toward

the future, we are more resolved than ever to reset the bar on safety leadership and set the highest

standards of safety performance in the mining industry, just as our shareholders have come to expect."

1. These measures are non-GAAP financial measures. Refer to footnote 3 under the section "Fourth 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.

FULL YEAR 2024 HIGHLIGHTS

Working toward next-level safety:

On December 5th, 2024, a fatal carbon monoxide gas

exposure occurred, which claimed the lives of two employees and one contractor worker at the

ELG Underground. In the wake of the tragedy, all operational and project activities at the Morelos

Property were suspended for just over a week to allow for inspections by the relevant agencies.

The Company also initiated its own internal investigation to determine how, despite multiple levels

of safety controls, such an exposure could have taken place, and to prevent a similar incident from

ever occurring. In addition, 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. As at December 31, 2024, the lost-time injury frequency ("LTIF") for the Morelos Complex

was 0.61 per million hours worked for both employees and contractors on a rolling 12-month basis.

Recognizing the Company's previous excellence in safety performance, in October, the Mexican

Mining Chamber (CAMIMEX) granted Torex the 'Silver Hard Hat Award' in the Open Pit Mining

category (over 500 employees) for the excellent safety record at ELG in 2023.

Production guidance achieved for sixth consecutive year:

Delivered annual gold production

of 452,523 ounces ("oz"), within the upwardly revised

guidance range of 450,000 to 470,000 oz

and above original guidance of 400,000 to 450,000 oz, marking the sixth consecutive year that

production guidance has been achieved. The Company also achieved a record annual average

gold recovery of 90.6% and a record annual mining rate from ELG Underground of 2,092 tonnes

per day ("tpd"). On a gold equivalent ounce basis ("oz AuEq"), the Company produced 461,420 oz

AuEq

for the year, within the revised

guidance range of 460,000 to 480,000 oz AuEq

and

above original guidance of 410,000 to 460,000 oz AuEq

Record annual revenue:

Annual gold sold of 455,932 oz at an annual average realized gold

price

of $2,254 per oz, contributing to record annual revenue of $1,115.5 million. On a gold

equivalent ounce basis, the Company sold 465,829 oz AuEq

for the year. The average realized

gold price in 2024 includes a realized loss of $64.1 million or $141 per oz on gold forward

contracts. In January 2025, the Company entered into gold put options to sell 155,000 oz of gold in

2025 at a strike price of $2,500 per oz. These options provide full upside exposure to the gold

price while providing a floor of $2,500 per oz.

Robust all-in sustaining margins:

Total cash costs

of $940 per oz sold, 3% above the upper

end of the guided range of $860 to $910 per oz sold. All-in sustaining costs

of $1,156 per oz sold,

at the upper end of the guided range of $1,100 to $1,160 per oz sold. Full year costs were

impacted by higher gold prices given the $354 per oz increase in average realized gold price

relative to guidance (guidance based on a gold price of $1,900 per oz) resulting in increased

Mexican profit sharing (year-to-date 2024 impact of $27 per oz) and royalties (year-to-date 2024

impact of $15 per oz), as well as higher consumption of cyanide within the process plant. All-in

sustaining costs margin

of $1,098 per oz sold, implying an all-in sustaining costs margin

of 49%.

Cost of sales was $647.3 million or $1,420 per oz sold. On a gold equivalent ounce basis, total

cash costs were $972 per oz AuEq sold

and all-in sustaining costs were $1,183 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.

Strong profitability and record adjusted EBITDA

Reported net income of $134.6 million, or

earnings of $1.57 per share on a basic basis and $1.55 per share on a diluted basis, significantly

impacted by deferred income tax expense of $66.5 million, largely due to the 20% depreciation of

the Mexican peso, which closed the year at 20.3:1 against the U.S. dollar versus the annual

average of 18.3:1. Adjusted net earnings

of $224.4 million, or $2.61 per share on a basic basis

and $2.58 per share on a diluted basis. Net income includes a net derivative loss of $46.1 million

related to gold forward contracts and foreign exchange collars and forwards entered into to

mitigate downside price risk and capital expenditure risk during the construction of the Media Luna

Project and on operating expenditures in 2025. Generated EBITDA

of $539.4 million and a

record annual adjusted EBITDA

of $541.1 million.

Strong cash flow generation:

Net cash generated from operating activities totalled $449.5

million and $458.9 million before changes in non-cash operating working capital, including income

taxes paid of $89.0 million. Negative free cash flow

of $122.9 million is net of cash outlays for

capital expenditures, lease payments and interest, including borrowing costs capitalized. Negative

free cash flow in 2024 was a direct result of $449.0 million invested in the Media Luna Project.

Strong financial liquidity:

The Company extended the credit facilities with a syndicate of

international banks in the third quarter of 2024, providing a total of $300.0 million through a

revolving credit facility maturing in 2027, and added a $150.0 million accordion feature which is

available at the discretion of the lenders. The year closed with $331.5 million in available liquidity

including $110.2 million in cash and $221.3 million available on the credit facilities of $300.0

million, net of borrowings of $65.0 million and letters of credit outstanding of $13.7 million.

Media Luna Project:

During 2024, $449.0 million was invested in the project, within the revised

annual project guidance of $430.0 to $450.0 million. As of December 31, 2024, physical progress

on the Project was approximately 94%, with engineering concluded, procurement substantially

complete, underground development tracking well ahead of schedule, and surface construction

advancing per plan. First concentrate production is expected at the end of the first quarter of 2025,

and the declaration of commercial production shortly thereafter.

Return of Capital to Shareholders:

In November, the Company received approval from the

Toronto Stock Exchange (the "TSX") of its notice of intention to commence a normal course issuer

bid (the "NCIB"). The Company has not yet repurchased any common shares under the NCIB.

Exploration and Drilling Activities:

In November, the Company announced assay results from

the ongoing 2024 drilling program at EPO

. The results to date support the Company's goal of

expanding resources to the north of the deposit and upgrading Inferred Resources to Indicated

Resources. In December, the Company also announced further assay results from the Company's

2024 drilling program at ELG Underground

. The results to date support the Company's target of

extending the mine life of ELG Underground by identifying new zones of higher-grade

mineralization, expanding resources, and replacing and growing reserves.

Q4 2024 HIGHLIGHTS

Safety performance:

In addition to the fatal incident in December, there were two lost-time

injuries ("LTIs") at the Media Luna Project in the fourth quarter, including a contractor worker who

fell from a walkway under construction, and a second contractor worker who was injured while

carrying out work on the Guajes Tunnel conveyor belt installation.

Gold production:

Delivered gold production of 103,795 oz for the quarter (105,305 oz AuEq

benefiting from an average gold recovery of 90.5% and impacted by the temporary suspension in

December.

Gold sold:

Sold 108,647 oz of gold (110,419 oz AuEq

) at a record average quarterly realized

gold price

of $2,487 per oz, contributing to quarterly revenue of $295.0 million. The average

realized gold price in the fourth quarter of 2024 includes a realized loss of $19.9 million or $183

per oz on gold forward contracts.

Total cash costs

and all-in sustaining costs

Total cash costs of $902 per oz sold ($932 per

oz AuEq sold

) and all-in sustaining costs of $1,085 per oz sold ($1,112 per oz AuEq sold

). All-in

sustaining costs margin

were $1,402 per oz sold, implying an all-in sustaining costs margin

56%. Cost of sales was $153.5 million or $1,413 per oz sold in the quarter

Net income and adjusted net earnings

Reported net income of $60.4 million or earnings of

$0.70 per share on a basic basis and $0.69 per share on a diluted basis. Adjusted net earnings of

$70.6 million or $0.82 per share on a basic basis and $0.81 per share on a diluted basis. Net

income includes a net derivative loss of $3.6 million related to gold forward contracts and foreign

exchange collars and forwards. In the fourth 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 $28.0

million. In the fourth quarter of 2024, the Company also entered into foreign exchange forward

contracts to purchase 924.3 million Mexican pesos ("MXN") for $44.0 million between January

2025 and December 2025 at a weighted average MXN/USD foreign exchange rate of 21.01:1.

EBITDA

and adjusted EBITDA

Generated EBITDA of $162.8 million and adjusted EBITDA of

$154.3 million.

Cash flow generation:

Net cash generated from operating activities totalled $122.8 million and

$136.3 million before changes in non-cash operating working capital, including income taxes paid

of $17.3 million and negative free cash flow

of $10.8 million.

Media Luna Project:

During Q4 2024, $100.5 million was invested in the project.

1. 2024 production guidance was revised to reflect higher production, as disclosed in the Company's MD&A dated November 5, 2024.

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 sections "Gold Equivalent Reporting" for the relevant average market

prices by commodity and "2024 Performance and 2025 Guidance" for 2024 guidance assumptions in the Company's MD&A dated February 19,

2025.

3. 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 and year ended December 31, 2024, dated February 19, 2025. The MD&A and the Company's audited consolidated financial statements

and related notes for the year ended December 31, 2024, are available on Torex's website (

www.torexgold.com

) and under the Company's

SEDAR+ profile (

www.sedarplus.ca

4. For more information on EPO drilling results, see the Company's news release titled "Torex Gold Reports Results from the Ongoing 2024 EPO

Exploration Program" issued on November 13, 2024, and filed on SEDAR+ at

www.sedarplus.ca

and on the Company's website at

www.torexgold.com

5. For more information on ELG Underground drilling results, see the Company's news release titled "Torex Gold Reports Compelling New Results

from the 2024 ELG Underground Drilling Program" issued on December 2, 2024, 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 fourth quarter and year-end 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 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

Year Ended

Dec 31,

Sep 30,

Dec 31,

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

2024

2023

2024

2023

Safety

Lost-time injury frequency

/million hours

0.61

0.28

0.31

0.61

0.31

Total recordable injury frequency

/million hours

1.48

1.46

1.23

1.48

1.23

Operating Results - Gold only basis

Gold produced

103,795

119,412

137,993

452,523

453,778

Gold sold

108,647

122,130

138,794

455,932

444,750

Total cash costs

$/oz

902

926

885

940

866

All-in sustaining costs

$/oz

1,085

1,101

1,073

1,156

1,200

Average realized gold price

$/oz

2,487

2,313

1,995

2,254

1,952

Operating Results - Gold Equivalent basis

Gold equivalent produced

oz AuEq

105,305

122,525

139,394

461,420

459,380

Gold equivalent sold

oz AuEq

110,419

125,414

139,828

465,829

451,220

Total cash costs

2,3

$/oz AuEq

932

969

893

972

882

All-in sustaining costs

2,3

$/oz AuEq

1,112

1,139

1,080

1,183

1,210

Financial Results

Revenue

295.0

313.7

282.4

1,115.5

882.6

Cost of sales

153.5

170.1

191.6

647.3

600.1

Earnings from mine operations

141.5

143.6

90.8

468.2

282.5

Net income

60.4

29.2

50.4

134.6

204.4

Per share - Basic

$/share

0.70

0.34

0.59

1.57

2.38

Per share - Diluted

$/share

0.69

0.34

0.58

1.55

2.34

Adjusted net earnings

70.6

65.5

49.1

224.4

148.4

Per share - Basic

$/share

0.82

0.76

0.57

2.61

1.73

Per share - Diluted

$/share

0.81

0.75

0.57

2.58

1.72

EBITDA

162.8

155.3

115.4

539.4

422.6

Adjusted EBITDA

154.3

152.4

142.6

541.1

442.2

Cost of sales - gold only basis

$/oz

1,413

1,393

1,380

1,420

1,349

Net cash generated from operating

activities

122.8

149.5

120.0

449.5

300.8

Net cash generated from operating

activities before changes in non-cash

operating working capital

136.3

137.6

133.5

458.9

340.8

Free cash flow

(10.8

)

(0.7

)

(24.3

)

(122.9

)

(185.4)

Cash and cash equivalents

110.2

114.5

172.8

110.2

172.8

Debt, net of deferred finance charges

62.9

57.7

–

62.9

–

Lease-related obligations

78.3

69.4

32.0

78.3

32.0

Net (debt) cash

(33.1

)

(14.9

)

140.8

(33.1

)

140.8

Available liquidity

331.5

346.6

464.9

331.5

464.9

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 months and year ended December 31, 2024,

dated February 19, 2025. The MD&A and the Company's audited consolidated financial statements and related notes for the year ended

December 31, 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 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

Year Ended

Dec 31,

Sep 30,

Dec 31,

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

2024

2023

2024

2023

Gold sold

108,647

122,130

138,794

455,932

444,750

Total cash costs per oz sold

Production costs

94.7

112.9

116.5

421.4

371.5

Royalties

8.2

8.6

8.4

31.2

26.5

Less: Silver sales

(1.8

)

(2.2

)

(0.9

)

(7.1

)

(4.7)

Less: Copper sales

(3.1

)

(6.2

)

(1.2

)

(16.8

)

(8.0)

Total cash costs

98.0

113.1

122.8

428.7

385.3

Total cash costs per oz sold

$/oz

902

926

885

940

866

All-in sustaining costs per oz sold

Total cash costs

98.0

113.1

122.8

428.7

385.3

General and administrative costs

7.3

8.8

7.3

31.4

26.0

Reclamation and remediation costs

1.0

1.5

4.5

5.3

Sustaining capital expenditure

11.6

17.3

62.6

116.9

Total all-in sustaining costs

117.9

134.5

148.9

527.2

533.5

Total all-in sustaining costs per oz

sold

$/oz

1,085

1,101

1,073

1,156

1,200

Gold equivalent sold

oz AuEq

110,419

125,414

139,828

465,829

451,220

Total cash costs per oz AuEq sold

Production costs

94.7

112.9

116.5

421.4

371.5

Royalties

8.2

8.6

8.4

31.2

26.5

Total cash costs

102.9

121.5

124.9

452.6

398.0

Total cash costs per oz AuEq sold

$/oz AuEq

932

969

893

972

882

All-in sustaining costs per oz

AuEq sold

Total cash costs

102.9

121.5

124.9

452.6

398.0

General and administrative costs

7.3

8.8

7.3

31.4

26.0

Reclamation and remediation costs

1.0

1.5

4.5

5.3

Sustaining capital expenditure

11.6

17.3

62.6

116.9

Total all-in sustaining costs

122.8

142.9

151.0

551.1

546.2

Total all-in sustaining costs per oz

AuEq sold

$/oz AuEq

1,112

1,139

1,080

1,183

1,210

1. This amount excludes temporary suspension costs of $3.1 million, $nil and $nil for the three months ended December 31, 2024, September 30,

2024, and December 31, 2023, respectively, and $3.1 million and $nil for the years ended December 31, 2024 and December 31, 2023,

respectively.

2. This amount excludes a loss of $6.8 million, loss of $3.9 million and gain of $0.5 million for the three months ended December 31, 2024,

September 30, 2024, and December 31, 2023, respectively, and a loss of $15.7 million and gain of $1.8 million for the years ended December 31,

2024 and December 31, 2023, respectively, in relation to the remeasurement of share-based payments. This amount also excludes corporate

depreciation and amortization expenses totalling $0.2 million, $nil and $nil for the three months ended December 31, 2024, September 30, 2024,

and December 31, 2023, respectively, $0.3 million and $0.2 million for the years ended December 31, 2024 and December 31, 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 $15/oz ($14/oz AuEq) for the three months ended December 31, 2024, $1.6 million or $13/oz ($13/oz AuEq) for the three months

ended September 30, 2024, $1.1 million or $8/oz ($8/oz AuEq) for the three months ended December 31, 2023, $7.1 million or $16/oz ($15/oz

AuEq) for the year ended December 31, 2024 and $5.4 million or $12/oz ($12/oz AuEq) for the year ended December 31, 2023. This amount

excludes other expenses totalling $1.4 million, $2.4 million and $2.1 million for the three months ended December 31, 2024, September 30, 2024,

and December 31, 2023, respectively, and $7.1 million and $6.7 million for the years ended December 31, 2024 and December 31, 2023,

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 "Gold Equivalent Reporting" in the Company's MD&A for the three months

and year ended December 31, 2024, dated February 19, 2025, for the relevant average market prices by commodity.

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

Property, Plant and Equipment

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Dec 31,

In millions of U.S. dollars

2024

2023

2024

2023

Sustaining

11.6

17.3

61.2

67.9

Capitalized Stripping (Sustaining)

–

1.4

49.0

Non-sustaining

–

0.3

–

2.2

Total ELG

11.6

17.6

62.6

119.1

Media Luna Project

100.5

113.9

124.0

449.0

366.3

Media Luna Cluster Drilling and Other

3.0

4.4

3.8

10.6

16.0

Working Capital Changes and Other

12.7

14.4

(4.0

)

31.5

(23.4)

Capital expenditures

127.8

144.3

141.4

553.7

478.0

1. This amount includes a realized loss (or an increase in the capitalized expenditures) of $0.1 million, gain of $0.1 million and gain of $0.3 million for

the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, gain of $1.3 million and gain of $0.3 million

for the years ended December 31, 2024 and December 31, 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

Year Ended

Dec 31,

Sep 30,

Dec 31,

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

2024

2023

2024

2023

Gold sold

108,647

122,130

138,794

455,932

444,750

Revenue

295.0

313.7

282.4

1,115.5

882.6

Less: Silver sales

(1.8

)

(2.2

)

(0.9

)

(7.1

)

(4.7)

Less: Copper sales

(3.1

)

(6.2

)

(1.2

)

(16.8

)

(8.0)

Less: Realized loss on gold contracts

(19.9

)

(22.8

)

(3.4

)

(64.1

)

(1.9)

Total proceeds

270.2

282.5

276.9

1,027.5

868

Total average realized gold price

$/oz

2,487

2,313

1,995

2,254

1,952

Less: Total cash costs

$/oz

902

926

885

940

866

Total cash costs margin

$/oz

1,585

1,387

1,110

1,314

1,086

Total cash costs margin

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

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Dec 31,

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

2024

2023

2024

2023

Gold sold

108,647

122,130

138,794

455,932

444,750

Revenue

295.0

313.7

282.4

1,115.5

882.6

Less: Silver sales

(1.8

)

(2.2

)

(0.9

)

(7.1

)

(4.7)

Less: Copper sales

(3.1

)

(6.2

)

(1.2

)

(16.8

)

(8.0)

Less: Realized loss on gold contracts

(19.9

)

(22.8

)

(3.4

)

(64.1

)

(1.9)

Less: All-in sustaining costs

(117.9

)

(134.5

)

(148.9

)

(527.2

)

(533.5)

All-in sustaining costs margin

152.3

148.0

128.0

500.3

334.5

Total average realized gold price

$/oz

2,487

2,313

1,995

2,254

1,952

Total all-in sustaining costs margin

$/oz

1,402

1,212

922

1,098

752

Total all-in sustaining costs margin

Table 6: Reconciliation of Adjusted Net Earnings to Net Income

Three Months Ended

Year Ended

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

Dec 31,

Sep 30,

Dec 31,

2024

2023

2024

2023

Basic weighted average shares outstanding

85,988,115

85,986,516

85,885,453

85,977,291

85,881,325

Diluted weighted average shares outstanding

87,414,063

87,071,146

86,410,111

87,008,937

86,397,399

Net income

60.4

29.2

50.4

134.6

204.4

Adjustments:

Temporary suspension costs

3.1

–

3.1

–

Unrealized foreign exchange gain

(2.0

)

(0.3

)

(0.7)

(0.4)

(2.3)

Unrealized (gain) loss on derivative contracts

(16.4

)

(6.5

)

28.4

(16.7)

23.7

Loss (gain) on remeasurement of

share-based payments

6.8

3.9

(0.5)

15.7

(1.8)

Derecognition of provisions for

uncertain tax positions

–

(12.1)

(15.2)

Tax effect of above adjustments

4.6

2.1

(8.3)

4.2

(6.2)

Tax effect of currency translation on tax

base

14.1

37.1

(20.2)

96.0

(54.2)

Adjusted net earnings

70.6

65.5

49.1

224.4

148.4

Per share - Basic

$/share

0.82

0.76

0.57

2.61

1.73

Per share - Diluted

$/share

0.81

0.75

0.57

2.58

1.72

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

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Dec 31,

In millions of U.S. dollars

2024

2023

2024

2023

Net income

60.4

29.2

50.4

134.6

204.4

Finance income, net

(0.3)

(2.0)

(3.3)

(10.2)

Depreciation and amortization

47.7

48.6

66.8

192.0

202.4

Current income tax expense

42.9

55.4

50.5

149.6

98.0

Deferred income tax expense (recovery)

12.1

22.4

(50.3

)

66.5

(72.0)

EBITDA

162.8

155.3

115.4

539.4

422.6

Adjustments:

Temporary suspension costs

3.1

–

3.1

–

Unrealized (gain) loss on derivative

contracts

(16.4)

(6.5)

28.4

(16.7)

23.7

Unrealized foreign exchange gain

(2.0

)

(0.3

)

(0.7

)

(0.4

)

(2.3)

Loss (gain) on remeasurement of

share-based payments

6.8

3.9

(0.5)

15.7

(1.8)

Adjusted EBITDA

154.3

152.4

142.6

541.1

442.2

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

Year Ended

Dec 31,

Sep 30,

Dec 31,

In millions of U.S. dollars

2024

2023

2024

2023

Net cash generated from operating activities

122.8

149.5

120.0

449.5

300.8

Less:

Additions to property, plant and equipment

(127.8

)

(144.3

)

(141.4

)

(553.7

)

(478.0)

Lease payments

(2.9

)

(2.5

)

(1.6

)

(8.6

)

(4.8)

Interest and other borrowing costs paid

(2.9

)

(3.4

)

(1.3

)

(10.1

)

(3.4)

Free cash flow

(10.8

)

(0.7

)

(24.3

)

(122.9

)

(185.4)

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

Dec 31,

Sep 30,

Dec 31,

In millions of U.S. dollars

2024

2023

Cash and cash equivalents

110.2

114.5

172.8

Less:

Debt

(62.9

)

(57.7

)

–

Lease-related obligations

(78.3

)

(69.4

)

(32.0)

Deferred finance charges

(2.1

)

(2.3

)

–

Net (debt) cash

(33.1

)

(14.9

)

140.8

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