Torex Reports Third Quarter 2017 Financial and Operational Results
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
TOREX REPORTS THIRD QUARTER 2017 FINANCIAL AND OPERATIONAL RESULTS
(All amounts expressed in U.S. Dollars unless otherwise stated)
TORONTO, Ontario, November 9, 2017 - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) reported
today the Company’s financial results for the third quarter of 2017, as ramp-up continues at its El Limón Guajes Mine
(ELG) in southwest Mexico. The Company also provided the following update to the previously announced blockade
situation at ELG.
Blockade Update:
This is day 7 of the blockade, that resulted from a conflict between two unions
The military is patrolling the area and attending the site
Care and maintenance activities resumed yesterday
Discussions are underway with the Federal Police (Gendarmerie) to provide security personnel to the site
Blockades are illegal, but they also have a political aspect to them. Excellent political support has been
received from State and Federal governments to advance the legal charges and to find a negotiated
resolution to the dispute between the two unions
The Operations team is optimizing the plan for an efficient plant start up, once the blockade is removed
Fred Stanford, President & CEO of Torex stated: “The cu rrent blockade situation overshadows the many successes
that the team has accomplished in 2017. These include, ramping up the plant to 90% of design throughput. Achieving
design recoveries. Building the SART plant and installing ad ditional tailings filtration capacity. Developing into the
Sub-Sill deposit and producing the first development ore in less than a year from the discovery hole. Advancing the
Media Luna design, successfully concluding negotiations for long term Media Luna land leases, and beginning the in-
fill drill program for Media Luna. On the financial side th e project finance debt was renegotiated with improved terms
and flexibility for future growth. While it is impossible to be definitive, we expect the blockade to be resolved in the
near term and we can then continue to build on the successes of 2017, as we transition into what should be a catalyst
rich, and steady state 2018.”
This release should be read in conjunction with the Company's third quarter 2017 Financial Statements and MD&A on
the Company's website or on SEDAR.
HIGHLIGHTS
Plant ramp-up focused on closing the 10% gap to design throughput levels
Gold recovery in the quarter averaged 87%, consistent with design expectations.
Plant throughput in the quarter, 1,152 kt, averaged 12,522 tpd, or 89% of design capacity of 14,000 tpd in the quarter.
Throughput in October 2017 of 403 kt, averaged 12,991 tpd, or 93% of design capacity of 14,000 tpd.
Mine production in the quarter, 8,686 kt, averaged 94,413 tpd, an increase of 4% over the prior quarter.
Gold produced totalled 67,337 ounces for the quarter and 212,711 ounces for the nine months ended
September 30, 2017.
Positive grade reconciliation for the quarter of 114% to the reserve model
Total ounce reconciliation of 100% to the reserve model for the quarter.
Torex Gold Resources Inc. Page 2
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
Higher grade tonnes deferred to Q4/2017 as a safety precaution during a heavy rainy season
Average grade processed in the quarter of 2.35 gpt is lower than average reserve grade, resulting in higher costs per
ounce. Average grade mined in the quarter was 2.53 gpt.
Outlook
Our ramp up has proceeded to the level of 90% of design throughput. With the recent illegal blockade, the Company is
expecting to produce less than 300,000 ounces of gold for 2017, below our published guidance targets.
Sub-Sill growth potential confirmed by step-out drilling
Sub-Sill step-out drilling demonstrated high grade intercepts in the quadrant to the northwest of the current Sub-Sill
resource area, and confirmed the potential for additional resources in this direction.
An update to the Sub-Sill reserve and resource estimate is expected in the fourth quarter of 2017.
Media Luna Project progressing
25-year common land, lease agreement signed for the use of the land required for the exploration, construction, and
mining of minerals at Media Luna.
The Company initiated an in-fill drilling program budgeted at $15 million to upgrade, to the Indicated confidence level,
25% of the current inferred Media Luna resource of 7.4 million Au Equivalent ounces (51.5Mt @4.48g/t Au Eq.). The
program will form the basis for a Media Luna feasibility study scheduled for the second half of 2019.
New loan facility strengthens balance sheet and increases flexibility for funding growth options
Debt refinancing was announced in June 2017, executed in July, to replace the project finance facility entered in 2014.
Financial results
Net loss totalled $1.6 million, or $0.02 per share, on a basic and diluted basis for the quarter, and net income of
$12.4 million, or $0.16 per share, on a basic and $0.15 per share on a diluted basis for the nine months ended
September 30, 2017.
Adjusted net loss1, which excludes, amongst other items, unrealized derivative and foreign exchange gains and losses,
totalled $1.0 million, or $0.01 per share on a basic and diluted basis for the quarter, and Adjusted net earnings1 of
$5.7 million, or $0.07 per share on a basic and diluted basis for the nine months ended September 30, 2017.
Earnings from mine operations totalled $17.1 million for the quarter, and $48.0 million for the nine months ended
September 30, 2017.
Cash flow from operations totalled $45.1 million for the quarter, and $80.2 million for the nine months ended
September 30, 2017.
Revenue totalled $100.5 million and cost of sales totalled $83.4 million, or $1,066 per ounce of gold sold for the quarter.
Revenue totalled $274.1 million and cost of sales totalled $226.1 million, or $1,040 per ounce of gold sold for the nine
months ended September 30, 2017.
1 Total cash costs, all-in sustaining costs, average realized gold price and adjusted net (loss) earnings are financial performance measures with
no standard meaning under International Financial Reporting Standards (“IFRS”). Refer to “Non-IFRS Financial Performance Measures” in the
Company’s Q3 2017 Management’s Discussion and Analysis for further information and a detailed reconciliation.
Torex Gold Resources Inc. Page 3
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
Gold sold for the quarter totalled 78,254 ounces sold for total proceeds of $99.9 million at an average realized gold
price1 of $1,277 per ounce. Gold sold for the nine months ended September 30, 2017 totalled 217,399 ounces for total
proceeds of $271.6 million at an average realized gold price1 of $1,249 per ounce.
Cash balances as at September 30, 2017 totalled $80.3 million (including restricted cash of $13.8 million).
Total cash costs1 of $728 per ounce of gold sold for the quarter, and $703 per ounce of gold sold for the nine months
ended September 30, 2017.
All-in sustaining costs1 of $1,035 per ounce of gold sold for the quarter, and $985 per ounce of gold sold for the nine
months ended September 30, 2017.
Ore in stockpile as at September 30, 2017 was 0.5 million tonnes at an average estimated grade of 1.52 gpt.
Please refer to Figure 1 for “Average Tonnage Processed Per Day and Throughput Rate” and Figure 2 for “Guajes and
El Limón, Reconciliation of Grade and Ounces”.
Qualified Persons
Scientific and technical information contained in this news release has been reviewed and approved by Dawson
Proudfoot, P.Eng., Vice President, Engineering of Torex Gold Resources Inc. and a Qualified Person under NI 43-101
– Standards of Disclosure for Mineral Projects.
Conference Call
The Company will host a conference call today at 9:00 am (ET) where senior management will discuss the Third
Quarter 2017 operational and financial results.
Access the conference call as follows:
Webcast access: A live audio webcast of the conference call will be available on the Company’s website at
www.torexgold.com.
Telephone access: Please call the numbers below approximately ten minutes prior to the scheduled start of the call.
Toronto local or international 1 (416) 915-3239
Toll-Free (North America) 1 800-319-4610
Toll-Free (France) 0 800-900-351
Toll-Free (Switzerland) 0-800-802-457
Toll-Free (United Kingdom) 0 808-101-2791
The webcast will be archived on the Company’s website.
About Torex
Torex is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and
operation of its 100% owned Morelos Gold Property, an ar ea of 29,000 hectares in the highly prospective Guerrero
Gold Belt located 180 kilometers southwest of Mexico City. Within this property, Torex has the El Limón-Guajes Mine,
which announced commercial production in March of 20 16 and the Media Luna Project, which is an early stage
development project, and for which the Company issued a preliminary economic assessment (PEA) in 2015. The
property remains 75% unexplored.
Torex Gold Resources Inc. Page 4
Corporate Office: 130 King St. West, Suite 740, Toronto, ON, M5X 2A2, Canada – Tel: (647) 260 1500 Fax: (416) 304 4000
www.torexgold.com
For further information, please contact:
TOREX GOLD RESOURCES INC.
Fred Stanford
President and CEO
Tel.: (647) 260-1502
Email: [email protected]
Gabriela Sanchez
Vice President Investor Relations
Tel.: (647) 260-1503
Email: [email protected]
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of
applicable Canadian securities legislation. Notwithstanding the Company's efforts, there can be no guarantee that the
Company will not face unforeseen delays or disruptions. Forward-looking information also includes, but is not limited
to, the expected resolution of the blockade in the near term, the expected successful ramp-up and achieving full
production, the plans to complete the construction of the SART plant on time and budget and expected successful
start-up, commissioning and operation of the SART plant and the expected cost saving from the operation of the SART
plant, the expected continued operation of the tailings filtrati on plant at design levels, plans to complete the access
ramp to El Limón Deep, plans to mine and process the material from the Sub-Sill area and the expectation that the
material will help achieve the production guidance targets, plans to complete the infill and step-out diamond drilling
program on the Sub-Sill deposit, plans to upgrade the mineral resource estimate and complete a mine plan for the Sub-
sill deposit and other future exploration and development, and continued safety and security. Generally, forward-looking
information can be identified by the use of forward-looki ng terminology such as "plans", "expects", "estimates",
"intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might", or "will be taken" , "occur", or "be achieved". Forward-looking information is
subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be material ly different from those expressed or implied by such
forward-looking information, including those risk factors identified in the Company's annual information form (“AIF”) and
management's discussion and analysis (“MD&A”). Forward-looking information is based on the reasonable
assumptions, estimates, analysis and opinions of management, which may be identified in the AIF or MD&A, made in
light of its experience and its perception of trends, current conditions and expected developments, as well as other
factors that management believes to be relevant and reasonable in the circumstances at the date that such statements
are made, but which may prove to be incorrect. Such assumptions, estimates, analysis and opinions include, without
limitation, the resolution of the blockade in the near term and regaining access to the ELG Mine without disruption, the
continued ramp-up to full production and continued operation of the tailings filtration plant at design levels, timely
access to the high grade material, the timely completion of construction, start-up and commissioning of the SART plant
and expected cost savings, the mineral resource estimate for the Sub-Sill deposit, the timing and receipt of any required
approvals and permits, the abilit y of the Company to obtain qualified personne l, equipment and services in a timely
and cost-efficient manner, the ability of the Company to obtain financing on acceptable terms, the ability of the
Company to access the Morelos Gold Property and the ability to conclude the land access agreements for Media Luna.
Although the Company believes that the assumptions and expectations reflected in such forward-looking information
are reasonable, undue reliance should not be placed on forward-looking information because the Company can give
no assurance that such expectations will prove to be corre ct. 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. The Company does not undertake to update any fo rward-looking information, except in accordance with
applicable securities laws.
Figure 1
Figure 2