Torex Gold Reports Q1 2025 Results

Core Viewpoint - Torex Gold Resources Inc. reported Q1 2025 results that align with expectations, highlighting significant milestones including the commencement of commercial production at the Media Luna project and a focus on returning to positive free cash flow generation [1][2][4]. Financial Performance - The company generated revenue of $170.0 million, with a record average realized gold price of $2,793 per ounce, despite lower sales volumes due to a four-week tie-in period at the processing plant [7][12]. - Reported net income was $39.0 million, or $0.45 per share, with adjusted net earnings of $35.9 million, or $0.42 per share [12][26]. - EBITDA for the quarter was $88.1 million, while adjusted EBITDA was $91.8 million [12][27]. Production and Costs - Gold equivalent payable production for the quarter was 59,630 ounces, with annual guidance maintained at 400,000 to 450,000 ounces [7][12]. - All-in sustaining costs were $1,405 per ounce sold, slightly above the guidance range of $1,400 to $1,600 per ounce [12][14]. - The company experienced a negative free cash flow of $133.3 million, attributed to lower sales volumes and capital expenditures of $123.5 million [12][28]. Project Updates - The Media Luna project achieved commercial production on April 26, 2025, following a successful tie-in period at the processing plant [2][4]. - The company invested $55.5 million in the Media Luna project during the quarter, with physical progress reported at approximately 98% [12][22]. Safety and Environmental Performance - The company recorded one lost-time injury during the quarter, resulting in a lost-time injury frequency of 0.59 per million hours worked [5][12]. - A comprehensive 'Next Level Safety' program has been initiated to maintain a fatality-free status in operations [5]. Exploration Activities - Ongoing drilling at Media Luna West and initial testing at Media Luna East have shown promising results, indicating exploration upside and potential resource expansion [8][12]. - The company plans to conduct approximately 125,000 meters of drilling in 2025, nearly double the amount drilled in 2024, to enhance production profiles and extend reserve life [8][12].