Torex Gold Reports Q2 2025 Results

Core Insights - Torex Gold Resources Inc. reported solid operational momentum in Q2 2025, with commercial production at Media Luna declared on May 1 and a return to positive free cash flow in June [2][3][4] - The company is on track to meet its annual production guidance of 400,000 to 450,000 gold equivalent ounces (oz AuEq) and expects all-in sustaining costs to improve significantly in the latter half of the year [4][9] Financial Performance - In Q2 2025, Torex produced 82,856 oz AuEq, with a significant increase in production to over 37,000 oz AuEq in June and over 45,000 oz AuEq in July [3][18] - Revenue for the quarter was $253.9 million, with a record average realized gold price of $3,311 per oz [18][30] - The company reported net income of $83.2 million, or $0.97 per share, and adjusted net earnings of $43.8 million, or $0.51 per share [18][20] Operational Highlights - The company achieved a lost-time injury frequency (LTIF) of 0.46 per million hours worked, maintaining a strong safety performance with no lost-time injuries during the quarter [6][18] - Non-sustaining capital expenditures for Media Luna were $48.9 million in Q2, with an upward revision of guidance to $160.0 to $170.0 million for the year due to project scope changes [8][18] Growth Strategy - Torex is executing a strategy to diversify its portfolio with the announced acquisitions of Reyna Silver Corp. and Prime Mining Corp., aimed at enhancing growth potential in the Americas [5][10] - The acquisition of Reyna Silver is valued at approximately $26 million, providing access to exploration properties in Mexico and Nevada [10][11] - The acquisition of Prime Mining is valued at $327 million, granting Torex 100% ownership of the Los Reyes Project in Sinaloa, Mexico [10][11] Future Outlook - The company anticipates robust free cash flow generation at Morelos, with expectations for positive cash flow to increase quarterly through the remainder of 2025 [9][10] - Torex is focused on advancing the EPO Underground Project, with ongoing feasibility studies and development activities aimed at initial ore production by late 2026 [10][12]