Torex Gold, an intermediate gold producer based in Canada, has reported strong Q1 2023 results, with gold production of 122,918 oz driven by a record milling rate of 13,073 tpd and a record mining rate at ELG Underground of 1,738 tpd. The company also sold 118,455 oz of gold at an average realized gold price of $1,899 per oz, contributing to revenue of $228.8 million. This puts Torex Gold on track to meet its annual production guidance of 440,000 to 470,000 ounces.
Record Production and Sales
In Q1 2023, Torex Gold delivered a record milling rate of 13,073 tpd and a record mining rate at ELG Underground of 1,738 tpd, resulting in gold production of 122,918 oz. This represents a strong start to the year and puts the company on track to meet its annual production guidance of 440,000 to 470,000 ounces. The company also sold 118,455 oz of gold at an average realized gold price of $1,899 per oz, contributing to revenue of $228.8 million.
Strong Cost Performance
Total cash costs were $709 per oz sold, and all-in sustaining costs were $1,079 per oz sold. All-in sustaining costs margin was $820 per oz sold, implying an all-in sustaining costs margin of 42%. Given the strong cost performance during the quarter, the company is on track to achieve full-year total cash costs guidance of $740 to $780 per oz and all-in sustaining costs guidance of $1,080 to $1,130 per ounce.
Net Income and EBITDA
Torex Gold reported net income of $68.2 million, or earnings of $0.79 per share on both a basic and diluted basis. Adjusted net earnings were $50.3 million or $0.59 per share on a basic and $0.58 per share on a diluted basis. The company generated EBITDA of $102.5 million, and adjusted EBITDA of $132.7 million. The quarter closed with net cash of $318.4 million.
Media Luna Project
The company noted that development of the Media Luna project is tracking to schedule and budget, with the project approximately 24% complete at quarter end. Torex Gold is well-positioned to fund the remaining $683 million of capital on the Media Luna project while delivering on its commitments and generating solid value for shareholders.
Torex Gold’s strong start to 2023 is a result of record production and sales, as well as strong cost performance. The company is also making progress on its Media Luna project, which is an important part of its growth strategy. With available liquidity of $564 million at quarter-end, Torex Gold is well-positioned to fund the remaining capital on the project while delivering on its commitments and generating value for shareholders.