Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
reports Q4 2020 gold production of 130,640 ounces and full year
production of 430,480 ounces. Annual output at El Limón Guajes
(ELG) beat the upper end of revised production guidance (390,000 to
420,000 ounces) and exceeded the lower end of original guidance
(420,000 to 480,000 ounces). In August, annual production guidance
was lowered following a partial quarter of operations in Q2, which
was a direct result of a mandated shutdown by the Government of
Mexico to combat COVID-19 within the country.
During Q4 2020, Torex sold 133,060 ounces of gold
at an average realized price of $1,845 per ounce. For the full year
2020, the Company sold 437,310 ounces of gold at an average
realized price of $1,770 per ounce.
Q4 & Full YEAR 2020 OPERATIONAL
Highlights
|
Q4 2020 |
FY 2020 |
Gold Produced |
oz |
130,640 |
430,480 |
Average Plant Throughput |
tpd |
12,560 |
11,370 |
Average Underground Ore Mined |
tpd |
1,300 |
990 |
Average Open Pit Ore Mined |
tpd |
18,360 |
15,020 |
Strip Ratio |
w:o |
6.2 |
6.7 |
Gold grades mined, gold grades processed, and gold
recoveries will be reported with full year 2020 financial results
after reconciliations have been completed. Average rates quoted are
based on calendar days.
Jody Kuzenko, President & CEO of Torex,
stated:
“We delivered another solid operational result to
close out 2020, a guidance beat which follows a strong pattern of
delivering on our commitments. We expect this operational
consistency to continue, which, combined with robust margins,
positions us well to continue to generate strong operating cash
flow. During Q4 2020, we reduced debt by a further $116 million
dollars, exiting the year with debt of $40 million and a strong
cash balance.
“With solid fundamentals in place, we are well
positioned to build a future that will deliver increasing value to
shareholders. Reinvesting in our business is a core aspect of this
value creation, as we extend the life of ELG underground and
potentially the El Limon open pit; de-risk and advance Media Luna;
field test our proprietary Muckahi Mining System; and invest in
exploration at ELG, Media Luna and other high priority targets
within the broader under-explored Morelos land package.
“After achieving 10 million hours worked without a
lost time injury in November, we incurred one in December due to a
finger injury sustained by a contractor. Our excellence in safety
and operational discipline continues – both key to the reliable and
consistent results that people have come to expect of Torex.”
Torex expects to release 2021 production and cost
guidance within the coming week.
About Torex Gold Resources
Inc.Torex is an intermediate gold producer based in
Canada, engaged in the mining, developing and exploring of its 100%
owned Morelos Gold Property, an area of 29,000 hectares in the
highly prospective Guerrero Gold Belt located 180 kilometres
southwest of Mexico City. The Company’s principal assets are the El
Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”),
comprising the El Limón, Guajes and El Limón Sur open pits, the El
Limón Guajes underground mine including zones referred to as
Sub-Sill and ELD, and the processing plant and related
infrastructure, which commenced commercial production as of April
1, 2016, and the Media Luna deposit, which is an early stage
development project, and for which the Company issued an updated
preliminary economic assessment in September 2018 (the “Technical
Report”). The property remains 75% unexplored.
For further information, please
contact:
TOREX GOLD RESOURCES INC.
Jody Kuzenko |
Dan Rollins |
President and CEO |
Vice President, Corporate Development & Investor
Relations |
Direct: (647) 725-9982 |
Direct: (647) 260-1503 |
jody.kuzenko@torexgold.com |
dan.rollins@torexgold.com |
CAUTIONARY NOTESNon-IFRS Performance
MeasuresAverage realized price is a financial performance
measure with no standard meaning under International Financial
Reporting Standards (“IFRS”). Please refer to the “Non-IFRS
Financial Performance Measures” section in the Company’s management
discussion and analysis for the year ended December 31, 2019 (“Q4
2019”) dated February 19, 2020, and quarter ended September 30,
2020, dated November 2, 2020 (“Q3 2020”) and available on the
Company’s SEDAR profile at www.sedar.com for further information
with respect to average realized price and a detailed
reconciliation of this non-IFRS financial performance measure for
Q4 2019 and Q2 2020 to the most directly comparable measures under
IFRS.
Muckahi Mining System
The Technical Report includes information on
Muckahi. It is important to note that Muckahi is experimental in
nature and has not been tested in an operating mine. Many aspects
of the system are conceptual, and proof of concept has not been
demonstrated. Drill and blast fundamentals, standards and best
practices for underground hard rock mining are applied in the
Muckahi, where applicable. The proposed application of a monorail
system for underground transportation for mine development and
production mining is unique to underground hard rock mining. There
are existing underground hard rock mines that use a monorail system
for transportation of materials and equipment, however not in the
capacity described in the Technical Report. Aspects of Muckahi
mining equipment are currently in the design and test stage. The
mine design, equipment performance and cost estimations are
conceptual in nature, and do not demonstrate technical or economic
viability. Aspects of Muckahi mining equipment are currently in the
design stage. The Company has completed the development and the
first phase of testing the concept for the mine development and
production activities in 2019 (including the system’s elements to
break rock) and in 2020 the focus is on optimization to further
verify the viability of Muckahi (including the system’s elements to
move rock as an integrated system).
Forward Looking Statements
This press release contains "forward-looking
statements" and "forward-looking information" within the meaning of
applicable Canadian securities legislation. Forward-looking
information also includes, but is not limited to, statements that:
we expect this operational consistency to continue, which, combined
with robust margins, positions us well to continue to generate
strong operating cash flow; with solid fundamentals in place, we
are well positioned to build a future that will deliver increasing
value to shareholders; reinvesting in our business is a core aspect
of this value creation, as we extend the life of ELG underground
and potentially the El Limon open pit, de-risk and advance Media
Luna, field test our proprietary Muckahi Mining System, and invest
in exploration at ELG, Media Luna and other high priority targets
within the broader under-explored Morelos land package; our
excellence in safety and operational discipline carries on, both
key to the reliable and consistent results that people have come to
expect of Torex. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects", "believes", “future”, “intends” or variations
of such words and phrases or state that certain actions, events or
results “can”, "may", "could", "would" or "might". 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
materially different from those expressed or implied by such
forward-looking information, including, without limitation, the
inability of the Company’s mining and exploration operations to
operate as intended due to shortage of skilled employees, shortages
in supply chains, inability of employees to access sufficient
healthcare, significant social upheavals, government or regulatory
actions or inactions, decreased demand or the inability to sell
precious metals or declines in the price of precious metals,
capital market volatility, uncertainty involving skarns deposits
and the management of soluble iron and those risk factors
identified in the Technical Report and the Company’s annual
information form and management’s discussion and analysis or other
unknown but potentially significant impacts. Notwithstanding the
Company's efforts, there can be no guarantee that the Company’s
measures to protect employees and surrounding communities from
COVID-19 during this period will be effective. Forward-looking
information are based on the assumptions discussed in the Technical
Report and such other reasonable assumptions, estimates, analysis
and opinions of management made in light of its experience and
perception of trends, current conditions and expected developments,
and other factors that management believes are relevant and
reasonable in the circumstances at the date such statements are
made. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information, there may be
other factors that cause results not to be as anticipated. 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. Accordingly,
readers should not place undue reliance on forward-looking
information. The Company does not undertake to update any
forward-looking information, whether as a result of new information
or future events or otherwise, except as may be required by
applicable securities laws.
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