Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
announces Q3 2020 gold production of 131,790 ounces, which is the
second-highest quarter of production ever from its El Limón Guajes
(ELG) operations. During the third quarter, the Company sold
133,030 ounces of gold at an average realized price of $1,880 per
ounce. Through the first nine months of 2020, Torex produced
299,830 ounces of gold and sold 304,240 ounces at an average
realized gold price of $1,735 per ounce.
With this strong performance delivered in Q3,
and expectation for similar results in Q4, Torex is well-positioned
to achieve full-year production guidance of 390,000 ounces to
420,000 ounces.
Q3 2020
Operational Highlights
|
Q3 2020 |
Gold Produced (oz) |
131,790 |
Average Plant Throughput (tpd) |
12,870 |
Average Underground Ore Mined (tpd) |
1,230 |
Average Open Pit Ore Mined (tpd) |
15,290 |
Strip Ratio |
7.2 |
Gold grades mined, gold grades processed, and
gold recoveries will be reported with the Q3 2020 financial results
after reconciliations have been completed.
Jody Kuzenko, President and CEO of Torex,
stated:
“We had an outstanding third quarter, both from
an operations and health and safety perspective. We delivered near
record production from ELG, and did so while extending our
industry-leading safety performance to more than 8.5 million hours
without a lost time injury as at the end of September.
“The quarterly performance is even more
impressive when viewed in the context of the challenges associated
with COVID-19, which our employees and contractors in Mexico have
tackled head on. The enhanced protocols we have implemented and
multi-layered approach to screening has helped mitigate the impact
of COVID-19 on our operations, our workforce, and the surrounding
communities.
“This strong operational result, in combination
with the higher realized gold price quarter-over-quarter, leaves us
with a very strong balance sheet. We repaid $72 million in debt and
closed the quarter in a net cash position. With predictable and
reliable production from ELG bolstered by strong gold prices, we
continue to demonstrate the cash flow capability of this asset.
“We set bold goals for ourselves and delivered,
and we expect to continue to do exactly that. I could not be
prouder of the team.”
About Torex Gold
Resources Inc.Torex is an intermediate gold producer based
in Canada, engaged in the exploration, development, and operation
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 KuzenkoPresident and CEODirect: (647) 725-9982Email:
jody.kuzenko@torexgold.com |
Dan RollinsVice President, Corporate Development & Investor
RelationsDirect: (647)
260-1503Email: dan.rollins@torexgold.com |
CAUTIONARY NOTES
Non-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 June 30, 2020,
dated August 5, 2020 (“Q2 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.
Forward Looking StatementsThis
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: with this strong
performance delivered in Q3, and expectation for similar results in
Q4, Torex is well-positioned to achieve full-year production
guidance of 390,000 ounces to 420,000 ounces; gold grades mined,
gold grades processed, and gold recoveries will be reported with
the Q3 2020 financial results after reconciliations have been
completed; with predictable and reliable production from ELG
bolstered by strong gold prices, we continue to demonstrate the
cash flow capability of this asset and are set up nicely to pay off
debt and fully fund our Media Luna project; and, we set bold goals
for ourselves and delivered, and we expect to continue to do
exactly that. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects", "believes", “future”, “strive” or variations of
such words and phrases or state that certain actions, events or
results “can”, "may", "could", "would", "might", "be achieved",
“appears” or “focus on”. 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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