(All amounts expressed in U.S. Dollars unless otherwise stated)

TORONTO, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) reports the Company’s financial and operational results for the three and nine months ended September 30, 2021.

Jody Kuzenko, President & CEO of Torex, stated:

“Our solid operational performance in Q3 resulted in a strong financial result, with adjusted EBITDA of $119.3 million and free cash flow of $29.4 million. The Company’s quarter-end cash balance increased from $196.0 million at the end of June to $221.6 million at the end of September. The focus on delivering consistent production in a safe manner continued with no lost time injuries during the quarter, and our employee and contractor workforce now sits at 3.75 million hours lost time injury free.

“As a result of the reliable performance achieved so far this year, we are tracking very well against our 2021 operational guidance. With a similar level of production to Q3 anticipated in Q4, we expect full year gold production to come in at the upper end of the guidance range of 430,000 to 470,000 ounces. Total cash costs for the full year are expected to be toward the mid-point of the guided range of $680 to $720 per ounce. All-in sustaining costs are expected to increase in Q4 as a greater amount of waste is capitalized as part of the El Limón pushback; however, with lower than anticipated waste mined in Q3, all-in sustaining costs for the full year are expected to be toward the mid-point of the guided range of $920 to $970 per ounce sold.

“Overall, we are executing on the plan we outlined more than a year ago – a plan focused on extending and optimizing production and cash flow from ELG, advancing and de-risking Media Luna toward first production in early 2024, as well as strengthening the balance sheet. With more than $220 million in cash on hand and solid cash generation from ELG forecast through at least mid-2024, we are in a strong financial position to advance Media Luna and continue to invest in near-mine and regional exploration.”

THIRD QUARTER 2021 HIGHLIGHTS

Safety performance: No lost time injuries during the quarter; exited the quarter with a LTIF of 0.26 per 1 million hours worked and a TRIF of 2.44 per 1 million hours worked, both on a rolling 12-month basis.
COVID-19 update: To promote vaccination within the workforce, the Company has partnered with local health agencies; by quarter-end 70% of the workforce was partially vaccinated, and 30% fully vaccinated.
Gold production: Produced 111,229 ounces of gold (YTD - 358,792 ounces).
Gold sold: Sold 118,989 ounces of gold (YTD – 359,432 ounces) at an average realized price of $1,786 per ounce (YTD - $1,792 per ounce).
Total cash costs 1 and all-in sustaining costs 1 : Total cash cost of $727 per ounce sold (YTD - $646 per ounce) and all-in sustaining cost of $900 per ounce (YTD - $883 per ounce). All-in sustaining margin 1 of $886 per ounce (YTD - $909 per ounce), implying a margin of 49% relative to the realized gold price (YTD – 50%).
Net earnings and adjusted net earnings 1 : Reported net earnings of $36.5 million (YTD - $152.2 million) or $0.43 per share (YTD - $1.78 per share) on a basic basis and $0.41 per share (YTD - $1.72 per share) on a diluted basis. Adjusted net earnings of $42.9 million (YTD - $147.6 million), or $0.50 per share on both a basic and diluted basis (YTD - $1.72 per share on both a basic and diluted basis).
EBITDA 1 and adjusted EBITDA 1 : Generated EBITDA of $119.7 million (YTD - $399.3 million) and adjusted EBITDA of $119.3 million (YTD - $386.3 million).
Cash flow from operations: Cash flow from operations for the quarter totalled $87.8 million (YTD - $235.4 million) and $100.2 million prior to changes in non-cash working capital (YTD - $277.8 million), including income taxes paid of $19.7 million (YTD - $110.2 million).
Free cash flow 1 : Generated $29.4 million (YTD - $60.6 million) in free cash flow which includes an outflow of $12.4 million related to changes in non-cash working capital (YTD – outflow of $42.4 million).
Net cash 1 : Net cash of $217.8 million including $221.6 million in cash and $3.8 million of lease obligations.
Capitalized waste guidance revised downwards: Given the lower amount of waste mined during Q3 due to a rock fall incident at the El Limón pit and shutdown of the rope conveyor to carry out necessary maintenance, capitalized waste guidance has been lowered from $55 to $60 million to $45 to $50 million (original guidance of $40 to $45 million). All other elements of the Company’s 2021 operational guidance remain unchanged.
Technical Report remains on track: The Company’s Technical Report remains on track for release in the first quarter of 2022. The Technical Report will include updated mine plans for the ELG open pits and underground as well as the Media Luna Feasibility Study.
Timing of 2022 operational guidance: Torex plans to release 2022 operational guidance for ELG early next year. ELG guidance will include gold production, total cash costs, all-in sustaining costs, as well as non-sustaining and sustaining capital expenditures. Non-sustaining capital expenditure guidance specific to Media Luna will be provided when the Company releases an updated Technical Report later in Q1 2022.
Completion of World Gold Council Year 1 Responsible Gold Mining Principles (RGMP) Requirements: On October 29, the Company released its Year 1 RGMP Implementation Progress Report, with accompanying limited assurance from KPMG LLP, fulfilling the Year 1 requirements as set out by the World Gold Council.
CONFERENCE CALL AND WEBCAST DETAILS

The Company will host a conference call today at 9:00 AM (ET) where senior management will discuss the third quarter 2021 operating and financial results. Please dial in or access the webcast approximately ten minutes prior to the start of the call:

Toronto local or International: 1-416-915-3239
Toll-Free (North America): 1-800-319-4610