TORONTO, April 12, 2023 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) reports Q1 2023 gold production of 122,918 ounces and gold sold of 118,455 ounces. Given the strong start to the year, the Company reiterates 2023 production guidance of 440,000 to 470,000 ounces of gold.

TABLE 1: PRELIMINARY FIRST QUARTER 2023 OPERATIONAL RESULTS

Q1 2023
Mining
ELG Open Pits - Ore tonnes mined tpd 10,182
ELG Open Pits - Waste tonnes mined tpd 93,747
ELG Open Pits - Strip ratio waste:ore 9.2
ELG Underground - Ore tonnes mined tpd 1,738
Processing
Total tonnes processed tpd 13,073
Average gold recovery % 87.8
Average gold grade of ore processed gpt 3.50
Gold produced oz 122,918
Gold sold oz 118,455


Operational results are preliminary in nature and subject to final reconciliation. Financial and operational results for Q1 2023 will be released after market close on Wednesday, May 10, 2023. A conference call hosted by senior management will be held the following day at 9:00 AM ET.

Jody Kuzenko, President & CEO of Torex, stated:

“We had an excellent start to 2023, with first quarter production of 122,918 ounces driven by record throughput in the processing plant and another quarterly record established on mining rates at the El Limón Guajes (“ELG”) Underground.

“Our ongoing focus on the maintenance strategy at the processing plant continues to improve output with the mill averaging 13,073 tonnes per day (“tpd”) during the quarter, surpassing the previous quarterly record of 13,063 tpd established in Q2 2017.

“The momentum gained at the ELG Underground over the last several quarters continued in Q1, with a record average mining rate of 1,738 tpd, surpassing the previous record of 1,685 tpd achieved during the prior quarter. This solid performance puts us firmly on track with our plan to achieve 1,800 tpd by the end of this year, and even further increase rates through 2024.

"In addition to the strong production results, just over 12 months into a 33-month construction period, the Media Luna Project remains on schedule and is tracking to budget. Following the new process established last quarter, a stand-alone Media Luna Project update will be published ahead of our quarterly financial results.

“The strong start to the year, coupled with the higher gold price, bodes well for a solid quarter of EBITDA, while, as expected, cash flow from operations will be impacted by the seasonality of annual royalty and tax payments. Robust forecast cash flow from ELG combined with our healthy balance sheet places Torex on solid footing to fund the development of Media Luna and invest in value-creating drilling and exploration, while maintaining at least $100 million of liquidity.”

CASH FLOW SEASONALITY

Similar to prior years, cash flow from operations is expected to be the lightest during H1 2023 due to the timing of annual tax, royalty, and mandated profit-sharing (“PTU”) payments.

During the first quarter, the Company made over $75 million in tax payments including the annual payment of the 7.5% mining tax, corporate tax instalments, and true-up of taxes outstanding at the end of 2022. These tax payments will impact cash flow from operations prior to non-cash working capital. The Company also made an annual payment of just under $5 million during the quarter, which is related to the 0.5% royalty, which will impact cash flow from operations after non-cash working capital. In addition, the Company paid over $5 million related to the 2.5% royalty, for which payments are made quarterly.

Cash flow from operations during the second quarter will be impacted by the annual PTU payment.

FIRST QUARTER 2023 CONFERENCE CALL AND WEBCAST DETAILS

Torex plans to release its first quarter financial and operational results after market close on May 10, 2023. A conference call and webcast hosted by senior management will be held on May 11, 2023 at 9:00 AM ET.

Telephone Access

Please join the conference call approximately ten minutes prior to the scheduled start time. Dial-in details for the conference call are as follows:

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

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