(All amounts expressed in
TABLE 1: 2023 OPERATIONAL GUIDANCE
2023 Guidance | 2022 Guidance1 | ||||
Gold Production | oz | 440,000 to 470,000 | 430,000 to 470,000 | ||
Total Cash Costs2a | $/oz sold | ||||
All-in Sustaining Costs2b | $/oz sold | ||||
Sustaining Capital Expenditures2c | |||||
Capitalized Stripping | M$ | ||||
ELG Sustaining | M$ | ||||
Total Sustaining | M$ | ||||
Non-Sustaining Capital Expenditures2d | |||||
M$ | |||||
Media Luna Infill Drilling | M$ | ||||
ELG Non-Sustaining | M$ | ||||
Total Non-Sustaining | M$ |
1) | 2022 guidance was updated during last year to reflect lower non-sustaining capital expenditures for Media Luna. | ||||
2) | Refer to “Non-GAAP Financial Performance Measures” in the Company’s | ||||
a) | Total cash costs in 2022 have averaged | ||||
b) | All-in sustaining costs in 2022 have averaged | ||||
c) | Sustaining capital expenditures in 2022 have totaled | ||||
d) | Non-sustaining capital expenditures in 2022 have totaled | ||||
3) | 2023 guidance assumes a realized gold price of |
“We expect 2023 to be pivotal in the evolution of Torex Gold as we continue to execute on several key strategic initiatives, including advancing and de-risking Media Luna, optimizing and extending ELG, as well as growing reserves and resources. With more than
“Guided gold production in 2023 is consistent with 2022 and slightly higher than outlined in our previous multi-year outlook. All-in sustaining costs in 2023 are expected to be
“Non-sustaining capital expenditures are expected to increase significantly as procurement, construction and development activities at Media Luna continue to ramp-up, with 2023 expected to be the peak year of spend on the project.
“The 5-year production outlook released today also demonstrates our ongoing work to increase and optimize production from ELG during the development and ramp up of Media Luna, with modestly higher production now forecast through 2025 than previously anticipated. The improved production outlook is a direct result of optimizing and extending the life of the El Limón open pits and continuing to increase mining rates within the higher-grade ELG Underground.
“Overall, we expect to deliver another year of safe, reliable, and profitable production in 2023, while continuing to advance Media Luna towards first production in late-2024 on schedule and on budget.”
2023 PRODUCTION GUIDANCE
Gold production in 2023 is expected to be between 440,000 ounces and 470,000 ounces. The guided range is consistent with 2022 guidance; however, narrowed at the low end given the history of performance stability. The 2023 guided range is also slightly higher than the 420,000 to 460,000 ounces outlined in the Company’s 3-year outlook released in
Gold production is expected to be relatively balanced throughout the year, with quarter-over-quarter variances primarily attributable to processed grades inherent in mining a skarn style deposit.
The strip ratio for 2023 is expected to average 10.7:1 compared to 8.9:1 in 2022 given additional laybacks within the El Limón and El Limón Sur open pits. Based on the current mine plan, a higher portion of waste is expected to be mined in the second and third quarters compared with the first and fourth quarters. During these quarters, the mill is expected to process a greater proportion of higher-grade stockpiled material.
2023 COST GUIDANCE
Total cash costs are guided at
All-in sustaining costs are guided at
2023 CAPITAL EXPENDITURE GUIDANCE
Sustaining capital expenditures in 2023 are guided at
The year-over-year increase in capitalized stripping is directly related to the additional laybacks in the El Limón and El Limón Sur open pits, which have extended the life of both pits in an effort to ensure a smooth transition from ELG to Media Luna. The level of capitalized stripping is expected to decline post 2023 given the anticipated depletion of the Guajes pit in mid-2023, El Limón Sur pit in late-2024, and El Limón pit in mid-2025.
ELG sustaining capital expenditures are guided at
Non-sustaining capital expenditures in 2023 are guided at
2023 EXPLORATION PLANS
The Company plans to invest approximately
- Media Luna: Approximately
$20 million is budgeted for drilling within the broader MediaLuna Cluster (55,000 metres). At EPO, 25,000 metres of drilling is planned with 40% focused on infill drilling and the remaining on expansionary drilling. The Company plans to carry-out an initial drill program at MediaLuna West , which will include 26,000 metres of wide-spaced drilling to test the mineralized potential of this highly prospective target. In addition, 4,000 metres of condemnation drilling is planned. Program costs are included in the non-sustaining capital expenditure guidance. - ELG Underground: Approximately
$6 million is budgeted for infill and step-out drilling within the ELG Underground (30,000 metres). Drilling is targeting to both upgrade and expand resources within Sub-Sill, Sub-Sill South, ELD and El Limón Sur Deep deposits. Of the program costs,$4 million (22,000 metres) has been included in sustaining capital expenditure guidance and$2 million (8,000 metres) has been included in non-sustaining capital expenditure guidance. - Near Mine and regional: Approximately
$8 million is budgeted to conduct exploration across the broader land package, including near mine drilling (27,000 metres of drilling) on early-stage exploration targets. The program expenditures will be classified as exploration expenses. - Definition and grade control drilling: Approximately
$5 million of definition and grade control drilling in 2023. These costs are classified as an expense in cost of goods sold and as such are included in total cash cost guidance.
FIVE-YEAR PRODUCTION OUTLOOK (2023 – 2027)
Ongoing efforts to further improve the near-term production profile for the
During 2022, drilling was successful in identifying additional mineralization along the boundary of the El Limón open pit, which is expected to extend the life of the deposit to mid-2025. In addition, drilling within the El Limón Sur open pit has extended the life of the deposit to late-2024.
In addition to the drilling success at the open pits, efforts to enhance the contribution from the ELG Underground have also been successful. Following an average record mining rate of 1,523 tonnes per day in 2022, the Company is targeting to exit 2023 at a mining rate of 1,800 tonnes per day and 2024 at a rate of 2,000 tonnes per day. The forecast rates compare favourably to the 1,400 tonnes per day outlined in the most recent Technical Report.
TABLE 2: FIVE-YEAR PRODUCTION OUTLOOK FOR THE
Production (koz)1 | Actual | Outlook 2021 | Outlook 2022 | Outlook 2023 | 2022 Technical Report |
2021 (Au) | 468.2 | 430 to 470 | |||
2022 (Au) | 474.0 | 430 to 470 | 430 to 470 | ||
2023 (Au) | 400 to 450 | 420 to 460 | 440 to 470 | 435.7 | |
2024 (AuEq) | 300 to 350 (Au) | 385 to 425 | 400 to 450 | 405.5 | |
2025 (AuEq) | 415 to 455 | 425 to 475 | 433.8 | ||
2026 (AuEq) | 425 to 475 | 457.1 | |||
2027 (AuEq) | 450 to 500 | 480.0 |
1) | Payable gold production (Au) disclosed for 2023 and prior periods. Payable gold equivalent production (AuEq) disclosed for 2024 and beyond given increased contribution from copper and silver with the forecast start-up of Media Luna in Q4 2024. For more information on AuEq, see Tables 3 and 4 below. |
The modest dip in 2024 production is associated with the current tie-in schedule for the copper and iron flotation circuits at the processing plant in late 2024. This year, a focus will be on further optimizing the existing tie in schedule with a view to minimizing associated down time.
Given the development stage nature of Media Luna, the contribution from Media Luna during the 5-year outlook period remains unchanged from the mine physicals outlined in the Technical Report.
A breakdown of Torex’s Mineral Reserves and Resources as at
CASH FLOW SEASONALITY
Cash flow from operations in Q1 will be impacted by the payment of the Mexican-based
ADDITIONAL GOLD PRICE PROTECTION SECURED FOR 2024
As part of the Company’s work to reduce price risk during the build-out of Media Luna, Torex has entered into forward sales contracts covering 27,000 ounces per quarter through all of 2024 at an average gold price of
ABOUT
Torex is an intermediate gold producer based in
FOR FURTHER INFORMATION, PLEASE CONTACT:
President and CEO | Senior Vice President, Corporate Development & Investor Relations |
Direct: (647) 725-9982 | Direct: (647) 260-1503 |
jody.kuzenko@torexgold.com | dan.rollins@torexgold.com |
QUALIFIED PERSON
The technical and scientific information in this press release, with respect to the Company’s 2023 production outlook and strip ratio as well as five-year production outlook, has been reviewed and approved by
CAUTIONARY NOTES ON FORWARD LOOKING STATEMENTS
NON-GAAP FINANCIAL PERFORMANCE MEASURES
Total cash costs per oz of gold sold (“TCC”), and all-in sustaining costs per ounce of gold sold (“AISC”), sustaining capital expenditures, non-sustaining capital expenditures and realized gold price are financial performance measures with no standard meaning under Generally Accepted Accounting Principles (“GAAP”) and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the “Non-GAAP Financial Performance Measures” section (the “MD&A Information”) in the Company’s management’s discussion and analysis (the “MD&A”) for the quarter ended
FORWARD LOOKING INFORMATION
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the 2023 operational guidance for 2023 including gold production, total cash costs per oz of gold sold (“TCC”), all-in sustaining costs per ounce of gold sold (“AISC”), sustaining capital expenditures and non-sustaining capital expenditures and the five year production outlook; the expected continuation of executing on several key strategic initiatives, including advancing and de-risking Media Luna, optimizing and extending ELG, as well as growing reserves and resources; with the available liquidity at the end of the third quarter, and robust forecast cash flow from ELG, the Company’s positioning to fund these value-enhancing initiatives as the Company continues to maximize the potential of its Morelos Property; the guided gold production in 2023 through to 2027; expected all-in sustaining costs in 2023 to be
TABLE 3:
Tonnes | Au | Ag | Cu | Au | Ag | Cu | AuEq | AuEq | |
(kt) | (g/t) | (g/t) | (%) | (koz) | (koz) | (Mlb) | (g/t) | (koz) | |
El Limón | |||||||||
Proven | 4,900 | 3.95 | 4.6 | 0.14 | 623 | 719 | 15 | 4.00 | 630 |
Probable | 5,471 | 2.35 | 4.5 | 0.12 | 414 | 784 | 15 | 2.39 | 421 |
Proven & Probable | 10,371 | 3.11 | 4.5 | 0.13 | 1,037 | 1,503 | 30 | 3.15 | 1,051 |
El Limón Guajes Underground ( | |||||||||
Proven | 110 | 7.23 | 10.5 | 0.59 | 25 | 37 | 1 | 7.38 | 26 |
Probable | 2,566 | 5.68 | 5.7 | 0.22 | 469 | 474 | 13 | 5.74 | 474 |
Proven & Probable | 2,675 | 5.74 | 5.9 | 0.24 | 494 | 511 | 14 | 5.81 | 500 |
Media Luna Underground (ML UG) | |||||||||
Proven | - | - | - | - | - | - | - | - | - |
Probable | 23,017 | 2.81 | 25.6 | 0.88 | 2,077 | 18,944 | 444 | 4.54 | 3,360 |
Proven & Probable | 23,017 | 2.81 | 25.6 | 0.88 | 2,077 | 18,944 | 444 | 4.54 | 3,360 |
Surface Stockpiles | |||||||||
Proven | 4,808 | 1.35 | 3.1 | 0.07 | 209 | 484 | 7 | 1.38 | 213 |
Probable | - | - | - | - | - | - | - | - | - |
Proven & Probable | 4,808 | 1.35 | 3.1 | 0.07 | 209 | 484 | 7 | 1.38 | 213 |
Proven | 9,817 | 2.72 | 3.9 | 0.11 | 858 | 1,240 | 23 | 2.75 | 869 |
Probable | 31,054 | 2.96 | 20.2 | 0.69 | 2,959 | 20,202 | 472 | 4.26 | 4,254 |
Proven & Probable | 40,871 | 2.90 | 16.3 | 0.55 | 3,817 | 21,442 | 495 | 3.90 | 5,123 |
Notes to accompany summary Mineral Reserve Table: | |||
1. | Mineral Reserves were developed in accordance with CIM (2014) guidelines. | ||
2. | Rounding may result in apparent summation differences between tonnes, grade, and contained metal content Surface Stockpile mineral reserves are estimated using production and survey data and apply the same AuEq formula as ELG Open Pits and ELG Underground. | ||
3. | AuEq of Total Reserves is established from combined contributions of the various deposits. | ||
4. | The qualified person for the mineral reserve estimate is | ||
5. | The qualified person is not aware of mining, metallurgical, infrastructure, permitting, or other factors that materially affect the Mineral Reserve estimates. | ||
Notes to accompany the ELG Open Pit Mineral Reserves: | |||
6. | Mineral Reserves are founded on Measured and Indicated Mineral Resources, with an effective date of | ||
7. | ELG Open Pit Mineral Reserves are reported above a diluted cut-off grade of 1.1 g/t Au. | ||
8. | ELG Low Grade Mineral Reserves are reported above a diluted cut-off grade of 1.0 g/t Au. | ||
9. | It is planned that ELG Low Grade Mineral Reserves within the designed pits will be stockpiled during pit operation and processed during pit closure. | ||
10. | Mineral Reserves within the designed pits include assumed estimates for dilution and ore losses. | ||
11. | Cut-off grades and designed pits are considered appropriate for a metal price of | ||
12. | Mineral Reserves are reported using a gold price of | ||
13. | Average metallurgical recoveries of 89% for gold and 30% for silver and 10% for copper | ||
14. | ELG AuEq = Au (g/t) + Ag (g/t) * (0.0041) + Cu (%) * (0.1789), accounting for metal prices and metallurgical recoveries. | ||
Notes to accompany the ELG Underground Mineral Reserves: | |||
15. | Mineral Reserves are founded on Measured and Indicated Mineral Resources, with an effective date of | ||
16. | Mineral Reserves were developed in accordance with CIM guidelines. | ||
17. | El Limón Underground mineral reserves are reported above an in-situ ore cut-off grade of 3.58 g/t Au and an in-situ incremental cut-off grade of 1.04 g/t Au | ||
18. | Cut-off grades and mining shapes are considered appropriate for a metal price of | ||
19. | Mineral Reserves within designed mine shapes assume mechanized cut and fill mining method and include estimates for dilution and mining losses. | ||
20. | Mineral Reserves are reported using a gold price of | ||
21. | Average metallurgical recoveries of 89% for gold and 30% for silver and 10% for copper | ||
22. | ELG AuEq = Au (g/t) + Ag (g/t) * (0.0041) + Cu (%) * (0.1789), accounting for metal prices and metallurgical recoveries. | ||
Notes to accompany the ML Underground Mineral Reserves: | |||
23. | Mineral Reserves are based on Media Luna Indicated Mineral Resources with an effective date of | ||
24. | Media Luna Underground Mineral Reserves are reported above a diluted ore cut-off grade of 2.2 g/t AuEq | ||
25. | Media Luna Underground cut-off grades and mining shapes are considered appropriate for a metal price of | ||
26. | Mineral Reserves within designed mine shapes assume long-hole open stoping, supplemented with mechanized cut-and-fill mining and includes estimates for dilution and mining losses. | ||
27. | Media Luna AuEq = Au (g/t) + Ag (g/t) * (0.011188) + Cu (%) * (1.694580), accounting for metal prices and metallurgical recoveries |
TABLE 4:
Tonnes | Au | Ag | Cu | Au | Ag | Cu | AuEq | AuEq | |
(kt) | (g/t) | (g/t) | (%) | (koz) | (koz) | (Mlb) | (g/t) | (koz) | |
El Limón | |||||||||
Measured | 5,727 | 3.89 | 5.0 | 0.13 | 716 | 919 | 17 | 3.93 | 724 |
Indicated | 11,027 | 2.37 | 4.7 | 0.12 | 842 | 1,660 | 28 | 2.41 | 856 |
Measured & Indicated | 16,754 | 2.89 | 4.8 | 0.12 | 1,557 | 2,579 | 45 | 2.93 | 1,580 |
Inferred | 812 | 1.80 | 3.5 | 0.08 | 47 | 90 | 1 | 1.83 | 48 |
El Limón Guajes Underground ( | |||||||||
Measured | 584 | 7.24 | 10.0 | 0.52 | 136 | 187 | 7 | 7.37 | 138 |
Indicated | 3,968 | 6.11 | 7.1 | 0.27 | 779 | 900 | 23 | 6.18 | 789 |
Measured & Indicated | 4,551 | 6.25 | 7.4 | 0.30 | 915 | 1,088 | 30 | 6.34 | 927 |
Inferred | 1,380 | 4.88 | 6.2 | 0.25 | 217 | 275 | 8 | 4.95 | 220 |
Media Luna Underground (ML UG) | |||||||||
Measured | - | - | - | - | - | - | - | - | - |
Indicated | 25,380 | 3.24 | 31.5 | 1.08 | 2,642 | 25,706 | 602 | 5.38 | 4,394 |
Measured & Indicated | 25,380 | 3.24 | 31.5 | 1.08 | 2,642 | 25,706 | 602 | 5.38 | 4,394 |
Inferred | 5,991 | 2.47 | 20.8 | 0.81 | 476 | 3,998 | 106 | 4.05 | 780 |
EPO | |||||||||
Measured | - | - | - | - | - | - | - | - | - |
Indicated | - | - | - | - | - | - | - | - | - |
Measured & Indicated | - | - | - | - | - | - | - | - | - |
Inferred | 8,019 | 1.52 | 34.6 | 1.27 | 391 | 8,908 | 225 | 3.97 | 1,024 |
Measured | 6,311 | 4.20 | 5.5 | 0.17 | 852 | 1,106 | 24 | 4.25 | 862 |
Indicated | 40,375 | 3.28 | 21.8 | 0.73 | 4,263 | 28,266 | 653 | 4.65 | 6,039 |
Measured & Indicated | 46,685 | 3.41 | 19.6 | 0.66 | 5,114 | 29,373 | 677 | 4.60 | 6,901 |
Inferred | 16,202 | 2.17 | 25.5 | 0.95 | 1,131 | 13,271 | 340 | 3.98 | 2,071 |
Notes to accompany summary Mineral Resource Table: | |||
1. | CIM (2014) definitions were followed for Mineral Resources. | ||
2. | Mineral Resources are depleted above a mining surface or to the as-mined solids as of | ||
3. | Mineral Resources are reported using a gold price of | ||
4. | AuEq of total Mineral Resources is established from combined contributions of the various deposits. | ||
5. | Mineral Resources are inclusive of Mineral Reserves. | ||
6. | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. | ||
7. | Numbers may not add due to rounding. | ||
8. | The estimate was prepared by Mr. | ||
Notes to accompany the ELG Mineral Resources: | |||
9. | The effective date of the estimate is | ||
10. | Average metallurgical recoveries are 89% for gold, 30% for silver and 10% for copper. | ||
11. | ELG AuEq = Au (g/t) + (Ag (g/t) * 0.0043) + (Cu (%) * 0.1740). AuEq calculations consider both metal prices and metallurgical recoveries. | ||
Notes to accompany the ELG Open Pit Mineral Resources | |||
12. | Mineral resources are reported above a cut-off grade of 0.9 g/t Au. | ||
13. | Mineral Resources are reported inside an optimized pit shell, underground mineral reserves at ELD within the El Limón shell have been excluded from the open pit Mineral Resources. | ||
Notes to accompany the ELG Underground Mineral Resources: | |||
14. | Mineral Resources are reported above a cut-off grade of 2.6 g/t Au. | ||
15. | The assumed mining method is underground cut and fill. | ||
16. | Mineral Resources from ELD that are contained within the El Limón pit optimization and that are not underground Mineral Reserves have been excluded from the underground Mineral Resources. | ||
Notes to accompany the ML Mineral Resources: | |||
17. | The effective date of the estimate is | ||
18. | Mineral Resources are reported above a 2.0 g/t AuEq cut-off grade. | ||
19. | Metallurgical recoveries at Media Luna (excluding EPO) average 85% for gold, 79% for silver, and 91% for copper. Metallurgical recoveries at EPO average 85% for gold, 75% for silver, and 89% for copper. | ||
20. | Media Luna (excluding EPO) AuEq = Au (g/t) + (Ag (g/t) * 0.011889) + (Cu (%) * 1.648326). EPO AuEq = Au (g/t) + Ag (g/t) * (0.011385) + Cu % * (1.621237). AuEq calculations consider both metal prices and metallurgical recoveries. | ||
21. | The assumed mining method is from underground methods, using a combination of long hole stoping and, cut and fill. |
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