Torex generates record revenue amid high gold prices

Torex Gold Resources generated record annual revenue and adjusted Ebitda in 2024, the Mexico-focused company said in its latest quarterly earnings report.

Last year, the Toronto-based company produced more than 452,000oz of gold, meeting its annual guidance for the sixth year in a row.

"We also set new financial records in 2024. After generating a record annual revenue of more than US$1.1bn, our balance sheet remains in excellent condition, with more than US$330mn of available liquidity, including US$110mn of cash as of year-end," CEO Jody Kuzenko said in a statement.

"The performance of our operations, supported by a record realized gold price, resulted in a record annual adjusted Ebitda of more than US$540mn and a robust all-in sustaining costs margin of 49%." 

According to Trading Economics, gold prices rose 28.2% to US$2,624/oz last year, while silver prices climbed 22.3% to US$30.80/oz in December. 

Kuzenko said that with only a few months left to complete the US$950mn Media Luna project, "we are well-positioned to exit the build with only a modest level of net debt, which will be repaid quickly when we pivot to positive free cash flow generation mid-year."  

As of end-2024, Media Luna's overall development was 94% complete, up from 87% at the start of Q4. The company has not provided guidance for production at Media Luna.   

"With an expanded exploration and drilling program, development activities at EPO [at the Morelos complex] on track to commence in the third quarter and an inaugural return of capital program to be formalized mid-year, 2025 is expected to be yet another exciting and prosperous year for Torex as we enter the next chapter at Morelos," Kuzenko said. 

According to the release, Torex achieved a new annual average gold recovery record of 90.6% at the processing plant and a yearly mining rate from El Limón Guajes underground of nearly 2,100t/d. "In addition, significant progress was made on the Media Luna project, with first copper concentrate production tracking to plan for the end of March and commercial production expected to be declared shortly thereafter," the CEO said.

El Limón Guajes and Media Luna are both part of the Morelos complex.